PALAWAN STATE UNIVERSITY

Dr. Jesus Ordinario Memorial Campus

Brooke’s Point, Palawan
Final Examination in Cooperative Management

I – MULTIPLE CHOICE - Choose the letter of the correct answer. Write the letter of your answer on your test
booklet.

1. Cooperatives with accumulated reserves and 6. This shall be conducted by an external auditor who
undivided net savings of not more than P satisfies all the qualifications.
________________ shall be exempt from all national, A. Distribute surplus
city, provincial, municipal or barangay taxes of whatever B. Examine
names or nature. C. Annual Audit
A. 10,000 D. All of the above
B. 10,000,000
C. 100,000 7. The following can be the sources of capital of the
D. 1,000,000 Cooperative except
A. Members share capital
2. In case a cooperative is unable to fulfill its obligations B. Loans and borrowings
to creditors due to insolvency, such cooperative may C. Subsidies or donations
apply for such remedies as it may deem fit under the D. Deposits from public
provisions of Act No. 1956, as amended, otherwise
known as the 8. These Contains the findings and recommendations of
A. Solvency Law the auditor.
B. Trade and Commerce Law A. Financial Statements
C. Cooperative Code of the Phil. B. Audit Examination
D. Insolvency Law C. Audit Manual
D. Audit Report
3. It refers to a unit in a primary cooperative the par
value of which may be fixed at any figure not less 9. The finding of the auditor shall be submitted to
than1.00 pesos. ________ in order to present to the General Assembly
A. Share Capital A. Board of directors
B. Share B. Corporate Officers
C. Par C. President of Cooperative
D. Fines D. Treasurer and President of Cooperative

4. This is the money paid or required to be paid for the 10. This shall not be construed as profit but an excess of
operations of the cooperative. payments made by the members for the loans
A. Deposit borrowed or goods and services availed by them and
B. Share Capital which shall be deemed to have been returned to them if
C. Fines the same is distributed as prescribed herein.
D. Membership fee A. Member share Capital
B. Revolving Capital
5. No member of a primary cooperative other than a C. Net surplus
cooperative itself shall own or hold more than _____% D. Net Income
(percent) of the subscribed share capital of the
cooperative.
A. 25%
B. 20%
C. 15%
D. 50%
11. If the dissolution of a cooperative does not prejudice
the rights of any creditor having a claim against it, the
dissolution may be affected by a majority vote of the
board of directors, and by a resolution duly adopted by
the affirmative vote of all the members with voting
rights. The vote should be at least
A. 1/3
B. 2/3
C. Majority
D. None of the above
12. No member shall transfer his shares or interest in
the cooperative or any part thereof unless
A. He has held such share capital contribution or
interest for not less than one year.
B. The assignment is made to the cooperative or to a
member of the cooperative or to a person who falls
within the field of membership of the cooperative.
C. The board of directors has approved such assignment.
D. All of the above.
13. A cooperative may invest its capital in any of the
following except
A. In share or debentures or securities of any other
cooperatives
B. In any reputable bank in the locality, or any
cooperative
C. In securities issued or guaranteed by the Government
D. In foreign exchange trading.
14. It consists of the deferred payment of patronage
refunds, or interest on share capital.
A. Share
B. Revolving Capital
C. Fines
D. Share Capital
15. Who shall issue the certificate of dissolution?
A. Court
B. Board of Directors
C. Cooperative Development Authority
D. All of the above
Test II. FILL IN THE BLANKS (5 pts)
1. If a cooperative has not commenced business
and operation within _________ after the date
shown on its certificate of registration, the
Authority shall send formal inquiry to the said
cooperative as to the status of its operation.
2. Every cooperative shall have an official postal
_______________ to which all notices and
communications shall be sent. And every change
thereof shall be registered with the Authority.
3. Every director, officer and employee handling
funds, securities or property on behalf of any
cooperative shall be covered by a commodities produced by their members shall be
_________________ to be issued by a duly
registered insurance or bonding company for the
faithful performance of their duties and
obligations.
4. Every cooperative shall drawn up an
___________ of its affairs as of the end of every
fiscal year, and publish the same furnishing
copies to all its members of record.
5. Cooperatives with accumulated reserves and
undivided net savings of more than Ten million
pesos (P10,000,000.00) shall pay the
____________ and __________________.
Test III. TRUE OR FALSE (10 pts)
1. AUDIT COMMITTEE is elected by the GA
2. ELECTION COMMITTEE is appointed by the GA
3. All cooperatives, regardless of the amount of
accumulated reserves and undivided net savings
shall be exempt from payment of local taxes and
taxes on transactions with banks and insurance
companies
4. ETHICS COMMITTEE is elected by the BOD
5. EDUCATION COMMITTEE is appointed by the BOD.
6. Cooperative shall enjoy the privilege of depositing
their sealed cash boxes or containers, documents or
any valuable papers in the safest of municipal or city
treasurers and other Government offices free of
charge, and the custodian of such articles shall issue
receipt acknowledging the articles duly witnessed
by other person.
7. Cooperative organized among Government
employees, notwithstanding any law or regulation
to the contrary, shall enjoy the free use of any
available space in their agency, whether owned or
rented by the Government.
8. Cooperatives engaged in credit services and/or
federations shall be entitled to loans, credit lines,
rediscounting of their loan notes, and other eligible
papers with the Development Bank of the
Philippines, The Land Bank of the Philippines and
other financial institutions except the Bangko
Sentral ng Pilipinas (BSP).
9. Preferential and equitable treatment in the
allocation or control of bottomries of commercial
shipping vessels in connection with the shipment of
goods and products of cooperatives.
10. In areas where appropriate cooperatives exist, the
preferential right to supply government institutions
and agencies rice, corn and other grains, fish and
other marine products, meat, eggs, milk,
vegetables, tobacco and other agricultural
granted to the cooperatives concerned.
Test IV. ENUMERATION. (20 points)

1. Give the grounds where the Authority may suspend or revoke, after due notice and hearing, the certificate of
registration of a cooperative.(5 points)
2. Give the cooperative sources of capital. (5points)
3. List down the order of distribution of the net surplus of every cooperative. (10points)

GOOD LUCK AND GOD BLESS!

Prepared by: Mary Grace Arzaga- Masdo