Cooperatives

CHAPTER I: GENERAL CONCEPTS AND PRINCIPLES

1. A
It refers to a business outside the principal office where cooperative activities and business
operation are undertaken as per approved cooperative development plan.
A. BRANCH OFFICE
B. PRINCIPAL OFFICE
C. GENERAL OFFICE
D. VENUE

2. B
It refers to the registered head office as indicated in the articles if cooperation and bylaws of
the cooperative.
A. BRANCH OFFICE
B. PRINCIPAL OFFICE
C. GENERAL OFFICE
D. VENUE

3. B
It refers to equity inclusive of member's equity, donations, grants and reserve funds less
unbooked allowance, loans, accounts receivable and other capital adjustments as may be
required by CDA.
A. PROFITS
B. NET WORTH
C. NET INCOME
D. RETAINED EARNINGS

4. C
It refers the relocation if the office address of cooperative branch within the same
municipality/city.
A. BRANCH OFFICE
B. PRINCIPAL OFFICE
C. TRANSFER OF OFFICE
D. MAIN OFFICE

5. D
The following are the principles of cooperative. EXCEPT.
A. VOLUNTARY AND OPEN-MEMBERSHIP
B. DEMOCRATIC MEMBER CONTROL
C. CONCERN FOR COMMUNITY
D. REPRESENTATIVES ASSEMBLY

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CHAPTER II: ORGANIZATION AND REGISTRATION

1. A
All reserved names shall be valid in accordance with the period specified in the CNRN.
A. VALIDITY PERIOD
B. VALUATION
C. VALIDATION
D. PERIOD OF VALIDATION

2. C
It refers to a cooperative which combines two or more business/economic activities.
A. ECONOMIC SURVEY
B. BRANCHES
C. MULTIPURPOSE COOPERATIVE
D. MULTIPURPOSE COOPERATION

3. D
It refers to a cooperative the members of which are primary cooperatives.
A. PRIMARY COOPERATIVE
B. TERTIARY COOPERATIVE
C. AREA OF OPERATION
D. SECONDARY COOPERATIVE

4. D
It refers ti a cooperative the members of which are secondaries.
A. PRIMARY COOPERATIVE
B. TERTIARY COOPERATIVE
C. AREA OF OPERATION
D. SECONDARY COOPERATIVE

5. B
It is members working and/or actually and physically residing in the same place.
A. INSTITUTIONAL
B. RESIDENTIAL
C. ASSOCIATIONAL
D. CONSTITUTIONAL

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CHAPTER III: MEMBERSHIP

1. A
It refers to a duly registered cooperative to which a Laboratory Cooperative id affiliated with.
A. GUARDIAN COOPERATIVE
B. GENERAL COOPERATIVE
C. SECONDARY COOPERATIVE
D. PRIMARY COOPERATIVE

2. B
It refers to the act if being formally connected or joined by a Laboratory Cooperative to a
Guardian Cooperative.
A. MINOR
B. AFFILIATION
C. PURPOSES OF LABORATORY COOPERATIVE
D. MANUAL OPERATION

3. B
The following are officers of the cooperatives. EXCEPT.
A. SECRETARY
B. PRESIDENT
C. TREASURER
D. BOARD OF DIRECTORS

4. D
It refers to the certification duly issued by Authority to the Laboratory Cooperative upon
compliance with all the requirements.
A. MANUAL CERTIFICATES
B. LABORATORY COOPERATIVE CERTIFICATE
C. COOPERATIVE CERTIFICATE
D. CERTIFICATE OF RECOGNITION

5. A
It refers to an individual below eighteen years of age.
A. MINOR
B. MAJOR
C. SPECIAL
D. AFFILIATION

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CHAPTER IV: ADMINISTRATION

1. A
It shall consist of at least twenty-five per centum of all the members entitled to vote.
A. QUORUM
B. VOTING SYSTEM
C. MAJORITY
D. 50+1

2. A
Meeting id the board of directors that may be held at any time upon the call.
A. SPECIAL MEETINGS
B. PRIMARY MEETINGS
C. REGULAR MEETINGS
D. GENERAL ASSEMBLY

3. D
Cooperatives with total assets of 3 Million and below.
A. MULTIPURPOSE COOPERATIVE
B. MICRO-BUSINESS
C. PRO-BUSINESS
D. MICRO-COOPERATIVES

4. A
Cooperatives officers shall complete the required trainings within the first half of their term.
A. PERIOD OF COMPLIANCE
B. PERIOD OF COMPLETION
C. COMPLETED TASK
D. OPTIONAL TRAINING PERIOD

5. D
It refers to the allowance given as a reimbursement for extra expenses incurred by one in the
performance of his duties.
A. COMPENSATION
B. HONORARIUM
C. WAGES
D. PER DIEM

CHAPTER V: RESPONSIBILITIES, RIGHTS, AND PRIVILEGES OF COOPERATIVE

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1. A
The inspection of cooperatives shall be undertaken at least once a year.
A. FREQUENCY OF INSPECTION
B. PERIOD OF INSPECTION
C. FREQUENCY PERIOD
D. VALIDATION PERIOD

2. C
It refers to the directory of membership of a cooperative, containing basic information
pertaining to members.
A. MEMBERS
B. INFORMATION OF MEMBERS
C. REGISTRY OF MEMBERS
D. REGISTRATION

3. C
The following are information of membership. EXCEPT
A. DATE ACCEPTED
B. BOD RESOLUTION MEMBER
C. ADDRESS
D. INITIAL CAPITAL SUBSCRIPTION

4. D
The following are member's profile. EXCEPT.
A. ANNUAL INCOME
B. DATE OF BIRTH
C. SOCIAL AFFILIATION
D BOD RESOLUTION MEMBER

5. D
It refers to any purpose that is not contrary to law, moral, and public policy.
A. REGULAR PURPOSE
B. SPECIAL PURPOSE
C. EXTRA-JUDICIAL PURPOSE
D. LEGITIMATE PURPOSE

CHAPTER VI: INSOLVENCY OF COOPERATIVES

1. A
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It is a state where inability to pay debts.

A. INSOLVENCY
B. DOUBTFUL
C. DOUBTFULNESS
D. UNABLE TO FULFILL OBLIGATION

2. D
In case a cooperative is unable it obligation to creditor are to insolvency such cooperative
may apply for remedies under what law.
A. POLITICAL LAW
B. COOPERATIVE LAW
C. CDA
D. INSOLVENCY LAW

3. A
It is an autonomous and duly registered association of persons, with a common bond of
interest.
A. COOPERATIVE
B. CORPORATION
C. ASSOCIATION
D. PARTNERSHIP

4. B
They repealed the Insolvency law.
A. INSOLVENCY ACT ONLY
B. FINANCIAL REHABILITATION AND INSOLVENCY ACT
C. REHABILITATION ACT
D. INSOLVENCY COOPERATIVE

5. D
They are precludes from said Insolvency Laws.
A. MEMBERS
B. THIRD PERSONS
C. DEBTORS
D. CREDITORS

CHAPTER VII: DISSOLUTION OF COOPERATIVES

1. A
It refers to the termination if the juridical personality of the cooperative through appropriate
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judicial proceedings.
A. DISSOLUTION
B. WINDING UP
C. TERMINATION
D. FORMATION

2. D
The following are procedural guidelines for cooperative dissolution. EXCEPT.
A. COMLAINT
B. PRESENTATION EVIDENCE
C. EXECUTION
D. RECEIVING NOTICE

3. B
They shall be responsible for the speedy, equitable, and beneficial winding up of the affairs
of the cooperative.
A. BOT
B. LIQUIDATOR
C. BOD
D. MEMBERS

4. B
It shall refer to the act of striking out or deleting the registered cooperative name grom the
Registry of Existing Cooperatives after its Certificate of Registration has been ordered
cancelled.
A. CANCELLATION
B. DELISTING
C. EXTENDING
D. EXPULSION

5. D
This method of dissolving cooperative shall be done by the member themselves.
A. INVOLUNTARY DISSOLUTION
B. SPECIAL DISSOLUTION
C. REGULAR DISSOLUTION
D. VOLUNTARY DISSOLUTION

CHAPTER VIII: CAPITAL, PROPERTY, AND FUNDS

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1. A
It refers to a unit of capital in a primary cooperative.a
A. SHARE
B. MONEY
C. PROPERTY
D. FUNDS

2. A
It is the money paid or required to be paid for the operations of the cooperative.
A. SHARE CAPITAL
B. SHARES
C. CAPITAL
D. FUNDS

3. C
The following are where a cooperative may invest its capital. EXCEPT.
A. IN SHARES OR DEBENTURES
B. IN ANY REPUTABLE BANK REGIONALLY
C. IN ANG REPUTABLE BANK IN THE LOCALITY
D. IN ANY OTHER MANNET AUTHORIZED IN THE BYLAWS

4. A
The capitalization of cooperatives and the accounting procedures shall be governed by the
provision of this Code and the regulations which shall be issued.
A. CAPITAL
B. SHARES
C. FUNDS
D. SHARE CAPITAL

5. A
They requires the cooperative to execute subscription on share capital.
A. CDA
B. SEC
C. DTI
D. GOVERNMENT

CHAPTER IX: AUDIT, INQUIRY AND MEMBERS' RIGHT TO EXAMINE

1. A
It should be conducted by an external auditor.
A. FINANCIAL AUDIT
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B. FINANCIAL RECORDING
C. FINANCIAL ANALYSTS
D. BOOK AND RECORD KEEPING

2. C
It is the only government agency granting juridical personality to cooperatives, herein
referred to as the Authority.
A. SEC
B. DTI
C. CDA
D. OPC

3. D
This refers to the leader of the audit engagement.
A. EDITOR-IN-CHIEF
B. FINANCIAL AUDITOR
C. MANAGER
D. AUDITOR-IN-CHIEF

4. C
It mean an intentional act by one or more individuals among management, employees, or
third parties.
A. NEGLIGENCE
B. BAD FAITH
C. FRAUD
D. INTEGRITY

5. D
It refers to either the cooperative's internal auditor and audit committee.
A. AUDITOR-IN-CHIEF
B. SOCIAL AUDIT
C. FINANCIAL AUDITOR
D. SOCIAL AUDITOR

CHAPTER X: ALLOCATION AND DISTRIBUTION OF NET SURPLUS

1. A
It shall not be constructed as profit but as an excess of payments made by the members for
the loans borrowed or the goods and services availed.
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A. NET SURPLUS
B. NET INCOME
C. RETAINED EARNINGS
D. EARNING PER SHARE

2. B
It shall be made available at the same rate to all patrons of the cooperative in proportion to
their individual patronage.
A. NET SURPLUS
B. PATRONAGE REFUNDS
C. PATRONAGE FUNDS
C. PATRONAGE FEE

3. B
His proportionate amount of patronage refund shall be paid him unless he agrees until share
capotal contribution has been fully paid.
A. NON-MEMBER
B. MEMBER PATRON
C. MEMBER
D. NON-MEMBER PATRON

4. D
His proportionate amount of patronage refund shall be set in a general fund.
A. NON-MEMBER
B. MEMBER PATRON
C. MEMBER
D. NON-MEMBER PATRON

5. B
It shall not be utilized for investment, other than those allowed in code.
A. NET SURPLUS
B. RESERVE FUND
C. NET INCOME
D. NET SURPLUS FUND

CHAPTER XI: AGRARIAN REFORM COOPERATIVES

1. A
It is one organized my marginal farmers, majority of which are agrarian reform beneficiaries.
A. AGRARIAN REFORM COOPERATIVE
B. AGRARIAN REFORM
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C. AGRARIAN COOPERATIVE
D. AGRICULTURAL COOPERATIVE

2. A
It may be organized and registered under this Code only upon prior written verification by
the DAR.
A. AGRARIAN REFORM COOPERATIVE
B. AGRARIAN REFORM
C. AGRARIAN COOPERATIVE
D. AGRICULTURAL COOPERATIVE

3. C
They shall issue appropriate rules and regulations pertaining to the provisions of Chapter XI:
Agrarian Reform Cooperative
A. DTI
B. COMMISSION
C. CDA
D. SEC

4. A
Subjects to such reasonable terms and conditions as the Department of Agrarian Reform
(DAR) and the Authority may impose agrarian reform cooperatives.
A. PRIVILEGES
B. RIGHT
C. REFERENTIAL RIGHT
D. PRE-EMPTIVE RIGHT

5. C
They shall provide the neccessary financial and technical assistance to agrarian reform
cooperatives to enable them to discharge effectively their purposes under this article.
A. AUTHORITY
B. SEC
C. GOVERNMENT
D. DTI

CHAPTER XII: COOPERATIVE BANKS

1. A
It shall be limited to cooperative organizations which are holders or common shares of the
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bank.
A. REGULAR MEMBERSHIP
B. MEMBER
C. ASSOCIATE MEMBER
D. SUPERVISION MEMBER

2. C
It shall be required to submit to the Authority a copy of the Certificate of Authority to
establish or operate branch granted by the Bangko Sentral ng Pilipinas.
A. BANKS
B. COOPERATIVES
C. COOPERATIVE BANK
D. ORGANIZATION BANK

3. A
It shall have a minimum paid-up capital in such amount as may be required by the BSP.
A. COOPERATIVE BANK
B. COOPERATIVES
C. RESERVE REFUND
D. COORPORATION

4. C
It shall be proportionate to the number of their paid-up shares.
A. POWERS
B. FUNCTIONS
C. VOTING RIGHTS
D. SHARES

5. D
It shall be allowed to foreclose lands mortgaged to it subject to the provisions of
Comprehensive Agrarian Reform Law of 1988.
A. BANKS
B. BSF
C. BSP
D. COOPERATIVE BANK

CHAPTER XIII: INSURANCE COOPERATIVE

1. B
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They may organize themselves into a cooperative insurance entity for the purpose of
engaging in the business of insuring life and property.
A. NON-EXISTING COOPERATION
B. EXISTING COOPERATIVE
C. FINANCIAL ASSISTANCE
D. INSURANCE COMPANIES

2. A
It shall provide its constituting members different types of insurance coverage consisting of,
but not limited to.
A. COOPERATIVE INSURANCE SOCIETIES
B. EXISTING COOPERATIVE
C. FINANCIAL INSTITUTIONS
D. MUTUAL FUNDS

3. D
The following are cooperative insurance societies. EXCEPT.
A. LIFE INSURANCE
B. LOAN PROTECTION
C. FIRE INSURANCE
D. DEBTORS INSURANCE

4. B
The requirements on capitalization, investments and reserves of insurance firms may be
liberally modified upon consultation with.
A. SEC
B. CDA
C. COMMISSION
D. INSURANCE COMMISSION

5. A
It shall issue the appropriate rules and regulations implementing thr provisions of Insurance
Cooperative.
A. INSURANCE COMMISSION AND AUTHORITY
B. SEC
C. DTI
D. COMMISSION

CHAPTER XIV: PUBLIC SERVICE COOPERATIVE

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1. A
It is also termed as certificate of compliance.
A. CERTIFICATE OF GOOD STANDING
B. CERTIFICATE OF GOODWILL
C. CERTIFICATE OF GOOD APPRAISAL
D. CERTIFICATE OF COMPLIANCE

2. D
It refers to the certificate in lieu of the Certificate of Good Standing.
A. CERTIFICATE OF GOOD STANDING
B. CERTIFICATE OF GOODWILL
C. CERTIFICATE OF GOOD APPRAISAL
D. CERTIFICATE OF COMPLIANCE

3. A
It is one organized to render public services as authorized under a franchise or certificate of
public convenience and necessity duly issued by the appropriate government agency.
A. PUBLIC SERVICE COOPERATIVE
B. PUBLIC COOPERATIVE
C. PUBLIC SERVICES
D. COOPERATION

4. B
It provides for the membership of thr users and or producers of the services such
cooperatives.
A. ARTICLES OF COOPERATION ONLY
B. ARTICLES OF COOPERATION AND BY LAWS
C. BYLAWS
D. ARTICLES OF COOPERATIVE

5. B
This type of services may be engaged in by any cooperative.
A. PRIVATE SERVICE
B. PUBLIC SERVICE
C. PRIVATE COOPERATIVE
D. PUBLIC COOPERATIVE

CHPATER XV: CREDIT COOPERATIVES

1. A
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It shall be organized and registered in accordance with the general provisions of Credit
Cooperatives.
A. CREDIT COOPERATIVES
B. PUBLIC COOPERATIVE
C. PRIVATE COOPERATION
D. DE-FACTO COOPERATIVE

2. A
It is a financial organization owned and operated by its members eith the following objective;
to encourage savings, to create a pool of such saving and to provide related services to
members.
A. CREDIT COOPERATIVES
B. PUBLIC COOPERATIVE
C. PRIVATE COOPERATION
D. DE-FACTO COOPERATIVE

3. A
They may organize chapters or subsidiaries, or join league and federations for the purpose of
providing commonly needed essential services.
A. CREDIT COOPERATIVES
B. PUBLIC COOPERATIVE
C. PRIVATE COOPERATION
D. DE-FACTO COOPERATIVE

4. C
They shall inform the Authority of its intention to continue performing its present functions.
A. CONVENSION
B. ASSOCIATION
C. MULTIPURPOSE COOPERATIVE AND CREDIT COOPERATIVE
D. FINANCIAL COOPERATION

5. C
Which government agencies the credit corporation and multipurpose submit their
requirements for conversion to financial service cooperative.
A. SEC
B. COOPERATIVE LAW
C. CDA
D. COMMISSION

CHAPTER XVI: FINANCIAL COOPERATIVES

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1. A
They are members who are natural persons.
A. REGULAR MEMBERS
B. SPECIAL MEMBERS
C. ASSOCIATE MEMBERS
D. AFFILIATION

2. C
They are members who are natural person but who do not immediately qualify under the
requirement for membership.
A. REGULAR MEMBERS
B. SPECIAL MEMBERS
C. ASSOCIATE MEMBERS
D. AFFILIATION

3. B
They shall issue a cease and desist order to cooperatives excercising the function if a
financial service cooperative.
A. SEC
B. BSP
C. DTI
D. CDA

4. D
It refers to the federation authorized to perform supervisory and examination functions to its
member-cooperatives.
A. DEPARTMENT OF FINANCE
B. BSP
C. DEPARTMENT OF FEDERATION
D. DEPUTIZED FEDERATION

5. B
It refers to the verification, review and inspection of the cooperative's books and records,
business affairs, administration, governance and management and financial condition.
A. SUPERVISION
B. EXAMINATION
C. VALIDITY
D. VALUATION

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CHAPTER XVII: ELECTRIC COOPERATIVE

1. A
It refers to the documents issued by the Authority under its official seal evidencing the
registration of granting juridical personality to an electric cooperative.
A. CERTIFICATE OF REGISTRATION
B. CODE
C. CDA
D. PUBLIC DOCUMENT

2. A
It refers to a person either natural or juridical, adhering to the principles set forth in the Code
an in the CDA.
A. MEMBER-CONSUMER
B. REGULAR MEMBERS
C. ASSOCIATION MEMBERS
D. NATURAL PERSON

3. B
It refers to a mechanism of securing and the approval of the general membership of an
Electric Cooperative.
A. IDENTIFICATION
B. REFERENDUM
C. SECURITY
D. GOOD STANDING

4. A
It is a document issued by the electric cooperative under its seal, evidencing that a member
has contributed a sum of money or value of property.
A. SHARE CAPITAL CERTIFICATE
B. NET WORTH CERTIFICATE
C. AMORTIZATION CERTIFICATE
D. ELECTRIC COOPERATIVE CERTIFICATE

5. D
The electric cooperative secretary shall submit a lost of the share capital certificates issued
by him together with their value along with the annual mandatory report.
A. SHARE CAPITAL BOOK REPORT
B. NET WORTH BOOK REPORT
C. AMORTIZATION BOOK REPORT
D. REPORTS

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CHAPTER XVIII: MISCELLANEOUS PROVISIONS

1. A
It is a process whereby a neutral third party takes a vigorous and active role in assisting
dispuntants formulate solutions in order to reach an amicable settlement.
A. CONCILIATION
B. MEDIATION
C. CONFLICT COACHING
D. COMPOSITION

2. C
It shall refer to intra/inter cooperative controversy or grievance arising from any violation or
disagreement over any provisions, including any violations of the rights and conditions.
A. AWARD/DECISION
B. SETTLEMENT
C. DISPUTE
D. VOLUNTARY ARBITRATION

3. A
It shall refer to any partial or final decision by an arbitrator in resolving the issue in a
controversy.
A. AWARD/DECISION
B. SETTLEMENT
C. DISPUTE
D. VOLUNTARY ARBITRATION

4. D
This is granted to an individual who applies and has qualified to be included in the list of
CDA voluntary arbitrators for the first time and evidenced by a Certificate of Accreditation.
A. RENEWAL OF ACCREDITATION
B. RE-ACCREDITATION
C. RE-INSTALLMENT OF ACCREDITATION
D. INITIAL ACCREDITATION

5. A
The accreditation may be renewed within how many months prior to its expiration.
A. THREE MONTHS
B. FIVE MONTHS
C. SIX MONTHS
D. NINE MONTHS
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CHAPTER XIX: FINAL PROVISIONS

1. A
Should any part of Final Provisions be declared unconstitutional, the validity of remaining
provisions hereof shall remain in full and effect.
A. SEPARABILITY CLAUSE
B. EFFECTIVELY CLAUSE
C. GENERAL CLAUSE
D. SEPERATE CLAUSE

2. B
The Final Provision shall take effect fifteen days its publication in a newspaper of general
circulation.
A. SEPARABILITY CLAUSE
B. EFFECTIVELY CLAUSE
C. GENERAL CLAUSE
D. SEPERATE CLAUSE

3. C
They shall issue rules and regulations to implement those provisions of this Code which
expressly call for the issuance thereof.
A. DTI
B. SEC
C. CDA
D. COMMISSION

4. A
Any person who willfully attempts in any manner to evade or defeat tax in violation of the
provision of Article 60 and 61 of Final Provision shall be punished with.
A. LESS THAN 30,000 BUT NOT MORE THAN 100,000
B. LESS THAN 30,000 BUT NOT MORE THAN 200,000
C. LESS THAN 10,000 BUT NOT MORE THAN 100,000
D. LESS THAN 30,000 BUT NOT MORE THAN 500,000

5. D
They can file a case against any officer or employee of the BIR or any government agency
with the Ombudsman.
A. PARTNERS
B. SHAREHOLDERS
C. BOARD OF TRUSTEES
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D. COOPERATIVE OR MEMBERS

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