The correct answer is: A. Cash and kind
A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
Co-operatives are owned and run by their members, who are the people who use their services or who work in them. They are not run for profit, but to meet the needs of their members.
The surplus generated by co-operatives is distributed in the form of cash and kind. Cash payments are made to members in proportion to their use of the co-operative’s services. Kind payments can take many forms, such as discounts on goods and services, or free or subsidised goods and services.
The distribution of surplus in the form of cash and kind is designed to benefit all members of the
co-operative, regardless of their financial contribution. This is in contrast to the distribution of profits in a traditional business, which is typically only made to shareholders.Here is a brief explanation of each option:
- Option A: Cash and kind. This is the correct answer. The surplus generated by co-operatives is distributed in the form of cash and kind. Cash payments are made to members in proportion to their use of the co-operative’s services. Kind payments can take many forms, such as discounts on goods and services, or free or subsidised goods and services.
- Option B: Dividend and profit. This is not the correct answer. The surplus generated by co-operatives is not distributed in the form of dividends. Dividends are payments made to shareholders of a traditional business, and co-operatives do not have shareholders.
- Option C: Profit and dividend. This is not the correct answer. The surplus generated by co-operatives is not distributed in the form of profits. Profits are the earnings of a traditional business, and co-operatives do not have earnings.
- Option D: Dividend and bonus. This is not the correct answer. The surplus generated by co-operatives is not distributed in the form of bonuses. Bonuses are payments made to employees of a traditional business, and co-operatives do not have employees.