Upon what metric are surplus earnings, or patronage refunds, returned to cooperative members?
Answer
Based on their use of the co-op.
Surplus earnings are returned to members based on how much they utilized the cooperative's services or products, not based on how much capital they invested.
Related Questions
How does the flow of power and profit fundamentally differ in a cooperative compared to a traditional business?What voting principle defines control in a cooperative, contrasting it with typical shareholder-owned corporations?Which group forms the membership base for a consumer cooperative?Upon what metric are surplus earnings, or patronage refunds, returned to cooperative members?What educational requirement is mandated under Cooperative Principle 5?What does the cooperative structure inherently value over rapid decision-making in times of change?In worker cooperatives, how might performance reviews potentially differ from traditional employment structures?What is the role of a newer, non-member employee during the deliberation stage of a major proposed operational change?What consequence risks the erosion of a cooperative's democratic foundation if members become disengaged?Who are the typical members in a producer cooperative?What practical impact might flatter pay scales in a worker cooperative reflect?