True/False
Indicate whether the sentence or statement is true or
false.
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1.
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The Capper-Volstead Act exempts farmers and their cooperatives from antitrust
laws.
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Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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2.
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Which of the following is not a Federal agency?
a. | Farm Credit Administration | c. | Rural Telephone
Bank | b. | Rural Electrification Administration | d. | National Cooperative
Bank |
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3.
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The Agricultural Cooperative Service is a __________.
a. | General farm organization | d. | Volunteer
society | b. | Federal agency | e. | Outlet for Jim Tressel football players | c. | Foundation |
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4.
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Who owns the business in an Agricultural Cooperative?
a. | The individual | c. | The stockholders | b. | The partners | d. | The
member-patrons |
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5.
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“Continuing Education” is an important practice that:
a. | is considered a principle by some cooperatives | b. | is applicable to any
business | c. | was called a duty by Rochdale pioneers | d. | is considered a principle by some cooperatives,
is applicable to any business, and was called a duty by Rochdale pioneers | e. | is considered a
principle by some cooperatives & was called a duty by Rochdale
pioneers |
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6.
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Cooperatives can be readily identified form other businesses by:
a. | their physical appearance | b. | products and services they
offer | c. | their own principles | d. | who owns them | e. | number of OSU
football tickets in owners hands |
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7.
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“Limited returns to equity capital” is a principle recognized in law
by:
a. | The Capper-Volstead Act | b. | State statutes | c. | Neither The
Capper-Volstead Act or State statutes | d. | The Capper-Volstead Act and State
statutes | e. | Woody Hayes-Jim Tressel Law |
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8.
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The first known formal cooperative in the United States claims as one of its
founders?
a. | Pocahontas | d. | George Washington | b. | Benjamin Franklin | e. | Buckeyeman | c. | Robert
Owen |
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9.
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Which of the following phrases, sometimes called cooperative principles, would
you use to cite a fundamental difference between a cooperative and other forms of business?
a. | duty to educate | c. | benefits proportional to use | b. | open to
membership | d. | no unusual risk
assumption |
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10.
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The Rochdale Society of Equitable Pioneers was:
a. | The first credit cooperative formed in Germany in 1860 | b. | A highly successful
consumer cooperative formed in England in1844 | c. | The first formal cooperative in the U.S. formed
in 1752 | d. | Formula used in OSU football game plans today | e. | None of these are
correct |
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11.
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Repeal of the Capper-Volstead Act of 1922 would most critically affect:
a. | Purchasing cooperatives | d. | Sports
cooperatives | b. | Marketing cooperatives | e. | All of these are correct | c. | Service
cooperates |
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12.
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The approximate combined annual average net income of farmer marketing ,
purchasing and service cooperatives during the 1980’s was:
a. | $10 billion | c. | $1 billion | e. | $1 zillion | b. | $5
billion | d. | $10
trillion |
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13.
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The first dairy cooperative started at Goshen, Ct in:
a. | 1752 | b. | 1810 | c. | 1880 | d. | 1820 | e. | 1965 |
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14.
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Cooperatives have been started for all of the following reasons except:
a. | to increase income | b. | to improve bargaining power when dealing with
other business | c. | to reduce costs | d. | to improve product or service
quality | e. | to gain a high return on owner investment |
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15.
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The largest U.S cooperatives membership, according to ACS/USDA
occurred during what period?
a. | 1929-1930 | c. | 1950-1951 | e. | 1962-1963 | b. | 1940-1941 | d. | 1955-1956 |
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16.
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The REA is a cooperative?
a. | true | b. | false | c. | really not true |
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17.
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Cooperatives can operate at lower costs per unit than farmers can individually
by:
a. | providing services for several or many farmers | b. | hiring inexperienced
managers | c. | handling smaller volumes | d. | all of these are
correct |
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18.
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A cooperative that increases competition in a market could:
a. | raise the going market prices for farm products | b. | keep other firms
from taking advantage of farmers | c. | make the market more
competitive | d. | all of these are correct |
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19.
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Cooperatives limit the returns on equity capital because:
a. | Cooperatives do not require much capital as investor -oriented
businesses | b. | They are not concerned about making a profit | c. | They want to
discharge investment by patrons | d. | All of these are correct | e. | They are not
concerned about making a profit and they want to discharge investments by patrons
only |
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20.
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Cooperatives increase farm income by:
a. | Providing farmers higher prices for their products and lower prices for farm
supplies | b. | Increasing per-unit costs | c. | Not distributing any net
savings | d. | Increasing per-unit costs and not distributing any net savings only
| e. | All of these are correct |
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21.
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If a medium sized farmer cooperative finds its average costs decreases as
business volume increases, it would likely:
a. | make every effort to expand its volume | b. | decrease its business
volume | c. | keep its business volume about the same | d. | fire the
manager |
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22.
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Cooperatives exist because:
a. | farmers are greedy | b. | existing firms are not adequately servicing the
needs of farmers | c. | farmers like to work together | d. | farmers want to put other firms out of
business |
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23.
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Vertical coordination can be achieved by:
a. | contracting | c. | both contracting and cooperatives | b. | cooperatives | d. | None of these are correct |
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24.
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Large cooperative gain elevators that are operating efficiently:
a. | have higher average costs of handling grain than small cooperative gain elevators
| b. | have lower average cost of handling grain than small cooperative gain
elevators | c. | have the same average cost for handling grain as small cooperative
elevators | d. | none of these are correct | e. | all of these are
correct |
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25.
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If a cooperative manager uses a wide range of good, useful information, he or
she will likely:
a. | rely heavily on guesses | b. | be able to make better
decisions | c. | both rely heavily on guesses and be able to make better decisions | d. | neither rely heavily
on guesses or be able to make better decisions |
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26.
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Which type of cooperative generally requires a lower financial
investment?
a. | processing | b. | bargaining | c. | storage | d. | pooling | e. | athletic |
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27.
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Vertically integrated cooperatives include which of the following?
a. | selling | c. | processing | b. | distributing | d. | any of these are
correct |
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28.
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Benefits of marketing cooperatives include which of the following?
a. | expanded markets | b. | loss of market power | c. | increased farm
income | d. | expand markets and increased farm income only |
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29.
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Bargaining cooperatives are most common in which commodity areas?
a. | dairy | b. | grain | c. | fruits and vegetable
processing | d. | dairy and fruits and vegetable processing |
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30.
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Which of the following is not the brand of a marketing cooperative?
a. | Sunkist | c. | Land O’ Lakes | b. | Dole | d. | Welch’s |
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31.
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When a cooperative has outlived its economic need it can do which of the
following to conserve its members equity?
a. | merge | c. | continue to operate unchanged | b. | liquidate and
dissolve | d. | both merge and
liquidate and dissolve |
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32.
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For cooperatives, market areas may expand because of all but which of the
following factors?
a. | lower transportation rates | b. | economies of size | c. | members prefer to
market through alternative markets | d. | the cooperative serves a new group of
farmer |
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33.
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Which of the following is NOT a disadvantage of a growing cooperative?
a. | the cooperative handles more product | b. | there is less membership
contact | c. | the cooperative loses local identification | d. | fear of reduced
sensitivity to members needs |
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34.
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Which of the following is NOT a disadvantage of a growing cooperative?
a. | it gets extra layers of management | b. | its voting structure becomes more
complicated | c. | it loses economies of scales | d. | it loses market
power |
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35.
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Cooperative horizontal growth is:
a. | expansion of an existing line of business | b. | expansion into new
stages of producing or marketing the same product | c. | expansion of business into unrelated business
activities | d. | dropping an unprofitable line of business |
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36.
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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 | b. | Woody Hayes-Buckeye Act (Taft-Hartley
Act) | c. | National Labor Relations Act (Wagner Act) | d. | Norris-La Guardia
Act | e. | Landrum-Griffin Act |
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37.
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In U.S. Maryland and Virginia Milk Producers Association:
a. | the ruling was in favor of the U.S. die to unfair competition in the merger with an
investor oriented firm | b. | the ruling was in favor or the cooperative for
permissible association with a competing investor oriented firm | c. | no ruling was made
with all parties attending the annual OSU-Michigan game as a group after the court
hearing |
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38.
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If profit are to be maximized by a cooperative , firm output should be:
a. | increased whenever marginal revenue exceeds marginal costs | b. | set where unit costs
are at a minimum | c. | increased whenever marginal revenue is less than marginal
cost |
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39.
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Membership and cooperative numbers have been:
a. | declining | b. | increasing | c. | constant | d. | fluctuating |
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40.
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A relatively common occurrence of cooperatives since the mid-1980’s has
been;
a. | merging with investor firms | b. | bankruptcies | c. | increasing numbers
of joint cooperatives | d. | all of these are
correct |
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41.
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With the revolving fund method of equity redemption:
a. | equity investments are redeemed in the order they were issued :that is, the oldest
investment is redeemed first | b. | investment are redeemed according to
member’s age | c. | members take turns in having their investments
redeemed | d. | the cooperative redeems the same amount of each member’s
investment |
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42.
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A cooperative patron is:
a. | a cooperative member | c. | a user of a cooperative | b. | an investor in a
cooperative | d. | none of these
are correct |
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43.
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Do boards of directors automatically authorize the redemption of the equity of
any member that wants it?
a. | yes, cooperatives generally follow this practice | b. | no, boards of
directors must balance the interests of all groups of members | c. | I really do not
know, this is a tough question to answer and this is a guess |
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44.
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A cooperative’s equity redemption policy is established by:
a. | the general manager | d. | Federal Law | b. | the board of directors | e. | Andy Geiger and Jim Tressel | c. | advisors to the
cooperative |
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45.
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Equity capital is the:
a. | amount of cash held by the cooperative | b. | value of all assets | c. | member’s and
patrons’ ownership capital | d. | formula for MC=MR divided by pie R square to
the third party |
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46.
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Day-to-Day operations are primarily the responsibility of the:
a. | manager | c. | Board president | e. | area football
coach | b. | directors | d. | members |
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47.
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Providing necessary capital is primarily the responsibility of the:
a. | manager | c. | Board president | e. | area of baseball
coach | b. | director | d. | members |
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48.
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Appointing members of the policy setting committee is primarily the
responsibility of the:
a. | manager | c. | Board president | e. | area basketball
coach | b. | directors | d. | members |
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49.
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Changes in the by-laws are approved by the cooperative’s:
a. | manager | c. | members | e. | area of
cheerleaders | b. | attorney | d. | directors |
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50.
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The manager is hired (and if necessary, fired) by the:
a. | members | d. | directors | b. | Board president | e. | local FFA chapter
presidents | c. | banker |
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51.
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Approving the purchase of packing materials is the responsibility of the:
a. | directors | c. | members | e. | local soccer
coach | b. | Board president | d. | manager |
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52.
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Approving the merger of two cooperatives is the responsibility of the:
a. | directors | c. | members | e. | local softball
coach | b. | Board president | d. | manager |
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53.
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Keeping cooperative meetings running smoothly is the responsibility of
the:
a. | directors | c. | members | e. | local tennis
coach | b. | Board president | d. | manager |
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54.
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Selecting the attorney is the responsibility of the:
a. | manager | c. | directors | e. | local cheerleading
coach | b. | auditor | d. | members |
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55.
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Selecting the auditor is the responsibility of the:
a. | treasurer | d. | manager | b. | directors | e. | committee of local FFA
advisor | c. | Board president |
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56.
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The manager of a cooperative is accountable to:
a. | bankers and other lenders to the cooperative | b. | the board of
directors | c. | the members of the cooperative | d. | the government | e. | has no boss and
accountable only to themselves |
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57.
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The cooperative board of directors is accountable to:
a. | the executive committee | c. | the memberships | b. | themselves | d. | U.S. Department of Agriculture |
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58.
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The members of the cooperative are accountable to
a. | cooperative management | c. | the board of directors | b. | themselves | d. | the federal government |
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59.
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Which of the following groups are targets of the cooperative
communications?
a. | potential members | d. | government | b. | present members | e. | all of these are correct | c. | other co-ops and
firms |
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60.
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Which is NOT characteristics of management by objectives?
a. | verifiable goals | b. | goals firmly and clearly set by
management | c. | appraise people by results | d. | coordination of
goals |
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61.
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The cooperative board of directors is accountable to:
a. | the executive committee | d. | U.S. Department of
Agriculture | b. | themselves | e. | Local City manager | c. | the membership |
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62.
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The most difficult aspect of cooperative management is:
a. | remaining competitive in the face of increasingly powerful competing
firms | b. | remaining profitable while maintaining the unique cooperative
character | c. | balancing the conflicting demands of a diverse membership | d. | keeping the local
office open on OSU football Saturday’s |
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63.
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Which is NOT a characteristic of management by objectives?
a. | verifiable goals | b. | goals firmly and clearly set by
management | c. | appraise people by results | d. | coordination of
goals |
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64.
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The span of cooperative management refers to:
a. | the number of people reporting to the manager | b. | the organizational
units in the cooperatives | c. | the range of authority of the
manager | d. | controls placed on the manager by the board | e. | the size of the
managers waistline |
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65.
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Which is considered to be the most important on cooperatives needed by
farmers?
a. | cooperative principles | d. | Capper-Volstead Act | b. | Section 501 Cooperative tax
laws | e. | Cooperative Marketing
Act | c. | cooperative by-laws |
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