Read the following articles and answer the questions. The question is worth 6 marks

Calgary Co-Op shares over $34 million in refunds with members

Canada NewsWire[Ottawa] 26 Mar 2015.

Investing in the future has contributed to Calgary Co-op's ongoing financial success

CALGARY, March 26, 2015 /CNW/ - Financial results for Calgary Co-operative Association Limited's (Calgary Co-op's) financial year ending November 1, 2014, show an increase in sales of 4.72%. Total sales for the year were $1.243 billion, up from $1.187 billion in 2013. Assets increased by $33 million for a total of $519 million compared to $486 million in 2013.

Calgary Co-op member-owners continue to share in this financial success: a total of $34.6 million in member refunds was distributed this year ($10.6 million was paid in share equity and $24.0 million was paid in cash).

"Calgary Co-op is committed to investing in our future," said Ken Keelor, Chief Executive Officer at Calgary Co-op, "Last year brought numerous renovations and the introduction of new products, services and offerings in our stores. This hyper-differentiates Calgary Co-op in a highly competitive market and positions us well for continued growth and success."

In 2014, Calgary Co-op renovated nine food centres, 14 gas bars, opened a new wine, spirits and beer location in Kensington and began construction on a new food centre, gas bar and wine, spirits and beer location in Strathmore.

These renovations introduced a variety of new offerings to Calgary Co-op members including: Fresh to Go featuring ready to eat or heat meals prepared by Red Seal Chefs, Local Roast coffee bars that roast, grind and brew some of the finest batches of globally-sourced green organic beans and Natural Choice which provides natural alternatives for health and wellness.

Calgary Co-op Pharmacies continue to provide an array of services including injections and vaccinations, medication reviews, clinics and personalized consultations. Co-op Travel is focused on providing trustworthy service for members, and Co-op Home Health Care is concentrated on expanding their offering and presence in Southern Alberta.

Calgary Co-op also remains committed to the community and donated more than $4.2 million in 2014 in conjunction with the Co-op Community Foundation to the Calgary Food Bank, Habitat for Humanity, Meals on Wheels, the Mustard Seed in addition to other local not-for-profits and charitable organizations

Since 1957, Calgary Co-op has shared more than $772 million with its members through the annual member refund.

About Calgary Co-op

Owned by our members, Calgary Co-op is one of the largest retail co-operatives in North America. With over 440,000 members, 3,700 employees, assets of $519 million and annual sales over $1.2 billion, Calgary Co-op is committed to lead in food; petroleum; home health care; pharmacy; wine, spirits, beer and travel. In 2014, through the Co-op Community Foundation and community initiatives, Calgary Co-op invested over $4.2 million into local youth programs, education, environment, preventative health and poverty relief. For more information please visit www.calgarycoop.com

SOURCE Calgary Co-Operative Association Limited (Calgary Co-op)Copyright CNW Group 2015

a)From the Michael Cook article identify one of the property rights problems that may have been causing problems for Calgary Co-operative as it made the decision to invest heavily in new infrastructure and services. Do you think that affected the division of profits into cash payments and retained equity in 2015?

b) Calgary co-operative operates in one city. Consumers today are looking for more local food sources. Would the co-operative be more appealing to today's consumers or not? Would consumer appreciate being members of their grocery store co-op?

c) Calgary Co-operative shows itself to be committed to the International Co-operative Principles. Can you provide two examples that are clear from the description of their activities in the article?