Rflib Quiz 2 LAW EXAM PDF

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RFLIB Quiz 2 A cooperative which provides a wide range of financial services to cooperatives and their members: a. Financing Cooperative b. Credit Cooperative c. Cooperative Bank d. Consumers Cooperative The CDA Administrator has a term of 6 years without reappointment. ❏ True ❏ False The minimum pa...

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RFLIB Quiz 2 1. A cooperative which provides a wide range of financial services to cooperatives and their members: a. Financing Cooperative b. Credit Cooperative c. Cooperative Bank d. Consumers Cooperative 2. The CDA Administrator has a term of 6 years without reappointment. ❏ True False 3. The minimum paid up in a cooperative is always 25% of the subscribed share capital. ❏ True False 4. A cooperative has an approved capital of P1M. The minimum paid up capital allowed is: a. P62,500 b. P100,000 c. P250,000 d. Any amount 5. A Federation of cooperative is 2 or more coops joining with same/similar purpose. ❏ True False 6. The cooperative by-laws must be approved first by the BODs to be effective. ❏ True False 7. Insanity and insolvency of a secondary cooperative is a valid ground to terminate its membership. ❏ True False 8. The Audited Financial Statements of the cooperative must be filed with the CDA within how many days from the close of its fiscal or calendar year: a. 60 days b. 120 days c. 90 days d. 180 days 9. The purpose of this cooperative is to procure and distribute commodities to members and non-members: a. Producers Cooperative b. Credit Cooperative c. Marketing Cooperative d. Consumers Cooperative 10. Cooperatives are tax-exempt from all national and local taxes if their net income for the preceding year did not exceed P10M.

❏ True False 11. Board directors are not entitled to per diem if in the preceding year the operations resulted to net loss. True ❏ False 12. Proxy, as a rule, is not allowed in general assembly meetings. True ❏ False 13. Voluntary dissolution of a cooperative may be done by majority vote of BODs and 2/3 vote of members. ❏ True False 14. One is not a qualification to be a CDA administrator: a. Resident of Philippines at least 5 years prior to appointment b. Natural born citizen c. Holder of Bachelor's Degree d. With Civil Service Eligibility 15. A cooperative does not have a separate juridical personality unlike a corporation. ❏ True False 16. Board directors can also attend thru a proxy if by laws provided. ❏ True False 17. General assembly meeting should be done before April 15 of the succeeding year if by laws did not provide. ❏ True False 18. Which is not a qualification to be a member of the Board of CDA: a. Resident of Philippines at least 5 years prior to appointment b. Natural born citizen c. Holder of Bachelor's Degree d. With Civil Service Eligibility 19. All are found in the Articles of Cooperation, except: a. Term of existence of the cooperative b. Name of founding members c. Distribution of Net Surplus d. List/Name of Directors 20. A cooperative has a net surplus of P10M for the fiscal year 2018, how much should be given to the members in the form of dividends or interest on their share capital? a. At least P1,000,000

b. At least P2,000,000 c. At least P2,500,000 d. At least P5,000,000 21.A cooperative is legally born only when the Cooperative Development Authority (CDA) issues the Certificate of Incorporation. ❏ True False 22. Which is not a requirement to be a cooperative member? a. Pre-membership Education Seminar b. Must be a Filipino Citizen c. Share capital contribution d. Approval of General Assembly 23. An audit of the cooperative on its efficiency and effectiveness as an organization: a. Social audit b. Efficiency audit c. Performance audit d. Effectiveness audit 24. Which is false about cooperative BODs? a. Not less than 5 nor more than 15 persons b. Filipinos and of legal age c. Elected for a term of 1 year unless by laws will provide d. No executive function in the cooperative 25. The 2 year non-operation rule as a ground to dissolve a cooperative is automatic. ❏ True False 26. Intentional use of the word cooperative without CDA registration is a criminal act under the law. True ❏ False 27. A cooperative has a net surplus of P10M for the fiscal year 2018. How much should be distributed for community development? a. At least P700,000 b. At least P300,000 c. At least P1,000,000 d. At least P2,500,000 28. Upon filing of the application for registration with the required attachments, the CDA must act on the said application within this period, otherwise, it is deemed approved: a. 30 days from filing b. 45 days from filing c. 60 days from filing d. 90 days from filing

29. The external auditor of a cooperative must be a CPA and duly accredited by BIR. ❏ True False 30. All are grounds for CDA to dissolve a cooperative except: a. Insolvency b. Failure to operate cooperatively c. Fraud in the registration d. Violation of the Cooperative Code 31. The CDA Board is composed of a Chairman and six (6) Directors representing specific clusters. True ❏ False 32. Regular annual meeting of the cooperative is within 90 days from close of its calendar/fiscal year, if there is no date fixed in the by-laws. True ❏ False 33. Life of a cooperative is extendible for another 50 years provided extension is made in the last 3 years of its original term. ❏ True False 34. A cooperative has an approved capital of P1M, the maximum share capital a member can invest is: a. 10% of P1M b. 20% of P1M c. 25% of P1M d. 30% of P1M 35. A cooperative has a net surplus of P10M for the fiscal year 2018, the amount that should be spent for training and development of its members is? a. Not more than P1,000,000 b. Not more than P2,000,000 c. Not more than P2,500,000 d. Not more than P3,000,000 36. 2/3 vote of BODs can also expel a member for a valid cause. ❏ True False 37. A member of a cooperative may withdraw his membership for a valid cause by giving a 30-day notice. ❏ True False 38. A cooperative has a net surplus of P10M for the fiscal year 2018, how much should be kept as reserve funds, if the cooperative has been operating for more than 5 years? a. At least P1,000,000 b. At least P2,000,000

c. At least P2,500,000 d. At least P5,000,000 39. To remove a director, the required number of votes is: a. 25% of members b. 2/3 of members c. ¾ of members d. Majority members 40. One is not a qualification to be a director: a. Resident of Philippines at least 5 years prior to BOD election b. Filipino citizen and of legal age c. Elected by majority vote of members d. At least 2 years as a member 41. A cooperative has an approved capital is P100,000, the minimum paid up should be: a. P6,250 b. P25,000 c. P15,000 d. Any Amount 42. A cooperative composed of minor individuals. a. Primary Cooperative b. Subsidiary Cooperative c. Laboratory Cooperative d. Guardian Cooperative 43. A cooperative has a net surplus of P10M for the fiscal year 2018, how much should be spent for Land & Building Improvement? a. Not more than P700,000 b. Not more than P300,000 c. Not more than P1,000,000 d. Not more than P2,500,000 44. Only natural persons can form this cooperative. a. Primary Cooperative b. Subsidiary Cooperative c. Tertiary Cooperative d. Secondary Cooperative 45. BODs in a cooperative are not entitled to compensation as a rule. True ❏ False 46. All are found in the By laws, except: a. Rights and obligations of a member b. Audit and accounting procedures c. Distribution of Net Surplus d. List/Name of Directors

47. To amend the Articles of Cooperation or By laws, requires a. At least majority vote of members in a General Assembly b. At least 2/3 vote of members in a General Assembly c. At least ¾ vote of members in a General Assembly d. At least 25% of total members only in a General Assembly 48. The original cooperative members or registrants are exempt from the maximum share capital limitation. ❏ True False 49. As additional requirement, a single purpose cooperative can convert itself into a multipurpose cooperative if it has a paid up capital of at least P100,000. True ❏ False 50. BODs are disqualified to be executive officers in a cooperative. True ❏ False 51. All are requirements for cooperative registration, except: a. Economic survey including staffing pattern b. Articles of cooperation c. By laws d. Approval of Affected government agency 52. A single purpose cooperative can convert itself into a multi-purpose cooperative after operating for: a. At least one year b. At least two years c. At least three years d. At least five years 53. The Chief Executive Officer of a cooperative is called? a. Administrator b. President c. General Manager d. Chairman 54. All are grounds to disqualify a director, except: a. Conviction of crime involving fraud b. Conflict of interest c. Another director is a relative within the fourth degree of consanguinity d. Director for three consecutive terms 55. This committee is created by the General Assembly and not by the BODs: a. Ethics Committee b. Audit Committee c. Mediator and Grievance Committee d. Executive Committee

56. Founding members of a cooperative must be at least 5 persons. ❏ True False 57. Filipinos even if not with common bond of interest may form cooperatives as long as residing in the same area of operation. ❏ True False 58. Coop. is an autonomous juridical entity controlled by its BODs. ❏ True False 59. Cooperatives have no right of succession. ❏ True False 60. The maximum share capital in a cooperative for each member is 10% of total share capital. True ❏ False...