Mme4 - Final Exam 2015
This is the final exam of Cooperative Management.
Questions and Answers
- 1.
Which of the following is the highest governing body in Cooperatives?
- A.
Chairman
- B.
BOD
- C.
General Assembly
- D.
None of the above
Correct Answer
C. General AssemblyExplanation
The General Assembly is the highest governing body in Cooperatives as it is responsible for making important decisions, setting policies, and electing the board of directors. It consists of all the members of the cooperative who have equal voting rights. The General Assembly ensures that the cooperative operates in the best interest of its members and upholds the principles of cooperation. The Chairman and BOD may hold leadership positions within the cooperative, but they ultimately report to and are accountable to the General Assembly. Therefore, the General Assembly holds the highest authority in the cooperative structure.Rate this question:
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- 2.
Who calls the order of quorom in the general assembly?
- A.
Secretary
- B.
Chairman
- C.
Treasurer
- D.
None of the above
Correct Answer
A. SecretaryExplanation
The secretary calls the order of quorum in the general assembly. The secretary is responsible for maintaining the records and documentation of the assembly, including keeping track of attendance and ensuring that a quorum is present before the meeting can proceed. The secretary plays a crucial role in ensuring that the assembly follows proper procedures and that decisions made are valid and binding. The chairman may preside over the meeting, but it is the secretary who officially calls for the order of quorum. The treasurer, on the other hand, is typically responsible for managing the financial affairs of the assembly and is not directly involved in calling the order of quorum.Rate this question:
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- 3.
What committee that is responsible for the settlement of conflicts among members?
- A.
Lawyers
- B.
Grievance
- C.
Credit
- D.
Audit
Correct Answer
B. GrievanceExplanation
The correct answer is Grievance. A grievance committee is responsible for the settlement of conflicts among members. This committee addresses complaints, disputes, or conflicts that arise within an organization or group. They investigate the issue, gather information, and work towards finding a resolution that satisfies all parties involved. Grievance committees play a crucial role in maintaining harmony and resolving conflicts in a fair and impartial manner.Rate this question:
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- 4.
This question needs two or more answers: Which of the following are the advantages of Cooperatives?
- A.
Owned and controlled by members
- B.
Democratic control
- C.
Managed and authorized by the Board of Directors
- D.
Surplus earnings are distributed in proportion to capital contribted
Correct Answer(s)
A. Owned and controlled by members
B. Democratic control
D. Surplus earnings are distributed in proportion to capital contribtedExplanation
Cooperatives have several advantages. Firstly, they are owned and controlled by their members, which means that the members have a say in the decision-making processes and can actively participate in the cooperative's operations. Secondly, cooperatives operate under democratic control, allowing each member to have an equal vote in the decision-making process. Lastly, surplus earnings in cooperatives are distributed in proportion to the capital contributed by each member, ensuring a fair distribution of profits among the members.Rate this question:
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- 5.
Which of the following are three basic interests found in Cooperatives?
- A.
Ownership
- B.
Control
- C.
Beneficiary
- D.
Authority
- E.
Decision-making
Correct Answer(s)
A. Ownership
B. Control
C. BeneficiaryExplanation
Cooperatives are organizations that are owned and controlled by their members, who are also the beneficiaries of the cooperative's activities. Ownership refers to the members having a stake in the cooperative and being able to share in its profits and benefits. Control refers to the members having a say in the decision-making processes of the cooperative and having the ability to shape its direction. Beneficiary refers to the members being the ones who receive the benefits and advantages of being a part of the cooperative. Therefore, ownership, control, and beneficiary are the three basic interests found in cooperatives.Rate this question:
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- 6.
A cooperative is a business enterprise that places __________ at the center of its activities.
- A.
Directors
- B.
People
- C.
Leaders
- D.
None of the above
Correct Answer
B. PeopleExplanation
A cooperative is a business enterprise that places people at the center of its activities. This means that the cooperative prioritizes the needs and interests of its members, who are typically individuals or organizations that use its products or services. The cooperative operates in a democratic manner, allowing members to have a say in decision-making processes and sharing in the profits or benefits generated by the enterprise. By focusing on people, cooperatives aim to create a more inclusive and equitable business model that serves the interests of their members and the community as a whole.Rate this question:
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- 7.
Cooperatives are ________, _________ and _________ by members.
- A.
Owned
- B.
Managed
- C.
Patronized
- D.
Controlled
- E.
Operated
Correct Answer(s)
A. Owned
B. Managed
C. PatronizedExplanation
Cooperatives are organizations that are owned, managed, and patronized by members. This means that the members of a cooperative have ownership rights and control over the organization. They also participate in the management and decision-making processes of the cooperative. Additionally, members patronize the cooperative by using its products or services. Overall, cooperatives are characterized by the active involvement and participation of their members in all aspects of the organization.Rate this question:
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- 8.
Which of the following are the governing bodies of Cooperatives?
- A.
BOD
- B.
General Assembly
- C.
Officers
- D.
Committees
- E.
LGU
Correct Answer(s)
A. BOD
B. General Assembly
C. Officers
D. CommitteesExplanation
The governing bodies of cooperatives include the Board of Directors (BOD), General Assembly, Officers, and Committees. The Board of Directors is responsible for making important decisions and setting policies for the cooperative. The General Assembly consists of all the members of the cooperative and has the power to elect the Board of Directors and make major decisions. The Officers are responsible for the day-to-day operations of the cooperative. Committees are formed to handle specific tasks or issues within the cooperative.Rate this question:
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- 9.
Which of the following are the roles of Board of Directors?
- A.
Elect, appoint or remove board of directors
- B.
Hear and pass upon the reports of coop officers
- C.
Approve coop developmental plans
- D.
None of the above
Correct Answer
D. None of the aboveExplanation
The given answer "None of the above" is correct because the roles listed in the options do not accurately represent the roles of the Board of Directors. The Board of Directors is responsible for making major decisions, setting policies, and providing guidance and oversight to the cooperative. Their main duties include hiring and evaluating the performance of the cooperative's CEO, approving budgets and financial statements, and making strategic decisions for the organization. None of the options listed in the question accurately describe these roles.Rate this question:
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- 10.
How many times general assembly can be done in a year?
- A.
Once
- B.
Twice
- C.
Once, but depends upon the necessity of calling the meeting Once, but depends the necessity of calling the meeting
- D.
Once, but depends on 10% of members calling the meeting
Correct Answer
D. Once, but depends on 10% of members calling the meetingExplanation
The correct answer is "Once, but depends on 10% of members calling the meeting." This means that the general assembly can be held once in a year, but it can also be called if at least 10% of the members feel the necessity to have a meeting. This allows for flexibility in scheduling additional meetings if needed, but the default frequency is once a year.Rate this question:
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- 11.
The power of the Board of directors are:
- A.
Exercise general supervision and control over coop affairs
- B.
Prescribe policies consistent with law, by-laws, resolutions of membership assembly
- C.
Elect or change board of directors
- D.
Approved committed reports during the assembly
Correct Answer(s)
A. Exercise general supervision and control over coop affairs
B. Prescribe policies consistent with law, by-laws, resolutions of membership assemblyExplanation
The power of the Board of directors includes exercising general supervision and control over cooperative affairs, as well as prescribing policies that are consistent with the law, by-laws, and resolutions of the membership assembly. They also have the authority to elect or change the board of directors and approve committee reports during the assembly.Rate this question:
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- 12.
What position that the Board of Directors can appoint?
- A.
Manager
- B.
Treasurer
- C.
Secretary
- D.
Director
- E.
Committees
Correct Answer(s)
A. Manager
B. Treasurer
C. SecretaryExplanation
The Board of Directors has the authority to appoint individuals to various positions within the organization. They can appoint a Manager who oversees the day-to-day operations, a Treasurer who manages the financial aspects, and a Secretary who handles administrative tasks. These positions are crucial for the smooth functioning of the organization and the Board of Directors plays a key role in selecting suitable candidates for these positions.Rate this question:
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- 13.
Who presides board and member meetings?
- A.
Chairman
- B.
Secretary
- C.
Treasurer
- D.
None of the above
Correct Answer
A. ChairmanExplanation
The chairman is the person who presides over board and member meetings. They are responsible for leading the meetings, maintaining order, and ensuring that all agenda items are discussed and decisions are made. The chairman also has the authority to set the meeting agenda, call for votes, and make rulings on procedural matters. The secretary and treasurer may have important roles in the organization, but they do not have the authority to preside over meetings. Therefore, the correct answer is Chairman.Rate this question:
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- 14.
Once elected, who will automatically preside the Education Committee?
- A.
Chairman
- B.
Vice-Chairman
- C.
Manager
- D.
None of the above
Correct Answer
B. Vice-ChairmanExplanation
The Vice-Chairman will automatically preside the Education Committee once elected. This is because the Vice-Chairman is the second-in-command and is responsible for assisting and supporting the Chairman. In the absence of the Chairman, the Vice-Chairman takes over the role and responsibilities, including presiding over committee meetings. The Manager and None of the above options do not hold the position of authority to automatically preside the Education Committee.Rate this question:
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- 15.
Takes custody of all money, securities and papers of the coop.
- A.
Chairman
- B.
Treasurer
- C.
Secretary
- D.
None of the above
Correct Answer
B. TreasurerExplanation
The treasurer is responsible for taking custody of all money, securities, and papers of the coop. This means that they are in charge of safely handling and managing the financial assets and important documents of the cooperative. The treasurer plays a crucial role in ensuring the security and proper management of the coop's financial resources.Rate this question:
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- 16.
Membership is not forced and is open to everybody. This principle of Cooperatives is referred to as
- A.
Open and voluntary
- B.
Democratic member control
- C.
Autonomy and independence
- D.
Member economic participation
Correct Answer
A. Open and voluntaryExplanation
The principle of Cooperatives referred to as "open and voluntary" means that membership is not forced and is open to everybody. This principle emphasizes that anyone who wishes to join a cooperative can do so without any compulsion or discrimination. It promotes inclusivity and ensures that individuals have the freedom to become members based on their own choice and willingness.Rate this question:
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- 17.
Equitable capital contribution and democratic control of capital. This principle of Cooperatives is referred to as
- A.
Open and voluntary
- B.
Democratic member control
- C.
Autonomy and independence
- D.
Member economic participation
Correct Answer
D. Member economic participationExplanation
The principle of "member economic participation" refers to the equitable capital contribution and democratic control of capital in cooperatives. This means that members have the right to contribute financially to the cooperative and have a say in the decision-making process. It emphasizes the importance of members actively participating in the economic activities of the cooperative, ensuring that everyone has a fair stake in the organization's success and benefits.Rate this question:
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- 18.
Cooperatives are self-help organizations that limits government intervention. Members control its own affairs, rather than controlled by outside sources. This principle of Cooperatives is referred to as
- A.
Open and voluntary
- B.
Democratic member control
- C.
Autonomy and independence
- D.
Member economic participation
Correct Answer
C. Autonomy and independenceExplanation
The principle of autonomy and independence refers to the fact that cooperatives are self-help organizations that are not controlled by outside sources. This means that members have the ability to control their own affairs and make decisions without interference from the government or other external entities. Autonomy and independence are key characteristics of cooperatives that allow them to operate in a self-sustaining and member-driven manner.Rate this question:
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- 19.
Which of the following are types of Cooperatives?
- A.
Credit
- B.
Consumers
- C.
Producers
- D.
Marketing
- E.
Multi-purpose
Correct Answer(s)
A. Credit
B. Consumers
C. Producers
D. Marketing
E. Multi-purposeExplanation
The question asks for the types of cooperatives, and the correct answer includes Credit, Consumers, Producers, Marketing, and Multi-purpose. Cooperatives are organizations owned and operated by a group of individuals who come together to meet their common economic, social, and cultural needs. Credit cooperatives provide financial services to their members, while consumer cooperatives focus on providing goods and services to their members. Producer cooperatives are formed by producers to collectively market and sell their products. Marketing cooperatives help members in marketing their products collectively, and multi-purpose cooperatives serve multiple needs of their members.Rate this question:
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- 20.
Which of the following is the capital structure of Cooperatives?
- A.
Share Capital
- B.
Revolving Capital
- C.
Producers
- D.
Loans
- E.
Multi-purpose
- F.
Subsidies and grants
Correct Answer(s)
A. Share Capital
B. Revolving Capital
C. Producers
D. Loans
E. Multi-purpose
F. Subsidies and grantsExplanation
The capital structure of Cooperatives includes various sources of capital such as Share Capital, Revolving Capital, Producers, Loans, Multi-purpose, and Subsidies and grants. These different forms of capital are utilized by cooperatives to finance their operations and investments. Share Capital represents the equity contributions made by the cooperative members, while Revolving Capital refers to the funds that are continuously circulating within the cooperative. Producers contribute their resources or products to the cooperative, and Loans are borrowed funds that the cooperative obtains from external sources. Multi-purpose capital can be used for various purposes within the cooperative, and Subsidies and grants are financial aids provided by external entities to support the cooperative's activities.Rate this question:
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- 21.
What are the duties of a Coop member?
- A.
Contribute Capital
- B.
Patronize regularly the Coop's business
- C.
Promote the Coop purposes
- D.
Appoint Chairman and Manager
- E.
Collect loan fees and other charges
- F.
Participate in parliamentary affairs
Correct Answer(s)
A. Contribute Capital
B. Patronize regularly the Coop's business
C. Promote the Coop purposes
F. Participate in parliamentary affairsExplanation
The duties of a Coop member include contributing capital to the organization, patronizing the Coop's business on a regular basis, promoting the Coop's purposes, and participating in parliamentary affairs. These duties are important for the functioning and success of the Coop. By contributing capital, members help to fund the Coop's operations and growth. Patronizing the Coop's business ensures its sustainability and profitability. Promoting the Coop's purposes helps to raise awareness and attract more members. Participating in parliamentary affairs allows members to have a voice in decision-making and contribute to the Coop's governance.Rate this question:
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- 22.
When can the BOD vote to terminate members?
- A.
Failure to patronize the Coop services
- B.
Failure to continuously comply with the obligations
- C.
Did not participate in parliamentary affairs
- D.
Violation of the by laws
Correct Answer(s)
A. Failure to patronize the Coop services
B. Failure to continuously comply with the obligations
D. Violation of the by lawsExplanation
The BOD (Board of Directors) can vote to terminate members for several reasons. Firstly, if members fail to patronize the Coop services, it implies that they are not actively supporting and utilizing the services provided by the cooperative. Secondly, failure to continuously comply with the obligations suggests that members are not fulfilling their responsibilities and commitments towards the cooperative. Lastly, violation of the bylaws indicates that members have acted against the established rules and regulations of the cooperative. These reasons provide grounds for the BOD to vote for the termination of members.Rate this question:
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- 23.
When can a member be automatically terminated?
- A.
Withdrawal
- B.
Failure to patronize the Coop's services
- C.
BOD majority vote
- D.
Death
- E.
Insanity
Correct Answer(s)
D. Death
E. InsanityExplanation
A member can be automatically terminated in the event of death or insanity. This means that if a member passes away or becomes mentally incapacitated, their membership in the organization will be terminated without the need for any additional action. This is likely done to ensure that the membership remains active and relevant only for those who are able to actively participate in the Coop's services.Rate this question:
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- 24.
The amount of revenue recognized after certain operating expenses have been deducted.
- A.
Net surplus
- B.
Balance sheet
- C.
Operating expense
- D.
None of the above
Correct Answer
A. Net surplusExplanation
Net surplus refers to the amount of revenue that remains after deducting certain operating expenses. It represents the excess of revenue over expenses and indicates the profitability of a business or organization. This term is commonly used in financial statements to demonstrate the financial performance and viability of an entity. It is an important indicator of financial health and can be used to assess the overall profitability and efficiency of an organization.Rate this question:
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- 25.
If the net surplus is 150,000, using the 70-30 percent division of sharing, how much will go to the reserve fund?
- A.
4,500.00
- B.
45,000.00
- C.
15,000
- D.
150,000
Correct Answer
C. 15,000Explanation
Using the 70-30 percent division of sharing, the net surplus of 150,000 will be divided with 70% going to the organization and 30% going to the reserve fund. Therefore, 30% of 150,000 is equal to 45,000. Hence, 15,000 will go to the reserve fund.Rate this question:
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- 26.
If the net surplus is 100,000, 50-50 percent division of sharing, how much will go to the Optional fund?
- A.
2,000
- B.
5,000
- C.
25,0000
- D.
25,000
Correct Answer
D. 25,000Explanation
If the net surplus is 100,000 and there is a 50-50 percent division of sharing, it means that the surplus will be divided equally between two parties. Therefore, each party will receive 50,000. Since the question asks how much will go to the Optional fund, the answer is 25,000.Rate this question:
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- 27.
Mrs. Macabalegoten loaned and received a net amount of 50,000. If the term of the loan is twelve months, one time add-on service fee of 100.00 and add-on capital share buildup of 400.00, and with an interest rate of 1% per month, how much is her monthly amortization?
- A.
4,713.33
- B.
4,714.00
- C.
4,208.33
- D.
None of the above
Correct Answer
A. 4,713.33Explanation
The monthly amortization can be calculated by adding the principal amount (50,000) with the add-on service fee (100) and the add-on capital share buildup (400), which gives a total of 50,500. Then, the interest for the first month is calculated by multiplying the total amount (50,500) by the interest rate (1% or 0.01), which gives 505. Finally, the monthly amortization is obtained by dividing the total amount plus the interest for the first month (50,500 + 505 = 51,005) by the term of the loan (12), which gives 4,250.42. Therefore, the correct answer is 4,713.33, which is the closest option to 4,250.42.Rate this question:
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- 28.
A cooperative is requiring a service fee of 100.00 and ad-on capital share of 300.00 in every loan applied. For example, if the principal loan amount applied by the member is 50,000, only 49,500 is released. However computing the monthly payment with interest is based from the principal loan amount. If a loan is termed at 4 months and monthly payment is 1,325.00, how much is its principal amount?
- A.
53,000.00
- B.
5,300.00
- C.
530.00
- D.
None of the above
Correct Answer
B. 5,300.00Explanation
The principal loan amount can be calculated by subtracting the service fee and ad-on capital share from the released amount. In this case, the released amount is 49,500.00. So, the principal loan amount would be 49,500.00 - (100.00 + 300.00) = 49,100.00. Therefore, the correct answer is 5,300.00.Rate this question:
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- 29.
Ten (10) members contributed cash as a capital share in the amount of 80,000. A member loaned with a principal amount of 10,000, service fee is 100.00 and capital build-up is 400.00 deducted from the principal amount. Interest rate is 1.5 percent payable for twelve months. Expenses were incurred in the amount of 5,000.00. If the loan is fully paid in six months, how much is the current cash of the Cooperative?
- A.
77,300.00
- B.
82,300.00
- C.
75,000.00
- D.
None of the above
Correct Answer
A. 77,300.00Explanation
The current cash of the cooperative can be calculated by adding the capital share of 80,000, deducting the loan principal of 10,000, deducting the service fee of 100, deducting the capital build-up of 400, deducting the interest of 1.5% on the loan for six months, and deducting the expenses of 5,000. This calculation results in a current cash of 77,300.00.Rate this question:
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- 30.
What is the interest rate of a loan if the principal amount is 15,000.00, term is 18 months and monthly payment is 1,013.33?
- A.
1%
- B.
1.5%
- C.
2%
- D.
None of the above
Correct Answer
D. None of the aboveExplanation
The interest rate of a loan cannot be determined solely based on the principal amount, term, and monthly payment. Additional information such as the type of loan, any fees or charges, and the method of interest calculation is needed to calculate the interest rate accurately. Therefore, none of the given options can be considered as the correct answer.Rate this question:
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