A business unit in which profits are shared on the basis of members' patronage is known as

A business unit in which profits are shared on the basis of members' patronage is known as a Co-operative society. A Co-operative society is a type of business organization that is owned and controlled by a group of individuals who share a common interest or goal. Members of a Co-operative society contribute to the capital of the society and share in the profits of the business based on their level of patronage. The primary objective of a Co-operative society is to provide goods or services to its members at a reasonable cost, while also generating profits for the business.