Mme4 - Final Exam 2015

A cooperative is a business enterprise that places people at the center of its activities. This means that the cooperative prioritizes the needs and interests of its members, who are typically individuals or organizations that use its products or services. The cooperative operates in a democratic manner, allowing members to have a say in decision-making processes and sharing in the profits or benefits generated by the enterprise. By focusing on people, cooperatives aim to create a more inclusive and equitable business model that serves the interests of their members and the community as a whole.

The treasurer is responsible for taking custody of all money, securities, and papers of the coop. This means that they are in charge of safely handling and managing the financial assets and important documents of the cooperative. The treasurer plays a crucial role in ensuring the security and proper management of the coop's financial resources.

The chairman is the person who presides over board and member meetings. They are responsible for leading the meetings, maintaining order, and ensuring that all agenda items are discussed and decisions are made. The chairman also has the authority to set the meeting agenda, call for votes, and make rulings on procedural matters. The secretary and treasurer may have important roles in the organization, but they do not have the authority to preside over meetings. Therefore, the correct answer is Chairman.

The principle of Cooperatives referred to as "open and voluntary" means that membership is not forced and is open to everybody. This principle emphasizes that anyone who wishes to join a cooperative can do so without any compulsion or discrimination. It promotes inclusivity and ensures that individuals have the freedom to become members based on their own choice and willingness.

The General Assembly is the highest governing body in Cooperatives as it is responsible for making important decisions, setting policies, and electing the board of directors. It consists of all the members of the cooperative who have equal voting rights. The General Assembly ensures that the cooperative operates in the best interest of its members and upholds the principles of cooperation. The Chairman and BOD may hold leadership positions within the cooperative, but they ultimately report to and are accountable to the General Assembly. Therefore, the General Assembly holds the highest authority in the cooperative structure.

The correct answer is Grievance. A grievance committee is responsible for the settlement of conflicts among members. This committee addresses complaints, disputes, or conflicts that arise within an organization or group. They investigate the issue, gather information, and work towards finding a resolution that satisfies all parties involved. Grievance committees play a crucial role in maintaining harmony and resolving conflicts in a fair and impartial manner.

Net surplus refers to the amount of revenue that remains after deducting certain operating expenses. It represents the excess of revenue over expenses and indicates the profitability of a business or organization. This term is commonly used in financial statements to demonstrate the financial performance and viability of an entity. It is an important indicator of financial health and can be used to assess the overall profitability and efficiency of an organization.

The Vice-Chairman will automatically preside the Education Committee once elected. This is because the Vice-Chairman is the second-in-command and is responsible for assisting and supporting the Chairman. In the absence of the Chairman, the Vice-Chairman takes over the role and responsibilities, including presiding over committee meetings. The Manager and None of the above options do not hold the position of authority to automatically preside the Education Committee.

The principal loan amount can be calculated by subtracting the service fee and ad-on capital share from the released amount. In this case, the released amount is 49,500.00. So, the principal loan amount would be 49,500.00 - (100.00 + 300.00) = 49,100.00. Therefore, the correct answer is 5,300.00.

The question asks for the types of cooperatives, and the correct answer includes Credit, Consumers, Producers, Marketing, and Multi-purpose. Cooperatives are organizations owned and operated by a group of individuals who come together to meet their common economic, social, and cultural needs. Credit cooperatives provide financial services to their members, while consumer cooperatives focus on providing goods and services to their members. Producer cooperatives are formed by producers to collectively market and sell their products. Marketing cooperatives help members in marketing their products collectively, and multi-purpose cooperatives serve multiple needs of their members.

If the net surplus is 100,000 and there is a 50-50 percent division of sharing, it means that the surplus will be divided equally between two parties. Therefore, each party will receive 50,000. Since the question asks how much will go to the Optional fund, the answer is 25,000.

The current cash of the cooperative can be calculated by adding the capital share of 80,000, deducting the loan principal of 10,000, deducting the service fee of 100, deducting the capital build-up of 400, deducting the interest of 1.5% on the loan for six months, and deducting the expenses of 5,000. This calculation results in a current cash of 77,300.00.

The monthly amortization can be calculated by adding the principal amount (50,000) with the add-on service fee (100) and the add-on capital share buildup (400), which gives a total of 50,500. Then, the interest for the first month is calculated by multiplying the total amount (50,500) by the interest rate (1% or 0.01), which gives 505. Finally, the monthly amortization is obtained by dividing the total amount plus the interest for the first month (50,500 + 505 = 51,005) by the term of the loan (12), which gives 4,250.42. Therefore, the correct answer is 4,713.33, which is the closest option to 4,250.42.

The secretary calls the order of quorum in the general assembly. The secretary is responsible for maintaining the records and documentation of the assembly, including keeping track of attendance and ensuring that a quorum is present before the meeting can proceed. The secretary plays a crucial role in ensuring that the assembly follows proper procedures and that decisions made are valid and binding. The chairman may preside over the meeting, but it is the secretary who officially calls for the order of quorum. The treasurer, on the other hand, is typically responsible for managing the financial affairs of the assembly and is not directly involved in calling the order of quorum.

The principle of autonomy and independence refers to the fact that cooperatives are self-help organizations that are not controlled by outside sources. This means that members have the ability to control their own affairs and make decisions without interference from the government or other external entities. Autonomy and independence are key characteristics of cooperatives that allow them to operate in a self-sustaining and member-driven manner.

The principle of "member economic participation" refers to the equitable capital contribution and democratic control of capital in cooperatives. This means that members have the right to contribute financially to the cooperative and have a say in the decision-making process. It emphasizes the importance of members actively participating in the economic activities of the cooperative, ensuring that everyone has a fair stake in the organization's success and benefits.

Using the 70-30 percent division of sharing, the net surplus of 150,000 will be divided with 70% going to the organization and 30% going to the reserve fund. Therefore, 30% of 150,000 is equal to 45,000. Hence, 15,000 will go to the reserve fund.

Cooperatives are organizations that are owned and controlled by their members, who are also the beneficiaries of the cooperative's activities. Ownership refers to the members having a stake in the cooperative and being able to share in its profits and benefits. Control refers to the members having a say in the decision-making processes of the cooperative and having the ability to shape its direction. Beneficiary refers to the members being the ones who receive the benefits and advantages of being a part of the cooperative. Therefore, ownership, control, and beneficiary are the three basic interests found in cooperatives.

The governing bodies of cooperatives include the Board of Directors (BOD), General Assembly, Officers, and Committees. The Board of Directors is responsible for making important decisions and setting policies for the cooperative. The General Assembly consists of all the members of the cooperative and has the power to elect the Board of Directors and make major decisions. The Officers are responsible for the day-to-day operations of the cooperative. Committees are formed to handle specific tasks or issues within the cooperative.

The correct answer is "Once, but depends on 10% of members calling the meeting." This means that the general assembly can be held once in a year, but it can also be called if at least 10% of the members feel the necessity to have a meeting. This allows for flexibility in scheduling additional meetings if needed, but the default frequency is once a year.

A member can be automatically terminated in the event of death or insanity. This means that if a member passes away or becomes mentally incapacitated, their membership in the organization will be terminated without the need for any additional action. This is likely done to ensure that the membership remains active and relevant only for those who are able to actively participate in the Coop's services.

Cooperatives have several advantages. Firstly, they are owned and controlled by their members, which means that the members have a say in the decision-making processes and can actively participate in the cooperative's operations. Secondly, cooperatives operate under democratic control, allowing each member to have an equal vote in the decision-making process. Lastly, surplus earnings in cooperatives are distributed in proportion to the capital contributed by each member, ensuring a fair distribution of profits among the members.

The interest rate of a loan cannot be determined solely based on the principal amount, term, and monthly payment. Additional information such as the type of loan, any fees or charges, and the method of interest calculation is needed to calculate the interest rate accurately. Therefore, none of the given options can be considered as the correct answer.

The BOD (Board of Directors) can vote to terminate members for several reasons. Firstly, if members fail to patronize the Coop services, it implies that they are not actively supporting and utilizing the services provided by the cooperative. Secondly, failure to continuously comply with the obligations suggests that members are not fulfilling their responsibilities and commitments towards the cooperative. Lastly, violation of the bylaws indicates that members have acted against the established rules and regulations of the cooperative. These reasons provide grounds for the BOD to vote for the termination of members.

The duties of a Coop member include contributing capital to the organization, patronizing the Coop's business on a regular basis, promoting the Coop's purposes, and participating in parliamentary affairs. These duties are important for the functioning and success of the Coop. By contributing capital, members help to fund the Coop's operations and growth. Patronizing the Coop's business ensures its sustainability and profitability. Promoting the Coop's purposes helps to raise awareness and attract more members. Participating in parliamentary affairs allows members to have a voice in decision-making and contribute to the Coop's governance.

The power of the Board of directors includes exercising general supervision and control over cooperative affairs, as well as prescribing policies that are consistent with the law, by-laws, and resolutions of the membership assembly. They also have the authority to elect or change the board of directors and approve committee reports during the assembly.

The capital structure of Cooperatives includes various sources of capital such as Share Capital, Revolving Capital, Producers, Loans, Multi-purpose, and Subsidies and grants. These different forms of capital are utilized by cooperatives to finance their operations and investments. Share Capital represents the equity contributions made by the cooperative members, while Revolving Capital refers to the funds that are continuously circulating within the cooperative. Producers contribute their resources or products to the cooperative, and Loans are borrowed funds that the cooperative obtains from external sources. Multi-purpose capital can be used for various purposes within the cooperative, and Subsidies and grants are financial aids provided by external entities to support the cooperative's activities.

Cooperatives are organizations that are owned, managed, and patronized by members. This means that the members of a cooperative have ownership rights and control over the organization. They also participate in the management and decision-making processes of the cooperative. Additionally, members patronize the cooperative by using its products or services. Overall, cooperatives are characterized by the active involvement and participation of their members in all aspects of the organization.

The Board of Directors has the authority to appoint individuals to various positions within the organization. They can appoint a Manager who oversees the day-to-day operations, a Treasurer who manages the financial aspects, and a Secretary who handles administrative tasks. These positions are crucial for the smooth functioning of the organization and the Board of Directors plays a key role in selecting suitable candidates for these positions.

The given answer "None of the above" is correct because the roles listed in the options do not accurately represent the roles of the Board of Directors. The Board of Directors is responsible for making major decisions, setting policies, and providing guidance and oversight to the cooperative. Their main duties include hiring and evaluating the performance of the cooperative's CEO, approving budgets and financial statements, and making strategic decisions for the organization. None of the options listed in the question accurately describe these roles.