quiz #7

In the setting up of commodity pools, a given set of factors must be considered, EXCEPT:

• Number of Grades

• Area to be covered

• Length of pooling period

• The products are physically commingled

_______are organized primarily along commodity lines.

• Pooling

• Cash

• Products

• Expense

Pooling has distinct features:

• the products are physically commingled

• the sales receipts or proceeds are lumped together and the net returns are distributed proportionately to the participating members on the basis of an average price

• the expenses, both fixed and variable, are all treated in common

• all of these

The following are main components of pooling, EXCEPT:

• Products

• sales receipts

• income

• Expenses

Members are experiencing varying quality in products. What pooling objective can help standardize this?

• Encourage independent quality control

• Centralize processing and standardize product quality

• Increase individual member production

• Reduce cooperative oversight

The cooperative is looking to organize its members better. Which primary grouping of pools should it consider?

 

• According to geographic location

• Based on individual preferences

• By member size

• Random selection

To manage risk better, what pooling characteristic should the cooperative emphasize?

• Independent member decision-making

• Shared risks and rewards

• Isolated financial strategies

• Independent quality control

For effective quality control and pricing, the cooperative should adopt:

 

•  Independent quality and pricing control

• Fragmented marketing efforts

• Individualized collection and distribution

• Centralized quality control and collective pricing

The cooperative wants to optimize its resources based on market demand. Which pooling approach should it adopt?

 

• Random selection of pools

• Market demand and geographic location-based planning

• Cooperative size-based grouping

• Member preference-based grouping

A cooperative wants to ensure consistent quality and pricing. Which characteristic of pooling supports this?

• Combined marketing and shared profits

• Independent marketing efforts

• Individual profit maximization

• Competitive pricing among members