True/False Indicate whether the sentence or statement is true or false. |
| 1. | It is lawful for Ohio cooperatives to develop brand names. |
| 2. | Cooperatives are an integral part of the American business system. |
| 3. | A good source of credit for a farmer is the bank for cooperatives. |
| 4. | A well-informed membership is not essential to the success of a cooperative |
| 5. | Only members may deal with farmer cooperatives. |
| 6. | Pooling is a practice commonly used by marketing cooperatives |
| 7. | Patronage refunds received by patrons are exempt from federal income tax to the business. |
| 8. | Agriculture is the only industry in the united States that uses cooperatives to do business. |
| 9. | The Maximum real gross national product any nation can produce in any one year is limited most by its productive resources. |
| 10. | The financial success of a cooperative depends entirely on the state and federal laws under which it is incorporated. |
| 11. | The returns on invested capital in a cooperative incorporated in Ohio are limited to 8 Percent. |
| 12. | The Ohio Sales Tax is not applicable to farmer cooperatives in the same way that it is to individuals. |
| 13. | Co-ops are exempt from paying personal property taxes. |
| 14. | State franchise taxes must be paid annually by every Ohio co-op. |
| 15. | Net savings in a cooperative are distributed to members on basis of years of membership in the cooperative. |
| 16. | Preferred stock investors in cooperatives have no voting privileges. |
| 17. | Most of the money for establishing a cooperative should be provided by its members. |
| 18. | Mutual insurance companies are among some of the earliest cooperatives organized in America. |
| 19. | It is lawful for Ohio cooperatives to develop brand names. |
| 20. | Cooperatives are an integral part of the American business system. |
| 21. | A good source of credit for a farmer is the band for cooperatives. |
Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. |
| 22. | Determines the credit policy of the cooperative. a. | Member | b. | Manager | c. | Director | | | | | | | |
| 23. | Establishes a fund to finance trips for contest winners to the AIC meeting. a. | Member | b. | Director | c. | Manager | | | | | | | |
| 24. | Adopts the constitution of the cooperative. a. | Manager | b. | Director | c. | Member | | | | | | | |
| 25. | Has the power to terminate the existence of the cooperative. a. | Director | b. | Member | c. | Manager | | | | | | | |
| 26. | Decides to increase the fee charge to new members a. | Directors | b. | Member | c. | Manager | | | | | | | |
| 27. | Handles complains of employees. a. | Director | b. | Manager | c. | Member | | | | | | | |
| 28. | Prepares an annual report of the cooperatives operations. a. | Manager | b. | Member | c. | Director | | | | | | | |
| 29. | Decides weather the cooperative will declare a patronage or dividend refund. a. | Director | b. | Member | c. | Manager | | | | | | | |
| 30. | Employs the manager of the cooperative. a. | Manager | b. | Director | c. | Member | | | | | | | |
| 31. | Amends the articles of incorporation. a. | Member | b. | Manager | c. | Director | | | | | | | |
| 32. | Determines which accounts are to be written off to bad debts. a. | Manager | b. | Director | c. | Member | | | | | | | |
| 33. | Hires the auditor to perform the annual audit. a. | Director | b. | Manager | c. | Member | | | | | | | |
| 34. | Profits distributed in proportion to amount of stock owed. a. | Basic cooperative principles | b. | Not Basic cooperative principles | | | | | |
| 35. | Unlimited dividend paid on capital inverted. a. | Basic cooperative principles | b. | Not Basic cooperative principles | | | | | |
| 36. | Votes for directors at annual stockholders meeting. a. | Basic cooperative principles | b. | Not Basic cooperative principles | | | | | |
| 37. | Profit distributed in proportion to amount of patronage. a. | Basic cooperative principles | b. | Not Basic cooperative principles | | | | | |
| 38. | Democratic control. a. | Basic cooperative principles | b. | Not Basic cooperative principles | | | | | |
| 39. | Majority of business is done with members. a. | Basic cooperative principles | b. | Not Basic cooperative principles | | | | | |
| 40. | The purpose is to obtain a service for the benefit of its members. a. | Basic cooperative principles | b. | Not Basic cooperative principles | | | | | |
| 41. | Organize the cooperative at the outset. a. | Members of the cooperative are responsible | b. | Members of the cooperative are NOT responsible | | | |
| 42. | Doing business with the cooperative. a. | Members of the cooperative are responsible | b. | Members of the cooperative are NOT responsible | | | |
| 43. | Make capital investment if necessary. a. | Members of the cooperative are responsible | b. | Members of the cooperative are NOT responsible | | | |
| 44. | Accept special assignments or responsibilities on a committee. a. | Members of the cooperative are responsible | b. | Members of the cooperative are NOT responsible | | | |
| 45. | Farm cooperatives are distinguished from other forms of private enterprise in all of the following examples except: a. | net savings are distributed on a patronage basis | b. | democratic control is by members as individuals rather than investors holding capitol stock | c. | returns are based on capitol investments by the members | d. | there are limited returns on invested capitol | | | |
| 46. | Under our present cooperatives farm credit system, real estate loans are generally obtained by farmers through a. | Production Credit Associations | c. | Bank for Cooperatives | b. | Mutual Investment Associations | d. | Federal Land Bank Associations | | | | | |
| 47. | The Board of Directors of a farm cooperative is usually made of representatives who are: a. | appointed by management | c. | elected by the voting members at the annual meetings | b. | elected by all the patrons | d. | elected by employees | | | | | |
| 48. | General farm organizations which are not cooperatives but membership organizations devoted to social, educational and legislative work are: a. | Farm Bureau Cooperative Association | c. | Farm Business Federation | b. | Grove City Farmers Exchange | d. | Ohio State Grange | | | | | |
| 49. | The president of a cooperative is usually selected by its: a. | members | c. | management staff | b. | executive committee | d. | board of directors | | | | | |
| 50. | A farmer cooperative is owned by: a. | outside investors | c. | members-patrons | b. | Farmer Cooperative Service | d. | Ohio Department of Agriculture | | | | | |
| 51. | The voting rights in a cooperative are usually based of each member having: a. | a number of votes in proportion to the size of his farm business | b. | one vote for each share of stock owned | c. | one vote per member | d. | the number of votes in proportion to his length of membership in the cooperative | | | |
| 52. | In large cooperative business corporations, the company manages do not: a. | own the business. | c. | set prices for company products | b. | receive part of the profits | d. | manage the day-to-day business | | | | | |
| 53. | The single most important purpose of a farmer cooperative is: a. | promoting new farm legislation | b. | promoting modern agriculture products | c. | strengthening the individual members farm business | d. | aiding agricultural organizations | | | |
| 54. | In addition to following cooperative principles successful need to follow several important business practices. Some of the practices are: a. | continuous growth | c. | competition among cooperatives | b. | selling at market prices | d. | neutrality in politics, race, and religion | | | | | |
| 55. | A cooperatives net profits may go to: a. | Patrons on the basis of years of ownership stock. | b. | Patrons at a rate prescribed at the beginning of each year. | c. | Patrons on the basis of dollars of business done with co-ops. | d. | Management employees as a bonus as determined by the directors. | | | |
| 56. | Cooperative principles are the guideposts that distinguish cooperatives from non-cooperative businesses. Which of these is not a basic cooperative principal: a. | Membership is limited to a select few | d. | Patronage refunds (operation at cost) | b. | Democratic control | e. | Continuous education | c. | Limited or no interest on equity capital | | | | | | | |
| 57. | Operational planning for a cooperative involves short range day to day planning that is responsibility of the directors |
| 58. | The board of directors--not the membership--determines the cooperatives managers salary |
| 59. | Seek information on operations and affairs. a. | members are responsible | b. | Members are NOT responsible | | | | | |
| 60. | Seek employment of relatives. a. | Members are responsible | b. | Members are NOT responsible | | | | | |
| 61. | Expect special privileges from the cooperative. a. | Members are responsible | b. | Members are NOT responsible | | | | | |
| 62. | Attend all general and annual meetings. a. | Members are responsible | b. | Members are NOT responsible | | | | | |
| 63. | Approve the budget for the coming year. a. | Members are responsible | b. | Members are NOT responsible | | | | | |
| 64. | Request changes to meet expanding requirements. a. | Members are responsible | b. | Members are NOT responsible | | | | | |
| 65. | Establish credit policy. a. | Directors are responsible | b. | Directors are NOT responsible | | | | | |
| 66. | Employ operating personal. a. | Directors are responsible | b. | Directors are NOT responsible | | | | | |
| 67. | Run the business. a. | Directors are responsible | b. | Directors are NOT responsible | | | | | |
| 68. | Approval the general plan of operation. a. | Directors are responsible | b. | Directors are NOT responsible | | | | | |
| 69. | Conduct staff training. a. | Directors are responsible | b. | Directors are NOT responsible | | | | | |
| 70. | Handle employee complaints. a. | Directors are responsible | b. | Directors are NOT responsible | | | | | |
| 71. | Decide whether it is possible to pay patronage refund and what percentage of the refund is to be paid in cash. a. | Directors are responsible | b. | Directors are NOT responsible | | | | | |
| 72. | Decide to merge with other business firms. a. | Directors are responsible | b. | Directors are NOT responsible | | | | | |
| 73. | Engage auditor. a. | Directors are responsible | b. | Directors are not responsible | | | | | |
| 74. | Borrow money for the association a. | Directors are responsible | b. | Directors are not responsible | | | | | |
| 75. | When the member patrons cover a fairly broad geographic area and structure their cooperatives business to provide a service or product at locations convenient to members throughout the area and when the members are direct members of the regional, then the cooperative is known as a centralized cooperative. Some of the benefits or advantages of the centralized system of cooperative organizations are: a. | More efficient management control of purchasing and marketing | b. | More selective hiring of managers | c. | Equitable distribution of savings | d. | Grassroots control for better management responsiveness to members | | | |
| 76. | When member patrons organized their own businesses, then join others to provide themselves with inputs to employ economies of scale or to have more market influence, then their cooperatives are known as being a federated system . Some benefits of the federated systems are: a. | Quicker response to changing conditions | b. | Consistency of pricing | c. | Local control (grassroots) for improved management responsiveness | d. | Increased member understanding and loyalty due to more direct involvement | e. | More recognition by the member patrons of need for adequate financing | | | |