Which of the following is an investor earns profit on the basis of his patronage?
Answer Details
The investor who earns profit on the basis of his patronage is the co-operative member. A co-operative is a type of business organization where members pool their resources and work together to achieve common goals. In a co-operative, the members are also the owners, and they share in the profits of the business based on their patronage or the amount of business they conduct with the co-operative.
For example, if a co-operative is a grocery store, and a member shops at the store frequently, they would earn a share of the profits based on the amount of money they spend at the store. The more they shop, the more they earn.
In contrast, a debenture holder is a person who lends money to a company by buying debentures or bonds, and they earn interest on their investment. A partner is someone who invests in a business and shares in the profits and losses of the business. A sole proprietor is a business owner who is responsible for all the profits and losses of the business. A shareholder is a person who owns shares in a company and earns a portion of the profits based on the number of shares they own.