Question

Assertion (A): Cooperative societies aim to provide service to their members rather than earning profits.

Reasoning (R): Members of cooperative societies earn dividends in proportion to their capital investment.

पर्याय

• Both A and R are true, and R explains A.

• Both A and R are true, but R does not explain A.

• A is true, but R is false.

• A is false, but R is true.

Answer 1

A is true, but R is false.

Explanation:

• Assertion (A) is true because cooperative societies primarily aim to provide services to their members rather than to earn profits. Their motto is more about mutual benefit and service to members than profit-making.
• Reasoning (R) is false because the dividends in cooperative societies are not earned strictly in proportion to the capital invested by the members. Instead, the surplus (profits) is distributed equitably based on the volume of business done or transactions with the cooperative by the members. A limited dividend, usually up to 10%, is paid on the share capital, but the leading share of profits is based on members’ business with the society, not just capital investment.