In a Cooperative,members/customers

question 63

Multiple Choice

In a cooperative,members/customers:

• A)Democratically control their businesses by electing a board of directors.
• B)Are known as limited partners.
• C)Each have unlimited liability for the debts of the firm.
• D)Take turns serving on the board that manages the company.

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Definitions:

Net Sales

The financial income a business earns from sales activities, minus the deductions for returns, damaged or lost items allowances, and discounts.

Gross Profit

The financial gain obtained after deducting the cost of goods sold from total sales revenue.

Income from Operations

The profit realized from a business's ongoing operations, calculating the difference between revenues from operations and operational expenses.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to update the balances of accounts.