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23 Cards in this Set
- Front
- Back
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true or false cooperatives must be organized as corperations |
true |
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what percentage of inputs for famers come from coops |
20% |
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what percentage of outputs are sold by coops |
30% |
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three principles of coops |
member-user control operate at cost limited return |
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what is the percentage of limited return |
8% |
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1922 capper-volstead act |
ensures rights of farmers to organize and market their products if all profits are returned to members-no fed income tax |
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capper volstead act must meet- |
coop does 1/2 of business with members
no member has more than 1 vote
dividend limited to 8% |
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classes by function |
farm supply farm marketing service |
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revenue act of 1962 |
placed more specific criteria on coops to avoid taxes
at least 20% of patronage refund must be cash
members taxed on all refund
no requirements on when cert can be cashed |
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true or false coops pay taxes on all non member business |
true |
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what makes them different |
patronage refund owned and controlled by member patrons |
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three types of organizations |
federated centralized mixed |
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federated organization |
local controls regional members are other coops |
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centralized organization |
regional controls local no local board |
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new generation coop characteristics |
value added processing ability to trade equity shares shares can change value |
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profit equation |
NI=PY-WX-FC |
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profits are a ____ for risk |
reward |
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examples of profits from access to info |
patents copyrights trade secrets |
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profit max point |
MC=MR |
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examples of fixed costs |
depreciations interest rent taxes salaries utilities |
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examples of variable costs |
overtime commissions fuel delivery utility
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what changes supply |
changes in
technology input prices weather taxes and subsidies price of competing products
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what changes demand |
changes in
income tastes and preferences population prices of subs and complements |
