Net Surplus in Cooperative: Quiz and Flashcards

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the purpose of determining the net surplus of a cooperative?

To calculate the annual budget

To determine the excess payments made by the members (correct)

To distribute dividends to the members

To calculate the profit for tax purposes

During the first 5 years of operation after registration, what percentage of the net surplus must be allocated to the reserve fund?

No allocation is required

Not less than 50% (correct)

At least 10%

Exactly 30%

What does the net surplus of a cooperative represent?

Annual operating costs

Excess of payments made by members (correct)

Dividends for members

Profit for tax calculation

What does 'net surplus' refer to in the context of cooperatives?

Excess payments made by members Signup and view all the answers

What percentage of the net surplus can be allocated to the education and training fund?

Not more than 10% Signup and view all the answers

What happens to the net surplus if it is distributed as prescribed in the bylaws?

It is returned to the members Signup and view all the answers

What is the purpose of the community development fund mentioned in the text?

To be used for projects or activities benefiting the community Signup and view all the answers

What is the maximum percentage of the net surplus that can be allocated to the optional fund, land and building, and other necessary funds?

7% Signup and view all the answers

According to the text, what is the purpose of the register of cooperatives established by the Authority?

To contain basic information required for registration or dissolution of cooperatives Signup and view all the answers

What is the primary mechanism for settling disputes among members, officers, directors, and committee members in a cooperative?

Conciliation or mediation as per the bylaws Signup and view all the answers

What is required before any party can file a complaint with the Authority for voluntary arbitration?

A certification from its conciliation and mediation committee Signup and view all the answers

What law applies to cooperatives registered under this Code regarding labor and social legislations?

The Labor Code Signup and view all the answers

What is the purpose of publishing a list of existing cooperatives annually?

To keep the public informed about existing cooperatives Signup and view all the answers

What is the primary role of the conciliation and mediation committee of a cooperative?

To facilitate amicable settlement of disputes among members, officers, directors, and committee members Signup and view all the answers

What happens if conciliation or mediation proceedings fail for settling disputes within a cooperative?

The matter is settled through voluntary arbitration Signup and view all the answers

What percentage of the net surplus must be allocated to the reserve fund during the first 5 years after registration?

3% Signup and view all the answers

Study Notes

Net Surplus of a Cooperative

Net surplus represents the excess of revenue over expenses.
Net surplus is the amount left over after all expenses have been deducted from the total revenue.

Allocation of Net Surplus

During the first 5 years of operation, at least 25% of the net surplus must be allocated to the reserve fund.
Up to 10% of the net surplus can be allocated to the education and training fund.
Up to 50% of the net surplus can be allocated to the optional fund, land and building, and other necessary funds.

Purpose of Funds

The reserve fund is used to ensure the financial stability of the cooperative.
The education and training fund is used to provide education and training to members, officers, and employees.
The community development fund is used to support community development projects.

Dispute Resolution

The primary mechanism for settling disputes among members, officers, directors, and committee members is conciliation and mediation.
Before filing a complaint with the Authority for voluntary arbitration, parties must first try to resolve the dispute through conciliation and mediation.
If conciliation or mediation proceedings fail, the dispute may be referred to the Authority for voluntary arbitration.

Cooperative Registration and Regulation

The Authority maintains a register of cooperatives to provide information to the public.
The purpose of publishing a list of existing cooperatives annually is to provide transparency and accountability.
Cooperatives registered under this Code are subject to labor and social legislation.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz focuses on the determination of net surplus of cooperatives in accordance with their bylaws. It covers the process of determining net surplus at the end of fiscal years and as prescribed by the bylaws, emphasizing that net surplus should not be considered as profit but as an excess of member payments for loans borrowed, or goods and services availed.

Cooperative Net Surplus Determination

Choose a study mode