Cooperative Capital Sources Quiz

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Questions and Answers

What is the maximum par value of the share capital of a cooperative registered under this Code?

  • $500
  • $100
  • $1,000 (correct)
  • $5,000

Which of the following is NOT a source of capital for cooperatives registered under this Code?

  • Loans and borrowings including deposits
  • Member's share capital
  • Profits from the cooperative's business operations (correct)
  • Revolving capital

What is the status of capital coming from subsidies, donations, legacies, grants, aids and other assistance?

  • It is not considered part of the cooperative's capital
  • It can be used to offset obligations of the members
  • It forms part of the donated capital or fund of the cooperative (correct)
  • It can be divided into individual share capital holdings

What is the status of the share capital of the members?

<p>It is considered as equity (D)</p> Signup and view all the answers

What is the purpose of preferred share capital?

<p>To provide a way for the cooperative to raise additional capital (C)</p> Signup and view all the answers

What is the purpose of revolving capital?

<p>To provide a way for the cooperative to retain earnings for future growth (D)</p> Signup and view all the answers

What is the maximum percentage of the share capital of a cooperative that a member, other than the cooperative itself, can own or hold?

<p>10% (D)</p> Signup and view all the answers

What happens if a member of the cooperative dies and their heir's total share holding exceeds 10% of the share capital?

<p>The shares in excess of 10% will revert to the cooperative upon payment to the heir of the value of such shares. (C)</p> Signup and view all the answers

What is the minimum duration a member must hold their share capital contribution or interest before they can transfer it?

<p>1 year (D)</p> Signup and view all the answers

To whom can a member transfer their shares or interest in the cooperative?

<p>To the cooperative, another member, or a person who falls within the field of the membership (A)</p> Signup and view all the answers

What is the maximum par value of the share capital of a primary cooperative registered under this Code?

<p>$1,000 (D)</p> Signup and view all the answers

What is the status of the share capital of the members of a cooperative registered under this Code?

<p>The share capital is owned by the individual members, but can only be withdrawn upon termination of membership. (B)</p> Signup and view all the answers

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