Cooperative Management Exam

What is the primary purpose of a cooperative?

• Maximize profit for owners

• Provide benefits and services to its members

• Compete aggressively in the market

• Generate revenue for the government

Which of the following is NOT a characteristic of a cooperative?

• Democratic control

• Profit maximization

• Voluntary membership

• Member economic participation

A multipurpose cooperative:

• Focuses only on one business activity

• Engages in two or more types of cooperative activities

• Requires state funding

• Is only for agricultural purposes

Housing cooperatives are primarily formed to:

• Provide affordable housing to members

• Buy and sell real estate

• Build commercial properties

• Develop urban areas

Which government agency regulates cooperatives?

• Department of Trade and Industry

• Cooperative Development Authority (CDA)

• Securities and Exchange Commission

• Department of Finance

Under cooperative laws, tax exemptions may be granted to:

• Cooperatives registered with the CDA

• Cooperatives with foreign investments

• Cooperatives operating as corporations

• Cooperatives that do not share profits

Cooperatives are encouraged by the government because they:

• Promote social justice and economic development

• Reduce government revenue

• Limit business competition

• Operate without regulation

The law that primarily governs cooperatives in the Philippines is:

• Republic Act No. 9520

• Republic Act No. 9165

• Republic Act No. 8792

• Republic Act No. 10173

What is the purpose of an audit in a cooperative?

• Increase operational costs

• Ensure financial transparency and accountability

• Restrict financial transactions

• Eliminate government supervision

If a cooperative dissolves, its remaining assets should be:

• Distributed among the members

• Given to another cooperative

• Taken by the government

• Donated to a cooperative development fund