ACC117: Regulatory Framework and Legal Issues in Business

P3- LONG QUIZ 1

Name: Date:
Year Level/ Course: Score:

INSTRUCTION: Choose the best answer. Use the answer sheet provided. Any form of cheating is intolerable and
should be dealt with in accordance with the University Student Handbook. Duration: 1.5 hrs

Coverage:
Consumer Protection Act
Price Tag Law and Lemon Law
Philippine Competition Act
Government Procurement
Cooperative

PART 1

1. In case of ambiguity in the provisions of the Consumer Protection Act and its IRR, the rule of
construction to be followed shall be:
A. The greatest reciprocity of interest C. The best interest of the seller
D. The least transmission of rights B. The best interest of the consumer

2. An act or practice may violate the Consumer Protection Act whether it occurs before, during or
after the transaction. This applies to:
A. Deceptive Sales Acts or Practices
B. Unfair or Unconscionable Sales Act or Practices
C. Neither Deceptive Sales Acts nor Unfair or Unconscionable Sales Act or Practices
D. Both Deceptive Sales Acts or Practices and Unfair or Unconscionable Sales Act or Practices

3. This requires a prior permit from the Department of Trade and Industry before being conducted
by sellers or business entities:
A. Chain Distribution Plans C. Referral Sales
B. Home Solicitation Sales D. All of the choices

4. Prohibited Acts on Labeling generally does not apply to wholesalers or retail distributors of
consumer products. Choose which one is not an exception to this rule:
A. If they are not engaged in the packaging or labeling of consumer products
B. If they prescribe the means in which the consumer products are packaged or labeled
C. If they have knowledge, but refuse to disclose the source of the mislabeled or
mispackaged products.
D. All of the choices are exceptions to the rule

5. The indication of the possible irritants in the label as an additional labeling requirement under
the Consumer Protection Act applies to:
A. Foods C. Drugs
B. Cosmetics D. All of the choices

6. Which is incorrect? A product is deemed mislabeled if the label fails to state conspicuously:
I. The word “danger” with a bright red or orange color with a black symbol on all h
II. The word “warning” or “caution” on substances which are extremely flammable, corrosive
or highly toxic
III. The word “poison” for any hazardous substance which is defined as highly toxic

A. I, II and III C. I and III only

B. I and II only D. II and III only

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7. A contract of sale with conditions and warranties shall be governed primarily by:
A. The Consumer Protection Act C. The Recto Law
B. The Civil Code D. The Law on Personal Relations

8. First Statement: A distributor of products covered by the Warranty provisions of the Consumer Act must report the sales
made within 60 days from the date of purchase.
Second Statement: Failure of the distributor to make the required report or send the form required by the manufacturer,
producer, or importer shall relieve the latter of its liability under the warranty.
A. Both statements are correct C. Only the first statement is correct
B. Both statements are incorrect D. Only the second statement is correct

9. Service Firms shall guarantee workmanship and replacement of spare parts for a period:
A. Not less than 60 days C. Not less than 60 days nor more than 90 days
B. Not less than 90 days D. Not less than 90 days nor more than 120 days

10. The consumer may invoke his rights under the Lemon Law if, at any time within the Lemon
Law rights period, there has been at least __ separate repair attempts and the same complaint
and the nonconformity issue remains unresolved.
A. 2 C. 4
B. 3 D. 5

11. The Government Procurement Act applies to the procurement of the following, except:
A. Infrastructure projects C. Consulting services
B. Goods D. None of the choices is an exception

12. First Statement: Specifications for the Procurement of Goods shall be based on relevant characteristics
and/or performance requirements.
Second Statement: Reference to brand names shall be preferred.
A. Both are True
B. Both are False
C. False, True
D. True, False

13. First Statement: A bidder may modify his bid even after the deadline for the receipt of bids.
Second Statement: The modification shall be submitted in a sealed envelope duly identified as a
modification of the original bid and stamped received by the BAC.
A. TRUE, TRUE
B. FALSE, FALSE
C. TRUE, FALSE
D. FALSE, TRUE

14. In the examination of the technical components:

A. The bids are ranked from highest to lowest
B. A Pass/Fail criterion is used
C. The bids are ranked from lowest to highest
D. Any of the choices

15. In the procurement of Consultation Services, the bidder with the Highest Rated Bid shall be invited for
negotiations. If negotiations fail, the second rank bidder shall be invited for negotiations. This process
shall be repeated:
A. Upto three times until the bid is awarded to the winning bidder
B. Until the bid is awarded to the winning bidder
C. Upto five times until the bid is awarded to the winning bidder
D. Upto ten times until the bid is awarded to the winning bidder

16. After Bid Evaluation, the next step in the Competitive Bidding Process will be:
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A. Invitation to Bid C. Posting of the Performance Bond
B. Pre-Bid Conference D. Post-Qualification

17. The stage where the bidder with the Lowest Calculated Bid or the Highest Rated Bid undergoes verification
and validation whether he passed all the requirements and conditions as specified in the Bidding
Documents.
A. Bid Evaluation C. Post Qualification
B. Award of the Contract D. Posting of the Performance Bond

18. Negotiated Procurement may be resorted to after how many failed biddings?
A. 1 C. 2
B. 3 D. 4

19. The procurement process from the opening of bids up to the award of contract generally shall not exceed:
A. 1 month C. 3 months
B. 6 months D. 12 months

20. In contracts for Consulting Services, the Consultant may terminate its agreement with the Procuring Entity
if the latter is in material breach of its obligations pursuant to the contract and has not remedied the
same within ____ days following its receipt of the Consultant’s notice specifying such breach.
A. 30 calendar days C. 30 working days
B. 60 calendar days D. 60 working days

PHILIPPINE COMPETITION ACT

21. What is the main purpose of the Philippine Competition Law (R.A. No. 10667)?
a) To regulate labor unions
b) To promote monopolies in the market
c) To ensure fair competition by prohibiting anti-competitive agreements and abuses of dominant position
d) To control foreign investments in the Philippines
e) To regulate the banking sector

22. Which of the following agreements is per se prohibited under the law?
a) Bid rigging
b) Price fixing
c) Market allocation
d) All of the above
e) None of the above

23. Which entity is responsible for enforcing the Philippine Competition Law?
a) Securities and Exchange Commission (SEC)
b) Philippine Competition Commission (PCC)
c) Department of Trade and Industry (DTI)
d) Bangko Sentral ng Pilipinas (BSP)
e) National Economic and Development Authority (NEDA)

24. Abuse of dominant position is prohibited under the law. Which of the following is an example of such abuse?
a) Selling goods below cost to drive competitors out of the market
b) Imposing barriers to entry for new businesses
c) Unfairly discriminating in price between customers
d) All of the above
e) None of the above

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25. Which of the following is NOT a violation under the Philippine Competition Law?
a) Imposing socialized pricing for the less fortunate
b) Making supply of goods dependent on purchasing unrelated products
c) Setting unreasonably low purchase prices for agricultural producers
d) Limiting production to harm consumers
e) Preventing competitors from entering the market through unfair means

26. What is required for mergers or acquisitions that exceed the threshold value of Php 1 billion?
a) Prior approval from the Securities and Exchange Commission
b) Prior notification to the Philippine Competition Commission
c) Approval from the Department of Finance
d) Consent from the President of the Philippines
e) No requirement, as businesses are free to merge

27. If a merger or acquisition substantially prevents, restricts, or lessens competition, it is:

a) Automatically approved
b) Subject to criminal penalties
c) Prohibited unless it meets specific exemptions
d) Considered a legal business practice
e) Allowed only for multinational corporations

28. Which of the following is a valid exemption for an otherwise prohibited merger or acquisition?
a) If the company intends to expand its market reach
b) If the merger leads to efficiency gains greater than its anti-competitive effects
c) If the company involved is a foreign entity
d) If the company has been in operation for more than 10 years
e) If the company is a government-controlled corporation

29. When is a transaction deemed automatically approved by the PCC?

a) If the PCC does not act within 90 days
b) If the transaction involves government-owned corporations
c) If it is below Php 500 million in value
d) If the company has more than 1,000 employees
e) If it has already received SEC approval

30. Which of the following agreements is NOT necessarily prohibited?

a) Agreements that improve distribution of goods while benefiting consumers
b) Price-fixing agreements
c) Agreements to divide the market among competitors
d) Bid-rigging agreements
e) Agreements that set production limits to control market supply

31. Which sector is specifically excluded from the application of the law?
a) Telecommunications
b) Banking and finance
c) Workers' unions engaging in collective bargaining
d) Real estate development
e) Small and medium enterprises

32. What is market allocation?

a) A strategy to increase production efficiency
b) An agreement between competitors to divide customers, territories, or products
c) A way to determine the fair price of goods
d) A government policy to regulate trade
e) A form of consumer protection law

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33. Which of the following is NOT considered a dominant position?

a) A company having the power to set prices independently
b) A company controlling the supply of essential goods
c) A company holding a significant market share but facing strong competition
d) A company setting unfair prices due to its market control
e) A company preventing competitors from entering the market

34. What is the penalty for failure to notify the PCC of a merger exceeding Php 1 billion?
a) Criminal charges
b) 1% to 5% fine of the transaction value
c) A fixed fine of Php 10 million
d) Permanent ban from future mergers
e) No penalty, only a warning

35. What is the effect of an anti-competitive merger?

a) Encourages market competition
b) Creates a monopoly or duopoly
c) Reduces consumer prices
d) Increases market diversity
e) Improves innovation in the industry

36. The PCC can extend the review period of a merger notification for how many additional days?
a) 10
b) 30
c) 60
d) 90
e) 120

37. Which of the following is a form of bid manipulation?

a) Bid suppression
b) Bid rotation
c) Complementary bidding
d) Market allocation in bidding
e) All of the above

38. A business practice that prevents new competitors from entering the market is called:
a) Price discrimination
b) Market restriction
c) Barriers to entry
d) Monopolization
e) Predatory pricing

39. The Philippine Competition Law applies to:

a) Domestic companies only
b) International trade with substantial effects on the Philippine market
c) Small businesses exclusively
d) Government agencies
e) Only publicly listed companies

40. What happens when companies engage in price discrimination?

a) It is always illegal
b) It is allowed if based on cost differences or competition
c) It results in immediate business closure
d) It is always considered an abuse of dominance
e) It is only regulated in the financial sector

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41. Bid Rigging is considered:

a. An anti-competitive agreement that is per se prohibited
b. An anti-competitive agreement that is prohibited if it has the object of preventing, restricting or lessening competition
c. An anti-competitive agreement that is prohibited if it has the purpose of preventing, restricting or lessening competition
d. An anti-competitive agreement that is prohibited if it has the object or purpose of preventing, restricting or lessening
competition

42. Which of the following will not be considered a merger under the Philippine
Competition Act?
a. A and B enter a merger with B as the Surviving Corporation
b. A and B enter a merger with C as the Surviving Corporation
c. A and B enter a merger with C as the New Corporation
d. None of the choices

43. At this stage of competitive bidding for government procurement, the prospective
bidders would have a meeting with the procuring entity to ask clarificatory
questions:
a. Pre-bid conference
b. Pre-procurement conference
c. Preliminary evaluation
d. Post-qualification

44. Under the Government Procurement Act implementing rules, to terminate a contract
for infrastructure projects where the contract has already expired, the required
negative slippage is:
a. 5%
b. 10%
c. 15%
d. 20%

45.71. The cooperative principle exemplified by the rule that each member gets one vote:
a. Voluntary and Open Membership
b. Democrative Member Control
c. Member Economic Participation
d. Autonomy and Independence

46. one that undertakes joint production whether agricultural or industrial. It is

formed and operated by its members to undertake the production and processing of
raw materials or goods produced by its members into finished or processed products
for sale by the cooperative to its members and non-members.
a. Consumers Cooperative
b. Marketing Cooperative
c. Producers Cooperative
d. Agricultural Cooperative

47. The quorum requirement for an electric cooperative

a. 5%
b. 25%
c. Majority
d. 2/3

48. In general, the term of directors of a cooperative:

a. 1 year
b. 2 years
c. 3 years
d. 5 years
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49. A minimum of 3% is required to be set aside from the Net Surplus for the:
a. Reserve Fund
b. Education and Training Fund
c. Optional Fund
d. Community Development Fund

50. 24. I: A single purpose cooperative may transform into a multi purpose cooperative only after at least one year of
operations.
II: A cooperative that is duly registered shall have unlimited liability.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

51. I: For cooperatives, no extension can be made earlier than 5 years prior to the original or subsequent expiry date
unless there are justifiable reasons.
II: All applications for registration shall be finally disposed of by the CDA within a period of 90 days from the filing thereof,
otherwise the application is deemed approved.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

52. 26. I: For electric cooperatives, the quorum is 50% of all members plus one.
II: For cooperatives in general, the quorum is 25% of all members entitled to vote.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

53. I: The Board of Directors of a cooperative has a term of 3 years.

II: Intra-cooperative disputes are within the jurisdiction of the Municipal Trial Court.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

54. I: In a cooperative, all officers shall serve during good behavior and shall not be removed except for cause after due
hearing.
II: No two or more persons with relationships up to the fourth civil degree of consanguinity and affinity shall serve as an
appointive officer in a cooperative.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

55. I: Reports shall be filed with the CDA within 90 days from the end of the calendar year.
II: Duly registered cooperatives which do not transact any business with non-members or the general public shall not be
subject to any taxes and fees imposed under the internal revenue laws and other tax laws.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

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56. Republic Act 9184 or the Government Procurement Reform Act covers the procurement of the
following, except:
a. Goods
b. Infrastructure Projects
c. Assurance Services
d. Consulting Services

57. It is the policy of the Government of the Philippines that procurement of Goods, Infrastructure
Projects and Consulting Services shall be competitive and transparent, and therefore shall
undergo:
a. Oversight bidding
b. Administrative bidding
c. Competitive bidding
d. Regulatory bidding

58. The following are the governing principles on Government Procurement, except:
a. Transparency in the procurement process and in the implementation of procurement
contracts through wide dissemination of bid opportunities and participation of
pertinent non-government organizations.
b. Competitiveness by extending equal opportunity to enable private contracting parties
who are eligible and qualified to participate in competitive bidding.
c. Streamlined procurement process that will uniformly apply to all government
procurement. The procurement process shall be simple and made adaptable to
advances in modern technology in order to ensure an effective and efficient method.
d. System of accountability where both the public officials that only directly
involved in the procurement process as well as in the implementation of
procurement contracts and the private parties that deal with Government of the
Philippines are, when warranted by circumstances, investigated and held liable
for their actions relative thereto.
d. None of the foregoing

59. Government Procurement Reform Act covers the procurement of the following, except:
a. Any branch, agency, department, bureau, office, or instrumentality of the Government
of the Philippines.
b. Government-owned and/or controlled corporations (GOCCs)
c. State universities and colleges (SUCs)

60. In case of conflict between the terms of the Treaty or International or Executive Agreement
and the IRR of government procurement reform act
a. Treaty shall prevail over the IRR
b. IRR shall prevail over the Treaty
c. Both Treaty and IRR shall be given equal weight of interpretation
d. Neither A nor B

61. Which of the following activities are covered by R.A. 9184 or the Government Procurement
Reform Act?
a. Lease of government-owned property as lessor for private use
b. Foreign-funded Procurement of Goods, Infrastructure Projects, and Consulting
Services by the Government of the Philippines
c. Participation in local or foreign scholarships, trainings, continuing education,
conferences, seminars or similar activities that shall be governed by applicable COA,
CSC, and DBM rules
d. Hiring of Job Order Workers

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62. Under the government procurement law, it refers to the acquisition of goods, consulting
services, and the contracting for infrastructure projects by the Procuring Entity.
a. Proposals
b. Procurement
c. Purchase
d. Executive agreement

63. Under the government procurement law, it refers to a signed offer or proposal to undertake a
contract submitted by a bidder in response to and in consonance with the requirements of
the Bidding Documents.
a. Proposals
b. Job Order
c. Bid
d. Contract for a piece of work

64. Under the government procurement law, it refers to a contractor, manufacturer, supplier,
distributor and/or consultant who submit a bid in response to the requirements of the
Bidding Documents.
a. Procuring entity
b. Consultant
c. Bidder
d. Supplier

65. Under the government procurement law, it refers to the documents issued by the Procuring
Entity as the basis for bids, furnishing all information necessary for a prospective bidder to
prepare a bid for the Goods, Infrastructure Projects and/or Consulting Services required by
the Procuring Entity.
a. Bidding documents
b. Procuring financial documents
c. Working papers
d. Project documents

66. Under the government procurement law, it refers to those goods, materials and equipment
that are used in the day-to-day operations of Procuring Entities in the performance of their
functions.
a. Expendable Supplies
b. Common-Use Supplies and Equipment
c. Foreign-funded goods
d. Non-expendable Supplies
d. Competitive bidding

67. Under the government procurement law, it refers to a method of procurement which is open
to participation by any interested party and which consists of the following processes:
advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and
opening of bids, evaluation of bids, post-qualification, and award of contract.
a. Constructive bidding
b. Mutually exclusive bidding
c. Negotiated bidding

68. Under the government procurement law, it refers to articles which are normally consumed in
use within one (1) year or converted in the process of manufacture or construction, or those
having a life expectancy of more than one (1) year but which shall have decreased
substantially in value after being put to use for only one (1) year.
a. Expendable Supplies
b. Common-Use Supplies and Equipment
c. Foreign-funded goods
d. Non-expendable Supplies

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69. Under the government procurement law, it refers to articles which are not consumed in use
and ordinarily retain their original identity during the period of use, whose serviceable life is
more than one (1) year and which add to the assets of the Government of the Philippines
a. Expendable Supplies
b. Common-Use Supplies and Equipment
c. Foreign-funded goods
d. Non-expendable Supplies

70. It is the electronic system that is used in the procurement process of government
a. Philippine E-Governance System
b. Philippine Government Electronic Procurement System
c. Philippine Portal System
d. Philippine Procurement Standardization System

PART 2

1. The minimum number of natural persons required to organize a primary cooperative is:
A. 5 B. 10 C. 15 C. 20

2. What seminar must be completed by a prospective member of a primary cooperative:

A. Pre-Membership Education
Seminar
C. Post-Membership Education Seminar
B. Pre-Membership Election Seminar D. Post-Membership Enrichment Seminar

3. A single-purpose cooperative may transform into a multi-purpose cooperative and may

create subsidiaries only after at least:
A. 2 years of operation C. 2 years from cooperation
B. 2 years from registration D. 5 years from registration

4. A cooperative duly registered shall have:

A. Comprehensive liability C. Absolute liability
B. Limited liability D. General liability

5. A cooperative may register for a term not exceeding how many years?
A. 100 B. 50 C. 25 C. 20

6. A cooperative may apply for extension of term but such extension cannot be made earlier
than __ years prior to the original or subsequent expiry date/dates.
A. 5 B. 4 C. 3 C. 2

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7. The minimum subscription of the authorized capital stock of a cooperative is:
A. 10% of the ACS C. 25% of the ACS
B. 15% of the ACS D. 30% of the ACS

8. The minimum paid-up share capital of a cooperative shall be 25% of the total subscription
but not less than:
A. 3,500 C. 10,000
B. 5,000 D. 15,000

9. CDA shall periodically assess the required paid-up share capital and may increase every __
years.
A. 5 B. 4 C. 3 C. 2

10. All applications for registration shall be finally disposed of by the CDA within a period of 60
days from the filing thereof, otherwise the application is:
A. Deemed denied C. Considered pending until final resolution
B. Deemed approved D. Returned to the applicant

11. Should the Office of the President fail to act on the appeal within the required period from the
filing thereof, it shall mean:
A. Remand of the application back to CDA C. Approval of the application
B. Conditional approval awaiting final
signature
D. Denial of the application

12. A certificate of registration issued by the CDA under its official seal shall be __ evidence that
the cooperative therein mentioned is duly registered.
A. Disputable C. Prima facie
B. Presumptive D. Conclusive

13. The articles of cooperation and bylaws of the cooperative may be amended by __ vote of all
members with voting rights.
A. 2/3 B. 1/3 C. ½ C. ¼

14. Contracts executed between private persons and cooperatives prior to the registration of the
cooperative shall be __ between the parties and upon registration of the cooperative.
A. Void C. Valid
B. Voidable D. Unenforceable

15. Any registered cooperative may resolve to divide itself into 2 or more cooperatives by a
resolution approved by a vote of __ of all the members with voting rights.
A. ¾ B. 2/3 C. ½ C. ¼

16. Any registered cooperative may resolve to merge or consolidate with another cooperative by
a resolution approved by a vote of __ of all the members with voting rights.
A. ¾ B. 2/3 C. ½ C. ¼

17. Any merger or consolidation of cooperatives shall be effective upon:

A. The filing of the articles of merger and consolidation with the CDA
B. The election of the directors of the merged and consolidated cooperatives
C. The issuance of the certificate of merger and consolidation by the CDA
D. The date indicated in the articles of merger and consolidation

18. It is a cooperative that promotes and undertakes savings and lending services among its
members.
A. Consumers C. Lending
B. Credit D. Finance

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19. It is a cooperative the primary purpose of which is to procure and distribute commodities to
members and non-members.
A. Producers C. Procurement
B. Credit D. Consumers

20. It is a cooperative that undertakes joint production whether agricultural or industrial.

A. Producers C. Farmers
B. Consumers D. Agro-industrial

21. It is a cooperative which is engaged in medical and dental care, hospitalization,

transportation, insurance, housing, labor, electric light and power, communication,
professional and other services.
A. Service C. Labor
B. Health D. Professional

22. It is a cooperative which combines 2 or more of the business activities of the different types
of cooperatives
A. Bi-purpose C. Multipurpose
B. Tri-purpose D. Complex

23. It is a cooperative which promotes and advocates cooperativism.

A. Social C. Promotional
B. Advocacy D. NGO

24. It is a cooperative which is organized by marginal farmers majority of which are agrarian
reform beneficiaries.
A. Agrarian Reform C. Farmers
B. Agricultural D. Advocacy

25. It is a cooperative which is organized for the primary purpose of providing a wide range of
financial services to cooperatives and their members.
A. Financial C. Cooperative bank
B. Credit D. Lending

26. It is a cooperative whose members are engaged in the production of fresh milk which may be
processed and/or marketed as dairy products.
A. Dairy C. Poultry
B. Farmer D. Agricultural

27. It is a cooperative organized for the primary purpose of owning and operating licensed
educational institutions.
A. Training C. Academic
B. Vocational D. Education

28. It is a cooperative which is organized for the primary purpose of undertaking power
generations, utilizing renewable energy sources, including hybrid systems, acquisition and
operation of subtransmission or distribution to its household members.
A. Energy C. Utility
B. Electric D. Light

29. It is a cooperative which is organized for the primary purpose of engaging in savings and
credit services and other financial services.
A. Financial services C. Cooperative bank
B. Credit D. Lending

30. It is a cooperative which is organized to own, operate and manage water systems for the
provision and distribution of potable water for its members and their households.
A. Water service C. Utility
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B. Aquatic D. Resource

31. A Housing Cooperative is __ by its members.

A. Co-owned only C. Co-owned and controlled
B. Controlled only D. Supervised

32. It is a cooperative the members of which are natural persons.

A. Primary C. Tertiary
B. Secondary D. Natural

33. It represents the interest and welfare of all types of cooperatives at the provincial, city,
regional and national levels.
A. Federation C. Cooperative union
B. Managing cooperative D. Association

34. The kinds of membership in a cooperative are:

A. Regular and associate C. Ordinary and extra-ordinary
B. Regular and special D. Class A and Class B

35. An associate who meets the minimum requirements of regular membership, continues to
patronize the cooperative for __ years, and signifies his/her intention to remain a member
shall be considered a regular member.
A. 1 B. 2 C. 3 C. 4

36. A cooperative organized by minors shall be considered a __ cooperative.

A. Minor C. Young
B. Youth D. Laboratory

37. What is a delegable power of the GA?

A. To approve contracts entered into by the cooperative
B. To determine and approve amendments to the articles of cooperation
C. To elect or appoint the members of the board of directors and remove them for cause
D. To approve developmental plans of the cooperative

38. Only for purposes of prompt and intelligent decision-making, the GA may by a __ vote of all its
members with voting rights, delegate some of its powers to a smaller body of the cooperative.
A. ¾ B. 2/3 C. ½ C. ¼

39. If not so fixed, the annual regular meeting of the GA must be held within how many days after
the close of each fiscal year?
A. 30 B. 90 C. 60 C. 45

40. Notice in writing calling for a special meeting of the GA must be sent __ prior to the meeting to
all members entitled to vote.
A. 5 days C. One week
B. 10 days D. One month

41. What is the required quorum during a meeting of the GA?

A. At least 25% C. At least 50%
B. At least 30% D. At least 50% plus 1

42. In case of cooperative bank, the quorum required in a meeting of the GA is:
A. At least 25% C. 1/3
B. ½ plus 1 D. ¼

43. In case of electric cooperatives, the quorum required in a meeting of the GA is:
A. 5% of all members entitled to vote C. 15% of all members entitled to vote
B. 10% of all members entitled to vote D. 20% of all members entitled to vote
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44. In case of members of secondary or tertiary cooperatives, they shall have __ basic vote/s and
as many incentive votes but not to exceed __ vote/s.
A. 5, 5 B. 5, 1 C. 1, 5 C. 1, 1

45. Voting by proxy may be allowed by the bylaws of a cooperative other than a __ cooperative.
A. Secondary C. Federation
B. Tertiary D. Primary

46. The board of directors of a cooperative is composed of:

A. Not less than 5 but not more than 15 C. Not less than 15 but not more than 20
B. Not less than 10 but not more than 15 D. Not less than 10 but not more than 20

47. Who elects the members of the board of directors of a cooperative?

A. Stockholders C. General assembly
B. Shareholders D. Executive committee

48. What is term of the members of the board of directors of a cooperative?

A. 1 B. 2 C. 3 C. 4

49. In the case of primary cooperatives, regular meetings of the board of directors shall be held:
A. At least once a week C. At least twice a month
B. At least once a month D. At least once a year

50. Special meetings of the board of directors of a cooperative may be held at any time provided
that written notices shall be given to all members of the board __ before the said meeting.
A. 5 days C. At least one week
B. 7 days D. One day

51. Which committees whose members are elected by the GA of a cooperative?

A. Audit and election C. Ethics and election
B. Audit and ethics D. Mediation and conciliation

52. No additional compensation other than per diems shall be paid to a director of a cooperative
during __ of existence of any cooperative.
A. First year C. First 3 years
B. First 2 years D. First 5 years

53. A contract entered into by the cooperative with one or more of its directors, officers and
committee members may be ratified by a __ vote of all members with voting rights, present
and constituting a quorum in a meeting called for the purpose.
A. ½ B. ½ + 1 C. 2/3 C. ¾

54. An elected officer of a cooperative may be removed by __ a vote of all members with voting
rights, present and constituting a quorum in a meeting called for the purpose.
A. ½ B. ½ + 1 C. 2/3 C. ¾

55. Regular reports required from cooperatives shall be filed within __ days from the end of the
calendar year with the CDA.
A. 120 B. 90 C. 60 C. 30

56. Upon dissolution of a cooperative, what happens to the capital donated to said cooperative?
A. It shall be divided among the members of the cooperative.
B. It shall be returned to the donor.
C. It is subject to escheat.
D. It shall be donated to another cooperative with a similar purpose.

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57. No member of primary cooperative other than the cooperative itself shall own or hold more
than __ of the share capital of the cooperative.
A. 10% B. 15% C. 20% C. 25%

58. No member shall transfer his shares or interest in the cooperative or any part thereof unless
he has held such share capital contribution or interest for not less than:
A. One year C. 3 years
B. 2 years D. 5 years

59. Who approves any assignment of share capital contribution or interest?

A. General assembly C. Executive committee
B. Board of directors D. Membership committee

60. The share capital of a primary cooperative shall a par value fixed to any figure not more than:
A. P500 B. P1,000 C. P5,000 C. P10,000

61. What capital is raised by the cooperative to strengthen its capital structure?
A. Reserve capital C. Revolving capital
B. Raising capital D. Retained capital

62. Who authorizes which to raise a revolving capital of the cooperative?

A. General assembly; board of
directors
C. Board of directors; executive committee
B. Board of directors; general
assembly
D. General assembly; executive committee

63. For the first 5 years of operation after registration of the cooperative, the amount distributed
to the reserve fund shall not be less than __ of the net surplus.
A. 75% B. 50% C. 25% C. 35%

64. The amount allocated to the education and training fund of the cooperative shall not be more
than __ of the net surplus.
A. 10% B. 15% C. 20% C. 25%

65. The amount allocated to the community development fund of the cooperative shall not be
more than __ of the net surplus.
A. 7% B. 10% C. 3% C. 5%

66. The amount allocated to the optional, land and building and any other necessary fund of the
cooperative shall not be more than __ of the net surplus.
A. 10% B. 7% C. 15% C. 20%

67. A copy of the resolution authorizing the dissolution of the cooperative where no creditors are
affected shall be certified to by a majority of the board of directors and countersigned by the:
A. Board secretary C. Chairman
B. President D. General assembly

68. In case of voluntary dissolution where creditors are affected, the petition for dissolution shall
be filed with:
A. Cooperative Development Authority C. Regional Trial Court
B. Securities and Exchange
Commission
D. Municipal Trial Court

69. A cooperative may be dissolved if it has not commenced business and its operation within __
years after the issuance of its certificate of registration.
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A. 2 B. 3 C. 4 C. 5

70. Upon the winding up of the cooperative affairs, any asset distributable to any creditor,
shareholder or member who is unknown or cannot be found shall be given to the:
A. Government
B. Trustee
C. Any federation or union
D. Federation or union to which the cooperative is affiliated with

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