What do cooperative firms do if they make a profit?
A) Cooperatives never earn profits, so this issue does not occur.
B) Cooperatives must pay their profits to the federal governments as a windfall profit tax.
C) Cooperatives must keep half of the profits and return the other half to their members.
D) Cooperatives generally return the profits to their members as a dividend.

Question

Quizplus · Accepted Answer

Cooperatives generally return the profits to their members as a dividend. Since cooperatives are member-owned, any profit they make is essentially the profit of their members. Therefore, it is common for cooperatives to distribute their profits to their members in the form of a dividend.

What Do Cooperative Firms Do If They Make a Profit