1.

Every cooperative, whose charter expires by its own limitation or whose cooperative
existence is terminated by voluntary dissolution or its terminated by appropriate judicial
proceedings shall nevertheless be continued as a body cooperative for ___ years.
A. 2
B. 3
C. 4
D. 5
2. The Authority may suspend or revoke, after due notice and hearing, the certificate of
registration of a cooperative on any of the following grounds except:
A. Having obtained its regulations by fraud
B. Existing for legal purposes
C. Willful violation, despite notice by the Authority, of the provisions of this Code or its
bylaws
D. Failure to meet the required minimum number of members in the cooperative
3. S1: A cooperative may be dissolved by order of a competent court after due hearing on
the grounds of violation of any law, regulation, or provisions of its bylaw.
S2: A cooperative may be dissolved by order of a competent court after due hearing on
the grounds of insolvency.
A. True, True
B. False, False
C. True, False
D. False, True
4. I. The assets and liabilities of the cooperative
II. The nature and extent of the interests of the members of the cooperative
III. The claim of any creditors
IV. The number of members
Where there is voluntary dissolution where creditors are affected, what is the order of
dissolution set forth therein?
A. I, II, III, IV
B. IV, III, II, I
C. I, III, IV, II
D. III, I, II, IV
5. If the dissolution of a cooperative does not prejudice the rights of any creditor having a
claim against it, the dissolution may be affected by a majority vote of the board of
directors, and by a resolution duly adopted by the affirmative vote of at least ___ of all
the members with voting rights at a meeting to be held upon call of the directors.
A. Majority
B. ½
C. 2/3
D. ¾
6. The merger or consolidation of cooperatives shall have the following effects except:
 A. The constituent cooperatives shall become a single cooperative which, in case of
merger shall be the surviving cooperative, and in case of consolidation, shall be the
consolidated cooperative
B. The separate existence of the constituent cooperatives shall cease, except that of the
surviving or the consolidated cooperative
C. The surviving or the consolidated cooperative shall possess all the rights, privileges,
immunities and powers and shall be subject to all the duties and liabilities of a
cooperative organized under this Code
D. The surviving or the consolidated cooperative shall possess all the assets, rights,
immunities and franchise of one of the constituent cooperatives
7. S1: Two (2) or more cooperatives may merge into a single cooperative which shall be
one of the constituent cooperatives or may consolidate into a new single cooperative
which shall be the consolidated cooperative.
S2: No merger or consolidation shall be valid unless approved by half of all the members
eligible to vote of each of the constituent cooperatives at separate general assembly
meetings.
A. True, True
B. False, False
C. True, False
D. False, True
8. Cooperative unions may have the following purposes except:
A. To represent its member organizations
B. To sponsor studies in the economic, legal, financial, social and other phases of
cooperation, and publish the results thereof
C. To promote the knowledge of cooperative principles and practices
D. All of the above are purposes of cooperative unions
9. One which promotes thrift among its members and creates funds in order to grant loans
for productive and provident purposes.
A. Credit cooperative
B. Consumers cooperative
C. Producers cooperative
D. Marketing cooperative
10. One which combines two (2) or more of the business activities of these different types of
cooperatives
A. Credit cooperative
B. Multipurpose cooperative
C. Consumers cooperative
D. Service cooperative
11. Refers to a unit of capital the par value of which may be fixed at any figure but not less
than One peso (P1.00).
A. Interest
B. Share capital
C. Shares
 D. Profit
12. A cooperative may invest its capital in any of the following except:
A. In share or debentures or securities of any other cooperatives
B. In any reputable bank in the locality, or any cooperative
C. In securities issued or guaranteed by the Government
D. In real estate primarily for the use of the cooperative or its members
E. The cooperative may invest in all of the following.
13. Cooperative registered under this Code may derive their capital from any of all of the
following sources except:
A. Members’ share capital
B. Loans and borrowings including deposits
C. Revolving capital which consists of the deferred payment of patronage refunds, or
interest on share capital
D. Subsidies, donations, legacies, grants and aids from public institutions only
14. S1: The auditor auditing the cooperative may not be independent of the cooperative being
audited and of any subsidiary of the cooperative.
S2: A member shall have the right to examine the records required to be kept by the
cooperative.
A. True, True
B. False, False
C. True, False
D. False, True
15. S1: Where a member of a cooperative dies, his heir shall be entitled to the shares of the
decedent.
S2: No member shall transfer his shares or interest in the cooperative unless he has held
such share capital contribution or interest for not less than one (1) year.
A. True, True
B. False, False
C. True, False
D. False, True
16. S1: Death of cooperative member dissolves a cooperative.
S2: A cooperatives charter is called Articles of Incorporation like corporations.
A. True, True
B. False, False
C. True, False
D. False, True
17. S1: The minimum paid up in a cooperative is 25% of the subscribed share capital.
S2: the maximum share capital in a cooperative for each member is 25% of total share
capital.
A. True, True
B. False, False
C. True, False
D. False, True
18. Which of the following is the best explanation of a cooperative?
A. For profit business owned by shareholders
B. Non-profit charitable organization
C. A business owned by two or more people
D. A business owned by people who work for it or are served by it
19. Which one of the following is not a characteristic of a consumer cooperative?
A. Shared responsibility
B. Democratic management
C. Concern for mutual welfare
D. Pursuit of profit
20. S1: In case of vacancy in the board of directors by removal, a vote of at least a majority
of the remaining directors if still constituting majority may fill the vacancy.
S2: The act of illegally using confidential information cannot be ratified.
A. True, False
B. True, True
C. False, False
D. False, True
21. Which type of cooperative is that undertakes joint production whether agricultural or
industrial?
A. Producers Cooperative
B. Consumer Cooperative
C. Marketing Cooperative
D. Service Cooperative
22. S1: Housing cooperatives is the type of cooperative co-owned and controlled by its
members.
S2: While a division of a cooperative is allowed under the cooperative code, if it is done
on fraud of creditors, it is void.
A. True, True
B. True, False
C. False, False
D. False, True
23. A cooperative may invest its capital in any of the following which are not belongs?
A. In share or debentures or securities of any other cooperatives
B. In securities issued or guaranteed by the Government;
C. In real estate primarily for the use of the cooperative or its members
D. All of them are belong
24. Which one engages in the supply of production inputs to members and markets their
products?
A. Consumers Cooperative
B. Marketing Cooperative
C. Producer Cooperative
D. Multi-purpose Cooperative
 25. S1: An auditor is not liable to any person in an action for defamation based on any act
done, or any statement made by him in good faith in connection with any matter he is
authorized or required to do pursuant to this Code.
S2: Every cooperative shall, at its principal office, keep and carefully preserve the
records required by this Code to be prepared and maintained. It shall take all necessary
precaution to prevent its loss, destruction or falsification.
A. True, False
B. False, True
C. True, True
D. False, False
26. One who has no right to vote nor be voted upon and shall be entitled only to such rights
and privileges as the bylaws may provide.
A. Regular member
B. Associate member
C. Irregular member
D. Non-associate member
27. The bylaws of a cooperative may prescribed a fine on unpaid subscribed share capital
subject to the guidelines which the Cooperative Development.
A. Fines
B. Shares
C. Interest
D. Capital
28. Cooperatives under this Code shall be subject to an annual audit by an auditor who
satisfies all the following qualifications except:
(1) He is independent of the cooperative being audited and of any subsidiary of the
cooperative; and
(2) He is a member of any recognized professional accounting or cooperative auditors'
association with similar qualifications.
A. I only
B. 2 only
C. I and 2
D. None
29. Categories of cooperatives of which members are natural persons?
A. Primary
B. Secondary
C. Individual
D. Tertiary
30. S1: The Authority shall issue the appropriate implementing guidelines for the liquidation of
cooperative.
S2: The Authority may suspend or revoke, after due notice and hearing, the certificate of
registration of a cooperative.
A. True, True C. True, False
B. False, True D. False, False