Capital Sources for Cooperatives: Article 72
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Questions and Answers

What is NOT a valid source of capital for cooperatives registered under this Code?

  • Revolving capital from deferred payment of patronage refunds
  • Member's share capital
  • Loans and borrowings including deposits
  • Profits from investments in non-cooperative businesses (correct)

    • What is the maximum par value of share capital allowed for cooperatives under this Code?

  • ₱1,000 (correct)
  • The text does not specify a maximum par value
  • ₱5,000
  • ₱500

    • Which of the following statements about share capital is TRUE according to the text?

  • Share capital can be divided into individual share capital holdings at any time
  • Share capital can be used to offset past due or current due obligations
  • Share capital is considered as equity and cannot be withdrawn while membership subsists (correct)
  • Share capital can be withdrawn by members while their membership subsists

    • What happens to donated capital upon dissolution of the cooperative?

    <p>It is subject to escheat</p> Signup and view all the answers

    Which of the following statements about common share capital is TRUE according to the text?

    <p>Common share capital can only be issued to regular members</p> Signup and view all the answers

    What is the purpose of revolving capital?

    <p>To consist of deferred payment of patronage refunds or interest on share capital</p> Signup and view all the answers

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