Name: 
 

Cooperative Education Scope/Structure Practice Test



True/False
Indicate whether thestatement is true or false.
 

 1. 

Much of rural America haselectricity through a member-owned cooperative.
 

 2. 

Consumer cooperatives are moresignificant in Europe than in the U.S.
 

 3. 

The American Farm BureauFederation is a trade association for farmer cooperatives.
 

 4. 

Cooperatives have socializedbanks to serve their financial needs.
 

 5. 

Individually owned businesses,partnerships, investor-owned corporations, and cooperatives are all part of the U.S. privateenterprise system.
 

 6. 

Most businesses in the U.S. arecooperatives.
 

 7. 

Most cooperative businesses areincorporated.
 

 8. 

The Sherman Antitrust Act of1890 made agriculture marketing cooperatives illegal.
 

 9. 

Threshing bees, neighborhoodbarn-raising, and cheese rings of the early 1800’s are all examples of informalcooperatives.
 

 10. 

Agriculture cooperatives helpincrease farm income and provide indirect benefits.
 

 11. 

Cooperatives in the UnitedStates cannot have members in foreign countries.
 

 12. 

Agricultural cooperatives areso small they are not among the 500 largest U.S. industrial corporations.
 

 13. 

The majority of U.S. commercialfarmers are involved in cooperatives.
 

 14. 

All incorporated cooperativesissue stock.
 

 15. 

All cooperatives areincorporated under the Federal  cooperative incorporation statutes.
 

 16. 

Control of the farmercooperative is exercised by officials of State and Federal governments.
 

Multiple Choice
Identify the choice thatbest completes the statement or answers the question.
 

 17. 

The number of U.S. agriculturalcooperatives peaked in:
b.
a.
18501930c.1950d.1990
 

 18. 

Declining numbers of U.S.agricultural cooperatives is a function of:
a.
Lack of interest of farmers incooperatives
b.Consolidations, changing industry structure, and declining farm numbers
c.
Changes in taxlaws
d.Farmers having betteralternatives
 

 19. 

How many farm marketing,supply, and related service cooperatives operate in U.S.:
a.
Fewer than3,000
c.
About20,000
b.About 5,000d.More than 1,000,000
 

 20. 

U.S. cooperatives existin:
a.
A few types of businessactivities
b.Nearly every type of agricultural businessactivity
c.Agricultural activities only
d.
Midwest only
 

 21. 

The gross value of farmproducts marketed by U.S. farm cooperatives has:
a.
Decreasedb.Increasedc.Remained constant
 

 22. 

The agricultural commoditysector in U.S. where producers market the highest percentage of that commodity through cooperativesis the :
a.
Livestocksector
c.
Grainsector
b.Dairy sectord.Fruit and vegetable sector
 

 23. 

The agricultural commoditysector in U.S. where producers market the lowest percentage of that commodity through cooperatives isthe:
a.
Livestocksector
c.
Grainsector
b.Dairy sectord.Fruit and vegetable sector
 

 24. 

What percentage of agriculturalsupplies do U.S. producers purchase through cooperatives:
a.
Less than10%
b.
About25%
c.
About75%
d.
Nearly100%
 

 25. 

For U.S. agriculture, at thefirst handler level, cooperatives marketed what percentage of all agriculturalproducts:
a.
Less than10%
b.
About25%
c.
About75%
d.
Nearly100%
 

 26. 

In 1988, agriculturalcooperatives in the U.S. had total business volume of:
About $66billion
a.
Less than $1million
c.
b.About $190 milliond.More than $500 billion
 

 27. 

Localcooperatives:
a.
Provide services for a community, acounty, or even several countries
b.Have individuals as members
c.
Provide services for a community, a county, or evenseveral countries AND have individuals as members
d.
none of these answers arecorrect
 

 28. 

A “regionalcooperative” is:
a.
The district operation whichcontrols local cooperatives
b.A cooperative conducting business over a large area. Often through a networkof local units.
c.An inaccurate name for a large company that does business withcooperatives
d.An association of local co-ops within a congressionaldistrict.
 

 29. 

Interregional and nationalcooperatives are:
a.
Usually organized by a group oflocal cooperatives
b.Usually organized by two or more regionalcooperatives
c.Usually organized directly by farmers.
d.
Organized and controlled by thegovernment.
 

 30. 

Centralized cooperatives arecooperatives:
a.
In which farmers hold directmembership
b.Which are owned by other cooperatives
c.
Which are controlled by the Central Committee of plannedeconomies
d.Located in the center of theU.S.
 

 31. 

Federated cooperatives arecooperatives:
a.
In which farmers hold directmembership
b.Which are owned by other cooperatives
c.
Operated by the Federalgovernment
d.That operate the federated departmentstores
 

 32. 

Cooperative farming is:
a.
Rare in the United States
c.
Common among corngrowers
b.Common in the United Statesd.Common among alfalfa producers
 

 33. 

The three most common types offarmer-owned cooperatives are:
a.
Purchasing, telephone, and creditunions
b.Marketing, grain elevators, and electric
c.
Purchasing, Marketing, and service
d.
Purchasing, consumer, and healthcare
 

 34. 

A cooperative in which theparticipants join to procure funds collectively from investors is:
a.
The Farm CreditSystem
c.
Consumercooperative
b.Credit unionsd.Grain marketing
 

 35. 

Consumercooperatives:
a.
Sell to consumers but are owned byinvestors
b.Are formed and owned by consumers to purchaseitems
c.Are not allowed in the United States
d.
Are grocery stores formed by farmers incities
 

 36. 

In the U.S. there aremember-owned cooperatives that provide:
Telephoneservice
a.
Farminsurance
c.
b.Health cared.all of these answers are correct
 

 37. 

Examples of products fromcooperatives are:
Land O’Lakes butter
a.
Sunkistoranges
c.
b.Ocean Spray cranberry juiced.all of these answers are correct
 

 38. 

The approximate number ofcredit unions in the United States is:
b.
a.
1,00015,000c.150,000d.1,000,000
 

 39. 

The National Council of FarmerCooperatives (NCFC):
a.
Is a political voice for U.S. farmercooperatives
b.Is a National federation of cooperatives to marketvegetables
c.Is a trade association that does voluntary overseas cooperativedevelopment
d.Is a USDA agency devoted to farmercooperatives
 

 40. 

State cooperativecouncils:
a.
Regulate cooperatives within astate
b.Are statewide associations for cooperatives
c.
Are cooperative advisor boards set up by stategovernments
d.Have been outlawed in moststates
 

 41. 

State cooperativecouncils:
a.
Regulate cooperatives within astate
b.Are statewide associations for cooperatives
c.
Are cooperative advisor boards set up by stategovernments
d.Have been outlawed in moststates
 

 42. 

The Agricultural CooperativeService:
a.
Is an agency of USDA which promotesknowledge of cooperative principles and practices
b.
Is an organization owned by cooperatives to service localcooperatives
c.Is a division of the National Cooperative BusinessAssociation
d.Is a division of the National Bank forCooperatives-Cobank
 

 43. 

The Government agency thatregulates the cooperatively owned Farm Credit System is:
a.
The National Credit UnionAdministration
b.The Farm Credit Administration
c.
The U.S. Department ofAgriculture
d.The Rural ElectricAdministration
 

 44. 

In the U.S. cooperatives areowned by:
a.
The general investingpublic
c.
Thegovernment
b.The users of the cooperatived.all of these answers are correct
 

 45. 

Most State and Federal lawsthat pertain specifically to agriculture cooperatives specify that member business must be ___percent of total business:
a.
No more than25%
c.
No more than50%
b.At least 50%d.100%
 

 46. 

The first formal cooperative inthe United States was organized by:
GeorgeWashington
a.
BenjaminFranklin
c.
b.Harold Greened.Samuel Gomoers
 

 47. 

What is the title of Federallaw granting limited antitrust protection to farmer marketing cooperatives?
a.
Rural Electrification Act of1936
c.
The Capper-VolsteadAct
b.Smith-Leaver Act of 1914d.none of these answers arecorrect
 

 48. 

Distinct business advantages ofincorporated cooperatives include:
a.
Limited liability of individualmembers and indefinite existence
b.Broader capital base than individuals have
c.
Economic service to members, not return on outsidersinvestment
d.all of these answers are correct
e.
none of these answers arecorrect
 

 49. 

Farmer cooperatives have tendedto stabilize farm prices through:
a.
Enhancedcompetition
b.Limiting imports of agriculture products
c.
Limiting their services only tomembers
d.Licensed inspection of agriculturalproducts
 

 50. 

Agricultural cooperativesbenefit:
c.
a.
FarmersConsumers
b.
Rural communitiesd.all of these answers are correct
 



 
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