What do cooperative firms do if they make a profit?

A) Cooperatives never earn profits, so this issue does not occur.
B) Cooperatives must pay their profits to the federal governments as a windfall profit tax.
C) Cooperatives must keep half of the profits and return the other half to their members.
D) Cooperatives generally return the profits to their members as a dividend.

Windfall Profit Tax

A windfall profit tax is a higher tax rate applied to unexpected or unusually large profits generated by companies, often imposed during periods of economic boom or due to geopolitical events affecting commodity prices.

Dividend

Dividend is a portion of a company's earnings that is paid to shareholders, usually on a regular basis.

Cooperatives

An organization owned and operated by a group of individuals for their mutual benefit.