ARBA MINCH UNIVERSITY, SAWLA CAMPUS

DEPARTMENT OF COOPERATIVE ACCOUNTING AND AUDITING

COURSE: Management of Agriculture and Non-Agricultural Cooperatives

Course Number Coop3023

Test-1

Name:_______________________ ID.NO.: ___________________

Year III Semester I

Weight: 30%; Time allowed 40:00 minutes.
Instruction
 Write your full name and Id.No., & both on cover page and Answer Sheet
 All questions must be answered; any cheating will result in ‘F’ grade.
 Write your answer on answer sheet attached with this question paper
 Check the existence 4 parts and 16 questions and 4 page including cover page
 Part I: Choose the Correct Answer from the Alternatives (0.5 point each)
1. Processing of agricultural commodities can take the following forms except one?
A. A change in the appearance or substance of the produce.
B. An increase in the durability.
C. A change in the substance of the produce.
D. All
E. None of the above
2. Which one of the following is not correct statement?
A. Processing of agricultural produce can be done either by indigenous methods or by
mechanical power.
B. Sugar cooperatives are working for the principle “Concern for Community”.
C. The attitude members to sale quality product must be changed for the successful running
of the processing cooperatives.
D. While admitting new members, meat and egg processing cooperatives must not be careful
that the members have enough cattle population and poultry unit.
E. None of the above
3. Some of the important factors limiting the development of processing units are?
A. Inadequacy of block capital
B. Delay in getting loans from financial institutions
C. Lack of technical' know how
D. Inability of members to raise the required share capital speedily
E. All
4. Agricultural cooperatives engage in five main areas of business in responding to their
members' needs except one?
A. Loans
B. savings and deposits
C. Issuing proclamation
D. joint marketing
E. Agricultural extension and services.
5. Which one is true about cooperatives contribution?
A. In Kenya 45% of the Gross Domestic Product (GDP)
B. In New Zealand 50% of the farm supply market,
C. Supply 33% of the world’s dairy products.
D. All
E. None
6. The following are the significance of meat and egg processing cooperatives except one?
A. Cattle development
B. Nutrition
C. Technology
D. All
E. None of the above
7. All are Preconditions Needed for Sugar Cooperatives except one?
 A. Need for Dietary Improvement
B. Location of the factory
C. Raw Material
D. Continuous supply
E. Loyalty of the Farmers
8. Which one are the Problems facing Processing Cooperative?
A. Price Fluctuations
B. Inadequate working capital
C. Domination of Traders.
D. All
E. None of the above
9. Which one is not specific features of dairy industry?
A. Suitability of a manager
B. Milk as raw material
C. Socio Economic Position of Dairy Farmers.
D. Cooperative Dairying
E. Nutritional Considerations
10. _______________ are cooperatives that carry out several activities at the same time
according to the needs of their members?
A. Processing Cooperatives
B. Industrial Cooperatives
C. Multi-purpose cooperatives
D. Fishery Cooperatives
11. A cooperative society engaged in only one activity is called as______________?
A. Primary purpose Cooperative
B. single-purpose cooperative
C. Multipurpose Cooperative
D. Upper level Cooperative
E. A & B are correct
12. All are correct about Factors Favoring Milk Production except one?
A. Current Demand
B. Increasing Population
C. Need for Dietary Improvement
D. Rising Economic Levels
E. All
F. None of the above
Part II: Say True or False (1 point each)
1. The cooperative processing of perishable products like fruit and vegetable involves
considerably less risks than marketing and processing of other crops.
2. Those farmers who are producing any farm product can become the members of sugar
cooperatives.
3. During winter season milk production would be higher.
4. In multipurpose cooperative society as the number of activities is undertaken, a society
cannot concentrate equally on all activities.
5. The term ‘formal’ is often used to describe marketing systems in which governments do not
intervene substantially in marketing.
Part III: Discus the following (8 point)
1. At present, agricultural cooperatives engage in five main areas of business in responding to
their members' needs. Mention these areas. (1.5 point)
2. Explain some of circumstance that Favor the Organization of Processing Cooperatives? (1.5
point)
3. Explain the reasons why the need to have sound transport system by dairy cooperative (1.5
point)
4. Multipurpose Cooperatives are functioning with all the following objectives. Mention these
objectives (2 point)
5. A study in Addis Ababa milk shed revealed that dairy producers sold milk through different
principal market channels. Explain these channels. (1.5 point)

Part IV: Match Column ‟A” with Column ‟B” (1 point each)
A B
1. Problems of sugar cooperatives A. Improved bargaining
power
B. Irrigation Cooperatives
2. 31% (28,049 PC and 122 unions) are agricultural C. Fishery Cooperatives
cooperatives.
3. Need to form Agricultural Cooperatives D. in Ethiopia
4. Advantages of Meat and Egg Processing Cooperatives
E. Shortage of sugarcane
5. Cooperatives are organized by farmers who do not have F. in Denmark
assured irrigation facilities.
G. Natural manure
 Answer Sheet
Name:_________________ ID.NO.: _______________ Dept.:______
Part I: Choose the Correct Answer from the Alternatives (0.5 point each)
1. ______ 4. ______ 7. ________
2. ______ 5. ______ 8. ________
3. ______ 6. ______

Part II: Discus the following (4 point)

1. At present, agricultural cooperatives engage in five main areas of business in responding
to their members' needs. Mention these areas. (2.5 point)
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
2. Explain some of circumstance that Favor the Organization of Processing
Cooperatives? (1.5 point)
a) _____________________________________________________________
b) _____________________________________________________________
c) _____________________________________________________________
d) _____________________________________________________________
e) _____________________________________________________________
Part III: Say True or False (1 point each)
1. ___________________
2. ___________________
Part IV: Match Column ‟A” with Column ‟B” (1 point each)
1. _______________
2. _______________
3. _______________
4. _______________
5. _______________
Instructor: Mr. Tesfaye M. (MA)