Q.In a marketing co-operative society, the surplus is mainly distributed among members in proportion to: (A) The number of shares each member holds
(B) The quantity/value of produce each member supplied
(C) The number of years of membership
(D) Equally, without any basis

A member's real contribution to a marketing co-operative is the produce they bring to it, so the surplus is shared on that basis rather than on capital. …

Unlike a company, which distributes profit on the basis of capital (shares held), a marketing co-operative distributes its surplus mainly on the basis of each member's business with the society.

(A) Distribution by number of shares is the company/dividend approach, not the co-operative basis for surplus here — incorrect.

(B) The quantity or value of produce a member supplied is that member's real contribution to the society's business, so surplus is shared on this basis — correct. …

Students sometimes assume surplus is shared like company dividends (on shares held) — in a marketing co-operative it is shared mainly in proportion to the produce supplied, becaus …