Question

The concept of 'Patronage Refund' in an Industrial Co-operative Society means that a portion of the surplus is distributed based on:

• A. The number of shares held by a member in the society
• B. The amount of loan taken by a member from the society
• C. The number of meetings attended by a member during the year
• D. The volume of business done by a member with the society

Answer 1

Answer:

D. The volume of business done by a member with the society

• Patronage refund rewards members proportionally to their actual participation and use of the society’s services

• e.g., raw materials purchased, goods produced.