MIND ALERT 1

The stated purpose of a cooperative organized by 25 members in an institution says that they are
going to pool together their savings and then lend to any member a sum of money twice their
savings contributed to the cooperative for the purpose of either a productive loan or a provident
loan.
What kind of cooperative was established based on the stated purpose?
-Since they are going to pool their savings together and for the purpose loans, either productive or
provident, then a Credit cooperative was established.
MIND ALERT 2
A schools XYZ's Faculty Coop (XYZ-FACO), in pursuance of its purpose, set up a restaurant and a
mini grocery. Faculty members eat in the co-op. However, students who are not allowed to be
members, are also served when they enter the store. Since prices in the co-op are less than any
other outlet in the locality, the co-op naturally serves more students than faculty members.
1. From the activities of the co-op, what do you think is the purpose of the co-op?
2. What type of co-op is XYZ-FACO?
1. The cooperative provides goods and savings by catering daily goods to members and
nonmembers daily for a price that is lower than other outlet.
2. XYZ-FACO is a Consumer's cooperative.
MIND ALERT 3
A group of primary consumers cooperative wants to form a consumers wholesale cooperative.
Write for them their purposes.
-Collectively purchase goods at wholesale prices
-Provide goods at competitive prices
-Able to service the pricing fluctuations to ease competitive pressure
MIND ALERT 13
Consumer cooperatives in Central Luzon are agreed that if they pool together their resources, they
will be able to bulk and face up to competition better.
What is the appropriate body to form, a federation or a union? Why?

-The appropriate body to form is a Cooperative federation because they want to pool together their
resources to bulk and face up to competition better which is stated in the purposes of the
federation: To encourage among members systematic production and marketing; To establish,
own, lease, or operate cooperative banks, cooperative wholesale and retail complexes, insurance
and agricultural/industrial processing enterprises, and public markets.
CHAPTER REVIEW
6. How will students proceed about in organizing a laboratory credit co-op?
-Students who want to organize a laboratory cooperative must be affiliated with a registered
cooperative. The rules and guidelines promulgated by the CDA governs the operation of a
laboratory cooperative.
7. Can a minor be a member in a cooperative other than a laboratory co-op? Explain.
-Yes, a minor can be a member of a cooperative. It is stated in the Cooperative Code of the
Philippines:"Open and Voluntary Membership". Membership in a cooperative shall be voluntary
and available to all individuals regardless of their social, political, racial or religious background or
beliefs; Section 26. It is also stated that: Who May Be Members of Cooperatives. - Any natural
person, who is a citizen of the Philippines, a cooperative, or non-profit organization with juridical
personality shall be eligible for membership in a cooperative if the applicant meets the
qualifications prescribed in the by-laws: Provided, That only natural persons may be admitted as
members of a primary cooperative.
source: http://www.chanrobles.com/republicactno6938.htm#.Vs53sM4xG9a