Valu Food Market is an incorporated cooperative. Like other incorporated cooperatives, Valu Food distributes profits to its owners on the basis of a. the degree to which they participate in management. b. their transactions with the cooperative. c. the amount of capital they contribute. d. the requirements of the state in which it was incorporated.

Question

Business

Essence Fuentes

14 September, 18:34

Valu Food Market is an incorporated cooperative. Like other incorporated cooperatives, Valu Food distributes profits to its owners on the basis of a. the degree to which they participate in management. b. their transactions with the cooperative. c. the amount of capital they contribute. d. the requirements of the state in which it was incorporated.

+1

Answers (1)

Know the Answer?

Jude Valenzuela · Answer 1

The correct answer is b. their transactions with the cooperative.

Explanation:

A general cooperative society is the one that controls or acts as the "parent" of the other incorporated cooperatives, therefore the accounting management of all of them as a whole will be considered in a consolidated statement of their operations. As there are mutual operations between the incorporated and the parent, it is expected that all obligations, rights or duties will be transferred to a principal in order to recognize the accounting reality of the management of a parent company over others of lower rank considered subordinate.