The Cooperative Concept and Principles Lesson 1 Quiz

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.

Description

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.