True/False Indicate whether the sentence or statement is true or false. |
| 1. | An investor owned corporations primary purpose is to make profit for the owners |
| 2. | A partnership is a business jointly owned for profit by two or more people. |
| 3. | Every cooperative in Ohio is a member of the Ohio Council of Farmer Cooperatives. |
| 4. | It is lawful in Ohio cooperatives to develop brand names. |
| 5. | Cooperatives are an integral part of the American business system. |
| 6. | A good source of credit for a farmer is the Bank for Cooperatives. |
| 7. | A well-informed membership is not essential to the success of a cooperative. |
| 8. | Only members may deal with farmer cooperatives. |
| 9. | Pooling is a practice commonly used by marketing cooperatives. |
| 10. | Patronage refunds received by patrons are exempt from federal income tax to the recipient. |
| 11. | Agriculture is the only industry in the United States that uses cooperatives to do business. |
| 12. | The financial success of a farmer cooperative depends entirely on the state and federal laws under which it is incorporated. |
| 13. | Cooperatives may be organized with or without capital stock. |
| 14. | Dividends paid by a cooperative on member capital are limited by statute and/or practice. |
| 15. | An individual business has its policies developed by its customers who produce income to the business. |
| 16. | Net savings in a cooperative are distributed to members on basis of years of membership in the cooperative. |
| 17. | Preferred stock investors in cooperatives have no voting privileges. |
| 18. | The only approved form of business in the United States is a cooperative. |
| 19. | Operational planning for a cooperative involves short range day to day planning that is responsibility of the directors
True False |
Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. |
| 20. | Determines the credit policy of the cooperative a. | Director | c. | Manager | b. | Member | | | | | | | |
| 21. | Establishes a fund to finance trips for contest winners to the AIC meeting. a. | Director | c. | Manager | b. | Member | | | | | | | |
| 22. | Adopts the by-laws of the cooperative a. | Director | c. | Manager | b. | Member | | | | | | | |
| 23. | The founder and first president of The National Cooperative Business Association was: a. | Murray D. Lincoln | c. | Jerry Voorhis | b. | James Peter Warbasse | d. | William Swank | | | | | |
| 24. | Handles complaints of employees. a. | Director | c. | Manager | b. | Member | | | | | | | |
| 25. | Prepares an annual report of the cooperatives operations. a. | Director | c. | Manager | b. | Member | | | | | | | |
| 26. | Employs the manager of the cooperative. a. | Director | c. | Manager | b. | Member | | | | | | | |
| 27. | Determines which accounts are to be written off to bad debts. a. | Director | c. | Manager | b. | Member | | | | | | | |
| 28. | Hires the auditor to perform the annual audit. a. | director | c. | manager | b. | member | | | | | | | |
| 29. | Elects members of cooperative board of directors a. | director | c. | manager | b. | member | | | | | | | |
| 30. | The federal government passed a legislative act that defined and recognized the farmers need for financing. The act is the: a. | Hatch Act | c. | Farm Credit Act | b. | Capper Volstead Act | d. | Land Grant Act | | | | | |
| 31. | Farm cooperatives are distinguished from other forms of private enterprise, in that: a. | net savings are divided equally among the members. | b. | democratic control is by members ad individuals rather than investors holding capital stock. | c. | returns are based on capital investments by the members. | d. | there are variable returns on invested capital. | | | |
| 32. | The Board of Directors of a farmer cooperative is usually made up of representatives who are: a. | appointed by management | c. | elected by the voting members at annual meetings | b. | elected by all the patrons | d. | elected by employees | | | | | |
| 33. | General farm organizations which are not cooperatives but membership organizations devoted to social, educational and legislative work are: a. | Farm Bureau Cooperative Association | c. | Countrymark, Inc. | b. | Grove City Farmers Exchange | d. | Ohio State Grange | | | | | |
| 34. | General farm organizations which are not cooperatives, but membership organizations devoted to social, educational, and legislative work are: a. | Farm Bureau Cooperative Association | c. | Countymark,Inc. | b. | Grove City Farmers Exchange | d. | Ohio State Grange | | | | | |
| 35. | The president of a selective is usually selected by its: a. | members | c. | management staff | b. | executive committee | d. | Board of Directors | | | | | |
| 36. | A farmer cooperative is owned by: a. | outside investors | c. | members-patrons | b. | farmers cooperative service | d. | Ohio Department of Agriculture | | | | | |
| 37. | The voting rights in a cooperative are usually based on 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 | | | |
| 38. | A cooperatives net profits should go to: a. | patrons on the basis of shares of stock owned | 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 members | | | |
| 39. | The single most important purpose of a farmer cooperative is: a. | promoting new farm legislation | b. | promoting modern agricultural products | c. | strengthening the individual members farm business | d. | aiding agricultural organizations | | | |
| 40. | Cooperative principles are the guideposts that distinguish cooperatives from non-cooperative businesses, which one of the following statements is NOT a basic cooperative principle? a. | open membership | c. | unlimited interest on equity capitol | b. | democratic control | d. | patronage refunds (operation at cost) | | | | | |
Matching |
| | Choose either a or b as the correct answer. a. | This IS considered a basic cooperative principle or characteristic. | b. | This IS NOT considered a basic cooperative principle or characteristic. | | | |
| 41. | Profits are distributed in proportion to amount of stock owned. |
| 42. | Vote for directors at annual stockholders meeting. |
| 43. | Profit distributed in proportion to amount of patronage. |
| 44. | Democratic control. |
| 45. | Majority of business is done with members. |
| 46. | The purpose is to obtain a service for the benefit of its members. |
| | Choose either a or b as the correct answer. a. | Members of a cooperative ARE responsible for this action. | b. | Members of a cooperative ARE NOT responsible for this action. | | | |
| 47. | Organize the cooperative at the outset. |
| 48. | Doing business with the cooperative. |
| 49. | Make capital investment if necessary. |
| 50. | Accept special assignments or responsibilities on a committee. |
| 51. | Seek information on operations and affairs. |
| 52. | Expect special privileges from the cooperatives. |
| 53. | Attend all general and annual meetings. |
| 54. | Approve the budget for the coming year. |
| | Choose either a or b as the correct answer. a. | Directors of cooperatives ARE responsible for this action. | b. | Directors of cooperatives ARE NOT responsible for this action. | | | |
| 55. | Establish credit policy. |
| 56. | Employ operating personnel. |
| 57. | Run the business. |
| 58. | Approve the general plan of operation. |
| 59. | Conduct staff training. |
| 60. | Handle employee complaints. |
| 61. | Decide whether it is possible to pay patronage refund and what percentage of the refund is to be paid in cash. |
| 62. | Decide to merge with other business firms. |
| 63. | Engage auditor. |
| 64. | Borrow money for the association. |
| 65. | Run day-to-day cooperative business operations. |