COOPMASTER Question Bank: Round 1 - Easy

Which Article of RA 9520 provides for the definition of a cooperative?

Answer explanation

Article 3 of RA 9520 defines a cooperative, outlining its nature, purpose, and the principles that govern its operation. This article is essential for understanding the legal framework of cooperatives in the Philippines.

A cooperative can exist even without a set of By-Laws as long as it has Articles of Cooperation.

• True

• False

Answer explanation

The statement is false because a cooperative requires both Articles of Cooperation and By-Laws to function properly. By-Laws provide essential governance rules that complement the Articles.

What is the maximum percentage of paid-up share capital that a single member can own in a cooperative?

Answer explanation

In a cooperative, a single member can own a maximum of 10% of the paid-up share capital. This limit ensures equitable distribution of ownership among members.

Among the 7 cooperative principles, which directly promotes continuous education and training?

Answer explanation

The principle of 'Education, Training, and Information' directly promotes continuous education and training, emphasizing the importance of ongoing learning for cooperative members to enhance their skills and knowledge.

What is the minimum authorized share capital required to register a cooperative with CDA?

Answer explanation

To register a cooperative with the Cooperative Development Authority (CDA), the minimum authorized share capital required is typically set at PHP 1,000. This ensures that the cooperative has sufficient funds to operate.

If a cooperative has 100 members, how many constitute a simple majority during a General Assembly?

Answer explanation

A simple majority is more than half of the members. For 100 members, a simple majority is 51 members, as 50 would be equal and not a majority.

What is the maximum penalty for a cooperative that fails to submit reports to CDA for five consecutive years?

Answer explanation

The maximum penalty for a cooperative that fails to submit reports to the CDA for five consecutive years is a fine or suspension of its registration, as mandated by cooperative laws to ensure compliance and accountability.

Which CDA dimension checks compliance with submission of reports and governance practices?

Answer explanation

The CDA dimension that checks compliance with submission of reports and governance practices is the 'Governance' dimension, which ensures that organizations adhere to required reporting and governance standards.

The General Assembly is higher than the Board of Directors.

• True

• False

Answer explanation

The General Assembly typically holds a higher authority than the Board of Directors in organizational structures, making the statement true.

The Philippine Cooperative Code (RA 9520) amended which earlier law?

Answer explanation

The Philippine Cooperative Code (RA 9520) amended the earlier law known as the Cooperative Code of the Philippines (PD 175). This amendment updated regulations and provisions for cooperatives in the country.