quiz #8

Designed to plug any possibility of capitalistic control of a cooperative corporation, cooperatives usually set a maximum on the number of common stock that one can purchase.

• apportionment on a prorate basis of the sale of shares of stock

• low par value of shares of common stock

• liberal payment scheme for shares of common stock

• limited shareholdings

It is a customary practice to peg such a low par value to the shares of common stock so that they are easily within the reach of anybody who wants to be a member of a cooperative

• liberal payment scheme for shares of common stock

• low par value of shares of common stock

• apportionment of a prorate basis of the sale of shares of stock

• limited shareholdings

Common Kinds and uses of reserves, EXCEPT:

• valuation reserves

• liquidity reserves

• capital reserves

• deferment reserves

Definitely the best-known method of raising capital is through ______

• sale of bonds and debentures

• trade credit

• borrowings

• deferred payment

____ is the ability of the trading firm, such as cooperatives, to secure goods for sale in exchange for a promise to pay at some specific future time.

• Borrowings

• Trade Credit

• Sales of bonds and Debentures

• Deferred payment

This method is however, extremely limited since only large cooperatives with well-established credit and with substantial assets.

• Borrowings

• Deferred payment

• Trade credit

• Sales of Bonds and Debentures

______ which refers to the payment of products after they had been sold is a long standing practice among marketing cooperatives

• Trade credit

• Borrowings

• Deferred payment

• Sale of bonds and debentures

Definitely the best-known method of raising capital is through ____

• borrowings

• deferred payment

• trade credit

• sales of bonds and debentures

Fixed asset acquisition also known as

• replacement

• working capital

• Accounts receivable

• capital budgeting

Fixed asset acquisition problems generally fall under four areas, EXCEPT:

• Expansion

• Replacement

• borrowing

• buy or lease