New Era University

College of Business Administration

FM 11-12/ Cooperative Management
Final Examination

Name: Basaysay, John Ray B. Section: 3FM-3

Schedule: TF 1:00 – 2:30PM Professor: Ester Distor

I. True or False: (1 point each). Write your answer on the space provided.
True 1. Republic Act 9520 is an act amending the Cooperative code of
the Philippines which is known as the “Philippine Cooperative Code of 2008”
True 2. A cooperative is an autonomous and duly 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 principle.
True 3. In primary cooperative, members have equal voting rights of
one-member, one vote.
True 4. The primary objective of a cooperative is to help improve the
quality of life of its members.
True 5. A cooperative will teach members on the efficient ways of doing
things in a cooperative manner.
False 6. A cooperative shall adopt bylaws not contrary to law, morals or
public policy, and to amend and to repeal the same in accordance with the code.
True 7. A cooperative can enter into division, merger or consolidation, as
provided in the code.
False 8. Cooperative Development Authority (CDA) is established under
Republic Act 6939.
True 9. A prospective member of a primary cooperative must have
completed a Pre-Membership Education Seminar (PMES)
True 10. In terms of membership, a cooperative shall be categorized into
primary, secondary and tertiary.

II. Supply the missing word/s. Write the answer/s in the space provided.
A cooperative is an 1. Autonomous and duly registered 2. Association
of persons with a common bonds of interest, who have 3. Voluntarily
joined together to achieve their 4. Social; economic and cultural needs
4. And aspirations by making equitable 5. Contributions to the capital
required, patronizing their 6. Product and service and accepting a fair
 7. Share of the risk and 8. Benefits of the undertaking in accordance
with 9. universally cooperative 10. Principles. Every cooperative shall
conduct its 11. Affairs in accordance with Filipino 12. Culture good
values and 13. Experience and the universally accepted principles of
cooperative which include voluntary and 14. Open memberships 15.
Democrative member control, economic member 16. participation
autonomy and 17. Independence education, training and 18.
Information 19. Cooperation among cooperative and concerns for 20.
Community.

Words to choose from:

a. Benefits k. Contributions
b. Open l. Democratic
c. Information m. Aspirations
d. Generallyaccepted n. Associations
principles o. Shares
e. Autonomous p. Independence
f. Affairs q. Products
g. Cooperation r. Experience
h. Social s. Participation
i. Voluntary
j. Community

III. Matching type: Match column A with Column B.

Column A
1. Shall refer to the document issued by the authority evidencing
registration of the merger. Answer: S. Certificate of Merger
2. Shall refer to a union of two or more existing cooperative belonging to
the same category to form a new cooperative. Answer: T.
Consolidation
3. Shall refer to the interest due to a member that must be added to the
future interest if it’s not paid when due. Answer: R. Cumulative
Interest
4. Shall refer to the failure of the cooperatives to submit a report in a
time. Answer: D. Unpaid Subscription
5. Shall refer to a member present during the meeting and who actually
voted against the proposed activity/ project of a cooperative. Answer:
Q. Dissenting Member
6. Shall refer to the act of splitting a single cooperative into two or more
cooperative, where the original cooperative shall be dissolved and the
resulting cooperatives shall acquire separate and distinct juridical
personalities. Answer: P. Division
7. Shall refer to the subsidies, grants, donations and aids by the
cooperative from any person whether natural or juridical, local or
foreign both government and private. Answer: N. Donated Capital
8. Shall refer to the right of the state to succeed to properly either real
or personal, when no heir or rightful claimants can be found through
an appropriate legal proceeding. Answer: O. Escheat
9. Shall refer to the excess of cooperative assets over liabilities. Answer:
I. Liquidation
10.Shall refer to the full membership of the cooperative duly assembled
for the purpose of exercising all the rights and performing all the
obligations pertaining to cooperatives, as provided by this code, its
articles of cooperation and by laws. Answer: M. General Assembly
11.Shall refer to all the systems and procedures adopted to safeguard the
cooperatives assets, check the accuracy and reliability of its accounting
data, promote operational efficiency and encourage adherence to
prescribe managerial policies. Answer: K. Internal Control
12.Shall refer to the process, settlement and closure of the cooperative
affairs, disposition, conveyance and distribution of its assets. Answer:
T. Consolidation
13.Shall refer to the process in which mediator, selected by disputing
parties, facilitate a communication and negotiation and assist the
parties in reaching a voluntary agreement regarding a dispute.
Answer: J. Mediation
14.Shall refer to an individual below eighteen (18) years of age but at least
seven (7) years old. Answer: E. Minor
15.Shall refer to cooperative, the members of which are natural persons.
Answer: F. Primary Cooperative
16.Shall refer to any person of recognized competence appointed by
authority, empowered to pay, charge of all the assets and liabilities of
the cooperative, administer the same for the benefits of its creditor
and exercise such other powers as provided under Revised Rules of
Court. Answer: G. Receiver
17.Shall refer to the penalties provided for in the cooperative by-laws,
rules and other administrative issuances, the code and other related
rules. Answer: B. Sanctions
 18.Shall refer to the money paid or required to be paid by the members
for the conduct of the operation s of the cooperative. Answer: C.
Shared Capital
19.Shall refer to the subscribed share capital, which is not yet fully paid
by a member. Answer: D. Unpaid Subscriptions
20.Shall refer to a dispute resolution process wherein any intra/ inter
cooperative dispute is settled by a voluntary arbitrator by the
disputing parties from a list of qualified and accredited arbitrators,
who shall decide on the merits of the case rendering an award.
Answer: A. Voluntarily Arbitration
Column B
a. Voluntary Arbitration
b. Sanctions
c. Share capital
d. Unpaid subscription
e. Minor
f. Primary cooperative
g. Receiver
h. Articles of cooperation
i. Liquidation
j. Mediation
k. Internal control
l. Equity
m. General assembly
n. Donated capital
o. Escheat
p. Division
q. Dissenting member
r. Cumulative interest
s. Certificate of merger
t. Consolidation
u. Delay in the submission of reports
v. Cooperative

IV. Enumeration: Select only 3 questions from the following items. 30pts.
1. Art. 2 of the Republic Act 9520 is the Declaration of Policy. State the
Declaration Policy. 5 points
- It is the declared policy of the State to foster the creation and growth of
cooperatives as a practical vehicle for promoting self-reliance and
harnessing people power towards the attainment of economic
development and social justice. The State shall encourage the private
sector to undertake the actual formation and organization of
cooperatives and shall create an atmosphere that is conducive to the
growth and development of these cooperatives.
2. Enumerate the 7 cooperative principle and explain each 14 points
 Voluntary and open membership. Co-ops are open to all who are
able to use their services and willing to accept the responsibilities
of membership.
 Democratic member control. Co-ops are controlled by their
members, who set the policies and make decisions. Elected
representatives are accountable to the members, who have equal
voting rights: one member, one vote.
 Member economic participation. Members contribute equitably
to, and democratically control, the capital of their cooperative.
They allocate surpluses to develop the co-op, and benefit in
proportion to their transactions with the co-op.
 Autonomy and independence. Cooperatives are self-help
organizations controlled by their members. If they enter into
agreements with other organizations, they do so on terms that
ensure democratic control by their members.
 Education, training and information. Co-ops provide education
and training for members, elected representatives, managers and
employees so they can contribute to the development of their co-
ops. They inform the public, particularly young people and opinion
leaders, about the nature and benefits of cooperation.
 Cooperation among cooperatives. Cooperatives serve their
members by working together locally, nationally, regionally and
internationally.
 Concern for community. While focusing on member needs,
cooperatives work for the sustainable development of their
communities.

3. Give the 8 parts of the Articles of cooperation- 8 points

4. Give the three types of cooperative according to memberships-3

points
5. Spell out the following acronyms.
a. CDA – Cooperative Development Authority
b. CDP – Cooperative Development Program
c. FACOMA – Farmer’s Cooperative Marketing
 d. ACCFA – Agricultural Credit and Cooperative Financing
Administration
e. BCOD – Bureau of Cooperatives Development
Prepared by: Professor Ester S. Distor, MBA, DBA Candidate

Checked by: Dr. Windlin dela Paz. Program Coordinator

Approved by: Dr. Emilia M. Mananghaya, Dean, College of Business

Administration