- -   AGRICULTURE CORE CURRICULUM   - -

(CLF1000)  Advanced Core Cluster:  AGRICULTURAL BUSINESS MANAGEMENT

    (CLF1500)  Unit Title:  COOPERATIVES

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    (CLF1549)  Topic:  UNIT EXAM                   Time               Year(s)
                                                  1 Hour               3 / 4
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NAME____________________________

DATE____________________________

PERIOD__________________________


 1.  T  F   Liability is limited in a sole proprietorship.

 2.  T  F   Partnerships are limited to 10 partners.

 3.  T  F   Ordinary corporations have an indefinite life.

 4.  T  F   Cooperatives can pay dividends to individual patrons. 

 5.  T  F   Cooperatives are limited to paying members a 10 percent dividend 
            on stock.

 6.  T  F   Charter members approve original bylaws.

 7.  T  F   Managers make long-range corporate plans.

 8.  T  F   CoBank lends to both individual farmers and to cooperatives.

 9.  T  F   The Farm Credit Administration regulates CoBank.

10.  T  F   The Capper-Volstead Act exempts cooperatives from paying federal 
            income tax. 

11.  T  F   National farm organizations played an important role in the 
            development of cooperatives.

12.  T  F   A marketing order is a binding contract between a farmer and the 
            cooperative.

13.  T  F   Most bargaining cooperatives also process their members' produce.

14.  T  F   A marketing cooperative is an example of joint forward integration 
            by farmers.

15.  T  F   A commodity sector is made up of all the producers of a particular 
            commodity, including producers for both fresh and processed 
            markets.

16.  T  F   In order to be successful, bargaining cooperatives must represent 
            enough tonnage to obtain processor recognition.

17.  T  F   In general, the trend among marketing cooperatives is to 
            specialize, limiting the number of marketing services they 
            provide their members.


18.  T  F   Sunkist is the largest agricultural marketing cooperative in the
            U.S.

19.  T  F   A primary characteristic of a competitive market is that there are 
            a large number of active buyers and sellers on both sides of the 
            market.

20.  T  F   Both the cooperative and the individual member pay taxes on income 
            distributed to members as patronage refunds.

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21.  Give an example of an economic need for a cooperative.


22.  Define backward integration.


23.  Why are cooperatives called "nonprofits"?


24.  Explain how cooperatives serve as a "competitive yardstick."


25.  How is a patron's contribution to a revolving fund determined?


26.  Briefly explain the mutual advantages of a marketing contract.


27.  Explain how pooling spreads risk.


28.  List five factors common to cooperatives that succeed.


29.  Describe how a federated cooperative is organized.


30.  What is the significance of the Capper-Volstead Act?







11/26/91 CM/GB/ch


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