RFBT 5- COOPERATIVES

Pre-test
1. The minimum number of natural persons required to organize a primary cooperative is:
A. 15 C. 5
B. 10 D. 20
2. A single-purpose cooperative may transform into a multi-purpose cooperative and may create subsidiaries only after at least:
A. 2 years from registration C. 2 years from cooperation
B. 2 years of operation D. 5 years from registration
3. A cooperative duly registered shall have:
A. Absolute liability C. Limited liability
B. Comprehensive liability D. General liability
4. A cooperative may register for a term not exceeding how many years?
A. Perpetual C. 20
B. 25 D. 50
5. A cooperative may apply for extension of term but such extension cannot be made earlier than years prior to the original or
subsequent expiry date/dates.
A. 5 C. 3
B. 4 D. 2
6. The minimum subscription of the authorized capital stock of a cooperative is:
A. 30% of the ACS C. 10% of the ACS
B. 25% of the ACS D. 15% of the ACS
7. The minimum paid-up share capital of a cooperative shall be 25% of the total subscription but not less than:
A. 5,000 C. 15,000
B. 10,000 D. 3,500
8. A cooperative formed and organized under the Cooperative Code acquires juridical personality from the:
A. Date the directors and officers are duly elected
B. Date the articles of cooperation are submitted to the CDA
C. Date indicated in the articles of cooperation
D. Date the CDA issues the certificate of registration
9. The articles of cooperation and bylaws of the cooperative may be amended by vote of all members with voting
rights.
A. 2/3 C. 1/2
B. 1/3 D. 1/4
10. Contracts executed between private persons and cooperatives prior to the registration of the cooperative shall be
between the parties and upon registration of the cooperative.
A. Void C. Voidable
B. Valid D. Unenforceable
11. Any registered cooperative may resolve to divide itself into 2 or more cooperatives by a resolution approved by a vote of
of all the members with voting rights.
A. Majority C. 3/4
B. 2/3 D. 1/4
12. Any registered cooperative may resolve to merge or consolidate with another cooperative by a resolution approved by a vote of
of all the members with voting rights.
A. Majority C. 1/2
B. 2/3 D. 3/4
13. Any merger or consolidation of cooperatives shall be effective upon:
A. The issuance of the certificate of merger and consolidation by the CDA
B. The filing of the articles of merger and consolidation with the CDA
C. The election of the directors of the merged and consolidated cooperatives
D. The date indicated in the articles of merger and consolidation.
14. It is a cooperative, the primary purpose of which is to procure and distribute commodities to members and non-members.
A. Producers C. Credit
B. Consumers D. Procurement
15. It is a cooperative that undertakes joint production whether agricultural or industrial.
A. Farmers C. Producers
B. Consumer D. Agro-industrial
16. It is a cooperative engaged in the supply of production inputs to members and markets their products.
A. Suppliers C. Advertising
B. Producers D. Marketing
17. It is a cooperative which combines 2 or more of the business activities of the different types of cooperatives.
A. Multipurpose C. Tri-purpose
B. Bi-purpose D. Complex
18. It is a cooperative the members of which are natural persons.
A. Secondary C. Tertiary
B. Primary D. Natural

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19. It is a cooperative the members of which are primary cooperatives.
A. Federation C. Secondary
B. Tertiary D. Union
20. It is a cooperative the members of which are secondary cooperatives.
A. Multipurpose C. Federation
B. Primary D. Tertiary
21. The kinds of membership in a cooperative are:
A. Regular and associate
B. Regular and special
C. Ordinary and extra-ordinary
D. Class A and Class B
22. An associate who meets the minimum requirements of regular membership, continues to patronize the cooperative for
years, and signifies his/her intention to remain a member shall be considered a regular member.
A. 2 C. 3
B. 1 D. 4
23. A cooperative organized by minors shall be considered a cooperative.
A. Laboratory C. Youth
B. Minor D. Young
24. It is the highest policy-making body of the cooperative.
A. General assembly C. Board of Trustees
B. Board of Directors D. Executive Committee
25. What is a delegable power of the GA?
A. To determine and approve amendments to the articles of cooperation
B. To approve contracts entered into by cooperative
C. To elect or appoint the members of the board of directors and remove them for cause
D. To approve developmental plans of the cooperative
26. Only for purposes of prompt and intelligent decision-making, the GA may by a vote of all its members with voting rights, delegate
some of its powers to a smaller body of the cooperative.
A. 3/4 C. 1/2
B. 2/3 D. 1/4
27. What is the required quorum during a meeting of the GA?
A. At least 25% C. At least 50%
B. At least 20% D. At least 50% plus 1
28. Each member of a primary cooperative shall have only vote/s.
A. 1 C. 3
B. 2 D. 5
29. In case of members of secondary or tertiary cooperatives, they shall have basic vote/s and as may incentive vote but not to
exceed vote/s.
A. 1, 5 C. 5, 5
B. 1, 1 D. 5, 1
30. Voting by proxy may be allowed by the bylaws of a cooperative other than a cooperative.
A. Secondary C. Tertiary
B. Primary D. Federation
31. It is where the direction and management of the affairs of the cooperative shall be vested.
A. Board of directors C. Executive committee
B. General assembly D. Office of the President
32. The board of directors of a cooperative is composed of:
A. Not less than 5 but not more than 15
B. Not less than 10 but not more than 15
C. Not less than 15 but not more than 20
D. Not less than 10 but not more than 20
33. Who elects the members of the board of directors of a cooperative?
A. General assembly C. Shareholders
B. Stockholders D. Executive Committee
34. What is term of the members of the board of directors of a cooperative?
A. 2 C. 3
B. 1 D. 4
35. First statement: A director or committee member appointed by any financing institution need not be a member of the cooperative.
Second Statement: A director or committee member appointed by any financial institution shall have no powers, rights nor
responsibilities except to provide technical assistance as required by the cooperative.

A. First statement only is true C. Second statement only is true

B. Both statements are true D. None of the statements is true
36. Unless the bylaws provide otherwise, what constitutes a quorum for the conduct of business in board meetings?
A. Majority C. 1/2
B. 2/3 D. 1/3

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 37. First statement: Directors of a cooperative cannot attend or vote by a proxy at board meetings.
Second statement: A vacancy in the board of directors in a cooperative, other than by expiration of term, may be filled by the vote
of at least a majority of the remaining directors, if still constituting quorum.

A. Both statements are true C. Second statement only is true

B. First statement only is true D. None of the statements is true
38. First statement: Loss of confidence shall not be valid ground for removal of an officer of a cooperative.
Second statement: No 2 or more persons with relationships up to the 3rd civil degree of consanguinity or affinity nor shall any
person engaged in a business similar to that of the cooperative nor who in any other manner has interest in conflict with the
cooperative shall serve as an appointive officer.

A. Both statements are true C. Second statement only is true

B. First statement only is true D. None of the statements is true
39. No additional compensation other than per diems shall be paid to a director of a cooperative during of existence of any
cooperative.
A. First year C. First 3 years
B. First 2 years D. First 5 years
40. Unless already fixed in the bylaws, the compensation of all other employees of the cooperative shall be determined by the:
A. General assembly C. Executive committee
B. Board of directors D. Compensation committee
41. A contract entered into by the cooperative with one or more of its directors, officers and committee members may be ratified by a
vote of all member with voting rights, present and constituting a quorum in a meeting called for the purpose.
A. 3/4 C. 1/2 + 1
B. 1/2 D. 2/3
42. An act of disloyalty of a director of a cooperative may be ratified by a vote of all members with voting rights, present and
constituting a quorum in a meeting called for the purpose.
A. 3/4 C. 1/2 +1
B. 1/2 D. 2/3
43. An elected officer of a cooperative may be removed by a vote of all members with voting rights, present and constituting a quorum
in a meeting called for the purpose.
A. 3/4 C. 1/2 +1
B. 1/2 D. 2/3
44. Cooperatives with accumulated reserves and undivided net savings of not more than shall be exempt from all national, city,
provincial, municipal or barangay taxes of whatever name and nature.
A. P 10 million C. P 3 million
B. P 5 million D. P 1 million
45. All tax-free importations of a qualified cooperative shall not be sold nor the beneficial ownership thereof be transferred to any
person until after years, otherwise, the cooperative and the transferee or assignee shall be solidarily liable to pay twice the amount of
the imposed tax and/ or duties.
A. 4 C. 3
B. 5 D. 2
46. In areas where there are no available notaries public, the judge exercising his ex officio capacity as notary public, shall render
service, free of charge, to any person or group of persons requiring the administration of oath or the acknowledgement of
articles of cooperation and instruments of loan from cooperatives not exceeding.
A. P 500,000 C. P 200,000
B. P 250,000 D. P 100,000
47. Upon dissolution of a cooperative, what happens to the capital donated to said cooperative?
A. It is subject to escheat
B. It shall be divided among the members of the cooperative
C. It shall be returned to the donor
D. It shall be donated to another cooperative with a similar purpose.
48. No member of primary cooperative other than the cooperative itself shall own or hold more than of the share capital of the
cooperative.
A. 10% C. 20%
B. 15% D. 25%
49. No member shall transfer his shares or interest in the cooperative or any part thereof unless he has held such share capital
contribution or interest for not less than:
A. One year C. 3 years
B. 2 years D. 5 years
50. What capital is raised by the cooperative to strengthen its capital structure?
A. Reserve capital C. Retained capital
B. Revolving capital D. Raising capital.

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