1.

This cooperative principle means that cooperatives are voluntary organizations, open to all persons able
to use their services and willing to accept the responsibilities of membership, without gender, social, racial,
cultural, political or religious discrimination.
a. Democratic member control
b. Voluntary and open membership
c. Autonomy and independence
d. Concern for community
2. It refers to the government agency created by the Cooperative Code entrusted with the supervision and
regulation of cooperatives in the Philippines.
a. Securities and Exchange Commission
b. Bangko Sentral ng Pilipinas
c. Cooperative Development Authority
d. Insurance Commission
3. It refers to a type of cooperative that is undertaking activities which are related to its main line of business
or purpose.
a. Single-line or single-purpose cooperative
b. Service cooperative
c. Multi-purpose cooperative
d. Subsidiary cooperative
4. Is one organized to assist or provide access to housing for the benefit of its regular members who actively
participate in the savings program for housing. It is co-owned and controlled by its members.
a. Transport cooperative
b. Housing cooperative
c. Workers cooperative
d. Fishermen cooperative
5. Is one organized by workers, including the self-employed, who are at the same time the members and
owners of the enterprise. Its principal purpose is to provide employment and business opportunities to its
members and manage it in accordance with cooperative principles.
a. Transport cooperative
b. Housing cooperative
c. Workers cooperative
d. Fishermen cooperative
6. The following are the purpose of a cooperative, except
a. To encourage thrift and savings mobilization among the members
b. To generate funds and extend credit to the members for productive and provident purposes
c. To encourage among members systematic production and marketing
d. To promote monopoly and restraint of trade
7. Which of the following is an objective of a corporation?
a. To provide goods and services to its members to enable them to attain increased income, savings,
investments, productivity, and purchasing power, and promote among themselves equitable
distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-
sharing
b. To provide minimum social and economic benefits to its members
c. To teach the members inefficient ways of doing things in a cooperative manner
d. To diminish cooperative practices and new ideas in business and management
8. The following are the functions of a federation of cooperative, except
a. To carry on any cooperative enterprise authorized under Article 6 that complements augments, or
supplements but does not conflict, complete with, nor supplant the business or economic activities of
its member cooperatives
b. To carry on, encourage, and assist educational and advisory work relating to its member cooperatives
c. To coordinate and facilitate the activities of its member cooperatives
d. To allow the lower income and less privileged groups to increase their ownership in the wealth of the
nation
9. The following are the purposes of cooperative union, except
a. To represent its member organizations
b. To acquire, analyze, and disseminate, economic, statistical, and other information relating to its
members and to all types of cooperatives within its area of operation
c. To promote the knowledge of cooperative principles and practices
d. To carry on, encourage, and assist educational and advisory work relating to its member cooperatives
10. The following are the qualification of organizers or cooperators of a prospective cooperative, except
a. They are 15 or more natural persons.
b. They are all Filipino citizens.
c. They are all actually residing or working in the intended area of operation.
d. They have no common bond of interest
11. The following are the purposes of laboratory cooperative, except

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 a. To serve as a training ground for its members to prepare them for membership in regular cooperatives
b. To teach the value of thrift and saving mobilization among its members
c. To instill cooperative values, principles, financial discipline and leadership skills among its members
d. To carry on, encourage, and assist educational and advisory work relating to its member cooperatives
12. It shall refer to duly registered cooperative to which laboratory cooperative is affiliated with.
a. Laboratory cooperative
b. Guardian cooperative
c. Minor cooperative
d. Ward cooperative
13. What is the age of members of laboratory cooperative?
a. At least 7 years old but below 18 years of age
b. At least 12 years old but below 18 years of age
c. At least 15 years old but below 18 years of age
d. At least 10 years old but below 18 years of age
14. It refers to the document signed and acknowledged before a notary public by the organizers of a
cooperative that will be filed to CDA in order for the prospective cooperative to be created.
a. Articles of Partnership
b. Articles of Cooperation
c. Articles of Incorporation
d. Articles of Incooperation
15. What is the minimum subscribed shares before a prospective cooperative can be registered with the CDA?
a. At least 25% of the authorized share capital
b. At least 1/3 of the authorized share capital
c. At least 3/4 of the authorized share capital
d. At least 50% of the authorized share capital
16. What is a conclusive evidence of juridical personality of a cooperative and its due registration with the CDA
unless it is proved that such registration has been cancelled?
a. Articles of Cooperation
b. Cooperative By-Laws
c. Certificate of Registration
d. Certificate of Cooperation
17. What is the term of a cooperative?
a. A cooperative shall have perpetual existence unless otherwise provided in its Articles of Cooperation.
b. A cooperative shall exist for a period not exceeding one hundred (100) years from the date of
registration unless sooner dissolve or unless said period is extended.
c. A cooperative shall exist for a period not exceeding ten (10) years from the date of registration unless
sooner dissolve or unless said period is extended.
d. A cooperative shall exist for a period not exceeding fifty (50) years from the date of registration unless
sooner dissolve or unless said period is extended.
18. Any registered cooperative may resolve to divide itself into 2 or more cooperatives by a resolution
approved by a vote of _____of all the members with voting rights.
a. 3/4
b. 2/3
c. 1/2
d. 1/4
19. Any registered cooperative may resolve to merge or consolidate with another cooperative by a resolution
approved by a vote of _____of all the members with voting rights.
a. 3/4
b. 2/3
c. 1/2
d. 1/4
20. A cooperative may be dissolved if it has not carried on its business for ___ consecutive years.
a. 2
b. 3
c. 4
d. 5
21. What is the required vote for ratification of acquisition made by a director of a cooperative who by virtue
of his office acquires for himself an opportunity which should belong to the cooperative?
a. At least 2/3 of members with voting rights, present, and constituting a quorum
b. At least 3/4 of members with voting, present, and constituting a quorum
c. At least majority of members with voting, present, and constituting a quorum
d. At least 25% of members with voting, present, and constituting a quorum
22. What is the liability of a director or officer or an associate of a director or officer, who, for his benefit or
advantage or that of an associate, makes use of confidential information that, if generally known, might
reasonably be expected to adversely affect the operation and viability of the cooperative?

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 a. Such director or officer shall be liable to compensate the cooperative for the direct losses suffered by
the cooperative as a result of the illegal use of information.
b. Such director or officer shall be accountable to the cooperative for any direct benefit or advantage
received or yet to be received by him or his associate, as a result of the transaction.
c. Both A and B
d. Neither A nor B
23. What is the required vote for removal of an officer or a director of a cooperative?
a. At least 2/3 of members with voting rights, present, and constituting a quorum
b. At least 3/4 of members with voting, present, and constituting a quorum
c. At least majority of members with voting, present, and constituting a quorum
d. At least 25% of members with voting, present, and constituting a quorum
24. Who is responsible for the strategic planning, direction-setting and policy-formulation activities of the
Cooperatives?
a. General Assembly
b. Board of Regents
c. Board of Trustees
d. Board of Directors
25. Which position in a cooperative is allowed to be held by a member of Board of Directors of a Cooperative?
a. President
b. General Manager
c. Controller
d. Chairman
26. What is the required vote for the termination of a membership in a cooperative for any of the valid causes
enumerated by Cooperative Code?
a. At least 2/3 of all the members of the cooperative with right to vote
b. At least 3/4 of all the members of the cooperative with right to vote
c. At least 3/4 of all the members of the board of directors of the cooperative
d. At least majority of all the members of the board of directors of the cooperative
27. What is a delegated power of the GA?
a. To approved contracts entered into by the cooperative
b. To determine and approve amendments to the articles of cooperation
c. To elect or appoint the members of the board of directors and remove them for cause
d. To approve developmental plans of the cooperative
28. A special meeting of the GA may be called at any time by ___ vote of the board of directors.
a. 2/3
b. 3/4
c. 1/2
d. majority
29. Notice in writing calling for a special meeting of the GA must sent ___ prior to the meeting to all members
entitled to vote.
a. 1 month
b. 5 days
c. 10 days
d. 1 week
30. Voting by proxy may be allowed by the by-laws of a cooperative other than a ___ cooperative.
a. Primary
b. Secondary
c. Tertiary
d. Federation
31. What is the term of the members of the board of directors of a cooperative?
a. 1
b. 2
c. 3
d. 5
32. Statement 1: A cooperative may have two kids or members (1) regular members and (2) associate
members.
Statement 2: A regular member is one who complied with all membership requirements and entitled to all
the rights and privileges of membership while an associate member is one who has no right to vote nor
be voted upon and shall be entitled only such rights and privileges as the bylaws may provide.
a. Both statements are true.
b. Both statements are false.
c. Only statement 1 is true.
d. Only statement 1 is true.
33. The Board of Directors of a cooperative is composed of:

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 a. Not less than 5 but not more than 15
b. Not less than 10 but not more than 15
c. Not less than 15 but not more than 20
d. Not less than 15 but not more than 20
34. Unless the bylaws provide otherwise, what constitutes a quorum for the conduct of business in board
meetings?
a. Majority
b. 2/3
c. 1/2
d. 1/3
35. First Statement: Directors of a cooperative cannot attend or vote by proxy at board meeting.
Second Statement: A vacancy in the Board of Directors in a cooperative, other than expiration of term,
may be filled by the vote of at least a majority of the remaining directors, if still constituting a quorum.
a. Both statements are true.
b. Only the first statement is true.
c. Only the second statement is true.
d. None of the statements is true.
36. No additional Compensation other than per diems shall be paid of a director of a cooperative during
________ of existence of any cooperative.
a. First Year
b. First 2 years
c. First 3 years
d. First 5 years
37. A contract entered into by the cooperative with one or more of its directors, officers and committee
members may be ratified by a vote of all members with voting rights, present and constituting a quorum
in a meeting called for the purpose.
a. 3/4
b. 1/2
c. 1/2+1
d. 2/3
38. An act of disloyalty of a director of a cooperative may be ratified by a vote of all members with voting
rights, present and constituting a quorum in a meeting called for purpose.
a. 3/4
b. 1/2
c. 1/2+1
d. 2/3
39. An elected officer of a cooperative may be removed by a vote of all members with voting rights, present
and constituting quorum in a meeting called for the purpose.
a. 3/4
b. 1/2
c. 1/2+1
d. 2/3
40. No member shall transfer his share or interest in the cooperative or any part thereof unless he has such
share capital contribution or interest for not less than:
a. 1 year
b. 2 years
c. 3 years
d. 5 years
41. Who shall elect the members of both the Audit and Election Committee?
a. General assembly
b. Board of directors
c. Cooperative officers
d. Officers of other committees
42. The following are the powers of a cooperative, except
a. To the exclusive use of its registered name, to sue and be sued
b. To enter into conspiracy or combination in restraint of trade or an illegal monopoly, or an attempt to
lessen competition or fix prices arbitrarily
c. To amend its articles of cooperation
d. To adopt bylaws not contrary to law, morals or public policy, and to amend and repeal the same
43. Statement 1: A cooperative has the power to avail of loans, be entitled to credit and to accept and receive
grants, donations and assistance from foreign and domestic sources, subject to the conditions of said
loans, credits, grants, donations or assistance that will not undermine the autonomy of the cooperative.
Statement 2: A cooperative has the power to form subsidiary cooperatives and join federations or unions.
a. Both statements are true.
b. Only the first statement is true.

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 c. Only the second statement is true.
d. None of the statements is true.
44. The following are the requirements to be a member of the board of directors of a cooperative, except
a. Any member of a cooperative who under the bylaws of the cooperative, has the right to vote and who
possesses all the qualifications and none of the disqualifications provided in the laws or bylaws shall
be eligible for election as director.
b. The members of the board of directors shall not hold any other position directly involved in the day to
day operation and management of the cooperative.
c. Any person engaged in a business similar to that of the cooperative or who in any way has a conflict
of interest with it, is disqualified from election as a director of said cooperative.
d. None of the above
45. A contract entered into by the cooperative with one (1) or more of its directors, officers, and committee
members is voidable, at the option of the cooperative, unless all the following conditions are present,
except
a. That the presence of such director in the board meeting wherein contract was approved was necessary
to constitute a quorum for such meeting.
b. That the vote of such director was not necessary for the approval of the contract.
c. That the contract is fair and reasonable under the circumstances.
d. That in the case of an officer or committee member, the contract with the officer or committee member
has been previously authorized by the general assembly or by the board of directors.
46. The following are cooperative acts that require ¾ vote of members with voting rights for validity, except
a. Amendment of articles of cooperation or amendment of corporate by-laws
b. Merger or consolidation of cooperatives
c. Dissolution of a cooperative
d. Removal of director of a cooperative
47. Which of the following statement is true?
a. Cooperative’s financial statements have to be in accordance with the PFRS.
b. Auditors of cooperative shall comply in accordance with the PSA.
c. Auditors of cooperative have to be in good standing and have to be registered with the CDA but not
with the PRC-BOA.
d. None of the above
48. Which of the following is a ground for involuntary dissolution of a cooperative through an order by a
competent court after hearing?
a. Insolvency
b. Willful failure to operate on a cooperative basis
c. Failure to meet the required number of members of the cooperative
d. Having obtained its registration through fraud
49. Any register or list of members shares kept by any registered cooperative shall be prima facie evidence
of the following particulars entered therein:
a. The date on which the name of any person was entered in such register of list of members
b. The date on which any such person ceased to be a member
c. Both A & B
d. Neither A nor B
50. What capital is raised by the cooperative to strengthen its capital structure?
a. Revolving Capital
b. Retained Capital
c. Reserve Capital
d. Raising Capital
51. First statement: The GA of the cooperative may decrease the amount allocated to the reserve fund when
it already exceeds the share capital.
Second Statements: Upon the dissolution of the Cooperative, the reserve fund shall not be distributed
among the members.
a. Both statements are true.
b. Only the first statement is true.
c. Only the second statement is true.
d. None of the statement is true.
52. Where no creditors are affected the cooperative may be voluntarily dissolves by vote of the board of
directors and by resolution duly adopted by the affirmative vote of at least all of the members with voting
rights, present and constituting a quorum at a meeting to be held upon call of the directors.
a. Majority;3/4
b. 3/4;3/4
c. 2/3;3/4
d. Majority;2/3
53. A cooperative may be dissolved by order of a component court after due hearing on the ground/s of:
First: Violation of any law, regulation or provisions of its bylaws

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 Second: Insolvency
a. First and Second
b. First only
c. Second only
d. None of the given
54. Every cooperative whose charter expires by its own limitation or whose existence is terminated by
voluntary dissolution or through an appropriate judicial proceeding shall nevertheless continue to exist for
years after the time it is dissolved to wind up its affairs.
a. 3
b. 4
c. 5
d. 6
55. Cooperatives may derive their capital from any or all of the following sources:
a. Member's share capital
b. Loans and barrowings including deposits
c. Revolving capital which consists of the deferred payment of patronage refunds, or interest on share
capital
d. Stockholdings
56. The following are the conditions before a member can transfer his shares or interest in the cooperative or
any part thereof, except
a. He has held such share capital contribution or interest for one (1) year or more.
b. The assignment is made to the cooperative or to a member of the cooperative or to a person who falls
within the field of the membership of the cooperative.
c. The board of directors has approved such assignment.
d. He has actively participated in the activities of the cooperative for at least one (1) year.
57. A member of a cooperative may, for any valid reason, withdraw his/her membership from the cooperative
by giving a ________ notice to the Board of Directors.
a. 30 days notice
b. 10 days notice
c. 5 days notice
d. 60 days notice
58. The refund of the share of a withdrawing member of a cooperative shall not be made if
a. Upon such payment, the value of the assets of the cooperative would be less than the aggregate
amount of its debts and liabilities exclusive of his/her share capital contribution.
b. Upon such payment, the value of the assets of the cooperative would be more than the aggregate
amount of its debts and liabilities exclusive of his/her share capital contribution.
c. Upon such payment, the value of the assets of the cooperative would be equal to the aggregate amount
of its debts and liabilities exclusive of his/her share capital contribution.
d. Upon such payment, the value of the liabilities of the cooperative would be less than the aggregate
amount of its assets exclusive of his/her share capital contribution.
59. Cooperatives shall be subject to the following annual audit, except
a. Financial audit
b. Social audit
c. Performance audit
d. Internal audit
60. The auditor shall submit the financial audit report to the
a. Board of Directors and Audit Committee
b. Audit Committee
c. Board of Directors
d. General Assembly
61. Upon the dissolution of the cooperative, the reserve fund shall not be distributed among the members.
The general assembly may resolve to do the following, except
a. To establish a usufructuary trust fund for the benefit of any federation or union to which the cooperative
is affiliated.
b. To donate, contribute, or otherwise dispose of the amount for the benefit of the community where the
cooperative operates.
c. If the members cannot decide upon the disposal of the reserve fund, the same shall go to the federation
or union to which the cooperative is affiliated.
d. If the members cannot decide upon the disposal of the reserve fund, the same shall be escheated in
favor of the government.
62. Statement 1: Half of the amounts transferred to the education and training fund annually shall be spent
by the cooperative for education and training purposes; while the other half may be remitted to a union
or federation chosen by the cooperative or of which it is a member.

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 Statement 2: Upon the dissolution of the cooperative, the unexpended balance of the education and
training fund appertaining to the cooperative shall be credited to the cooperative education and training
fund of the chosen union or federation.
a. Both statements are true.
b. Only the first statement is true.
c. Only the second statement is true.
d. None of the statement is true.
63. It refers to a union of two or more existing cooperatives belonging to the same category whereby the
surviving cooperative, retaining its identity, absorbs one or more constituent cooperatives.
a. Consolidation
b. Business combination
c. Merger
d. Quasi-reorganization
64. Which of the following is a fund in a cooperative?
a. Revolving fund
b. Deferred fund
c. Escrow fund
d. Endowment fund
65. What is the maximum limitation on share capital holdings of member of a cooperative?
a. Not more than 10% of the share capital of the cooperative
b. Not more than 20% of the share capital of the cooperative
c. Not more than 5% of the share capital of the cooperative
d. Not more than 15% of the share capital of the cooperative

---nothing follows---

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