Multiple Choice
Identify the choice thatbest completes the statement or answers the question. |
| | 1. | If profits are to be maximizedby a cooperative, firm output should be: a. | increased whenever marginal revenueexceeds marginal cost | | b. | bet where unit costs are at a minimum | c. | increased whenever marginal revenue is less than marginalcost |
|
| | 2. | Membership and cooperativenumbers have been: a. | Declining | b. | Increasing | c. | Constant | d. | Fluctuating |
|
| | 3. | A relatively common occurrenceof cooperatives since the mid-1980’s has been: a. | Merging with investors orientedfirms | | b. | Bankruptcies | | c. | Increasing numbers of joint cooperatives | d. | All of these arecorrect |
|
| | 4. | Pecuniary economiesare: a. | Quantitydiscounts | | b. | Economies of size | c. | Efficiency arising from advancements in technologicalchange | | d. | None of these are correct |
|
| | 5. | Which of the following is thefirst step out of order in forming a cooperative? a. | Acquiring capital, includingdeveloping a loan application package | | b. | Hiring a manager | | c. | Acquiring facilities | d. | Calling the first meeting of the board of directors,electing officers, and implementing the business plan | e. | Start upoperations |
|
| | 6. | Which of the following is thefirst step out of order in the final stages of a typical cooperative mergerprocedure? a. | Contact with mergerpartner | | b. | Initial meeting/select joint study committee | c. | Committee analysis and evaluation | d. | Action approval by theboard | | e. | None of these are correct |
|
| | 7. | An example of a cooperativemarketing agency-in-common would be: a. | Sun-maidRaisins | | b. | Sunsweet prunes | | c. | Sun-Siamond growers of California | d. | All of these are correct | e. | None of these arecorrect |
|
| | 8. | Which of the following is areason a cooperative may not operate subsidiary corporations? a. | To handle nonmemberbusiness | | b. | To provide capital or financing of certain riskybusiness | | c. | To purchase of market certain goods | d. | To qualify for business in otherstates | | e. | All of these are correct |
|
| | 9. | What happens in the event ofdissolution of a cooperative? a. | All debts and liabilities are paid | b. | Stockholder share par value isreturned | | c. | All capital furnishings are retired without priority on a pro ratabasis | | d. | All remaining property and assets of the association are distributed among themembers and past members | | e. | All of these are correct |
|
| | 10. | Monopolization is synonymouswith: a. | Attempting to monopolize | d. | All of these arecorrect | | b. | Restraint of trade | e. | None of these are correct | c. | Unfair methods ofcompetition |
|
| | 11. | “Per se” rulesviolations: a. | Are not judged by a rule ofreason | | b. | Illegal no matter what their purpose or effect | c. | Include pricefixing | | d. | All of these are correct | e. | None of these arecorrect |
|
| | 12. | The criteria for qualifying forCapper-Volstead included: a. | Who can be a member | b. | What kind of organization isrequired | | c. | Who can be a member AND what kind of organization isrequired | | d. | None of these are correct |
|
| | 13. | Capper-Volstead is designed tobenefit: a. | Onlyfarmer | | b. | Everyone | | c. | Only procedures, processes, and fooddistributors | | d. | All of these are correct |
|
| | 14. | Secondary industries arereferred to as: a. | Agriculturalactivities | | b. | Services supplied to the primary sector | c. | Supplying services to the tertiary activities and societyas a whole | | d. | Manufacturing or processing of basicmaterials |
|
| | 15. | In the competition monopolycontinuum, the structure of cooperative agriculture is more closely alignedtoward: a. | Competition | | b. | Monopoly | | c. | Midway between competition and monopoly | d. | None of these arecorrect |
|
| | 16. | Which of the following islikely to be true tor the post-industrial society? a. | The government will play anincreasingly large role | | b. | The educational institutions have the potential to surpass the government indominance | | c. | Fewer farms will turn out more agricultural products than even before | d. | All of these arecorrect |
|
| | 17. | Which of the following is (are)a persistent social problem(s) which the U.S. will have to contend with in thefuture? a. | Providing the adequate food suppliesto meet the large population increases | | b. | The problems of the overpopulated majorcities | | c. | Problems of new kinds of work and the training or retaining ofsuch | | d. | Problems of motivating workers to work | e. | An expected long period of recession |
|
| | 18. | Which future trends in thecooperative environment will likely happen? a. | Increase of those in theservices/producing industry | | b. | Great increase in the percentage of governmentworkers | | c. | A shift from the hourly wage rate to the salary for theworkers | | d. | All of these are correct |
|
| | 19. | What organization specificallydid the Clayton Act protect? a. | Labor | | b. | Agricultural | | c. | Horticulture | | d. | All of these are correct |
|
| | 20. | Which of the followingdescribes cooperative business in the nature? a. | A period of decline in privateprofit making business | | b. | A period of adjustment to change | c. | A period of individual adjustment to a period ofplenty | | d. | A time of overwhelming, insolvable socialproblems | | e. | None of these are correct |
|
| | 21. | The Agricultural Fair PracticesAct: a. | Stated that farmers would be worseoff unless they were free to join voluntary organizations incooperatives | | b. | May be enforced by the private or publicsector | | c. | Was enacted 45 years after the Capper-VolsteadAct | | d. | Lists practices in which purchasers, contractors, or purchasing agents may notengage in as they deal with farmers | | e. | All of these are correct |
|
| | 22. | The Clayton Act and theCapper-Volstead Act: a. | Do not protect farmers from stateantitrust laws | | b. | Are universal restraint of trade legislation | c. | Give farmers the right to monopolize and capitalize ontheir combined resources | | d. | All of these are correct |
|
| | 23. | Which of the following arewithin the responsibility of the cooperative steering committee? a. | It judges whether the key elementsof success are present | | b. | It prepares a specific, detailed business plan for the newcooperative | | c. | It considers alternatives to startingcooperative | | d. | It determines what service functions the cooperative shouldprovide | | e. | All of these are correct |
|
| | 24. | A cooperative holdingcompany: a. | Is the subsidiarycorporation | | b. | Operates business substitutable to those of the member regionalcooperatives | | c. | Is not an alternative for cooperatives wishing to benefit from consolidatingonly selected functions | | d. | All of these are correct |
|
| | 25. | Enforcement of federalantitrust laws comes under the jurisdiction of: a. | FTC | c. Secretary of Agriculture | b. | OTA | d. | CFYC |
|
| | 26. | What is the first step informing a cooperative? a. | Discuss with small groups ofproducers the perceived economic need that formation of a cooperative mightfulfill | | b. | Hold an exploratory producer meeting | c. | Conduct an investigation to determine the feasibility of acooperative | | d. | Conduct a market, supply, or cost analysis | e. | Conduct a financial analysis and develop a businessplan |
|
| | 27. | In deciding to organize, whichof the following is important to consider? a. | Financingprojections | d. | Equity redemptionplans| b. | Grower payment schedules | e. | All of these are correct | c. | Projected patronagerefunds |
|
| | 28. | Which of the following is NOTan adjustment to accommodate changing conditions in cooperatives? a. | Internal | | b. | External | | c. | Forming or canceling alliances | d. | Modifying internal organizationstructure | | e. | Modifying external organizationstructure |
|
| | 29. | Internal cooperative changesinclude: a. | Constructing new productive capacity | b. | Mergers, consolidations, oracquisitions | | c. | Joint ventures or marketing agencies | d. | Centralized or federatedstructure | | e. | None of these are correct |
|
| | 30. | External cooperative changesinclude: a. | Mergers, consolidations, oracquisitions | | b. | Joint ventures or marketing agencies | c. | Centralized or federatedstructure | | d. | All of these are correct |
|
| | 31. | Changing cooperativeorganizational linkages include: a. | Constructing new productivecapacity | | b. | Mergers, consolidations, or acquisitions | c. | Joint ventures or marketingagencies | | d. | Centralized or federated structure | e. | None of these arecorrect |
|
| | 32. | Which of the following is (are)a way cooperative achieve internal expansion? a. | Loans | d. Using capital retains | b. | Member investment | e. | All of these are correct | c. | Allocating currentincome |
|
| | 33. | Agway is an example ofa: a. | Consolidation | c. | Acquisition | | b. | Merger | d. | None of these arecorrect |
|
| | 34. | Cooperative consolidationis: a. | The combining of assets of two ormore organizations into a new organization | b. | The purchase of all or part of the assets of one firm by asecond firm | | c. | The combining of assets of one or more organizations with the survivingfirm | | d. | None of these are correct |
|
| | 35. | Cooperative mergersinvolve: a. | The combining of assets of two ormore organizations into a new organization | b. | The purchase of all or part of theassets of one firm by a second firm | c. | The combining of assets of one or more organizations withthe surviving firm
| d. | None of these arecorrect |
|
| | 36. | Cooperative acquisitionis: a. | The combining of assets of two ormore organizations into a new organization | b. | The purchase of all or part of the assets of one firm by asecond firm | c. | The combining of assets of one ormore organizations with the surviving firm | d. | None of these arecorrect |
|
| | 37. | Which of the following have NOTorganized cooperatives? a. | Business | | b. | Employees | | c. | Government units and nonprofit organizations | d. | None of these arecorrect |
|
| | 38. | Which of the following is not aform of cooperative alliance? a. | Federation | | b. | Marketing-agencies-in-common | c. | Joint ventures | d. | Holdingcompany |
|
| | 39. | “Predatory”practices are: a. | Actions having no legitimatepurpose | | b. | Intended to restrain or monopolize trade | c. | May involve agreements with investment orientedfirms | | d. | All of these are correct |
|
| | 40. | Leadership and advice for thenew cooperative can come from: a. | Agricultural CooperativeService | | b. | A Bank for Cooperatives | c. | Established cooperative | d. | Extension economists from land grantuniversities | | e. | All of these are correct |
|
| | 41. | The Northeast Dairy CooperativeFederation (NEDCO), California Canners and Growers, and FCX, INC., are examples of cooperativeswhich: a. | Wentbankrupt | c. | Became a subsidyb. | Merged | d. | None of these arecorrect |
|
| | 42. | Reasons for organizing asubsidiary is (are): a. | To sell a different brand name | b. | To conduct exporttrade | | c. | To qualify for business in other states | d. | All of these arecorrect |
|
| | 43. | The Sherman Act: a. | Was passed to legalize theorganization of agricultural association | | b. | Allowed farmers to organize free of threat of antitrustprosecution | | c. | Prohibited certain kinds of pricediscrimination | | d. | Prohibited monopolizing or attempts tomonopolize | | e. | None of these are correct |
|
| | 44. | Which of the following is aninternal factor to the cooperative? a. | Internationalization of agriculturalmarkets | | b. | National agricultural policy | c. | Biotechnological and informational technologicalchange | | d. | None of these are correct |
|
| | 45. | Which of the following is trueof the structure of American cooperatives in agriculture? a. | The production of most products isdominated by a few large firms | | b. | Output tends to be identifiable by producer | c. | There are extremely high barriers toentry | | d. | All of these are correct |
|
| | 46. | The legal document(s) whichmust be filed in the state of incorporation for the formation of the cooperative is(are): a. | Articles ofincorporation | d. | Marketingagreement| b. | Bylaws | e. | All of these arecorrect | | c. | Charter |
|