TEST QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026
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1. What is the primary organizational goal of Three Jays
Cooperation?
A. Profit maximization
B. Community development
C. Employee satisfaction
D. Environmental conservation
Correct answer: B. Community development
Rationale: Three Jays Cooperation focuses on cooperative
efforts to support community growth and shared benefits.
2. Which of the following best describes the governance
structure of Three Jays Cooperation?
A. Centralized management
B. Democratic member-based control
C. Sole proprietorship
D. Hierarchical corporate board
Correct answer: B. Democratic member-based control
Rationale: Cooperatives typically operate under democratic
principles, allowing members to participate in decision-making.
3. What type of decision-making model is most likely used in
the Three Jays Cooperation?
,A. Autocratic
B. Consensus-driven
C. Top-down directive
D. Random selection
Correct answer: B. Consensus-driven
Rationale: Cooperative organizations prioritize collaborative
decisions where all members have input.
4. Which social factor is most critical to the success of Three
Jays Cooperation?
A. Competition with other companies
B. Member trust and collaboration
C. Technological advancement
D. Government regulation
Correct answer: B. Member trust and collaboration
Rationale: Trust and collaboration among members strengthen
cooperative relationships and ensure sustainability.
5. What is the primary economic benefit of being a member of
Three Jays Cooperation?
A. Receiving dividends or profit shares
B. Receiving government subsidies
C. Access to luxury goods
D. Tax exemptions
Correct answer: A. Receiving dividends or profit shares
Rationale: Cooperatives distribute profits among members
based on participation or contribution.
,6. How does Three Jays Cooperation ensure equitable
participation among members?
A. Assigning roles based on age
B. Allocating voting rights equally
C. Allowing managers to make all decisions
D. Rotating leadership weekly
Correct answer: B. Allocating voting rights equally
Rationale: Democratic voting ensures each member has an
equal voice in decisions.
7. Which challenge is commonly faced by cooperatives like
Three Jays Cooperation?
A. Overdependence on a single leader
B. Maintaining member engagement
C. Limited access to financial markets
D. Rapid technological innovation
Correct answer: B. Maintaining member engagement
Rationale: Sustaining active participation from all members is a
key challenge in cooperatives.
8. How does Three Jays Cooperation typically handle conflict
among members?
A. Ignoring disagreements
B. Using structured mediation processes
C. Majority vote without discussion
D. Executive decision by a single leader
Correct answer: B. Using structured mediation processes
, Rationale: Cooperatives often employ mediation or consensus
strategies to resolve disputes amicably.
9. What role does leadership play in Three Jays Cooperation?
A. Directing all operations unilaterally
B. Facilitating collaboration and coordination
C. Limiting member input
D. Controlling profit distribution
Correct answer: B. Facilitating collaboration and coordination
Rationale: Leadership in cooperatives focuses on enabling
participation and guiding group efforts.
10. Which of the following is an example of a social
responsibility initiative that Three Jays Cooperation may
undertake?
A. Maximizing short-term profits
B. Community education programs
C. Exclusive luxury product lines
D. Mergers with large corporations
Correct answer: B. Community education programs
Rationale: Cooperatives often engage in initiatives that support
community welfare.
11. Which principle is fundamental to the operations of Three
Jays Cooperation?
A. Capital accumulation
B. Member economic participation
C. Competitive dominance
D. Centralized authority