MCQ Chapter 1 Cooperative Concepts

CHAPTER I - GENERAL CONCEPTS AND PRINCIPLES
MULTIPLE CHOICE PART 1
1. The official document issued by the Authority authorizing the establishment and operation of a cooperative branch.
a. Certificate of Authority
b. Articles of cooperation
c. By laws
d. Rules, regulation and discipline
2. It refers to an office established by a cooperative outside of its principal/main office but within its area of operation to
provide limited services to its members but which does not however maintain books of accounts as it is done only by the
principal/main office.
a. Main Office
b. Principal office
c. Head office
d. Satellite office
3. 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 cooperative principles.
a. Partnership
b. Cooperative
c. Corporation
d. Sole Proprietorship
4. I. Every cooperative shall conduct its affairs in accordance with Filipino culture, good values and experience and the
universally accepted principles of cooperation.
II. The Government and all its branches, subdivisions, instrumentalities and agencies shall ensure the provision of
technical guidance, financial assistance and other services to enable said cooperatives to develop into viable and
responsive economic enterprises and thereby bring about a strong cooperative movement that is free from any conditions
that might infringe upon the autonomy or organizational integrity of cooperatives.
a. Only I is true
b. Only II is true
a. Both are true
c. Both are false
5. 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. Stockholders
b. General assembly
c. Members
d. Shareholders
6. It refers to anybody entrusted with specific functions and responsibilities under the bylaws or resolution of the general
assembly or the board of directors.
a. Board of Directors
b. Board of Trustees
c. Committee
d. Stockholders
7. It means the operative act granting juridical personality to a proposed cooperative and is evidenced by a certificate of
registration.
a. Registration
b. Authority
c. Incorporation
d. License
8. It includes a person either natural or juridical who adhering to the principles set forth in the Philippine Cooperative
Code and in the Articles of Cooperative, has been admitted by the cooperative as member.
a. Trustee
b. Director
c. Member
d. Officer
9. It means the body entrusted with the management of the affairs of the cooperative under its articles of cooperation and
bylaws.
a. Board of Directors
b. Board of Trustees
c. Committee
d. Officers
10. It refers to the government agency in charge of the registration and regulation of cooperatives.
a. Securities and Exchange Commission
b. Department of Trade and Industry
c. Intellectual Property Office
d. Cooperative Development Authority
11. It means the full membership of a body of representatives elected by each of the sectors, chapter or district of the
cooperative duly assembled for the purpose of exercising such powers lawfully delegated unto them by the general
assembly in accordance with its bylaws.
a. Committee
b. Representative assembly
c. General assembly
d. Satellite
12. It includes the members of the board of directors, members of the different committee created by the general assembly,
general manager or chief executive officer, secretary, treasurer and members holding other positions as may be provided
for in their bylaws of the cooperative
a. Stockholders of the cooperative
b. Members of the cooperative
c. Consultants of the cooperative
d. Officers of the cooperative
13. It refers to a business office outside the principal office where cooperative activities and business operation are
undertaken as per approved cooperative development plan.
a. Head office
b. Franchise office
c. Branch office
d. cooperative store
14. It refers to the registered head office as indicated in the articles of cooperation and bylaws of the cooperative where
the business and cooperative activities are conducted and central records and main books of accounts are kept
a. Sub office
b. Franchise office
c. Main office
d. cooperative store
15. It refers to equity inclusive of member's equity, donations, grants and reserve funds less unbooked allowance for
probable losses on loans, accounts receivable, investment and non-performing assets, and other capital adjustments as
may be required by CDA.
a. Capital
b. Net Worth
c. Liabilities
d. Stockholders' Equity
16. It refers to a business study showing the marketability of organizational aspects of the proposed business
establishment
a. Feasibility Study
b. Marketing strategy
c. Business Plan
d. Financial Plan
17. It refers to a document showing the compilation of detailed policies and procedures in the operation of the
cooperative,
a. Manual of operation
b. Business plan
c. Handbook
d. Bylaws
18. It is a cooperative principle which enunciates that members contribute equitably to, and democratically control, the
capital of their cooperatives
a. Voluntary and open membership
b. Democratic member control
c. Autonomy and independence
d. Member economic participation
19. It is a cooperative principle which enunciates that cooperatives serve their members most effectively and strengthen
the cooperative movement by working together through local, national, regional and international structures.
a. Concern for community
b. Education, training and information
c. Cooperation among cooperatives
d. Autonomy and independence
20. It is a cooperative principle which enunciates that cooperatives are voluntary organizations, open to all persons able to
use their services and willing to accept the responsibilities of membership, without gender, social, racial, cultural, political
or religious discrimination
a. Member economic participation
b. Voluntary and open membership
c. Democratic member control
d. Concern for Community
21. It is a cooperative principle which enunciates that cooperatives are democratic organizations that are controlled by
their members who actively participate in setting their policies and making decisions.
a. Democratic member control
b. Concern for the community
c. Education, training and information
d. Autonomy and independence
22. It is a cooperative principle which enunciates that cooperatives are autonomous, self-help organizations controlled by
their members.
a. Concern for the community
b. Cooperation among cooperatives
c. Autonomy and independence
d. Voluntary and open membership
23. It is a cooperative principle which enunciates that cooperatives shall provide education and training for their members,
elected and appointed representatives, managers, and employees, so that they can contribute effectively and efficiently to
the development of their cooperatives.
a. Education, training and information
b. Cooperation among cooperatives
c. Democratic member control
d. Voluntary and open membership
24. It is a cooperative principle which enunciates that cooperatives work for approved by their members. the sustainable
development of their communities through policies approved by their members.
a. Cooperation among cooperatives
b. Voluntary and open membership
c. Member economic participation
d. Concern for the community
25. It refers to three or more primary cooperatives, doing the same line of business, organized at the municipal, provincial,
city, special metropolitan subdivision, or economic zones created by law, registered with the CDA to undertake business
activities in support of its member-cooperatives.
a. Representative assembly
b. Subsidiary cooperative
c. Federation of cooperatives
d. Multi-purpose cooperative
26. It refers to any organization all or majority of whose membership or shareholders come from a cooperative, organized
for any other purpose different from that of, and receives technical, managerial and financial assistance from, a
cooperative.
a. Subsidiary cooperative
b. Principal cooperative
c. Branch cooperative
d. Satellite cooperative
27. These are those which provide any type of service to its members including but not limited to, transport, information
and communication, insurance, housing, electric, health services, education, banking, and savings and credit.
a. Service cooperative
b. Credit cooperative
c. Transport cooperative
d. Electric cooperative
28. It includes cooperative undertaking activities which are related to its main line of business or purpose.
a. Multi-purpose cooperative
b. Subsidiary cooperative
c. Principal cooperative
d. Single-Line or Single-Purpose cooperative
29. It refers to an audit on the efficiency and effectiveness of the cooperative as a whole; its management and officers; and
its various responsibility
a. Financial audit
b. Performance audit
c. Social audit
d. Quality Management audit
30. It is a procedure wherein the cooperative assesses its social impact and ethical performance vis-à-vis its stated
mission, vision, goals and code of social responsibility for cooperatives to be established by the CDA in consultation with
the cooperative sector.
a. Financial audit
b. Performance audit
c. Social audit
d. Quality Management audit
31. I. Only some cooperatives can set-up cooperative branch office and cooperative satellite office.
II. 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
a. Only I is true
b. Only II is true
a. C. Both are true
c. Both are false
CHAPTER 2 - ORGANIZATION AND REGISTRATION
1. A cooperative shall have the following powers, nights and capacities except:
a. To purchase, receive, take or grant, hold, convey, sell, lease, pledge and mortgage
b. To form subsidiary cooperatives and join federations or unions
c. To enter into merger or consolidation but not division
d. To avail of loans, be entitled to credit and to accept and receive grants, donations and assistance from foreign and
domestic sources
2. A cooperative shall have the following powers, rights and capacities except:
a. To organized universal banks.

b. To avail of preferential rights granted to cooperatives.
c. To organize and operate schools.
d. To enter into division, merger or consolidation
3. The following are the requisites of organizing a primary cooperative:
a. of legal age.
b. Having a common bond of interest.
c. Are actually residing or working in the intended area of operation
d. Fifteen or more natural or juridical persons.
4. I. A prospective member of a primary cooperative must have completed a Pre-Membership Education Seminar (PMES).
II. A single-purpose cooperative may not transform into a multipurpose.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
5. 1. The structure and actual staffing pattern of the cooperative shall include a certified public accountant.
II. A cooperative duly registered under the Philippine Cooperative Code shall have limited liability.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
6. I. A cooperative formed and organized under the Philippine Cooperative Code acquires juridical personality from the
date the Authority issues certificate of registration.
II. In case of a denial of the application for registration, an appeal shall lie with the Office of the President within 90 days
from receipt of notice of such denial.
a. Only I is true
b. Only Il is true
c. Both are true
d. Both are false
7. I. A certificate of registration issued by the Cooperative Development Authority under its official seal shall be prima
facie evidence that the cooperative therein mentioned is duly registered
II. Any provision or matter stated in the articles of cooperation and bylaws may be amended by majority vote of all the
members with voting rights.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
8. I. The dissenting members to exercise their right to withdraw in case of amendment of the articles of cooperation.
II. The dissenting members to exercise their right to withdraw in case of amendment of the bylaws.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
9. I. Any registered cooperative may, by a resolution approved by a vote of 3/4 of all the members with voting rights,
present and constituting a quorum, resolve to divide itself into the 2 or more cooperatives
II. No division of a cooperative in fraud of creditors shall be valid.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
10. I. No merger or consolidation shall be valid unless approved by a ¾ vote of all the members with voting rights, present
and constituting a quorum of each of the constituent cooperatives at separate general assembly meetings.
II. The merger or consolidation shall be effective upon the issuance of the certificate of merger or consolidation by the
CDA.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
11. The merger or consolidation of cooperatives shall have the following effects, except:
a. The constituent cooperatives shall become a single cooperative which, in case of merger, shall be the consolidated
cooperative, and in case of consolidation, shall be the surviving cooperative;
b. The separate existence of the constituent cooperatives shall except that of the surviving or the consolidated
cooperative; The surviving or the consolidated cooperative shall possess all the rights, privileges, immunities and
powers and shall be subject to all of the duties and liabilities of a cooperative
c. The surviving or the consolidated cooperative shall be responsible for all the liabilities and obligations of each of
the constituent cooperatives in the same manner as if such surviving or consolidated cooperative had itself
incurred such liabilities obligations
12. A cooperative which combines 2 or more of the business activities of these different types of cooperatives.
a. Multipurpose cooperative
b. Advocacy cooperative
c. Single line cooperative
d. Agrarian Reform cooperative
13. A cooperative organized for the primary purpose of providing medical, dental and other health services.
a. Financial service cooperative
b. Health service cooperative
c. Fishermen cooperative
14. A cooperative organized for the primary purpose of engaging in savings and credit services and other financial
services.
a. Education cooperative
b. Dairy cooperative
c. Cooperative bank
15. A cooperative organized for the primary purposed of undertaking power generations, utilizing renewable energy
sources, including hybrid systems, acquisition and operation of subtransmission or distribution to its household members.
a. Dairy cooperative
b. Insurance cooperative
c. Financial service cooperative
16. A cooperative organized by marginalized fishermen in localities whose products are marketed either as fresh or
processed products.
b. Health service cooperative
c. Fishermen cooperative
d. Housing cooperative
17. A cooperative organized by marginal farmers majority of which are agrarian reform beneficiaries
b. Transport cooperative
c. Agrarian reform cooperative
d. Financial service cooperative
18. A primary cooperative which promotes and advocates cooperativism education and training, research and
communication, and other similar activities to reach out to its intended beneficiaries.
a. Advocacy cooperative
b. Cooperative bank
c. Workers cooperative
d. Multipurpose cooperative
19. A cooperative organized for the primary purpose of providing a wide range of financial services to cooperatives and
their members.
b. Multipurpose cooperative
c. Advocacy cooperative
d. Cooperative bank
20. A cooperative whose members are engaged in the production of fresh milk which may be processed and/or marketed
as dairy products.
c. Agrarian reform cooperative
d. Workers cooperative
21. A cooperative organized for the primary purpose of owning and operating licensed educational institutions.
a. Agrarian reform cooperative
b. Health services cooperative
c. Education cooperative
22. I. In terms of territory, cooperatives shall be categorized according to areas of operations which may or may not
coincide with the political subdivisions of the country.
II. Registered cooperatives may organize a federation according to the type of business activity engaged in by the
cooperatives.
a. Only I is true
b. Only Il is true
c. Both are true
d. Both are false
23. It refers to a cooperative the members of which are registered interest and welfare of all types of cooperatives at the
provincial, cooperatives and/or federations organized purposely to represent regional, and national levels.
a. a Federation of cooperatives
b. Cooperative branch
c. Cooperative union
d. Cooperative satellite
24. It refers to a cooperative the members of which are primary cooperatives doing the same line of business.
a. Cooperative union
b. Cooperative branch
c. Cooperative satellite
d. Federation of cooperatives
25. The following are the purposes of cooperatives, except:
a. To provide goods and services and other requirements solely to the non-members.
b. To encourage thrift and savings mobilization among the members
c. To generate funds and extend credit to the members for productive and provident purposes.
d. To encourage among members systematic production and marketing
a. To develop expertise and skills among its members.
b. To insure against losses of the members.
a. To acquire lands.
c. To promote and advance the economic, social and educational status of the members.
a. To establish, own, lease or operate commercial banks, cooperative wholesale and retail complexes, insurance
agricultural/industrial processing enterprises, and public markets.
b. To ensure the viability of cooperatives through the utilization of new technologies
d. To encourage and promote self-help or self-employment as an engine for economic growth and poverty
alleviation.
e. To coordinate and facilitate the activities of cooperatives.
28. I. The primary objective of every cooperative is to help improve the quality of life of its members.
II. The cooperative shall aim to provide goods and services to its members to enable them to attain increased income,
savings, investments, productivity, and purchasing power.
a. Only 1 is true
b. Only II is true
c. Both are true
d. Both are false
29. The cooperative shall aim to:
I. Provide optimum social and economic benefits to its members.
II. Propagate cooperative practices and new ideas in business and management.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
30. Except one, the bylaws of each cooperative shall provide:
a. The conditions under which the transfer of a share or interest of the members shall be permitted.
b. The rules and procedures on the agenda, time, place and manner of calling, convening, conducting meetings, quorum
requirements, voting systems, and other matters relative to the business affairs of the general assembly, board of directors,
and committees
c. The general conduct of the affairs of the cooperative, including the powers and duties of the board of trustees and their
qualifications and disqualifications.
d. The manner in which the capital, may be raised and the purposes for which it can be utilized.
a. The mode of custody and of investment of net surplus.
b. The accounting and auditing systems.
c. The manner of loaning and borrowing including the limitations thereof.
d. A conciliation or mediation mechanism for the amicable settlement of disputes among trustees of the cooperative.
32. It refers to a union of two or more existing cooperatives belonging to the same category whereby the surviving
cooperative, retaining its identity, absorbs one or more constituent cooperative/s.
a. Consolidation
b. Merger
c. Combination
d. Acquisition
33. It refers to cooperatives, which are parties to the merger/consolidation.
a. Consolidated cooperative
b. Surviving cooperative
c. Constituent cooperatives
d. None of the above
34. It refers to the new cooperative created after the termination of cooperative in case of consolidation
a. Consolidated cooperative
b. Surviving cooperative
c. Constituent cooperatives
35. A cooperative that promotes and undertakes savings and undertakes savings and lending services among its members.
b. Marketing cooperative
c. Producers cooperative
d. Credit cooperative
36. A cooperative organized to assist or provide access to housing for benefit of its regular members who actively
participate in the saving program for housing.
a. Housing cooperative
c. Insurance cooperative
d. Transport cooperative
37. A cooperative engaged in the business of insuring life and poverty of cooperatives and their members.
a. Transport cooperative
c. Insurance cooperative
38. A cooperative which includes land and sea transportation, limited to small vessels.
a. Insurance cooperative
b. Agrarian reform cooperative
d. Financial service cooperative
39. A cooperative organized to own, operate and manage waters systems for the provision and distribution of potable
water for its members and their households.
a. Water service cooperative
b. Electric cooperative
c. Agrarian Reform cooperative
40. A cooperation organized by workers, including the self-employed, who are at same time the members and owners of
the enterprise.
a. Water service cooperative
b. Electric cooperative
c. Workers cooperative
41. In terms of membership, cooperative shall be categorized into:
a. Primary
b. Secondary
c. Tertiary
d. All of the above
42. A cooperative shall have the following powers, rights and capacities, except: :
a. To the exclusive use of its registered name, to sue and be sued.
b. of succession
c. To amend its articles of incorporation
d. To adopt bylaws not contrary law, morals or public policy, and to amend and repeal the same.
43. I. A cooperative shall exist for a period not exceeding fifty (50) years from the date of registration unless sooner
dissolve or unless said period is extended
IL The cooperative term, as originally stated in the articles of cooperation, may be extended for periods exceeding fifty
(50) years in any single instance by an amendment of the articles of cooperation.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
44. The articles of cooperation shall set forth the following, except one:
a. The name of the cooperative which shall include the word incorporated.
b. The purpose or purposes and scope of business for which the cooperative is to be registered.
c. The term of existence of the cooperative.
d. The area of operation and the postal addresses of its principal office
45. The articles of cooperation shall set forth the following, except one:
a. The names, nationality, and the postal addresses of the incorporators.
b. The common bond of membership.
c. The list of names of the directors who shall manage the cooperative
d. The amount of its share capital, the names and residences of its contributors and a statement of whether the
cooperative is primary, secondary or tertiary.
46.1. Each cooperative to be registered under the Philippine Cooperative Code shall adopt bylaws not inconsistent with
the provisions of the Philippine Cooperative Code.
Il. The bylaws shall be filed at the same time as the articles of cooperation.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
a. 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.
b. The circumstances under which membership is acquired, maintained and lost.
c. The rights and liabilities of shareholders.
d. The procedure to be followed in cases of termination of membership.
48. A cooperative where the primary purpose of which is to procure and distribute commodities to members and non-
members.
a. Marketing cooperative
b. Producers cooperative
c. Credit cooperative
d. Consumers cooperative
49. A cooperative that undertakes joint production whether agricultural or industrial.

c. Marketing cooperative
d. Consumers cooperative
50. A cooperative which engages in the supply of production inputs to members and markets their products.
c. Marketing cooperative
d. Credit cooperative
51. A cooperative which engages in medical and dental care, hospitalization, transportation, insurance, housing, labor,
electric light and power, communication, professional and other services;
a. Marketing cooperative
c. Credit cooperative
d. Service cooperative
Chapter 3- MEMBERSHIP
1. It refers to a duly registered cooperative which a Laboratory Cooperative is affiliated with.
a. Laboratory cooperative
b. Principal cooperative
c. Subsidiary cooperative
d. Guardian cooperative
2. A laboratory cooperative shall be organized for any or all of the following purposes:
a. To serve as a training ground for its members to prepare them for membership in regular cooperatives.
b. To teach the values of thrift and saving mobilization among its members.
c. To instill cooperative values, principles, financial discipline, business skills and leadership skills among its
members.
d. All of the above.
3. I.A Guardian Cooperative may supervise more than 1 laboratory cooperative.
II. The dissolution of the Guardian Cooperative shall result in the revocation of the Certificate of Recognition of the
Laboratory Cooperative.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
4 I. The death or insanity of a member in a primary cooperative may be considered valid grounds for termination of
membership.
II. The insolvency or dissolution of a member in a secondary or tertiarycooperative may be considered valid grounds for
termination of membership.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
5. Membership in the 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, except:
a. When a member has not patronized any of the services of the cooperative for an unreasonable period of tme as
may be previously determined by the board of directors;
b. When a member has continuously failed to comply with his obligations;
c. For any act or omission injurious or prejudicial to the interest or the welfare of the cooperative.
d. When a member has acted in violation of the articles of incorporation; and
6. 1.A member whose membership the board of directors may wish to terminate shall be informed of such intended action
in writing and shall be given an opportunity to be heard before the said board makes its decision.
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 I is true
b. Only II is true
c. Both are true
d. Both are false
7. A cooperative may have 2 kinds of members, to wit:
a. Regular members
b. Associate members
c. All of the above
8. It is one who has complied with all the membership requirements and entitled to all the rights and privileges of
membership.
a. Associate members
b. All of the above
c. Regular members
9. It is one who has no right to vote nor be voted upon and shall be entitled only to such rights and privileges as the
bylaws may provide.
a. Associate members
b. Regular members
c. All of the above
10. I.A cooperative organized by minors shall be considered a laboratory cooperative and must be affiliated with a
registered cooperative
II. An associate who meets the minimum requirements of regular membership, continues to patronize the cooperative for
3 years, and signifies his/her intention to remain a member shall be considered a regular member.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

11. I. Any officer or employee of CDA shall be disqualified to be elected or appointed to any position in a cooperative.
II. All elective of the Government shall be ineligible to become officers and directors of cooperative.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
12. I. An applicant for membership shall be deemed a member after approval of his membership by the general manager.
II. In case membership is refused or denied by the board of directors, an appeal may be made to the chairperson and the
latter’s decision shall be final.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
13. I. A member shall be liable for the debts of the cooperative to the extent of his contribution to the share capital of the
cooperative.
II. A member of a cooperative may, for any valid reason, withdraw his membership from the cooperative by giving a 30
day notice to the board of directors.
a. Only I is true
b. Only II is True
c. Both are true
d. Bothe are false
Chapter 4- Administration
1. I. In case of electric cooperatives registered under the Philippine Cooperative Code, a quorum, unless provided in the
bylaws, shall consist of 10% of all the members entitled to vote.
II. Each member of a primary cooperative shall have only 1 vote.
a. Only I is true
b. Only II is True
c. Both are true
d. Bothe are false
2. It means allowing a delegate of a cooperative to represent or vote in behalf of another delegate of the same cooperative.
a. Voting Trust Agreement
b. None of the above
c. Voting by Proxy
d. All of the above
3. I. In direction and management of the affairs of a cooperative shall be vested in a board of directors shall be composed
of not less than 5 nor more than 15 members elected by the general assembly for a term of 1 year and shall hold office
until their successor are dully elected and qualified, or until duly removed for cause.
II. The bylaws of a cooperative other than a primary may provide for voting by proxy
a. Only I is true
b. Only II is True
c. Both are true

d. Both are false
4. I. The board of directors shall be responsible for the strategic planning, direction-setting and policy-formulation
activities of the cooperative.
II. Any member of a cooperative who under the bylaws of the cooperative, have 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 director.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
5. I. The cooperative may admit as directors, or committee member one appointed by any financing institution from which
the cooperative received financial assistance solely to provide technical knowledge not available within its membership.
II. The members of the board of directors shall not hold any other position directly involved in the day to day operation
and management of the cooperative.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
6. I. The bylaws may create an executive committee to be appointed by the board of directors 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.
II. The bylaw shall provide for the creation of an audit, election, mediation and conciliation, ethics and such other
committees as may be necessary for the conduct of the affairs of the cooperative.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
7. I. The members of both the audit and election committee elected by the board of directors and the rest shall be
appointed by the general assembly
II. The audit committee shall be indirectly accountable and responsible to the general assembly
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
8. I. Directors, officers and committee members who willfully and knowingly vote for or assent to patently unlawful acts
or who are guilty of gross negligence or bad faith in directing the affairs of the cooperative or acquire any personal or
pecuniary interest in conflict with their duty such as such directors, officers or committee members shall be liable jointly
for all damages or profits resulting therefrom to the cooperative, members and other persons.
II. When a director, officer or committee attempts to acquire or acquires, in violation of his duty, any interest or equity
adverse to the cooperative in respect to any matter which has been reposed in him in confidence, he shall, as a trustee for
the cooperative, be liable for damages and shall be accountable for triple the profits which otherwise would have accrued
to the cooperative.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false

9. The general assembly shall have the following exclusive powers which cannot be delegated, except:
a. To determine and approve amendments to the articles of cooperation and bylaws
b. To elect or appoint the members of the board of directors, and to remove them for cause.
c. to approve developmental plans of the cooperative
d. To approve merger and consolidation
10. I. The general assembly may by a 3/4 vote of all its members with voting rights, present and constituting a quorum,
delegate some of its powers to a smaller body of the cooperative.
II. A regular meeting of the board of directors shall be held annually by the general assembly on a date fixed in the
bylaws, or if not so fixed, on any date within 90 days after the close of each fiscal year.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
11. I. A special meeting of the general assembly may be called at any time by a majority vote of the board of directors or
as provided for in the bylaws.
II. Notice of any meeting may be waived, expressly or impliedly by any member.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
12. I. A quorum shall consist of at least 25% of all the members entitled to vote
II. The quorum requirements for general assembly meetings in case of cooperative banks, whether special or regular, shall
be one half plus one of the number of voting shares of all the members in good standing
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
13. I. Any person engaged in a business similar to that of the or who in any way has a conflict of interest with it, is
disqualified from election as a director of said cooperative
II. The members of the board of directors may hold other position directly involved in the day to day of operation and
management of the cooperative
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
14. I. In the case of primary cooperatives, regular meetings of the board of directors shall be held at least once a year
II. Special meetings of the board of directors may be held at any time upon the call of the chairperson or a majority of the
general assembly
a. Only I is true
b. Only II is True
c. Both are true

d. Both are false
15. I. In the absence of any provisions in the bylaws fixing their compensation, the directors shall not receive any
compensation except for reasonable per diems
II. Any compensation other than per diems may be granted to directors by a majority vote of the members with voting
rights, at a regular or special general assembly meeting specifically called for the purpose
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
16. I. The compensation of officers of the cooperative as well as the members of the committees created pursuant to this
Code or its bylaws may be fixed in the bylaws
II. Unless already fixed in the bylaws, the compensation of all other employee shall be determined by the board of
directors.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
17. A contract entered into by the cooperative in 1 or more of its directors, officers, and committee member is voidable at
the option of the cooperative, unless all the following conditions are present which is the exception?
a. That the presence of such director in the board meeting wherein the contract was approved was not necessary to
constitute a quorum for such meeting
b. That the contract though voidable is not unenforceable
c. That the vote of such director was not necessary for the approval of the contract
d. That in case of an officer or committee member, the contract with the officer or committee member has been
previously authorized by the general assembly or by the board of directors
18. A director or officer, or an associate of a director or officer, who, for his benefit or advantage or that of an associate,
makes use of confidential information that, if generally known, might reasonably be expected to adversely affect the
operation and viability of the cooperative shall held:
I. Liable to compensate the cooperative for the direct losses suffered by the cooperative as a result of the illegal use of
information
II. Accountable to the cooperative for any direct benefit or advantage received or yet to be received by him or his
associate, as a result of the transaction
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
19. I. All complaints for the removal of any elected officer shall be filed with the CDA
II. An elective officer may be removed by majority votes of the regular members present and constituting a quorum, in a
regular or special general assembly meeting called for the purpose
a. Only I is true
b. Only II is True
c. Both are true

d. Both are false
20. I. The general assembly shall be composed of such members who are entitled to vote under the articles of cooperation
and the bylaws of the cooperative
II. The general assembly shall be the highest policy-making body of the cooperative
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
21. I. A majority of the members of the Board shall constitute a quorum for the conduct of business, unless the by-laws
provide otherwise
II. Directors can attend or vote by proxy at board meetings
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
22. I. Any vacancy in the board of directors other than by expiration of term, may be filled by the vote of at least 2/3 of the
remaining directors, if still constituting a quorum.
II. The board of directors shall elect from among themselves the chairperson and vice-chairperson, and elect or appoint
other officers of the cooperative from outside of the board in accordance with their bylaws
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
Chapter 5- Responsibilities, Rights, and Privileges of Cooperatives
1. I. Each cooperative shall maintain search about the true and correct results of the operation of the cooperative may be
ascertained therefrom at any time.
II. The financial statements, audited according to generally accepted auditing standards, principles and practices, shall be
published monthly and shall be kept posted in a conspicuous place in the principal office of the cooperative
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
2. It refers to the officers/individuals duly authorized by the cooperative to prepare, certify/approve the reports and in
whose had the delay/failure has occurred.
a. General assembly
b. Accountable officers
c. Committee members
d. Board of trustees
3. I. A member of a cooperative may execute an instrument in favor of the cooperative authorizing his employer to deduct
from his or her salary or wages, commutation of leave credits and any other monetary benefits payable to him by the
employer and remit such amount as maybe specified in satisfaction of a debt or other demand due from the member to the
cooperative
II. Duly registered cooperatives which do not transact any business with non-members or the general public shall not be
subject to any taxes and fees imposed under the internal revenue laws and other tax laws
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
4. Cooperatives should be accorded the following privileges, except:
a. Cooperatives transacting business with the government of the Philippines or any of its political subdivisions or
any of its agencies or instrumentalities, including government-owned controlled corporations shall be exempt
from prequalification bidding requirements
b. Cooperative shall enjoy the privilege of being represented by the provincial or city fiscal or the office of the
solicitor general, free of charge, even when the adverse party is the republic of the Philippines
c. Cooperatives organized by faculty members and employees of educational institutions shall have the preferential
right in the management of the canteen and other services related to the operation of the educational institution
where they are employed
d. The appropriate housing agency and government financial institutions shall create a special window for financing
housing projects undertaken by cooperatives, with interest rates and terms equal to, or better than those given for
socialized housing projects
5. It is a certificate issued by the CDA to the operating cooperatives that has complied with the mandatory requirements
a. Certificate of compliance
b. Certificate of incorporation
c. Certificate of commendation
d. Certificate of appreciation
6. .I. Registered cooperatives must put up and maintain a signage at the entrance of principal and all branch or satellite
offices
II. Every cooperative shall have an official postal address to which all notices and communications shall be sent
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
7. Except for one, every cooperative should have the following documents ready and accessible to its members and
representatives of the CDA for inspection during reasonable office hours at its official address, except:
a. A copy of the Philippines operative code and all other laws pertaining to cooperatives
b. A copy of the regulations of the SEC
c. A copy of the articles of cooperation and bylaws of the cooperative
d. A register of members
8. I. The accountant or the bookkeeper of the cooperative shall be responsible for the maintenance and safekeeping of the
book and the records of account of the cooperative in accordance with generally accepted accounting practices
II. The audit committee shall be responsible for the continuous and periodic review of the books and records of account to
ensure that these are in accordance with the cooperative principles and generally accepted accounting practices
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
9. Cooperatives shall be accorded the following privileges:
a. Cooperatives shall enjoy the privileges of depositing their sealed cash boxes or containers, documents or any
valuable papers in the safes of the municipal or city treasurers and other government offices free of charge
b. Cooperative organized among government employees, shall enjoy the free use of any available space in their
agency
c. In areas where appropriate cooperatives exist the pressure and shall 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 commodities their members shall be granted to the cooperative concerned
d. All of the above
10. Cooperatives shall be accorded the following privileges, except :
a. Preferential treatment in the allocation of fertilizers, including seeds and other agricultural inputs and implements,
and in rice distribution shall be granted to cooperatives by the appropriate government agencies
b. 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
c. Cooperatives and their federations, such as farm and fishery producers and suppliers, market vendors and such
other cooperatives, which have for their primary purpose the production and/or the marketing of products from
agriculture, fisheries and small entrepreneurial industries and federations thereof, shall have preferential rights in
the management of public markets and/or lease of public market, stalls or spaces
d. Cooperatives engaged in credit services and/or federations shall be entitled to loan 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 the BSP
Chapter 6- INSOLVENCY OF COOPERATIVES
1. In case of cooperative is unable to fulfill its obligations to creditors due to insolvency, such cooperative may apply for
such remedies as it may deem fit under the provisions of:
a. Securities regulation code
b. Philippine cooperative code
c. Civil code of the Philippines
d. Financial rehabilitation and insolvency act
Chapter 7- Dissolution of Cooperatives
1. It refers to the termination of the juridical personality of the cooperative through appropriate judicial proceedings, or by
an order of the CDA, or through its own initiative
a. Liquidation
b. Termination
c. Dissolution
2. I. The dissolution of a cooperative may either be voluntary or involuntary.
II. Dissolution is voluntary if it is initiated through the voluntary decision of the members of cooperatives
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false

3. I. Dissolution is voluntary if it is ordered by the CDA or a competent court having jurisdiction over the cooperative on
grounds as specified by law, and after due process
II. The dissolution of a cooperative, whether voluntary or involuntary terminates the right of the cooperative to continue
the business or purposes for which it was established and is bound to wind up its affairs within the period as specified by
law
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
4. I. Dissolution of a cooperative does not prejudiced the rights of any creditor having a claim against it, the solution may
be effected by a majority vote of the board of directors and by a resolution duly adopted by the affirmative vote of at least
a majority of all the members with voting rights, present and constituting a quorum at a meeting to be held up and all of
the directors
II. The notice of time, place and object of the meeting shall be published for 3 consecutive weeks in a newspaper
published in the place where the principal office of said cooperative is located, or if no newspaper is published in such
place in a newspaper of general circulation in the Philippines
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
5. I. Where the dissolution of a cooperative prejudice the rights of any creditor, the petition for dissolution shall be filed
only with the regional trial court
II. The petition shall be signed by a majority of its board of directors or other officers managing its affairs, verified by its
chairperson or board secretary or one of its directors and shall set forth all claims and demands against it and that its
dissolution was resolved upon the affirmative vote of at least majority of all of the members with voting rights, present
and constituting a quorum at a meeting called for that purpose
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
6. A cooperative may be dissolved by order of competent court after hearing on the grounds of:
I. Violation of law, regulation or provision of its bylaws
II. Insolvency
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
7. The CDA may suspend or revoke, after due notice and hearing, the certificate of registration of a cooperative on any of
the following grounds:
a. Existing for an illegal purpose
b. Willful violation, despite notice by the CDA, of the provisions of the Philippine cooperative code or its bylaws
c. Willful failure to operate on a cooperative basis
d. Having obtained its certificate of incorporation by fraud

8. I. If a cooperative has not commenced business and its operation within 2 years after the issuance of its certificate of
registration or has not carried on its business for 2 consecutive years, the CDA shall send a formal notice to the said
cooperative to show cause as to its failure to operate
II. Failure of the Cooperative to promptly provide justifiable cause for its failure to operate shall warrant the CDA to
delete its name from the roster of registered cooperatives and shall be deemed dissolved
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
9. I. Every cooperative whose charter expires by its own limitation or whose existence is terminated by voluntary
dissolution or to an appropriate judicial proceeding shall nevertheless continue to exist for five years after the time of it is
dissolved
II. At any time during the said 5 years, the cooperative authorized and empowered to convey all of its properties to trustee
for the benefit of its members, creditors and other persons in interest
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
10. I. Liquidation refers to the various undertaken by a dissolved cooperative, through its duly constituted board of
liquidators
II. The dissolved cooperative shall continue to exist for three years from the issuance of the order of the dissolution
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
11. The following are effects of liquidation, except:
a. Remaining assets are returned to the board of directors
b. All debts are realized and assets are converted into cash
c. Debts are settled in accordance with the provision of the new civil code in the preference and concurrence of
credits or with the following claim of priorities
d. Reserves are disposed of in accordance with the existing laws, rules and regulations, and the bylaws of the
cooperative
12. I. Upon the expiration of the winding up period of 3 years and the submission of the board of liquidators/trustees of
the liquidation's final report the CDA shall order the cancellation of certificate of registration
II. The cancellation of the certificate of registration of cooperative will result in the delisting pf the name of the
cooperative in the cooperative registry and the cessation of the existence of a cooperative as a cooperative body for all
intents and purposes
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
13. It shall refer to the act of striking out or the deleting the registered cooperative name from the registry of existing
cooperatives after its certificate of registration has been ordered cancelled.
a. Liquidation
b. Dissolution
c. Termination
d. Delisting
Chapter 8- Capital, Property and Funds
1. No member shall transfer his shares or interests in the cooperative or any part thereof unless:
I. He has held such share capital interest for not less than 1 year
II. The assignment is made to the cooperative or to member of the cooperative or to a person who falls within the field of
the membership of the cooperative
III. The board of directors has approved such assignment
a. Only I is true
b. Only II is true
c. Only II and III are true
d. I, II, and III are true
2. I. The bylaws of every cooperative shall provide for a reasonable and realistic member capital build-up program to
allow the continuing growth of the members' investment in their cooperative as their own economic conditions continue to
improve
II. The term "share" refers to a unit of capital in a primary cooperative the par value which may be fixed to any figure not
more than 100.00
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
3. A cooperative may not invest its capital in one of the following:
a. In shares or debentures or securities of any other cooperative
b. In any reputable bank in the locality, or any cooperative
c. In securities issued or guaranteed by the government
4. Cooperatives may derive their capital from any or all of the following sources, except:
a. Issued shares of stock
b. Member's share capital
c. Loans and barrowing including deposits
d. Revolving capital which consists of the deferred payment of patronage refund, or interest on share capital
5. I. New member of primary cooperative other than cooperative itself shall own or hold more than 5% of the share capital
of the cooperative
II. Where a member of cooperative dies, his heir shall be entitled to the shares of the decedent
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
6. I. The share capital of the cooperative is the money paid or required to be paid for the operations of the cooperative
II. The bylaws of a cooperative may prescribed a fine on unpaid subscribed share capital
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
7. I. Cooperatives are prohibited from using multiple types of common shares and different par value per share
II. It is prohibited for any cooperative to increase/decrease the par value of the share capital by way of amending their
articles of cooperation and bylaws
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
CHAPTER 8- AUDIT, INQUIRIES AND MERGERS’ RIGHT TO EXAMINE
1. It means an intentional act by one or more individual among management employees or third parties that result in a
misrepresentation of financial statements
a. Negligence
b. Tort
c. Mistake
d. Fraud
2. It refers to the procedure where the cooperative assesses its social impact and ethical performance vis-a-vis its stated
vision goals and social missions
a. Financial audit
b. Social audit
c. Performance audit
3. It refers to the review of the performance of the cooperative vis-a-vis its social development plans and budget
a. Social impact assessment
b. Social performance assessment
c. Social control assessment
d. Social enactment assessment
4. It refers to the process of monitoring, analyzing and evaluation the intended and unintended social outcome/result, both
positive and negative as well as the planned interventions and social change processes involved in said interventions
a. Social control assessment
b. Social performance assessment
c. Social enactment assessment
d. Social impact assessment
5. The financial audit shall be conducted by an external auditor who satisfies all the following qualifications:
I. He is independent of the cooperative or any of its subsidiary that he is auditing
II. He is a member in good standing of the PICPA and is accredited by both the board and accountancy and the CDA
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
6. I. Cooperatives registered under the Philippine cooperative code shall be subject to an annual financial performance and
social audit
II. The social audit shall be conducted by an independent social auditor accredited by the CDA.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
7. An independent CPA accredited by the CDA whose relationship to the client is to express an opinion on the financial
statements
a. Cooperative internal auditor
b. Cooperative inspector
c. Cooperative external auditor
d. Cooperative examiner
8. I. The auditor shall submit to the board of directors and to the audit committee the financial audit report
a. II. The auditor is not liable to any person in an action for defamation based on any act, done, or any statement
made by him in good faith in connection with any matter he is authorized or required to do Only I is true
b. Only II is True
c. Both are true
d. Both are false
9. I. A member shall have the right to examine the records required to be kept by the cooperative
II. Every cooperative shall, at its principal office, keep and carefully preserve the records required by the Philippine
cooperative code to be prepared and maintained
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
10. It refers to the effective translation of a cooperative's mission into practice in line with accepted social values or
simply making a cooperative's social mission a reality
a. Social performance
b. Social goals
c. Social mission
d. Social vision
CHAPTER 10- ALLOCATION AND DISTRIBUTION OF NET SURPLUS
1. I. Every cooperative shall determine its net surplus at the close of every fiscal year and at such other times as may be
prescribed by the bylaws
II. The net service shall be construed as profit.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
2. One is not correct, the net surplus of every cooperative shall be distributed as follows:
a. An amount for the reserve fund which shall be at least 10% of net surplus
b. An amount for the education and training fund, shall not be more than 10% of the net surplus
c. An amount for the community development fund, which shall not be less than 7% of the net surplus
d. An optional fund, a land and building, and any other necessary fund the total of which shall not exceed 7%
CHAPTER 11- AGRARIAN REFORM COOPERATIVES
1. Agrarian reform cooperative shall be organized for any or all of the following purposes:
a. To arrange and facilitate the expeditious transfer of appropriate and suitable technology to beneficiaries and
marginal farmers at the lowest possible cost
b. To provide social security benefits, health, medical and social insurance benefits and other social and economic
benefits that promote the general welfare of the agrarian reform beneficiaries and marginal farmers
c. To provide non-formal education, vocational/technical training, and livelihood programs to beneficiaries and
marginal farmers
d. All of the above
2. I. The government shall grant agrarian reform cooperatives preferential treatment in the construction, maintenance and
management of roads, bridges, canals, wharves, ports, reservoirs irrigation system, waterworks systems, and other
infrastructure with government funding
II. The government shall provide technical assistance, facilities and equipment to such agrarian reform cooperatives
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
3. I. In agrarian reform areas, an agrarian reform cooperative shall have the preferential right in the grant of franchise and
certificate of public convenience and necessity for the operation of public utilities and services
II. The government shall provide the necessary financial and technical assistance to agrarian reform cooperatives to enable
them to discharge effectively their purposes
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
4. A cooperative organized by marginal farmers, majority of which are agrarian reform beneficiaries, for the purpose of
developing an appropriate system of land tenure, land development land consideration or land management in areas
covered by agrarian reform
a. Agrarian reform cooperative
b. Agriculture cooperative
c. Farmer's cooperative
5. An agrarian reform cooperative should be organized for any or all of the following purposes:
a. To develop appropriate systems that land tenure, land development, land consolidation or land management in
areas covered by agrarian reform
b. To coordinate and facilitate the dissemination of scientific methods of production, and provide assistance in the
storage, transport, and marketing of farm products for agrarian reform beneficiaries and their immediate family
hereinafter referred to as "beneficiaries"
c. To provide financial facilities to beneficiaries for provident or productive purposes at reasonable costs.
d. All of the above
CHAPTER 12- COOPERATIVE BANKS
1. I. Regular membership shall be limited to cooperative organizations which are holders of common shares of the bank
II. Associate members are those subscribing and holding preferred shares of the bank
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
2. I. The articles of cooperation and bylaws of cooperative bank, or any amendment thereto, shall be registered with the
CDA only when accompanied by a certificate of authority issued by the BSP
II. To maintain quality of bank management and appropriate protection to depositors and the public in general the BSP
shall prescribe the fit and proper qualifications of directors and officers
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
3. I. The quorum requirements for general assembly meeting, whether a special or regular, shall be one half plus one of
the number of voting shares of all the members in good standing
II. In the meetings of the board of directors, whether special or regular, the quorum requirement shall be one half plus one
of all the members of the board of directors
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
4. I. The quorum requirement for amendment of articles of cooperation and bylaws of a cooperative shall be majority vote
of all the members with voting rights, present and constituting a quorum
II. A cooperative bank shall primarily provide financial, banking and credit services to cooperative organizations and their
members.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
5. I. The cooperative shall be under the supervision of the BSP
II. Cooperative banks shall provide financial and banking services to its members
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false

6. I. Only one operative bank may be established in each province
II. An additional cooperative bank may be established in the same province to cater to the needs of the locality depending
on the economic conditions of the province as may be determined by the BSP
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
7. I. Cooperative banks shall be required to submit to the CDA a copy of the certificate of authority to establish or operate
branch granted by the Bangko Sentral ng Pilipinas
II. Membership in a cooperative bank shall either be regular or associate.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
CHAPTER 13- INSURANCE COOPERATIVE
1. I. Existing cooperatives may organize themselves into a cooperative insurance entity for the purpose of engaging in the
business of insuring life and property cooperatives and their members.
II. The provisions of the Insurance Code and all other law and regulation relative to the organization of an insurance
company shall apply to cooperative insurance entities organized under the Philippine Cooperative Code.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
CHAPTER 14- PUBLIC SERVICE COOPERATIVES
1. A cooperative 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. Producers cooperative
b. Workers cooperative
c. Public Service cooperative
d. Financial services cooperative
CHAPTER 15- CREDIT OOPERATIVES
1. A credit cooperative is a financial organization owned and operated by its members with the following objectives:
a. To encourage savings among its members
b. To create a pool of such savings for which loans for productive or provident purposes may be granted to its
members
c. To provide related services to enable its members to maximize the benefit from such loans.
d. All of the above.
2. The Credit cooperatives may organize chapters or subsidiaries, or join leagues and federations for the purpose of
providing commonly needed essential services including the following:
a. Interlending of surplus; and
b. Mutual benefits
c. Deposit guarantee
d. All of the above
3. The Credit cooperatives may organize chapters or subsidiaries, or join leagues and federations for the purpose of
providing commonly needed essential services including the following:
a. Education and training
b. Professional and technical assistance
c. Research and development
d. All of the above
CHAPTER 16- FINANCIAL SERVICE COOPERATIVES
1. I. In financial service cooperative, minors who are dependents of regular members can qualify as associate members
II. In financial service cooperative, when the minors reached the age of majority and within 3 years from acceptance of
their associate membership, they have the option to convert into regular members
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
2. The CDA shall exercise lead regulatory powers and supervision over the operations of the financial service
cooperatives, thus, it can:
a. Issue rules and regulations for the safe and sound conduct of operations of financial service cooperatives
b. Establish standards of operation for uniform application to all financial services cooperatives
c. Prescribe ratios, ceilings, limitations, or other forms of regulation on the different types of accounts and practices
of financial service cooperatives which shall, conform to internationally accepted standards
d. All of the above
a. Investigate to determine whether a financial service cooperative is conducting its business in a safe and sound
manner
b. Conduct regular examination of the books of accounts, records and other documents of financial service
cooperatives
c. Inquire into the solvency and liquidity of financial service cooperatives
d. All of the above
a. Pass upon and review the qualification and disqualification of individuals elected or appointed directors or
officers and disqualified those found unfit
b. Disqualify, suspend or remove any director or officer who commits or omits an act which renders him unfit for the
position
c. Select, designate and deputize federations, through an approved accreditation criteria, that will supervise primary
financial service cooperatives and issue basic guidelines therefore
d. All of the above
a. Require the submission of relevant reports from the deputized supervisor

b. Provide remedial measures in the operations of financial service cooperatives that are in a state of continuing
inability or unwillingness to maintain a period of liquidity at the request of the deputize supervisor or when the
deputize supervisor fails to perform its functions
c. Accredit external auditors in accordance with standards for audit and financial reporting
d. All of the above
6. A financial service cooperative is a financial organization owned and operated by its members and authorized to
provide the following service, exclusively to its members:
I. The functions of credit cooperatives and other cooperatives including multipurpose cooperatives, that provide savings
and credit to their members
II. Other financial services subject to regulation by the BSP
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
7. I. The articles of cooperation and bylaws of any financial service cooperative or any amendment thereto, shall be
registered with the CDA only if accompanied by a certificate of authority issued by the BSP
II. All associate members who are natural persons shall be given two years to become regular members
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
8. A financial service cooperative shall have two types of members:
I. Regular members who are natural persons
II. Associate members, who are persons but who do not immediately qualify under the requirements for membership set
out in the by-laws of the cooperative
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
CHAPTER 17- ELECTRIC COOPERATICES
1. I. Electric cooperatives may undertake power generation utilizing renewable energy sources, including hybrid systems,
acquisition and operation of sub transmission or distribution as its primary purposes.
II. The registration of an electric cooperative with the CDA under this code shall be submitted for approval to the
members through a referendum.
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
CHAPTER 18- MISCELLANEOUS PROVISIONS
1. I. Disputes among members, officers, directors and committee members, and intra-cooperative, inter-cooperative, intra-
federation or inter-federation disputes shall, as far as practicable be settled amicably in accordance with the conciliation or
mediation mechanisms embodied in the bylaws of cooperatives
II. The conciliation and mediation committee of the cooperative shall facilitate the amicable settlement of intra-
cooperative disputes and disputes among members, officers, directors, and committee members
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
2. I. In case that conciliation or mediation proceedings fail, the matter shall be settled through voluntary arbitration
II. The jurisdiction of the voluntary arbitrators shall be exclusive and original and their decisions shall be appealable to the
office of the president
a. Only I is true
b. Only II is True
c. Both are true
d. Both are false
3. It is a process whereby a neutral third party takes a vigorous and active role in assisting disputants formulate solutions
in order to reach an amicable settlement
a. Mediation
b. Conference
c. Hearing
d. Conciliation
4. It is a process whereby the neutral third party facilitate the negotiation between disputing parties to reach a voluntary,
mutually satisfactory outcome
a. Conciliation
b. Conference
c. Mediation
d. Hearing
5. It refers to any process or procedure used to resolve a dispute or controversy in which a neutral third party participates
to assist in the resolution of issues which include arbitration, mediation, conciliation, early neutral evaluation, mini trial,
or any combination thereof
a. Clarificatory investigation
b. Formal investigation
c. Final resolution
d. Alternative dispute resolution
CHAPTER 19- FINAL PROVISIONS
1. The following acts or omissions affecting cooperative are hereby prohibited:
a. The use of word 'cooperative' by any person or persons or organizations not registered under the philippine
cooperative code
b. Direct or indirect interference or intervention by any public official or employee into the internal affairs of a
cooperative which he is not a member
c. A director, officer, or committee member who violated the provisions of the illegally use of confidential
information
d. All of the above

FINAL EXAMINATION
(COOPERATIVE)
1. I. Every cooperative shall determine its net surplus at the close of every fiscal year and at such other times as may be
prescribed by the bylaws
II. The net surplus shall be construed as profit
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
2. A cooperative may be dissolved by order of a competent court after to hearing on the grounds of:
I. Violation of any law regulation or provision of its bylaws
II. Insolvency
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
3. It refers to the procedure where the cooperative assesses its social impact and ethical performance vis-a-vis stated
mission, goals and social missions.
a. Financial audit
b. Social audit
c. Performance audit
4. I. Loss of confidence shall be a valid ground for removal of an officer of a cooperative
II. No two or more persons with relationships up to 3rd civil degree of consanguinity or affinity nor shall any person
engage in a business similar to that of the cooperative nor in any other manner as interest in conflict with the cooperative
shall serve as an appointive officer
a. Both are true
b. Both are false
c. Only I is true
d. Only II is true
5. It refers to the principal place of business of a cooperative where the cooperative conducts its business as provided for
in their articles of cooperative and bylaws
a. Area of operation
b. Area of business operation
c. Articles of cooperation
6. A cooperative duly registered shall have:
a. Unlimited liability
b. Limitless liability
c. Infinite liability
d. Limited liability
7. It refers to the area where the cooperative members come from as provided for in their articles of cooperation and
bylaws
a. Area of operation
b. Area of business operation
c. Articles of cooperation
8. It refers to member of a cooperative who has no right to vote or be voted upon and shall be entitled to such rights and
privileges as the by-laws may provide
a. Principal member
b. Regular member
c. Guardian member
d. Associate member
9. Who elects the member of board of directors of a cooperative
a. Registrants
b. General assembly
c. Officers
d. Chairperson and vice chairperson
10. It refers to the capitalization of the cooperative as prescribed in the articles of cooperation
a. Outstanding share capital
b. Paid up share capital
c. Authorized share capital
d. Issued share capital
11. It refers to the conditions where members associate themselves to attain their common goals and objectives which may
either be residential, occupational, association, and institutional
a. Bond of membership
b. Fiduciary of membership
c. Loyalty of membership
d. Trust and confidence of membership
12. A cooperative may apply for extension of term but such extension cannot be made earlier than __ years prior to the
original or subsequent expiry date unless there are justifiable reasons for an earlier extension
a. 4
b. 5
c. 6
d. 7
13. An independent CPA accredited by the CDA, whose relationship to the client is to express an opinion on financial
statements
a. Cooperative internal auditor
b. Cooperative inspector
c. Cooperative external auditor

d. Cooperative examiner
14. It refers to the effective translation of a cooperative's mission in the practice in line with except that social values or
simply making a cooperative's social mission reality
a. Social performance
b. Social goals
c. Social mission
d. Social vision
15. I. No member of primary cooperative other than cooperative itself shall own hold more than 5% of the share capital of
the cooperative
II. Where a member of cooperative dies, his heir shall be entitled to the shares of the decedent
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
16. What is term of the members of the board of directors of a cooperative
a. Not to exceed a term of 1 year
b. Not to exceed a term of 2 years
c. Not to exceed a term of 3 years
d. Not to exceed a term of 4 years
17. I. The bylaws of every cooperative shall provide for a reasonable and realistic member capital build-up program to
allow the continuing growth of the members' investment and their cooperative as their own economic conditions continue
to improve
II. The term "share" refers to a unit of capital in a primary cooperative the par value of which may be fixed to any figure
not more than 100
a. Only I is true
b. Only ii is true
c. Both are true
d. Both are false
18. It refers to the sum total of member's share capital including deposits, revolving capital, subsidies, donations, legacies,
grants, aids, land structures, plants, equipment facilities, machines and other assets of a cooperative
a. Capital
b. Property, plant, and equipment
c. Asset
d. Net worth
19. A single purpose cooperative may transform into multi purpose cooperative and may create subsidiaries only after at
least
a. Years from the issuance of the certificate of registration
b. 2 years from the submission of the articles of cooperation
c. 2 Years of operation
d. 5 years from the submission of the bylaws of the cooperative
20. It refers to two or more existing cooperatives which are parties to a merger or consolidation
a. Surviving cooperatives
b. Constituent cooperatives
c. Consolidated cooperatives
d. Merging cooperatives
21. The articles of cooperation and bylaws of the cooperative may be amended by ___ vote of all the members with voting
rights without prejudice to the right of the dissenting members to exercise their right to withdraw their membership
a. 1/3
b. Majority
c. 2/3
d. 50%
22. It refers to one that promotes and undertakes savings and lending services among its members. It generates a common
pool of funds in order to provide financial assistance and other related services to its members for productive and
provident purposes
a. Credit cooperative
b. Workers cooperative
d. Insurance cooperative
23. A contract entered into by the cooperative with one or more of its directors, officers, and committee members may be
ratified by __ a vote of all members with voting rights, present, and constituting a quorum in a meeting called for the
purpose
a. 3/4
b. Majority
c. 1/4
d. 2/3
24. It refers to the act of spiting a single cooperative into two or more cooperatives, wherein the original or corrective
shall be dissolved and the resulting cooperatives shall acquire separate and distinct juridical personalities
a. Division
b. Merger
c. Consolidation
25.I. The dissolution of a cooperative may either be voluntary or involuntary
II. Dissolution is voluntary if it is initiated through the voluntary decision of the members of cooperatives
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
26. No member shall transfer his shares or interest in the cooperative any part thereof unless he has held such share capital
contribution or interest for not less than __
a. 1 year
b. 2 years
c. 3 years
d. 4 years
27. The CDA may suspend or revoke, after due notice and hearing, the certificate of registration of a cooperative on any of
the following grounds:
a. Existing for an illegal purpose
b. Willful violation, despite notice by the CDA, of the provisions of the philippine cooperative code or its bylaws
c. Willful failure to operate on a cooperative basis
d. Having obtained its certificate of incorporation by fraud
28. It is the highest policy-making body of the cooperative and shall exercise such powers as are stated in the philippine
cooperative code. in the articles of cooperation and in the bylaws of the cooperative
a. General assembly
b. Members
c. Board of directors
d. Officers
29. I. Every cooperative whose charter expires by its own limitation or whose existence is terminated by voluntary
dissolution or through an appropriate judicial proceeding shall nevertheless continue to exist for 5 years after the time it is
dissolved
II. At any time during the said 5 years, the cooperative is authorized and empowered to convey all of its properties to
trustees for the benefit of its members, creditors and other persons in interests
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
30. The following are the effects of a liquidation except:
a. Remaining assets are returned to the board of directors
b. All debts are realized and assets are converted into cash
c. Debts are settled in accordance with the provision of the new civil code in the preference and concurrence of
credits or with the following claim name of priorities
d. Reserves are disposed of in accordance with the existing laws, rules, and regulations and the bylaws of the
cooperative
31. It shall refer to the act of striking out or deleting the registered cooperative name from the registry of existing
cooperatives after its certificate of registration has been ordered cancelled
a. Liquidation
b. Dissolution
c. Termination
d. Delisting
32. Where no creditors are affected the cooperative may be voluntarily dissolved by __ a vote of the board of directors and
by a resolution duly adopted by primitive vote of at least __ all of the members with voting rights present and constituting
a quorum of a meeting to be held up on all of the directors
a. Majority; 2/3
b. 1/3; 2/3
c. 1/4; 3/4
d. Majority; 3/4
33. It refers to the officers/individuals duly authorized by the cooperative to to prepare, certify/approve the reports and in
whose had the delay/failure has occurred
a. General assembly
b. Accountable officers
c. Committee members
d. Board of trustees
34. It is a certificate issued by the CDA to the operating cooperatives that have complied with the mandatory requirements
a. Certificate of compliance
b. Certificate of incorporation
c. Certificate of commendation
d. Certificate of appreciation
35. An elective officer of a cooperative may be removed by __ vote of the regular members present and constituting a
quorum, in a regular or special general assembly meeting called for the purpose
a. 3/4
b. 1/3
c. Majority
d. 1/4
36. It refers 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 the philippine cooperative code, its cooperation
and bylaws
a. Members meeting
b. Stockholders meeting
c. Board of directors meeting
d. General assembly
37. It refers to duly registered cooperative to which a laboratory cooperative is affiliated with.
a. Guardian cooperative
b. Parent cooperative
c. Ward operative
d. Trustee cooperative
38. The board of directors of a cooperative is composed of:
a. Not less than 5 but not more than 10
b. Not less than 5 but not more than 15
c. Not less than 5 but not more than 20
d. Not less than 5 but not more than 25
39. It refers to the termination of the juridical personality of the cooperative through an appropriate judicial proceeding or
by order of the authority
a. Voluntary dissolution
b. Involuntary dissolution
c. Voluntary liquidation
d. Involuntary liquidation
40. It refers to a cooperative duly recognized by the CDA, formed and managed principally by minors and is affiliated
with another registered cooperative
a. Guardian cooperative
b. Parent cooperative
c. Laboratory cooperative
d. Subsidiary cooperative
41. Contracts executed between private persons and cooperative prior to the registration of the cooperative shall be __
between the parties and upon registration of the cooperative
a. Valid and binding
b. Void and not binding
c. Voidable and binding
d. unenforceable and binding
42. It refers to the process of settlement and closure of the cooperative affairs, disposition, conveyance and distribution of
its assets
a. Dissolution
b. Liquidation
c. Merger
d. Consolidation
43. I. A director or committee member appointed by any financing institution need not be a member of the corporation
II. A director or committee member appointed by any financial institution shall have no powers, rights or responsibilities
except to provide technical assistance as required by the cooperative.
a. Both are true
b. Both are false
c. Only I are true
d. Only II are true
44. It means following a delegate of a cooperative to represent or vote in behalf of another delegate of the same
cooperative
a. Voting trust agreement
b. None of the above
c. Voting by proxy
d. All of the above
45. A cooperative organized by minors shall be considered a __ cooperative
a. Guardian
b. Subsidiary
c. Parent
d. Laboratory
46. I. In the case of electric cooperatives registered under the philippine cooperative code, a quorum, unless otherwise
provided in the by-laws, shall consist of 10% of all the members entitled to vote
II. Each member of a primary cooperative shall have only one vote
a. Only I is true
b. Only II is true
c. both are true
d. both are false
47. I. The general assembly of the cooperative may decrease the amount allocated to the reserve fund when it already
exceeds the share capital
II. Upon the dissolution of the cooperative, the reserve fund shall not be distributed among the members
a. Both are true
b. Both are false
c. Only I is true
d. Only II is true
48. I. The cooperate may admit as directors, or comittee member one appointed by any financing institution from which
the cooperative received financial assistance solely only to provide technical knowledge not available within its
membership
II. The members of the board of directors shall not hold any other position directly involved in the day-to-day operation
and management of the cooperative
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
49. Cooperative formed and organized under the cooperative code acquires juridical personality from the date the:
a. CDA issues the certificate of registration
b. Directors, chairperson and vice chairperson are duly elected
c. Articles of cooperation are submitted to the CDA
d. Bylaws are submitted to the CDA
50. I. The members of both the audit and election committee shall be elected by the board of directors and the rest shall be
appointed by the general assembly
II. The audit committee shall be indirectly accountable and responsible to the general assembly
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
51. The general assembly shall have the following exclusive powers which cannot be delegated, except:
a. To determine and approve amendments to the articles of cooperation and bylaws
b. To elect or appoint the members of the board of directors and to remove them for cause.
c. To approve developmental plans of the cooperative
d. To approve merger and consolidation
52. Any merger or consolidation of cooperatives shall be effective upon:
a. The filing of the articles of merger and consolidation with the CDA
b. The issuance of the certificate of merger or consolidation by the CDA
c. The submission of the plan of merger or consolidation
d. The approval of the plan of the merger or consolidation

53. I. In the case of primary cooperatives, regular meetings of the board of directors shall be held at least once a year
II. Special meetings of the board of directors may be held at any time upon the call of the chairperson or a majority of the
general assembly
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
54. I. The general assembly should be composed of such member who are entitled to vote under the articles of cooperation
and bylaws of the cooperative
II. The general assembly shall be the highest policy-making body of the cooperative
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
55. It refers to a written document containing the proposed merger or consolidation of cooperatives duly approved by the
general assembly of each of the constituent cooperatives at separate general/ representative assembly meetings
a. Articles of merger or consolidation
b. Bylaws of the surviving or consolidated cooperative
c. Plan of division
d. Plan of merger or consolidation
56. It shall not be construed as profit but as an excess of payments made by the members for the loans borrowed, or the
goods and services availed by them from the cooperative, or the difference of the rightful amount due to the members for
their products or services rendered to the cooperative including under influence of assets resulting from each other
operating activities and which all be deemed to returned to them if the same is distributed
a. Reserved fund
b. Net surplus
c. Fixed deposit
d. Revolving capital

MCQ Chapter 1 Cooperative Concepts

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CHAPTER I - GENERAL CONCEPTS AND PRINCIPLES

MULTIPLE CHOICE PART 1

d. Rules, regulation and discipline

a. Both are true

c. Both are false

a. Securities and Exchange Commission

b. Department of Trade and Industry

c. Intellectual Property Office

d. Cooperative Development Authority

a. Stockholders of the cooperative

b. Members of the cooperative

c. Consultants of the cooperative

d. Officers of the cooperative

a. Voluntary and open membership

b. Democratic member control

c. Autonomy and independence

d. Member economic participation

a. Concern for community

b. Education, training and information

c. Cooperation among cooperatives

d. Autonomy and independence

b. Voluntary and open membership

c. Democratic member control

d. Concern for Community

a. Democratic member control

b. Concern for the community

c. Education, training and information

d. Autonomy and independence

a. Concern for the community

b. Cooperation among cooperatives

c. Autonomy and independence

d. Voluntary and open membership

a. Education, training and information

b. Cooperation among cooperatives

c. Democratic member control

d. Voluntary and open membership

a. Cooperation among cooperatives

b. Voluntary and open membership

c. Member economic participation

d. Concern for the community

d. Single-Line or Single-Purpose cooperative

d. Quality Management audit

d. Quality Management audit

a. C. Both are true

c. Both are false

CHAPTER 2 - ORGANIZATION AND REGISTRATION

b. To form subsidiary cooperatives and join federations or unions

c. To enter into merger or consolidation but not division

a. To organized universal banks.

c. To organize and operate schools.

d. To enter into division, merger or consolidation

3. The following are the requisites of organizing a primary cooperative:

b. Having a common bond of interest.

c. Are actually residing or working in the intended area of operation

d. Fifteen or more natural or juridical persons.

II. A single-purpose cooperative may not transform into a multipurpose.

c. Both are true

d. Both are false

c. Both are true

d. Both are false

c. Both are true

d. Both are false