Q.A short-term payment or loan given by the society to a member against the produce deposited with it, so the member gets immediate cash, is known as a/an: (A) Dividend
(B) Advance against produce
(C) Commission
(D) Bonus share

To stop members from being forced to sell cheap for quick cash, the society can pay part of the value up front against the produce a member has handed in. …

Giving members some cash immediately, before the pooled produce is finally sold, is a key function that protects members from distress selling.

(A) A dividend is a share of profit paid on capital, not a payment against deposited produce — incorrect.

(B) An advance against produce is exactly a part-payment/short-term loan given against the produce a member deposits, giving immediate cash — correct. …

Students sometimes confuse an advance against produce with a dividend — the advance is cash given up front against goods deposited (a financing function), while a dividend is a …