10 Questions
What is the primary requirement for a business enterprise to be called and to operate as a cooperative, according to RA 9520?
Registration with government agencies
What is the main purpose of the Pre-Membership Education Seminar (PMES) for cooperative members?
To understand cooperative membership and responsibilities
What distinguishes regular members from associate members in a cooperative?
Right to vote and entitlement to privileges
What is the minimum capital requirement for individuals to become regular members of a cooperative?
$15,000
Why do cooperatives set up a maximum in buying shares?
To protect the cooperative from individuals with excessive capacity to provide
What is the definition of cooperatives according to RA 6938?
A registered association of persons with a common bond of interest who have voluntarily joined together to achieve a lawful common social or economic end
How does the International Cooperative Alliance define cooperatives?
An autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise
According to the new Cooperative Code of 2008 (RA 9520), what is a cooperative?
A registered association of persons with a common bond of interest who have voluntarily joined together to achieve common social, economic, and cultural needs and aspirations
What are the universally accepted cooperative principles mentioned in the definition of cooperatives?
Voluntary collaboration, equitable contributions, and acceptance of fair shares of the risks and benefits
What is the common bond of interest mentioned in the definition of cooperatives?
A voluntary bond based on shared economic, social, or cultural needs and aspirations
Study Notes
Cooperative Definition and Requirements
- A business enterprise can be called and operate as a cooperative if it has a primary requirement of a common bond of membership, and adheres to the universally accepted cooperative principles.
- The common bond of interest in a cooperative is the shared need or goal that unites members, such as a common occupation, geographic location, or economic need.
Membership and Capital Requirements
- The minimum capital requirement for individuals to become regular members of a cooperative is at least one share.
- Regular members have full voting rights and can participate in decision-making, whereas associate members do not have voting rights.
Education and Training
- The Pre-Membership Education Seminar (PMES) is a requirement for prospective cooperative members, aiming to educate them on the principles, values, and practices of cooperativism.
Capital Structure
- Cooperatives set up a maximum on buying shares to prevent any single member or group from dominating the cooperative.
Definitions and Principles
- According to RA 6938, a cooperative is a voluntary organization of individuals with a common goal or interest, formed to achieve economic, social, or cultural benefits.
- The International Cooperative Alliance defines cooperatives as autonomous associations of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations.
- According to the Cooperative Code of 2008 (RA 9520), a cooperative is a duly registered association of persons with a common bond of membership, operating on the principles of mutual aid, equality, equity, solidarity, and social responsibility.
- The universally accepted cooperative principles include: voluntary membership, democratic member control, limited return on equity, surplus belonging to members, education, cooperation among cooperatives, and concern for the community.
Test your understanding of the definition and principles of cooperatives with this quiz based on Lesson 1 - The Cooperative Identity. Explore the key concepts and legal definitions related to cooperatives as per RA 6938.
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