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Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question. |
| | 1. | Farmer Marketing, supply, and service cooperatives in the United States total about_______. | a. | 5,000 | b. | 2 million | c. | 50,000 | d. | 2 billion | | | | | | | | | | |
| | 2. | A ____________ cooperative is one which serves member, local, and regional cooperatives. | a. | Centralized | b. | Federated | c. | Mixed | d. | Nationalized | | | | | | | | | | |
| | 3. | Legislation (Act) which allows producers of agricultural products to act together in associations to market their products without being in violation of antitrust laws is- | a. | Capper-Volstead Act | d. | Smith-Lever Act | | b. | Cooperation Marketing Act | e. | Ogden-Gratz Act | | c. | Farm Credit Act | | | | | | | | |
| | 4. | People organize cooperatives to: | a. | Reduce costs | | b. | Obtain products or services otherwise not available | | c. | Obtain market access | | d. | Increase income | | e. | All of these answers are correct. | | | | |
| | 5. | Key supervisors in a cooperative are: | a. | Selected by the board of directors | | b. | Hired by the manager | | c. | Approved by membership at the annual meeting | | d. | All of these answers are correct. | | | | |
| | 6. | A fundamental reason people form cooperatives is: | a. | They’re opposed to private enterprise | c. | Enhance prices | | b. | To monopolize the market | d. | Mutuality of interests | | | | | | |
| | 7. | The number of agricultural cooperatives peaked out around: | a. | 1900 | b. | 1930 | c. | 1955 | d. | 1986 | e. | 1999 | | | | | | | | | | | | |
| | 8. | Which of the following is NOT an agricultural cooperative? | a. | Ag Way | b. | Conagra | c. | Land O’ Lakes | d. | Ocean Spray | | | | | | | | | | |
| | 9. | First national cooperative association: | a. | American Institute of Cooperative | | b. | Cooperative League of the USA | | c. | Credit Union National Council | | d. | National Council of Farmer Cooperatives | | e. | Ogden’s Fish-Fur-Fin Cooperative | | | | |
| | 10. | Which of these years has no particular significance in cooperative history? | a. | 1752 | b. | 1776 | c. | 1844 | d. | 1922 | | | | | | | | | | |
| | 11. | The largest number of cooperatives in the U.S. are: | a. | Agriculture | c. | Consumer goods | | b. | Rural electric | d. | Credit unions | | | | | | |
| | 12. | The Capper-Volstead Act was passed by Congress in: | a. | 1875 | b. | 1900 | c. | 1922 | d. | 1932 | e. | 1998 | | | | | | | | | | | | |
| | 13. | The benefits to cooperative stockholders DO NOT include: | a. | Products and services | d. | All of these answers are correct. | | b. | Prices and refunds | e. | None of these answers are correct. | | c. | Preferential taxes | | | | | | | | |
| | 14. | The state with the largest number of agricultural cooperatives is: | a. | Texas | b. | Michigan | c. | New York | d. | Minnesota | e. | Ohio | | | | | | | | | | | | |
| | 15. | All the following are considered National cooperative organizations EXCEPT: | a. | National Milk Producers Federation | | b. | National Rural Electric Cooperative Association | | c. | National Cattleman’s Association | | d. | Volunteers in Overseas Cooperative Assistance | | | | |
| | 16. | The first formal cooperative was organized by: | a. | Edwin G. Nourse | c. | Harold Greene | e. | Jim Tressel | | b. | Benjamin Franklin | d. | Aaron Sapiro | | | | | | | | | | |
| | 17. | Cooperatives are organized to: | a. | Maximize net income | | b. | Minimize costs of operation | | c. | Provide services as economically as possible | | d. | All of these answers are correct. | | e. | None of these answers are correct. | | | | |
| | 18. | A pooling cooperative: | a. | Assembles and commingles products from many producers | | b. | Does not have to worry about keeping records | | c. | Pays for the product as received | | d. | All of these answers are correct. | | | | |
| | 19. | A purchasing cooperative can reduce the cost of the production supplies and equipment for members by: | a. | Buying small quantities | | b. | Not becoming involved in manufacturing or processing | | c. | Distributing some supplies in bulk directly from plants to farms | | d. | All of these answers are correct. | | | | |
| | 20. | If a medium sized farmer cooperative finds its average cost decreases as business volume increases, it would likely: | a. | Make every effort to expand its business volume | | b. | Decrease its business volume | | c. | Keep its business volume about the same | | d. | Fire the manager | | | | |
| | 21. | Cooperatives endeavor to: | a. | Maximize net income | | b. | Minimize costs of acquisition and operation | | c. | Provide their services as economically as possible | | d. | All of these answers are correct. | | | | |
| | 22. | The advantages of pooling usually are that: | a. | It spreads the risks and farmers receive top prizes | | b. | It permits farmers to use caution in placing and timing shipments to market demands and in developing new markets | | c. | It permits management to merchandise products according to a planned program it deems most desirable | | d. | All of these answers are correct. | | | | |
| | 23. | Interregional purchasing cooperatives were formed by regional cooperatives to: | a. | Improve purchasing power and increase net margins by purchasing and manufacturing supplies as a group | | b. | Improve management of the regional cooperatives | | c. | Provide greater communication and bargaining power between the regional and the manufacturers | | d. | All of these answers are correct. | | | | |
| | 24. | Marketing cooperatives allow farmers to: | a. | Compete with other marketing firms | | b. | receive more profits from the marketing activities | | c. | Market products with other farmers | | d. | All of these answers are correct. | | | | |
| | 25. | Economics of size means: | a. | Costs increase as firms get larger | c. | Costs decrease as firms get larger | | b. | Profits increase as firms get larger | d. | Revenues increase as firms get larger | | | | | | |
| | 26. | A farmer getting more land to expand production would be an example of: | a. | Vertical integration | | b. | Horizontal integration | | c. | Land grabbing | | d. | Both vertical integration and horizontal integration | | e. | Neither vertical integration or horizontal integration | | | | |
| | 27. | A firm in a perfectly competitive market faces a: | a. | Downward sloping demand curve | d. | Upward sloping demand curve | | b. | Vertical demand curve | e. | No correct choice is listed | | c. | Horizontal demand curve | | | | | | | | |
| | 28. | For a less than perfectly competitive input market: | a. | Marginal input costs< average input cost (supply) | | b. | Marginal input costs= 3D average input cost (supply) | | c. | Marginal input cost > average input cost (supply) | | d. | None of these answers are correct. | | | | |
| | 29. | Payments to producers from commodity pools are made: | a. | In one lump sum when the commodity is delivered | | b. | In a series of payments as the commodity is marketed | | c. | In one lump sum after the product is sold | | d. | To the Federal government | | e. | After each Ohio State football victory on the field | | | | |
| | 30. | A marketing method unique to cooperatives is: | a. | Buy-and-sell | | b. | Pooling | | c. | Auctions | | d. | Discounting | | e. | Buy one get one free with golden buckeye card | | | | |
| | 31. | Farmers began organizing marketing cooperatives in the U.S. in: | a. | Early 1700’s | b. | early 1800’s | c. | Early 1900’s | d. | Late 1900’s | | | | | | | | | | |
| | 32. | A corporation engaged in growing agricultural products: | a. | May become a member of a marketing cooperative | | b. | Is usually a cooperative | | c. | May not become a member of a marketing cooperative | | d. | Is usually a partnership | | | | |
| | 33. | Objectives of marketing cooperatives include: | a. | Assure farmers dependable service | | b. | Maximize income from sale of members products | | c. | Provide information to farmers | | d. | All of these answers are correct. | | | | |
| | 34. | Bargaining cooperatives generally: | a. | Take title and physical possession of member products | | b. | Perform processing functions | | c. | Do not take title or physical possession of member products | | d. | Only market products that are bargains | | | | |
| | 35. | A product is most profitable during what period of it’s cycle? | a. | Introductory period | d. | Sales decline period | | b. | Market growth period | e. | Incubation-gestation period | | c. | Market maturity period | | | | | | | | |
| | 36. | A key element of pooling is: | a. | Sales are handled on an individual account basis | | b. | Risk-sharing | | c. | Cash-at-delivery | | d. | Allows for wet conditions | | | | |
| | 37. | A cooperative association with a federated structure: | a. | Serves local and regional cooperative members | | b. | Serves farmers directly | | c. | Serves the federal government | | d. | Serves as a tax shelter for federal taxes | | | | |
| | 38. | Uniform pricing among members is a cooperative principle and a legal requirement. |
| | 39. | What least affects prices paid by firms purchasing farm commodities? | a. | The global economy | | b. | Economic marketing power of the farmer | | c. | The structure of farming and size of farms | | d. | Desire to give farmers a good price | | | | |
| | 40. | Most laws relating to cooperative formation are: | a. | Found at the State level | | b. | Found at the federal level | | c. | Found at the county level | | d. | Give farmers freedom to form whatever kind of association they want | | e. | Made to permit farmers time off for OSU football games on Saturday | | | | |
| | 41. | Favorable public policy towards cooperatives: | a. | Gives them tax breaks and good advantages over competitors | | b. | Gives competitive advantages under antitrust laws | | c. | Is supported by everyone | | d. | May change quickly | | | | |
| | 42. | the first formal step in the cooperative merging procedure is usually: | a. | Educational membership meetings | c. | Get merger plan board approval | | b. | Contact with merger partner | d. | Vote on the merger | | | | | | |
| | 43. | When a cooperative reorganizes, when is NOT true? | a. | It may continue to serve the same members | | b. | It may continue to provide the same services to members | | c. | It need not inform members if it’s internal reorganization | | d. | It may be in worse financial condition after reorganization than before | | | | |
| | 44. | To start a cooperative successfully, farmers DO NOT need: | a. | An economic reason for cooperation | | b. | Financial feasibility | | c. | U.S. Department of Agriculture approval | | d. | Qualified management | | | | |
| | 45. | The cooperative’s “charter” is: | a. | Its membership application | | b. | Its business plan | | c. | Articles of incorporation and the corporation plan | | d. | Its marketing agreement | | | | |
| | 46. | The Sherman Act: | a. | Was passed to legalize the organization of agriculture cooperatives | | b. | Prohibits restraint of trade and monopolization | | c. | Prohibits price discrimination | | d. | Declares unlawful, unfair methods of completion, or unfair or deceptive acts or practices | | | | |
| | 47. | The earliest law to address the special needs of farmer cooperatives was: | a. | The Clayton Act | d. | The Federal Trade Commission Act | | b. | The Sherman Act | e. | The Woodrow W. Hayes Act | | c. | The Robinson-Patman Act | | | | | | | | |
| | 48. | Pecuniary economies are: | a. | Quality discounts | | b. | Economics of size | | c. | Efficiency arising from advancements in technological change | | d. | None of these answers are correct. | | | | |
| | 49. | Capper-Volstead Act is designed to benefit: | a. | Only farmers | | b. | Everyone | | c. | Only producers, processors, and food distribution | | d. | All of these answers are correct. | | | | |
| | 50. | Enforcement of federal antitrust laws comes under the jurisdiction of: | a. | FTC | c. | Secretary of Agriculture | e. | FTD | | b. | OTA | d. | CFTC | | | | | | | | | | |
| | 51. | Leadership and advice for the new cooperative can come from: | a. | Agricultural cooperative services | | b. | A bank for cooperatives | | c. | Established cooperatives | | d. | Extension economists from the land grant universities | | e. | All of these answers are correct. | | | | |
| | 52. | Fixed assets DO NOT include: | a. | Inventory of products for resale | c. | Equipment | | b. | Buildings | d. | Land | | | | | | |
| | 53. | A cooperative needs ownership or equity capital to: | a. | Provide against losses and to encourage suppliers and lenders to extend credit | | b. | Repay bank loans | | c. | Provide for patronage refunds for members using the cooperative | | d. | Pay directors’ fees and the managers’ salary | | | | |
| | 54. | An annual statement of operations DOES NOT contain information on: | a. | Sales of products | c. | Profit or loss | | b. | Investments made | d. | Cost of things sold | | | | | | |
| | 55. | A members share of ownership in a cooperative is IDEALLY equal to the: | a. | Length of years as a member | c. | Members use of the cooperative | | b. | Size of the members farm | d. | Members need for the money | | | | | | |
| | 56. | Deducting equity dividends from taxable income is allowed for only cooperatives that qualify for 521 tax status. |
| | 57. | Who must decide in situations involving conflicting interests of membership groups? | a. | Cooperative membership committee | | b. | Senior advisors of a cooperative | | c. | The General Manager | | d. | The board of directors | | e. | Land grant college president closet to cooperative | | | | |
| | 58. | An example of a delayed payment plan is: | a. | Business at cost | c. | Pooling | | b. | Accelerated depreciation | d. | None of these are correct | | | | | | |
| | 59. | Patronage refunds must be distributed: | a. | Within 8 1/2 months after the close of the cooperative’s tax year | | b. | Within 12 months after the close of the cooperative’s tax year | | c. | Within 90 days of the close of the cooperative’s tax year | | d. | Before the close of the fiscal year | | | | |
| | 60. | Which is NOT an advantage of the revolting fund equity redemption plan? | a. | Easy for members to understand | | b. | Equity is held more or less in proportion to patronage as long as the revolving period is short | | c. | Provides equity capital quickly and easily | | d. | Easy to administer | | | | |
| | 61. | Cooperatives’ largest source of borrowed funds is: | a. | Cooperative lenders (CoBank and Bank of Cooperatives) | | b. | Commercial banks | | c. | Other cooperatives | | d. | Members | | | | |
| | 62. | The largest portion of cooperatives net income is distributed as: | a. | Unallocated equity | c. | Dividends on equity | | b. | Patronage refunds, cash, and non cash | d. | Income taxes | | | | | | |
| | 63. | Overall management of the cooperative is primarily the responsibility of the: | a. | Manager | b. | Directors | c. | Board President | d. | Members | | | | | | | | | | |
| | 64. | The person responsible for leading cooperative meetings is the: | a. | Manager | b. | Attorney | c. | Board President | d. | Extension agent | | | | | | | | | | |
| | 65. | All of the following, EXCEPT ONE, are resources for the cooperative manager: | a. | Employees | b. | Members | c. | Money | d. | Facilities | | | | | | | | | | |