QUESTION IMAGE
Question
what happens to earnings in a cooperative?
○ they are used to pay middlemen for services.
○ they are shared with member owners.
○ they are used to buy more stock for members.
○ they are shared with customers through dividends.
In a cooperative, the earnings (or profits) are typically distributed among the member - owners who have a stake in the cooperative. Middlemen are not the recipients of cooperative earnings in this way. Buying more stock for members is not the primary way earnings are handled, and customers (who are not member - owners in the same sense) do not receive dividends from cooperative earnings in the typical cooperative structure. So the correct statement is that earnings are shared with member owners.
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B. They are shared with member owners.