Co-op Test Questions & Answers 2023/2024

Co-op Test Questions & Answers 2023/2024 Once a cooperative has been formed, two very important things the membership should do at the cooperative's first annual meeting are to approve the cooperatives bylaws and elect the board of directors - ANSWER-True A centralized cooperative is a cooperative of cooperatives. That is, the members of the centralized cooperative are other cooperatives. - ANSWER-False Operating at-cost doesn't mean the cooperative doesn't make a profit but means that all profits are refunded to members though patronage refunds. - ANSWER-True Section 521 cooperatives do not need to pay corporate income tax on equity-based dividends. This gives these cooperative a substantial advantage over invest-oriented firms - ANSWER-True The Attorney General of the United States is specified under Section 2 of the Capper-Volstead act as the person designated to enforce the Act to ensure that there is no undue "price enhancement" as a result of farmers acting together to market their products. - ANSWER-False Cooperatives qualifying under Section 521 of the IRS code are required to pay 100% of their patronage refunds to members in cash or in order to maintain their tax-exempt status. - ANSWER-False Market pooling means that members of the cooperative purchase farm supplies jointly and reduce cost because they buy in large volumes - ANSWER-True Cooperative structure can be classified into five types as follows: geographic, governance, functions, financial, and other arrangements. - ANSWER-True If members-users have 100% of the voting rights, it means that they must have all the control of the cooperative. - ANSWER-False