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What problem can arise if a Farmer Producer Organisation has weak accounting?

Answer and explanation

Correct answer: Members trust may decline and financial decisions may weaken

The direct answer is B. An FPO is a collective organisation in which farmers pool produce, buy inputs, sell goods, or make common financial decisions. Weak accounting means income, expenses, loans, stock, payments, and member contributions may not be recorded clearly. Members may then suspect misuse of money, and leaders may make poor decisions because they do not know the real financial position. Option B is correct because transparent records support trust, accountability, and sound planning. Option A is impossible: accounting cannot harvest crops. Option C is wrong: bookkeeping cannot control weather. Option D is wrong: accounts do not physically change land size. The lesson is that governance is practical: accurate records protect both members and the organisation.

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AgricultureFpoAccountingGovernance

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