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Name:    You must enter your name to take this test. 1993 State Cooperative Education Test

Multiple Choice Identify the letter of the choice that best completes the statement or answers the question.
A B C D	1.	Which of the following is a reason a cooperative may not operate subsidiary corporations? a. to handle nonmember business b. to provide capital or financing of certain risky business c. to purchase or market certain goods d. to qualify for business in other states
A B C D	2.	Which of the following is (are) a persistent social problem(s) which the US will have to contend with in the future? a. providing the adequate food supplies to meet the large population increases b. the problems of the overpopulated major cities c. problems of new kinds of work and the training or retraining for such d. problems of motivating workers to work an expected long period of recession
A B C D	3.	Cooperative acquisition is: a. the combining of assets of two or more organizations into a new organization b. the purchase of all or part of the assets of one firm by a second firm c. the combining of assets of one or more organizations with the surviving firm d. none of these answers are correct
A B C D	4.	The legal document(s) which must be filed in the state of incorporation for the formation of the cooperative is (are): a. Articles of incorporation c. charter b. bylaws d. marketing agreement
A B C D	5.	Monopolization is synonymous with: a. attempting to monopolize c. unfair methods of competition b. restraint of trade d. None of these answers are correct.
A B C D	6.	Which of the following is the first step out of order in the final stages of a typical cooperative merger procedure? a. contact with merger partner c. committee analysis and evaluation b. initial meeting/select joint study committee d. action approval by the board
A B C D	7.	Which of the following have not organized cooperatives? a. business c. government units and nonprofit organizations b. employees d. None of these answers are correct.
A B C D	8.	The federal legislation which first recognized the right of employees to organize and forced employers to bargain collectively with their representatives was the: a. Sherman Anti-Trust Act c. National Labor Relations Act b. Labor Management Relations Act d. Norris-La Guardia Act
A B C D	9.	“Predatory” practices are: a. actions having no legitimate purpose c. may involve agreements with investment oriented firms b. intended to restrain or monopolize trade d. All of these answers are correct.
A B C D E	10.	In order to start a cooperative successfully, you need: a. economic need d. financing b. financial feasibility e. All of these answers are correct. c. adequate volume
A B C D	11.	Leadership and advice for the new cooperative can come from: a. Agricultural Cooperative Service b. A Bank of cooperatives c. Established cooperative d. Extension economists from land grant universities
A B	12.	In US vs. Maryland and Virginia Milk Producers Association: a. the ruling was in favor of the US due to unfair competition in the merger with an investor oriented firm b. the ruling was in favor of the cooperative for permissible association with a competing investor oriented firm
A B C D	13.	The criteria for qualifying for Capper-Volstead include: a. who can be a member b. what kind of organization is required c. who can be a member and what kind of organization is required d. None of these answers are correct.
A B C D	14.	“Continuing education” about cooperatives is an important practice because: a. the public education system doesn’t teach much about co-ops b. most co-op members have only a high school education c. a majority of the membership needs to be well informed of their role and responsibility to assure the cooperative is meeting their needs d. All of these answers are correct.
A B C D	15.	Which of these years has no particular significance in cooperative history? a. 1752 b. 1776 c. 1844 d. 1922
A B C D	16.	Three federal laws specify that to qualify as a cooperative, at least 50% of the dollar volume business must be done with member producers. Which of the following does not contain such language? a. Capper-Volstead Act c. Internal Revenue Code b. Cooperative Marketing Act of 1926 d. Smith-Lever Act
A B C D	17.	What has been the dominant force influencing cooperative structure and business strategies? a. farm organization leadership c. public policy b. economic conditions d. political influence
A B C D	18.	Overinvested patrons have: a. more than their share of equity based on patronage invested in their cooperative b. made greater use of the cooperative than other patrons c. greater on-farm than off-farm investments d. more income from equity dividends than from patronage dividends
A B C D	19.	_______represents the highest total net marketing business volume. a. grain and soybeans c. fruits and vegetables b. beans and peas d. livestock
A B C D	20.	______represents the lowest total net marketing business volume. a. livestock c. fruits and vegetables b. dairy d. grain and soybeans
A B C D	21.	_______represent the second highest total net marketing business volume. a. grain and soybeans c. beans and peas b. dairy d. fruits and vegetables
A B C D	22.	_______represent the third highest total net marketing business volume. a. grain and soybeans c. livestock b. dairy d. beans and peas
A B C D	23.	A cooperative receives both a qualified patronage refund distribution and divides on investment from a federated cooperative, can these distributions be included in the cooperative’s patronage refund distribution to its members? a. yes, both distributions can be included in the patronage refund distribution b. neither can be included c. the patronage refunds received are patronage-sourced income and may included in the patronage refund distribution; dividends on equality are not patronage-sourced income and cannot be included in patronage refund allocations d. depends if cooperative has “exempt” tax status
A B C D	24.	Overinvested patrons have: a. more than their share of equity based on patronage invested in their cooperative b. made greater use of the cooperative than other patrons c. greater on-farm than off-farm investments d. more income from equity dividends than from patronage dividends
A B C D E	25.	Most farmer cooperatives are ___ organizations.Individual farmers make up the membership. These 4,791 centralized cooperatives usually serve a local area or community, county, or several counties. Most local associations usually perform a limited number of the first steps of marketing. In farm supply associations, practically all sales are at the retail level. A few centralized cooperatives operate over large geographic areas and have members in several states. They often provide more vertically integrated services such as processing farm products or manufacturing feed and fertilizer. a. Federated Cooperatives d. Centralized b. Marketing Cooperatives e. Mixed c. Service Cooperatives
A B C D E	26.	___ cooperatives comprise two or more member associations organized to market farm products, purchase production supplies, of perform bargaining functions. a. Federated cooperatives d. centralized b. Marketing cooperatives e. Mixed c. Service cooperatives
A B C D E	27.	A small number of cooperatives have both individual farmer members and autonomous cooperative members. Therefor, these associations are a combination of both the centralized and federated structures. Often, these cooperatives serve large geographic with members in many states and provide a variety of integrated services. Sixty-one cooperatives have been identified as having a ___ structure. a. Federated cooperatives d. Centralized      b. Marketing cooperatives      e. Mixed      c. Service cooperatives