Multiple Choice
Identify the choice that
best completes the statement or answers the question.
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1.
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The Farm Credit System accounts
for about _________ of all agricultural loans in the Nation.
a. | fifth | b. | quarter | c. | third | d. | half |
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2.
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The magna Charta of farmer
cooperatives was passage of the legislation know as:
a. | Agricultural Marketing Act of
1926 | b. | Capper-Volstead Act | c. | rural electrification
Act | d. | Smith-Lever Act |
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3.
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Which of the following is a
major responsibility of a cooperatives board of directors?
a. | adopt and amend
by-laws | c. | control daily
operations | b. | employ a general manager | d. | elect competent board members |
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4.
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Planning, organizing,
directing, coordinating, and controlling are functions generally assigned to cooperative
_______.
a. | directors | b. | members | c. | employees | d. | managers |
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5.
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Formal evaluation of a
cooperative manager’s performance is a responsibility of the ______.
a. | directors
| b. | employees | c. | members | d. | task force |
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6.
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A cooperative is
distinguished from other kinds of business in that ______.
a. | it issues at
stock | b. | supplies farmers buy are priced lower and products purchased from farmers are
priced higher | c. | it is not incorporated | d. | the excess of revenue over expenses is allocated to
patrons on the basis of their purchases |
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7.
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______ are the foundation of a
cooperative.
a. | directors | c. | members | b. | manager and staff | d. | employees |
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8.
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Agricultural cooperatives are
generally classified as what form of business organization?
a. | corporation | c. | partnership | b. | individually owned | d. | monopoly |
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9.
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An agricultural cooperatives
main purpose is to _______.
a. | improve social
conditions | c. | service
members’ needs | b. | develop rural communities | d. | satisfy management ambitions |
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10.
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Which of the following
organizations publishes the monthly magazine, Farmer Cooperatives?
a. | Agricultural Cooperative
Service | b. | Cooperative Extension Service | c. | National Cooperative Business
Association | d. | Agricultural Marketing
Service. |
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11.
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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 |
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12.
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Cooperatives can be organized
to transact business ______.
a. | related only to farm
production | b. | related only to farm production and
marketing. | c. | in almost any economic endeavor | d. | in any activity related to
agriculture |
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13.
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In terms of number of U.S.
agricultural marketing cooperatives, the largest percentage ________.
a. | provide marketing
services | b. | purchase farm supplies for members | c. | provide specialized services as their primary
function | d. | provide credit services |
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14.
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In terms of number of U.S.
agriculture cooperatives, the largest percentage
a. | provided marketing
services | b. | provided credit services | c. | purchase farm supplies for
members | d. | provided specialized services as their primary function
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15.
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In terms of dollar sales, U.S.
agricultural marketing cooperatives are most prominent in
a. | fruits and
vegetables | c. | grain, soybeans,
and related products | b. | rice | d. | cotton and cotton
products |
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16.
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In terms of shares of
purchasing activity, the highest cooperative shares can be found in
a. | farm chemicals
| c. | petroleum and
fertilizer | b. | feed and corn | d. | farm machinery |
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17.
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The largest single provider of
credit to agriculture, having a loan volume in excess of $50 billion is
a. | farm credit
system | c. | commercial banking
system | b. | credit union | d. | chase manhattan bank |
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18.
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The national cooperative bank
a. | provides loans to all
cooperatives | b. | provides loans to cooperatives not eligible to borrow from the bank for
cooperatives of the REA | c. | finances the bank for the cooperatives | d. | is another name for the farm credit
administration |
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19.
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In the farmer cooperative, the
control of the organization is usually vested in its members by
a. | each member having one vote
| b. | each member having one vote for each
share of stock owned | c. | each member voting in proportion to the size of their farming operation
| d. | each member voting according to
business conducted at the cooperative |
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20.
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The journal or agriculture
cooperation is published by the
a. | American institute of
cooperation | b. | national council of farmer cooperatives | c. | federal communications
commission | d. | National cooperative business
association |
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21.
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N I C E refers
to
a. | an organization which finances many
consumer cooperatives | b. | an educational institution sponsored each year by
A/C | c. | a cooperative oriented political action
committee | d. | the North institute of cooperative
enrichment |
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22.
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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
business volume | b. | decrease its business volume | c. | keep its business volume about the same
| d. | fire the
manager |
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23.
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Cooperative 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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24.
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A farmer has less individual
business risk when he or she belongs to a cooperative, because the
a. | cooperative speculates in the future
market for him or her | b. | risk is divided among all the farmer members
| c. | cooperatives guarantee all
prices | d. | cooperatives assume all the risk for
members |
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25.
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Cooperatives management is
concerned primarily with
a. | maximizing the profit of the
cooperative | b. | meeting the needs of farmer members | c. | fulfilling members need while maintaining a strong
business | d. | meeting government regulations |
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26.
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The marketing technique used to
create a unique image for a product is called
a. | product differentiation
| c. | market
segmentation | b. | market differentiation | d. | product segmentation |
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27.
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A product is most profitable
during what period of its life cycle?
a. | introductory
period | c. | market maturity
period | b. | market growing period | d. | sales decline period |
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28.
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Marketing is best defined as
a. | selling a
product | b. | distributing of the product to the final consumer
| c. | advertising, promotion, and sale of
products and services | d. | all of the activities required to bring customer and product together in a
sale |
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29.
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The total marketing concept
refers to
a. | development of
geographically-dispersed markets | b. | use of advertising and promotion in selling a
product | c. | a consumer -oriented management philosophy | d. | a company-oriented management
philosophy |
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30.
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Limited return on equity
means
a. | a cooperative must not pay all
patronage refunds in cash | b. | cooperatives are limited as to how high dividends on equity capital can be
| c. | the earnings of the cooperative must
be shared among the patrons, customers, and employees | d. | the amount of interest a cooperative can pay on
borrowed funds is limited |
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31.
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Most of cooperative members
equity comes from
a. | retained patronage
refunds | c. | direct cash
investment | b. | per-unit retains | d. | unallocated reserves |
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32.
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The most common type of
systematic equity redemption plan is
a. | per-unit
retains | c. | the revolving fund
plan | b. | the base capital plan | d. | percent-of-all equity plan |
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33.
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The current assets of a
cooperative minus its current liabilities gives you
a. | working
capital | c. | cost of goods
sold | b. | net income | d. | undistributed proceeds |
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34.
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A cooperatives equity financing
plan should
a. | give investors the highest return
possible on their investment | b. | try to keep members investments as low as
possible | c. | be equitable to members individually and in agreement with cooperative
principles | d. | rely on longtime members |
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35.
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With the percent-of-equity
redemption plan
a. | a cash dividend is paid instead of
redeeming equity | b. | the same percent of equity capital is redeemed from all equity
holders | c. | the earliest year outstanding is redeemed | d. | only equity of inactive members is
redeemed |
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36.
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In order to use per-unit
capital retains as a n equity source, a cooperative must
a. | have sufficient net margins to cover
the amount of the per-capital retain | b. | determine at the close of the business year the amount of capital retain that
is needed | c. | establish a pre-existing agreement wit producers that allows the per-unit
capital retain | d. | pay at least 20 percent of the per-unit capital retain in
cash |
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37.
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Per-unit capital retains is
used primarily by
a. | federate supply cooperatives
| c. | marketing cooperatives
| b. | local supply
cooperatives | d. | cooperatives with sufficient net
margins |
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38.
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What is equity redemption
a. | it is the returning of equity in
cash to member patrons who have previously invested it | b. | a special procedure reserved for direct cash
investment | c. | a requirement for cooperatives that must be carried out every 10
years | d. | the process where by members make cash investments in their
cooperatives |
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39.
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Who must decide in situations
involving conflicting interests of membership groups
a. | cooperative membership committee
| c. | the general
manager | b. | senior advisors of a cooperative | d. | the board of directors |
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40.
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The length of revolving period
is the
a. | length of time from when a member
retires from farming until his/her equity is redeemed | b. | repayment period for operating
loans | c. | length of time from when cooperative equity is issued until it is
redeemed | d. | average length of cooperative
membership |
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41.
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The managers job description is
approved by the
a. | directors
| c. | members
| b. | board president
| d. | extension
agent |
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42.
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The office secretary is
evaluated by the
a. | directors | c. | members | b. | board president | d. | managers |
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43.
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Approving the purchase of a
small processing facility is the responsibility of the
a. | directors | c. | members | b. | manager | d. | board president |
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44.
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Approving the purchase of
packaging materials is the responsibility of the
a. | members | c. | board president | b. | directors | d. | manager |
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45.
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Approving the manager of two
cooperatives is the responsibility of the
a. | manager | c. | members | b. | board president | d. | directors |
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46.
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Approving a loan agreement is
the responsibility of the
a. | board president
| c. | directors | b. | manager | d. | treasurer |
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47.
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Patronizing the cooperative is
the responsibility of the
a. | directors
only | b. | all local residents who care about the community
| c. | other business persons who want
cooperative members to do business with them | d. | members |
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48.
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Approving a new line of
business is the responsibility of the
a. | members
| c. | manager
| b. | directors | d. | board president |
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49.
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Determining how the cooperative
will distribute net margins is the responsibility of the
a. | directors | b. | manager | c. | treasurer | d. | auditor |
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50.
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Determining wether an applicant
is eligible to join the cooperative is the responsibility of the
a. | secretary | c. | board president | b. | manager | d. | directors |
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51.
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Selecting the attorney is the
responsibility of the
a. | manager | b. | auditor | c. | directors | d. | members |
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52.
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The process of directing by the
cooperative manager does not include
a. | communicating the goals of the co-op
to employees | c. | seeking solutions
to technical problems | b. | motivating employees | d. | defining the mission of the
cooperative |
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53.
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What is said to be the hardest
part of managing a local cooperative?
a. | dealing with large number of
products | b. | being highly visible to all patrons | c. | hiring and firing people in the community
| d. | negotiating with large
firms |
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54.
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A cooperative will
automatically add new members by
a. | horizontal integration
| b. | vertical integration into its supply
sources | c. | integrating forward | d. | conglomerate growth
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55.
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To start a cooperative
successfully, farmers do not need
a. | an economic reason for
cooperation | c. | U.S. department of
agriculture approval | b. | financial feasibility | d. | qualified management |
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56.
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When a cooperative is forming,
which of the following is needed?
a. | financial and market
analysis | b. | a farmer who can manage the cooperative until is gets started
| c. | membership commitments from at least
24 growers | d. | government grants |
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57.
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Existing cooperatives can be
restructured by all but which of the following
a. | combining with other
cooperatives | c. | liquidating assets
and dissolving | b. | making alliances with other firms | d. | conducting business exclusively with
nonmembers |
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58.
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Cooperatives
a. | may rely on positive public
image | b. | are isolated from public opinion and public policy
| c. | have never had favorable public
policy | d. | cannot take favorable public policy for
granted |
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59.
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Cooperative management
usually
a. | makes all decisions, while the board
of directors gives advice | b. | makes short-run decisions, while the board of directors makes long-run
decisions and exercises ultimate control | c. | gives advice, while the board of directors makes all decisions and runs
day-to-day operations | d. | appoints the board of directors |
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60.
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A proposed merger between two
farmer cooperatives must be approved by all but which of the following?
a. | the u.s. department of
agriculture | b. | both cooperatives board of directors | c. | the voting majority of the membership of either
cooperative | d. | the joint-study committee |
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61.
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The rule or reason states that
a. | actions are illegal only if they are
done for improper reasons | b. | some practices are illegal no matter what their purpose or
effects | c. | it is reasonable for farmers to form farmer
cooperatives | d. | any action is legal if done for a reasonable
purpose |
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62.
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The act which allows injured
parties to sue for treble damages if injured by antitrust violation is
a. | the Clayton
act | c. | the Robinson-Patman
act | b. | the Sherman act | d. | the federal trade commission act |
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63.
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The act which holds officers
and directors responsible for their corporations criminal antitrust behavior is the
a. | the Clayton
act | c. | the Robinson-Patman
act | b. | the Sherman act | d. | the federal trade commission act |
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64.
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the first and fundamental
statement of antitrust policy is
a. | the Clayton
act | c. | the Robinson-Patman
act | b. | the Sherman act | d. | the federal trade commission act |
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65.
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The earliest law to address the
special needs of farmer cooperatives was
a. | the Clayton
act | c. | the Robinson-Patman
act | b. | the Sherman act | d. | the federal trade commission act |
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66.
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Central cooperative budget plan
called for what percent to be spent on advertising, public relation, and research combined in
2009?
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67.
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In 2009 the central cooperative
marketing budget plan projected what percent to be spent in communications and promotions
combined?
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68.
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What percent of the market
cattle sold to independent livestock in 2009 were beef steers?
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69.
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In 2009 what percent of the
junior fair members selling market cattle to independent live stock were FFA
members?
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70.
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Recent cooperative data charts
show the highest number of corn acres planted in the u.s. was during the______crop
year
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71.
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Cooperatives recent corn acres
chart indicate that u.s. corn acres harvested were the lowest in the _____crop
year
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72.
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In 2008 the average united
states farm was 418 acres.
a. | 123
acres | b. | 185
acres | c. | 243
acres | d. | 159
acres |
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73.
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Average farm size in Texas was
reported to be_____acres in 2008.
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74.
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High bid price at mid-west
cooperative for July corn ( c-corn-cbot) was_____.
a. | 363’0 | b. | 374’0 | c. | 378’4 | d. | 385’4 |
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75.
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Low bid at Midwest cooperative
for may soybeans (s-soybean-cbot) was______.
a. | 920’0 | b. | 931’0 | c. | 940’0 | d. | 943’0 |
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