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The distribution of profits based upon the level of patronage in the business is a...

Commerce
WAEC 2005

The distribution of profits based upon the level of patronage in the business is a common feature of

  • A. partnership firms
  • B. public limited companies
  • C. co-operative societies
  • D. private limited companies
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Correct Answer: Option C
Explanation

Co-operative societies allocate profits to their members according to their level of participation or patronage, rather than the amount of capital invested. This aspect sets them apart from other business structures such as partnership firms and companies.


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