Cooperative LAW - Special Laws PDF

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Cooperative Law MULTIPLE CHOICE QUESTIONS All of these are objectives and goals of cooperative except which one? A. Provide goods and services to its members to enable them to attain increased income, savings, investments , productivity and purchasing power, and promote among themselves equitable di...

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Cooperative Law MULTIPLE CHOICE QUESTIONS 1. All of these are objectives and goals of cooperative except which one? A. Provide goods and services to its members to enable them to attain increased income, savings, investments , productivity and purchasing power, and promote among themselves equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing. B. Provide optimum social and economic benefits to its members. C. Allow the higher income and more privilege groups to increase their ownership in the wealth of the nation. D. Propagate cooperative practices and new ideas in business and management. 2. All of these shall set forth in the articles of cooperation except which one? A. The purpose or purposes and scope of business for which the cooperative is to be registered B. The name of the cooperative which shall include the word cooperative C. The list of the names of the members and directors who shall manage the cooperative. D. The amount of it’s share capital, the names and residence of it’s contributors and a statement of whether the cooperative is primary, secondary or tertiary. 3. The bylaws of each cooperative shall provide all of these except? A. The qualifications for admission to membership and the payment to be made or interest to be acquired as a conditions for the exercise of the rights of membership. B. The rules and procedures on the agenda, time, place and manner of calling, convening, conducting meetings quorum requirements, voting systems, and other matters relative to the business affairs of the general assembly, board of directors and committees. C. The manner in which the capital maybe raised and the purposes for which it can be utilized. D. A reconciliation or remediation mechanism for the amicable settlement of the disputes among members, directors, officers and committee members of the cooperative. 4. All of these are effects of merger and consolidation of cooperatives except? A. The constituent cooperatives shall become a single cooperative in which, in case of merger, shall the surviving cooperative, and, in case of consolidation shall be the consolidated cooperative.

B. The mixed existence of the constituent cooperatives shall cease, except that of the surviving or the consolidated cooperative. C. The surviving or the consolidated cooperative shall possess all the assets, rights and privileges, immunities and and franchise of each of the constituent cooperative. D. The surviving or consolidated shall be responsible for all the liabilities and obligation of each of the constituent cooperatives in the same manner as if such surviving or consolidated cooperative had itself incurred such liabilities or obligations. 5. Membership in the cooperative may be terminated by a vote of the majority of all the members of the board of directors for any of the following causes. Which is incorrect? A. When a member has not patronized any of the activities of the cooperative for an unreasonable period of time as maybe previously determined by the board of directors. B. When a member has not continuously failed to comply with his obligations. C. When a member has acted in violation of the bylaws and the rules of the cooperative D. For any act or omission injurious to the interest or the welfare of the cooperative. 6. A contract entered into by the cooperative with one or more of its directors, officers, and committee members is voidable, at the option of the cooperative, unless all of the following except one is present. A. That the presence of such director in the board meeting wherein contract was approved was necessary to constitute a quorum B. That the vote of such director was not necessary for the approval of the contract. C. That the contract is fair and reasonable under the circumstances D. That in the case of an officer or committee member, the contract with the officer or committee member has been previously authorized by the general assembly or by the board of directors. 7. This act known as the Philippine Cooperative Code 2008. A. Republic Act No. 5290

B. Republic Act No. 2590

C. Republic Act No. 9520

D. Republic Act No. 9052

8. An autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic and cultural needs and aspirations by making equitable contri

butions to the capital required. A. Corporation

B. Joint ventures

C. Joint association

D. Cooperative

9. Shall mean the full membership of the cooperative duly assembled for the purpose of exercising all the rights and performing all the obligations pertaining to cooperatives. A. General Assembly

B. General Assemblage

C. Representative Assembly

D. Representative Assemblage

10. It is means the operative act granting juridical personality to a proposed cooperative and is evidence by certificate of registration. A. Certification

B. Registration

C. Authorization

D. Assignment

11. Refers to the government agency in charge of the registration and regulation of cooperatives as herein after referred to authority. A. Cooperative Design Authority

B. Bureau of Internal Revenue

C. Cooperative Development Authority

D. Securities and Exchange Commission

12. It is means the full membership of a body of representatives elected by each of the sectors, chapter or district to the cooperative duly assembled for the purpose of exercising such powers lawfully delegated unto them by the general assembly in accordance with it’s laws. A. General Assembly

B. General Assemblage

C. Representative Assembly

D. Representative Assemblage

13. Cooperatives registered under this code may derived their capital from any or all of the following sources. Which is incorrect? A. Member’s share capital B. Loans and borrowings including deposits C. Revolving capital which consist of the deferred payment of patronage refunds, or interest on share capital D. Subsidies donations, legacies, grants, aids and such other assistance from any local or foreign institution whether public or private. Provided, that the capital coming from such subsidies, donations, legacies, grants

aids and other assistance shall be divided into individual share capital holdings at any time but shall instead form a part of the donated capital or fund of the cooperative. 14. A cooperative may invest its capital in any of the following except which one? A. In shares or debentures or securities of any other cooperative B. In any reputable bank in the locality or any cooperative. C. In securities issued by the government and private entities D. In real state primarily for the use of the cooperative or it’s members. 15. All of these are principles of cooperatives except which one. A. Voluntary and open membership

B. Concern for community

C. Member delegation participation

D. Autonomy and independence

16. One that promotes and undertakes savings and lending services among it’s members. A. Credit Cooperative

B. Producers cooperative

C. Consumers cooperative

D. Marketing Cooperative

17. One of the primary purpose of which is to procure and distribute commodities to members and market their products. A. Credit Cooperative

B. Producers cooperative

C. Consumers cooperative

D. Marketing Cooperative

18. One that undertakes joint production whether agricultural or industrial. It is formed and operated by its members to undertake the production and processing of raw materials or goods produced by its members into finished or processed products for sale by the cooperative to its members and non-members. A. Credit Cooperative

B. Producers cooperative

C. Consumers cooperative

D. Marketing Cooperative

19. One which engages in the supply of production inputs to members and market their products. A. Credit Cooperative

B. Producers cooperative

C. Consumers cooperative

D. Marketing Cooperative

20. Means that body of cooperative principles adhered to worldwide by cooperatives. A. Globally Accepted principles

B. Internationally accepted principle

C. Universal accepted principle

D. World wide accepted principle

21. Refers to three or more primary cooperatives doing the same line of business, organized at the municipal, provincial, city, special metropolitan political subdivision or economic zones created by law. A. Subsidiary cooperative

B. Parents cooperative

C. Conglomerate Cooperative

D. Primary cooperative

22. Any merger, consolidation and division of cooperative require _______ of affirmative votes of all the members with voting rights present and constituting a quorum. A. 2/3

B. 1/3

C. 3/4

D. 2/4

23. One which engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional and other services. A. Agrarian reform cooperative

B. Advocacy cooperative

C. Multipurpose Cooperative

D. Service Cooperative

24. One which combines two or more of the business activities of these different types of cooperatives. A. Agrarian reform cooperative

B. Advocacy cooperative

C. Multipurpose Cooperative

D. Service Cooperative

25. Is a primary cooperative which promotes and advocates cooperativism among its members and the public through socially oriented projects, education and training, research and communication, and other similar activities to reach out to its intended beneficiaries. A. Agrarian reform cooperative

B. Advocacy cooperative

C. Multipurpose Cooperative

D. Service Cooperative

26. One organized by marginal farmers majority of which are agrarian reform beneficiaries for the purpose of developing an appropriate system of land tenure, land development, land consolidation or land management in areas covered by agrarian reform. A. Agrarian reform cooperative

B. Advocacy cooperative

C. Multipurpose Cooperative

D. Service Cooperative

27. One which has complied with all the membership requirements and entitled to all the right and privileges.

A. Associate members

B. Right members

C. Qualified members

D. Regular members

28. All of these are purposes of cooperative unions except one. A. To disregard the appropriate authorities on all questions relating to cooperatives. B. To develop the cooperative movement in their respective jurisdiction C. To acquire, analyze and disseminate, economic, statistical and other information relating to its members and to all types of cooperatives whether within its area of operation. D. To promote the knowledge of cooperative principles and practices. 29. One organized for the primary purpose of providing a wide range of financial services to cooperatives. A. Cooperative Bank

B. Dairy Cooperative

C. Education Cooperative

D. Electric Cooperative

30. One organized for the primary purpose of engaging in savings and credit services and other financial services. A. Cooperative Bank

B. Financial service cooperative

C. Service deposit cooperative

D. Finance Cooperative

31. Members of which are natural persons. A. Tertiary

B. Secondary

C. Primary

D. Preparatory

32. The members of which are secondary cooperatives. A. Secondary

B. Primary

C. Preparatory

D. Tertiary

33. A regular meeting shall be held________ by the general assembly. A. Annually

B. Biennially

C. Semi-annually

D. Quarterly

34. Each member of a primary cooperative shall have ______ vote. A. 1

B. 2

C. 3

D. 4

35. Refer to any body entrusted with specific functions and responsibilities under the bylaws or resolution of the

general assembly or the board of directors. A. Member

B. Committee

C. Management

D. Board of directors

36. A procedure wherein the cooperative assesses its social impact and ethical performance vis-à-vis its stated mission, vision, goals and code of social responsibility. A. Social audit

B. Procedural audit

C. Performance audit

D. Legal audit

37. Refer to an audit on the efficiency and effectiveness of the cooperative as a whole. A. Government Audit

B. Compliance audit

C. Performance audit

D. Social audit

38. What is the minimum capitalization for primary cooperative? A. P50 000

B. P500 000

C. P15 000

D. P5 000 000

39. What is the minimum capitalization for secondary cooperative? A. P50 000

B. P500 000

C. P15 000

D. P5 000 000

40. What is the minimum capitalization for tertiary cooperative? A. P50 000

B. P500 000

C. P15 000

D. P5 000 000

41. An associate member who meets the minimum requirements of regular membership continues to patronize the cooperative for _____ year/years and signifies to remain a member shall be considered a regular member. A. 1

B. 2

C. 3

D. 4

42. All elected officials are ______ to be officers or directors of a cooperative except a party-list representative being an officer of a cooperative he/she represents. A. Liable

B. Unqualified

C. Incompetent

D. Ineligible

43. Shall be directly accountable to the general assembly and shall have the power and duty to monitor the adequacy and effectiveness of the coop’s management control system. A. Audit Committee

B. General Assembly Committee

C. Board of Directors

D. Management

44. Responsible for continuous and periodic review of books of accounts; monitor adequacy and effectiveness of management’s control system and audit the performance of the cooperative. A. Audit Committee

B. General Assembly Committee

C. Board of Directors

D. Management

45. Annual reports must filed within ____ days from the close of the calendar year. A. 90

B. 60

C. 120

D. 150

46. This type of audit is conducted by external auditor in good standing with PICPA and accredited by Board of Accountancy and CDA. A. External audit

B. Internal audit

C. Financial audit

D. Performance audit

47. A member of a cooperative may, for any valid reason, withdraw his membership from the cooperative by giving a ____ day notice to the board of directors. A. 90

B. 120

C. 60

D. 30

48. A member whose membership the board of directors may wish to terminate shall be informed of such intended action in writing and shall be given an opportunity to be heard before the board makes its decision. This will be appealable from the receipt thereof within how many days? A. 90

B. 45

C. 30

D. 60

49. In case of a newly approved cooperative, a special general assembly shall be called, as far as practicable, within ____ days from such approval. A.90

B. 45

C. 30

D. 60

50. Notice of any meeting may be waived__________ by any member. A. Impliedly

B. Expressly

C. Expressly or Impliedly

D. Both A and B

KEY ANSWERS

26. A

1. C

27. D

2. C

28. A

3. D

29. A

4. B

30. B

5. B

31. C

6. A

32. D

7. C

33. A

8. D

34. A

9. A

35. B

10. B

36. A

11. C

37. C

12. C

38. C

13. D

39. B

14. C

40. D

15. C

41. B

16. A

42. D

17. C

43. A

18. B

44. A

19. D

45. C

20. C

46. C

21. A

47. C

22. C

48. C

23. D

49. A

24. C

50. C

25. B...