Worksheets3. Cooperative
Total questions: 20
Worksheet time: 10mins
It is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles
A. Corporation
B. Joint Venture
C. Association
D. Cooperative
It refers to the government agency created by Cooperative Code entrusted with the supervision and regulation of cooperatives in the Philippines
A. Securities and Exchange Commission (SEC)
B. Bangko Sentral ng Pilipinas (BSP)
C. Cooperative Development Authority (CDA)
D. Insurance Commission (IC)
Statement I: Member economic participation refers to the cooperative principle which means that members contribute equitably to, and democratically control, the capital of their cooperatives. At least part of that capital is the common property of the cooperative
Statement II:Members of a cooperative shall receive limited compensation or limited interest, if any, on capital subscribed and paid as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative by setting up reserves, part of which should at least be indivisible; benefitting members in proportion to their patronage of the cooperative's business; and, supporting other activities approved by the membership
A. Only Statement I is true
B. Only Statement II is true
C. Both statements are true
D. Both statements are false
Which of the following is an objective of a cooperative?
A. To teach members of inefficient ways of doing things in a cooperative manner
B. To allow the higher income and more privileged groups to increase their ownership in the wealth of the nation
C. To provide minimal social and economic benefits to its members
D. To provide goods and services to its members to enable them to attain increased income, savings, investments, productivity, and purchasing power, and promote among themselves equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing
What is the maximum foreign investment or ownership in a cooperative?
A. 100%
B. 50%
C. 20%
D. 0%
It refers to the document signed and acknowledged before a notary public by the organizers of a cooperative that will be filed to CDA in order for the prospective cooperative to be created
A. Articles of Co-Partnership
B. Articles of Cooperation
C. Articles of Incorporation
D. Articles of Association
When shall the amendments of Articles of Cooperation and By-Laws of the Cooperative take effect?
A. Upon its approval by the CDA or
B. Upon the lapse of 30 days from law of the date of filing amendment of articles or cooperation or bylaws if not acted upon by the CDA for a cause not attributable to the cooperative.
C. Either A or B
D. Neither A nor B
Statement I: The minimum subscribed shares before a prospective cooperative be registered with CDA is at least 25% of authorized share capital
Statement II: The minimum paid-up capital before a prospective cooperative be registered with CDA is at least 25% of the actual total subscription or P15,000, whichever is higher
A. Only Statement I is true
B. Only Statement II is true
C. Both statements are true
D. Both statements are false
Statement I: The nature of liability of Cooperative duly registered under CDA is unlimited liability.
Statement II: The extent or nature of liability of a member of a cooperative for the latter's debts to third persons up to the extent of his contribution to the share capital of the cooperative.
A. Only Statement I is true
B. Only Statement II is true
C. Both statements are true
D. Both statements are false
What is the capital structure of a cooperative before a refund be given to a withdrawing member?
A. The value of the assets of the cooperative must be equal its liabilities before the refunding
B. The value of the assets of the cooperative must be equal or exceed its liabilities after the refunding.
C. The value of the assets of the cooperative must be less than its liabilities before the refunding
D. The value of the assets of the cooperative must be less than its liabilities after the refunding
The following are grounds for termination of membership of a member in a cooperative, except
A. When a member has not patronized any of the services of the cooperative for an unreasonable period of time as may be previously determined by the board of directors
B. When a member has continuously failed to comply with his obligations
C. When a member has acted in violation of the bylaws and the rules of the cooperative
D. For any act or omission injurious or prejudicial to the interest or the welfare of the cooperative
E. When a member of a cooperative engages in another employment or business
What is the term of office of directors of a cooperative?
A. One year
B. Two years
C. Three years
D. Five years
Statement I: The regular meeting by the general assembly of a cooperative shall be held at least annually.
Statement II: The regular meeting of the board of directors of a primary cooperative shall be held at least monthly
A. Only Statement I is true
B. Only Statement II is true
C. Both statements are true
D. Both statements are false
The members of the board of directors of a cooperative shall not hold any other position directly involved in the day to day operation and management of the cooperative. Which of the following positions in a cooperative may be held concurrently of a director of a cooperative?
A. Chairman or Vice-chairman of the Board of Directors of the Cooperative
B. President of the Cooperative
C. Secretary of the Cooperative
D. Treasurer of the Cooperative
Statement I: An executive committee in a cooperative be created by provision in the by-laws or by mere resolution of board of directors despite no authorization in the by-laws
Statement II: The powers of the executive committee in a cooperative be delegated to it by provision in the by-laws or by a majority vote of all the members of the board of directors
A. Only Statement I is true
B. Only Statement II is true
C. Both statements are true
D. Both statements are false
Statement I: In the absence of provision in the by-laws fixing their compensation, the extent of benefits directors of a cooperative are entitled to are reasonable per diems
Statement II: The compensation of officers of a cooperative as well as the members of the committees may
be fixed in the by-laws
A. Only Statement I is true
B. Only Statement II is true
C. Both statements are true
D. Both statements are false
As a general rule, what is the status of a contract entered into by the cooperative with one or more of its directors, officers or committee members also known as contract with self-dealing directors or officers?
A. Voidable on the part of the cooperative
B. Unenforceable
C. Void
D. Rescissible
What type of cooperative is absolutely exempted from all taxes and fees imposed by national internal revenue taxes and other tax laws even without qualification?
A. Duly registered cooperative with CDA that does not transact business with non-members or the general public
B. Duly registered cooperative with CDA that transacts business with members, non-members and the general public
C. Duly registered cooperative with CDA with accumulated reserves and undivided net savings of not more than P10,000,000
D. Duly registered cooperative with CDA with accumulated reserves and undivided net savings of more than P10,000,000
After the dissolution of a cooperative through any of the modes provided by Cooperative Code, what is the maximum period provided by Cooperative Code for the liquidation of the dissolved cooperative?
A. For three years from the time it is dissolved
B. For one year from the time it is dissolved
C. For two years from the time it is dissolved
D. For four years from the time it is dissolved
A member shall have the right to examine the records required to be kept by the cooperative under Article 52 of the Cooperative Code during reasonable hours on business days and he may demand, in writing, for a copy of excerpts from said records without charge except the cost of production. What are the legal implications of refusal by the officer to allow a member to exercise this right?
A. Such officer shall be liable to such member for civil damages
B. Such officer shall be guilty of offense or crime punishable by Cooperative Code
C. Both A and B
D. Neither A nor B
