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Quiz 4
1. List two ways cooperative
member-owners help to capitalize their business.
a)
b)
2. Explain in a short paragraph
the difference between retained patronage and per-unit retains.
3. Explain in a short paragraph the
difference between equity capital and debt capital.
4. List three sources of long-term
credit for cooperatives
a)
b)
c)
5. The statement "cooperatives
do not pay taxes" is not true because:
6. Explain the single tax
principle, and how it works for cooperatives.
7. Classify the following area as either
a cash source (S) or cash use (U) in a cooperative business.
_____ Sale of fixed
assets
_____ Members
purchase common stock
_____ Giving
customers credit
_____ Buying
inventory
_____ Sale of
inventory
_____ Purchasing
members production
_____ Collecting
accounts receivable
_____ Nonmembers
purchase preferred stock
_____ Suppliers
give 30 day credit
_____ Paying
accounts receivables
8. Thought question for extra
credit. Why can the business expense depreciation be considered as a
source of cash in the
cooperative’s
cashflow?
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