St.

Anthony’s College Business Education Department

San Jose de Buenavista Second Semester, AY 2021-2022
Long Exam
Cooperative Code of the Philippines
Exam Instructions:
1. The duration of this exam is sixty (60) minutes.
2. There are forty-five (45) questions in this exam, and they will be presented all at once.
3. Allow adequate time to complete this exam in one sitting before the due time. Late submissions will not be
accepted.
4. This is a closed-book exam. Review materials (e.g., textbook, course notes) should be kept away from your
proximate reach.
5. Each question is worth 1 point.
6. This exam is part of your 60% Class Standing for this subject.
7. If you have technical difficulties with your exam, contact the instructor directly through messenger.
8. You must only attempt this exam once. Any additional attempts should only be used if a severe technical
issue has occurred, and supporting evidence supporting this will be required.
9. You are not permitted to obtain assistance by improper means or ask for help from or give support to any
other person.
10. You are not permitted to take screenshots, record the screen, copy and paste questions or answers or otherwise
attempt to take any of the content of this exam out of the exam for any purpose.
11. Misconduct action will be taken against you.

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Instruction: Choose the letter of the BEST answer.

1. It is an autonomous and duly registered 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 principles?
A. Cooperative C. Partnership
B. Sole Proprietary D. Corporation
2. It means the full membership of the cooperative duly assembled for the purpose of exercising all the rights and
performing all the obligations pertaining to cooperatives.
A. Shareholder’s Meeting C. General Assembly
B. Members’ Meeting’ D. Partners’ Assembly
3. It means the body entrusted with the management of the affairs of the cooperative under its articles of
cooperation and bylaws.
A. Board of Trustees C. Board of Regents
B. Officers D. Board of Directors
4. Cooperatives should be able to use their services and be willing to accept the responsibilities of membership,
without gender, social, racial, cultural, political, or religious discrimination.
A. Concern for Community C. Democratic Member Control
B. Cooperation Among Cooperatives D. Voluntary and Open Membership
5. Cooperatives should work for the sustainable development of their communities through policies approved by
their members.
A. Member Economic Participation C. Concern for Community
B. Democratic Member Control D. Autonomy and Independence
6. It means the operative act granting juridical personality to a proposed cooperative and is evidenced by a
certificate of registration.
A. Incorporation C. Registration
B. Dissolution D. Winding Up
7. A cooperative may be organized and registered for:
Statement I. To encourage thrift and savings mobilization among members.
Statement II. To generate funds and extend credit to members and non-members for productive and provident
purposes.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
8. A cooperative may be organized and registered for:
Statement I: To provide goods and services and other requirements to the members and non-members.
Statement II: To develop expertise and skills among its members and non-members.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.

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 St. Anthony’s College Business Education Department
San Jose de Buenavista Second Semester, AY 2021-2022
Long Exam
Cooperative Code of the Philippines
9. The primary objective of every cooperative is to help improve the quality of life of its members. Towards this
end, the cooperative shall aim to:
A. Provide optimum social and economic benefits to its members.
B. Teach them efficient ways of doing things in a cooperative manner.
C. Both A and B.
D. Answer not given.
10. The primary objective of every cooperative is to help improve the quality of life of its members. Towards this
end, the cooperative shall aim to:
A. Propagate cooperative practices and new ideas in business and management.
B. Allow the higher income and privileged groups to increase their ownership in the wealth of the nation.
C. Both A and B.
D. Answer not given.
11. A cooperative registered under the Cooperative Code shall have the following powers, rights, and capabilities:
A. To amend its articles of incorporation.
B. To exclusive use of its registered name, to sue and be sued.
C. Both A and B.
D. Answer not given.
12. A cooperative registered under the Cooperative Code shall have the following powers, rights, and capabilities:
A. To enter into division, merger, or consolidation.
B. Have the right of succession.
C. Both A and B.
D. Answer not given.
13. Statement I: Any newly organized primary cooperative may be registered as a multipurpose cooperative only
after compliance with the minimum requirements for multipurpose cooperatives to be set by the CDA.
Statement II: A single-purpose cooperative may transform into a multipurpose or may create subsidiaries only
after at least three years of operations.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
14. The articles of cooperation shall set forth:
Statement I: The name of the cooperative which may or may not include the word cooperative.
Statement II: The purpose/s and scope of business for which the cooperatives is to be registered.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
15. Statement I: All cooperatives applying for registration shall file with the CDA the articles of cooperation.
Statement II: The articles of cooperation may also contain any other provisions inconsistent with the Philippine
Cooperative Code or any related law.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
16. The bylaws of each cooperative shall provide:
Statement I: The qualifications for admission to membership and the payment to be made or interest to be
acquired as a condition for the exercise of the right of membership.
Statement II: The conditions under which the transfer of a share or interest of the members shall be permitted.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
17. Statement I: All amendments to the article of cooperation and/or bylaws shall be submitted to the CDA.
Statement II: The amendments shall take effect upon its approval by the CDA or within thirty days from the
date of filing thereof if not acted upon by the CDA for a cause not attributable to the cooperative.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
18. Statement I: Contracts executed between private persons and cooperatives prior to the registration of the
cooperative are void.
Statement II: Any registered cooperative may, by a resolution approved by a vote of three-fourths of all the
members with voting rights, present and constituting a quorum, resolve to divide itself into two or more
cooperatives.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.

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 St. Anthony’s College Business Education Department
San Jose de Buenavista Second Semester, AY 2021-2022
Long Exam
Cooperative Code of the Philippines
19. Statement I: No merger or consolidation shall be valid unless approved by a three-fourths vote of all the
members with voting rights, present and constituting a quorum of each of the constituent cooperatives at
separate general assembly meetings.
Statement II: In this case, any dissenting member may exercise his right to withdraw their membership.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
20. The merger or consolidation of cooperatives shall have the following effects:
A. The separate existence of all constituent cooperatives shall continue to exist.
B. The consolidated cooperative shall possess all the assets, rights, privileges, immunities, and franchise
of each of the constituent cooperatives.
C. Both A and B.
D. Answer not given.
21. A cooperative that undertakes joint production whether agricultural or industrial. It is formed and operated by
its members to undertake the production and processing of raw materials or goods produced by its members
into finished or processed products for sale by the cooperative to its members and non-members.
A. Industrial Cooperative C. Producers Cooperative
B. Marketing Cooperative D. Workers Cooperative
22. A Federation of cooperatives shall undertake the following functions:
A. To carry on, encourage, and assist educational and advisory work relating to its member cooperatives.
B. To coordinate and facilitate the activities of its member cooperatives.
C. Both A and B.
D. Answer not given.
23. Statement I: Any officer or employee of the CDA shall be disqualified to be elected or appointed to any
position in a cooperative: Provided, that the disqualification does not extend to a cooperative organized by the
officers or employees of the CDA.
Statement II: All appointed officials of the Government shall be ineligible to become officers and directors of
cooperatives: provided, that the disqualification does not extend to a partylist representative being an officer of
a cooperative he/she represents.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
24. Statement I: The death or insanity of a member in a primary cooperative, and the insolvency or dissolution of a
member in a secondary or tertiary cooperative may be considered valid grounds for termination of membership.
Statement II: In case of death or insanity of an agrarian reform beneficiary-member of a cooperative, the next-
of-kin may assume the duties and responsibilities of the original member.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
25. Membership in a cooperative may be terminated by a vote of the majority of all the members of the board of
directors for any of the following causes:
A. When a member has continuously failed to comply with his obligations.
B. When a member has acted in accordance with the bylaws and rules of the cooperative.
C. Both A and B.
D. Answer not given.
26. Statement I: A regular meeting shall be held annually by the general assembly on a date fixed in the bylaws, or
if not so fixed, on any date within sixty days after the close of each fiscal year.
Statement II: a special general assembly shall be called, as far as practicable, within sixty days from such
approval.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
27. Statement I: Each member of a primary cooperative shall have only one vote.
Statement II: In the case of members of secondary or tertiary cooperatives, they shall have one basic vote and
as many incentive votes as provided for in the bylaws but not to exceed five votes.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
28. Statement I: A quorum shall consist of at least fifty per centum of all the members entitled to vote.
Statement II: In the case of electric cooperatives registered under the Philippine Cooperative Code, a quorum,
unless otherwise provided in the bylaws, shall consist of five per centum of all the members entitled to vote.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.

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 St. Anthony’s College Business Education Department
San Jose de Buenavista Second Semester, AY 2021-2022
Long Exam
Cooperative Code of the Philippines
29. Statement I: Any member of a cooperative who under the bylaws of the cooperative, has the right to vote and
who possesses all the qualifications and none of the disqualifications provided in the laws or bylaws shall be
eligible for election as a director.
Statement II: The members of the board of directors shall not hold any other positions directly involved in the
day-to-day operation and management of the cooperative.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
30. Statement I: The bylaws may create an executive committee to be appointed by the members with such powers
and duties as may be delegated to it in the bylaws or by a majority vote of all the members of the board of
directors.
Statement II: The bylaws shall provide for the creation of an audit, mediation and conciliation, ethics, and such
other committees as may be necessary for the conduct of the affairs of the cooperative.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
31. Statement I: The members of the audit committee shall be elected by the general assembly.
Statement II: The audit committee shall be directly accountable and responsible to the general assembly.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
32. Statement I: In the absence of any provisions in the bylaws fixing the directors compensation, they shall not
receive any compensation except for reasonable per diems.
Statement II: The compensation of the officers of the cooperative may be fixed in the articles of cooperation.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
33. A contract entered into by the cooperative with one or more of its directors, officers, and committee members is
voidable, at the option of the cooperative. Which of the following is/are requisite/s?
A. That the vote of such director was necessary for the approval of the contract.
B. That the contract is fair and reasonable under the circumstances.
C. Both A and B.
D. Answer not given.
34. Statement I: If the dissolution of a cooperative does not prejudice the rights of any creditor having a claim
against it, the dissolution may be effected by a three-fourths vote of the board of directors and by a resolution
duly adopted by the affirmative vote of a majority vote of all the members.
Statement II: A certificate of dissolution is to be issued by the CDA after receiving a resolution from the
cooperative applying for a dissolution.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
35. A cooperative may be dissolved by order of a competent court after due hearing on the either ground of:
A. Violation of any law, regulation, or provisions of its bylaws
B. Insolvency
C. Both A and B
D. Answer not given
36. A cooperative shall be deemed dissolved when they fail to provide a justifiable cause upon request by the CDA
due to:
Statement I: Not commencing business and its operation within three years after the issuance of its certificate of
registration
Statement II: Not carrying on its business for three years
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
37. Statement I: No member of primary cooperative other than the cooperative itself shall own or hold more than
ten per centum of the share capital of the cooperative.
Statement II: Where a member of a cooperative dies, his heir shall be entitled to the shares of the decedent.
A. Only Statement I is true. C. Both Statements I and II are true.
B. Only Statement II is true. D. Neither Statement I nor II is true.
38. A cooperative may invest its capital in any of the following:
A. In securities issued or granted by the Government.
B. In shares or debentures or securities of any corporation.
C. Both A and B.
D. Answer not given.

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 St. Anthony’s College Business Education Department
San Jose de Buenavista Second Semester, AY 2021-2022
Long Exam
Cooperative Code of the Philippines
39. The financial audit shall be conducted by an external auditor who satisfies the following qualifications:
A. He is independent of the cooperative or any of its subsidiary that he is auditing.
B. He is a member of good standing of the Philippine Institute of Certified Public Accountants (PICPA)
and is accredited by both the Board of Accountancy and CDA.
C. Both A and B.
D. Answer not given.
40. 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 the membership of the cooperative.
C. The board of directors has approved such assignment.
D. All of the above.

-oOo-

Prepared by:

MR. DAN PHILIP A. CANJA, CPA, MBA

Instructor

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