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Instructor's
Key: Quiz 5 - The Cooperative Business Team: Members and Directors -
Policy and Control
1. List the
three overall responsibilities of a member in a cooperative.
a) Commit to and use the cooperative
b) Own and control the cooperative
c) Finance the cooperative according to
membership and use
2. Write YES
in front of five member responsibilities in a cooperative. (Answer: a,
c, d, f, h)
Yes
a) Understand the cooperative
b) Staff the cooperative
Yes c) Select and evaluate directors
Yes d) Help obtain new members
e) Report to the board of directors
Yes f) Adopt legal
papers
g) Carry out employee performance evaluations
Yes h) Provide necessary financial capital
3. In the
following list, write YES in front of statements that describe
responsibilities of cooperative directors.
(Answer: a, c, e, f, h, i)
Yes a) Adopt long-range/strategic plans
b) Staff the cooperative
Yes c) Approve distribution of equities
d) Direct the day-to-day business activities
Yes
e) Employ a competent
manager
Yes f) Appoint an outside auditing firm
g) Carry out performance evaluations of employees
Yes h) Decide on the distribution of the
cooperative's net earnings
Yes i) Require that accurate accounts and
records be kept
j) Decide on what employees will be used to carry
out cooperative strategic plans
4. True/False
(Answer: True: 3, 5, 6, 8, 10; False: 1, 2, 4, 7, 9)
False 1. Members approve or hire all cooperative
employees.
False 2. The board chair is elected by the members.
True 3. All members in good standing may vote in
director selection.
False 4. Directors hire all cooperative employees.
True 5. The board chair is elected by the
directors.
True 6. All co-op directors are co-op members (except
that some cooperatives allow outside directors).
False
7. All problems have only one correct solution.
True 8. A good director will support the
cooperative with all of their business.
False 9. A strong political affiliation is important
for a director.
True
10. Any member in good standing could be elected as
a director.
5. Write a
short paragraph stating what you, as a cooperative director, would be
responsible for.
A director, as a
part of the board, should preserve the cooperative character, safeguard
assets, hire the general manager/CEO, set policies, distribute benefits
(patronage refunds & equities), plan for the future (strategic
planning), evaluate the general manager/CEO, elect board officers, and
appoint committees.
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