In a cooperative partnership, profits are allocated in proportion to the amount of work performed by each member.

• A. No, profits are distributed equally
• B. No, profits go to investors
• C. It depends on ownership shares
• D. Yes, profits are allocated based on work performed

Answer: (D)

In a worker-based cooperative, profits are earned and shared to reflect how much each member contributes through their labor. This ties rewards directly to effort and participation, so those who work more receive a larger share. That makes the statement that profits are allocated in proportion to the amount of work performed the best description.

Distributing profits equally ignores differences in effort. Giving profits to investors or based on ownership shares fits traditional for-profit models, not the cooperative approach where active contribution drives returns. Some cooperatives also use patronage-based or labor-based allocations, but the emphasis in this scenario is on work performed, which is why this option is correct.