Principles of Cooperation Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is one purpose for which members allocate surpluses in a cooperative?

To distribute equally among members regardless of participation

To repay debts to external creditors

To develop the cooperative by setting up reserves (correct)

To invest in external companies for profit

How should cooperatives maintain their autonomy when entering agreements with other organizations?

By accepting any financial assistance without conditions

By merging with larger corporations for resources

By ensuring democratic control remains with the members (correct)

By allowing external organizations to dictate terms

What is a significant responsibility of cooperatives concerning education?

Focusing solely on educational programs that generate profit

Offering training exclusively for new members

Ensuring all members receive education and training for effective contribution (correct)

Providing education only to managers and external partners

What role do cooperatives play in strengthening the cooperative movement?

By collaborating through various organizational structures Signup and view all the answers

What is a key concern for cooperatives regarding their community?

Sustainable development through member-approved policies Signup and view all the answers

What is a key characteristic of membership in cooperatives?

Membership is voluntary and open to anyone who can use the services. Signup and view all the answers

What principle ensures that members have equal voting rights in cooperatives?

Democratic Member Control Signup and view all the answers

How do members participate in the economic aspect of the cooperative?

By equitably contributing to and controlling the cooperative's capital. Signup and view all the answers

Which of the following is NOT a characteristic of a cooperative?

Centralized control by a small group of individuals. Signup and view all the answers

What does the principle of Member Economic Participation entail?

Members control the capital and share limited profits. Signup and view all the answers

What is a significant difference between cooperatives and other organizations?

Cooperatives operate on principles of voluntary membership and democratic control. Signup and view all the answers

What does the term 'common property of the cooperative' refer to?

Assets collectively owned by all members. Signup and view all the answers

In what way do cooperatives align with cultural values according to their principles?

They conduct affairs according to local culture and good values. Signup and view all the answers

What was the primary purpose of organizing consumer co-ops initially?

To provide consumers with control Signup and view all the answers

What significant event triggered a wave of co-op organizing in the 1930s?

The Great Depression Signup and view all the answers

Which plan was initiated in the early 1900s to help consumers organize into buying groups?

The Rochdale plan Signup and view all the answers

Which of the following co-ops survived to their 50th anniversary after the New Deal?

Hanover and Hyde Park Signup and view all the answers

What concept did Toyohiko Kagawa promote to inspire the development of co-ops?

Brotherhood economics Signup and view all the answers

What was a primary characteristic of the 'new wave' co-ops that emerged in the 1960s?

They operated with diverse and experimental practices. Signup and view all the answers

Which statement is true about the consumer co-ops by 1920 in the United States?

Most were located in small towns. Signup and view all the answers

What was one reason some co-ops failed?

Inadequate support from wholesalers. Signup and view all the answers

Which practice was not commonly adopted by the surviving 'new wave' co-ops?

Limiting the product range to processed foods. Signup and view all the answers

What external assistance supported urban co-ops during the Great Depression?

Technical assistance from national programs Signup and view all the answers

What happened to many consumer co-ops in the 1980s?

Several closed or reduced their operations. Signup and view all the answers

Who is credited as the father of world cooperation and influenced the cooperative movement in the Philippines?

Robert Owen Signup and view all the answers

Which statement reflects the outcome of the consumer co-op movement in the United States?

It has had mixed success compared to European co-ops. Signup and view all the answers

What key concept did the young idealists of the 1960s believe in when forming their co-ops?

Establishing equality through cooperative efforts. Signup and view all the answers

What influenced Dr. Jose P. Rizal's views on cooperatives during his travels?

The economic movement noted for its social transformation. Signup and view all the answers

What was a common operational challenge faced by the early co-ops?

Insufficient capital and membership support. Signup and view all the answers

What was the main purpose of the La Sociedad de los Abacaleros organized by Rizal?

To support abaca producers Signup and view all the answers

What influence did Teodoro Sandiko experience in Europe regarding cooperative movements?

He was inspired by the Raiffeisen movement in Germany Signup and view all the answers

What was the significant legislative outcome for Teodoro Sandiko's bill in 1914?

It was adopted as Act 2508 Signup and view all the answers

What was the outcome of the Rural Credit Law concerning rural credit associations by 1926?

Over 500 rural credit cooperatives were established Signup and view all the answers

What title did Gov. Sandiko earn after the passage of the Rural Credit Law?

Father of Cooperation Signup and view all the answers

What were the trends for rural cooperatives by 1935?

90% were inactive with no funds Signup and view all the answers

Who was Rep. Albert Barreto in relation to Sandiko's bill?

The sponsor in the Lower House of Congress Signup and view all the answers

What was the first rural credit association organized under the Rural Credit Law?

Agricultural Credit Cooperative Association of Cabanatuan Signup and view all the answers

Study Notes

Cooperative Definition

A cooperative is an independently registered group of people who have voluntarily joined together to meet their social, economic, and cultural needs and aspirations.
Cooperatives achieve these goals by making contributions to their capital, purchasing their products, and sharing the risks and benefits of the undertaking.

Cooperative Principles

Cooperatives are operated according to the universally accepted principles of cooperation, which include:
- Voluntary and Open Membership: Anyone with the capacity to use the cooperative's services and willing to accept the responsibilities of membership can join, regardless of gender, race, cultural, political or religious background.
- Democratic Member Control: Members actively participate in setting policies and decisions, ensuring the cooperative is controlled by its members.
- Member Economic Participation: Members contribute to and democratically control the cooperative's capital. Members receive limited compensation or interest on their contributions.
- Autonomy and Independence: Cooperatives maintain their autonomy and democratic control, even when entering into agreements with other organizations or seeking external funding.
- Education, Training and Information: Cooperatives educate and train members, elected representatives, managers, and employees to effectively contribute to the development of their organization..
- Cooperation Among Cooperatives: Cooperatives operate locally, nationally, regionally, and internationally to strengthen the cooperative movement.
- Concern for Community: Cooperatives strive for sustainable community development through policies approved by their members.

Key Differences of Cooperatives

Cooperatives differ from other organizations by being member-owned and democratically-controlled.
Profits are distributed amongst members, with limited compensation for capital.
The primary goal is to achieve the collective interests of the members.

Consumer Cooperatives

Consumer cooperatives emerged in both rural and urban areas to provide consumers with control and fight against the unfair practices of private businesses.
The "Rochdale Plan" saw buying groups collaborate to purchase products from a cooperatively owned wholesaler, who would then support those groups to become retail outlets.
The Great Depression of the 1930s spurred another wave of organizing, with the "End Poverty in California" (EPIC) campaign promoting self-help cooperatives.
"Brotherhood Economics" advocated for cooperative solutions and were supported by Franklin Roosevelt's New Deal, providing assistance to urban cooperatives.
The 1960s and 1970s saw the "new wave" of cooperatives, characterized by:
- Emphasis on equality
- Focus on whole, unrefined food
- Experimentation in operating practices
- Diverse management structures

History of Cooperatives in the Philippines

Jose P. Rizal, a prominent Filipino nationalist, was inspired by the European cooperative movement in the late 19th century.
He aimed to establish a cooperative colony in Borneo, but was arrested and exiled.
While in exile, Rizal established a cooperative school and store in Dapitan.
Teodoro Sandiko, after encountering Germany’s Raiffeisen movement, played a key role in introducing credit cooperatives to the Philippines.
Act 2508, passed in 1914, legally established credit cooperatives and is considered the foundation of cooperation in the country.
The first rural credit cooperative, the Agricultural Credit Cooperative Association of Cabanatuan (Nueva Ecija), was formed in 1916.
By 1930, over 500 rural credit cooperatives had been established throughout the Philippines.
However, by 1935, most of these cooperatives were inactive due to financial difficulties.

Studying That Suits You

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

Description

Test your understanding of the key principles that define cooperatives. This quiz covers aspects such as membership rules, democratic control, and economic participation. Assess how well you grasp the concepts essential for cooperative operations.