Question

No Part of the funds other than of the society shall be paid by way of bonus or dividend or otherwise distributed among members:

• A. Net profit
• B. Gross Profit
• C. Working profit
• D. Retained profit

Answer 1

Answer:

A. Net profit

According to co-operative principles, only the net profit of the society—after deducting all expenses, provisions, and reserves—can be distributed among members as a bonus, dividend, or in any other form. Gross profit is before deductions. Working profit is used for operational purposes. Retained profit is kept in the society for reserves and future needs. Thus, distribution is strictly from the net profit.