Chapter 2

Question 1

I. A prospective member of a primary cooperative must have completed a Pre-Membership Education Seminar (PMES).
II. A single-purpose cooperative may not transform into a multipurpose.

Answer 1

Only I is true

Question 2

I. A certificate of registration issued by the Cooperative Development Authority under its official seal shall be prima facie evidence that the cooperative therein mentioned is duly registered.
II. Any provision or matter stated in the articles of cooperation and by-laws may be amended by majority vote of all the members with voting rights.

Answer 2

Only I is true

Question 3

I. The dissenting members to exercise their right to withdraw in case of amendment of the articles of cooperation.
II. The dissenting members to exercise their right to withdraw in case of amendment of the by-laws.

Answer 3

Both are true

Question 4

I. Any registered cooperative may, by a resolution approved by a vote of 3/4 of all the members with voting rights, present and constituting a quorum, resolve to divide itself into 2 or more cooperatives.
II. No division of a cooperative in fraud of creditors shall be valid.

Answer 4

Both are true

Question 5

I. No merger or consolidation shall be valid unless approved by 3/4 vote of all the members with voting rights, present and constituting a quorum, of each of the constituent cooperatives at separate general assembly meetings.
II. The merger or consolidation shall be effective upon the issuance of the certificate of merger or consolidation by the CDA.

Answer 5

Both are true

Question 6

A cooperative which combines 2 or more of the business activities of these different types of cooperatives.

Answer 6

Multipurpose cooperative

Question 7

A cooperative organized for the primary purpose of providing medical, dental, and other health services.

Answer 7

Health service cooperative

Question 8

A cooperative organized by marginalized fishermen in localities whose products are marketed either as fresh or processed products.

Answer 8

Fishermen cooperative

Question 9

A cooperative organized by marginal farmers majority of which are agrarian reform beneficiaries.

Answer 9

Agrarian reform cooperative

Question 10

A primary cooperative which promotes and advocates cooperativism among its members and the public through socially-oriented projects, education and training, research and communication, and other similar activities to reach out to its intended beneficiaries.

Answer 10

Advocacy cooperative

Question 11

A cooperative organized for the primary purpose of providing a wide range of financial services to cooperatives and their members.

Answer 11

Cooperative bank

Question 12

It refers to a cooperative where the members of which are registered cooperatives and/or federations organized purposely to represent the interest and welfare of all types of cooperatives at the provincial, city, regional, and national levels.

Answer 12

Cooperative union

Question 13

It refers to a cooperative where the members of which are primary cooperatives doing the same line of business.

Answer 13

Federation of cooperatives

Question 14

The following are the purposes of cooperatives, except:

Answer 14

To acquire lands.

Question 15

I. The primary objective of every cooperative is to help improve the quality of life of its members.
II. The cooperative shall aim to provide goods and services to its members to enable them to attain increased income, savings, investments, productivity, and purchasing power.

Answer 15

Both are true

Question 16

It refers to a union of two or more existing cooperatives belonging to the same category whereby the surviving cooperative, retaining its identity, absorbs one or more constituent cooperative/s.

Answer 16

Merger

Question 17

It refers to cooperatives, which are parties to the merger/consolidation.

Answer 17

Constituent cooperatives

Question 18

It refers to the new cooperative created after the termination of the old cooperative in case of consolidation.

Answer 18

Consolidated cooperative

Question 19

A cooperative that promotes and undertakes savings and lending services among its members.

Answer 19

Credit cooperative

Question 20

A cooperative organized to assist or provide access to housing for the benefit of its regular members who actively participate in the savings program for housing.

Answer 20

Housing cooperative

Question 21

A cooperative engaged in the business of insuring life and poverty of cooperatives and their members.

Answer 21

Insurance cooperative

Question 22

A cooperative which includes land and sea transportation, limited to small vessels.

Answer 22

Transport cooperative

Question 23

A cooperative organized to own, operate and manage water systems for the provision and distribution of potable water for its members and their households.

Answer 23

Water service cooperative

Question 24

A cooperative where the primary purpose of which is to procure and distribute commodities to members and non-members.

Answer 24

Consumers cooperative

Question 25

A cooperative that undertakes joint production whether agricultural or industrial.

Answer 25

Producers cooperative

Question 26

A cooperative which engages in the supply of production inputs to members and markets their products.

Answer 26

Marketing cooperative

Question 27

I. The structure and actual staffing pattern of the cooperative shall include a certified public accountant. II. A cooperative duly registered under the Philippine Cooperative Code shall have limited liability.

Answer 27

Only II is true

Question 28

I. A cooperative formed and organized under the Philippine Cooperative Code acquires juridical personality from the date the Authority issues a certificate of registration. II. In case of a denial of the application for registration, an appeal shall lie with the Office of the President within 90 days from receipt of notice of such denial.

Answer 28

Both are true

Question 29

A cooperative organized for the primary purpose of engaging in savings and credit services and other financial services.

Answer 29

Financial service cooperative

Question 30

A cooperative organized for the primary purpose of undertaking power generations, utilizing renewable energy sources, including hybrid systems, acquisition and operation of sub-transmission or distribution to its household members.

Answer 30

Electric cooperative

Question 31

A cooperative whose members are engaged in the production of fresh milk which may be processed and/or marketed as dairy products.

Answer 31

Dairy cooperative

Question 32

A cooperative organized for the primary purpose of owning and operating licensed educational institutions.

Answer 32

Education cooperative

Question 33

I. In terms of territory, cooperatives shall be categorized according to areas of operations which may or may not coincide with the political subdivisions of the country. II. Registered cooperatives may organize a federation according to the type of business activity engaged in by the cooperatives.

Answer 33

Both are true

Question 34

The cooperative shall aim to: I. Provide optimum social and economic benefits to its members. II. Propagate cooperative practices and new ideas in business and management

Answer 34

Both are true

Question 35

A cooperative organized by workers, including the self-employed, who are at the same time the members and owners of the enterprise.

Answer 35

Workers cooperative

Question 36

A cooperative which engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional and other services.

Answer 36

Service cooperative

Question 37

The cooperative shall aim to I. Provide optimum social and economic benefits to its members. II. Propagate cooperative practices and new ideas in business and management

Answer 37

Both are true

Question 38

A cooperative organized by workers, including the self-employed, who are at same time the members and owners of the enterprise.

Answer 38

Workers cooperative

Question 39

In terms of membership, cooperative shall be categorized into: A. Primary B. Secondary C. Tertiary D. All of the above

Answer 39

All of the above

Question 40

A cooperative which engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional and other services.

Answer 40

Service cooperative