What Is This Module About?

Have you ever tried working with a group of people? Was it easy or difficult?
How much did you accomplish?
What do you think is the difference between working alone and working with
other people?
Some things are done better and faster when people work together in a group. We
are all members of a group. We belong to our families. We belong to our
communities. We live and work with many different groups of people every day.
Another way we can work with other people to achieve a common objective is by
joining a cooperative. Would you like to know more about cooperatives? Then this
module would be very useful to you. I’m sure you will find it interesting and learn a
lot from it. It has three lessons, namely:
Lesson 1 — The Importance of Working Together

Lesson 2 — The Benefits That Cooperatives Can Give You and Your
Community

Lesson 3 — Types of Cooperatives

What Will You Learn From This Module?

There are two modules written about cooperatives. This is the first one. It will
teach you what a cooperative is. The second module, entitled How to Form a
Cooperative, will teach you how to start a cooperative, plan its activities and keep it
going.
After studying this first module, you should be able to:
♦ explain the importance of working with other people toward the common
good;
♦ explain the benefits that cooperatives can give you and your
community; and
♦ identify the different types of cooperatives.

1
 Let’s See What You Already Know

Before you start studying this module, take the following test to help you find out
how much you already know about the topics to be discussed.
A. Encircle the letter of the correct answer.
1. People working together to achieve a common objective . . .
a. will just meddle with each other’s affairs and not accomplish
anything
b. can achieve much if they work hard together toward the common
good
c. will not get far if they do not have a wealthy member who can
provide whatever money they need
d. can achieve anything regardless of their attitudes toward each other
and toward their work
2. There is a great need for a cooperative in communities where . . .
a. people are poor and do not have enough means to meet all their
needs
b. people are employed and able to send their children to school
c. public utilities like electricity and water are poorly provided
d. there are enough stores selling everyday needs at reasonable prices
e. both (a) and (c)
f. both (b) and (d)
3. Mang Bogart is a casual laborer and does not earn enough to send his
children to school. Mang Kiko does not have a job and his family
cannot eat three square meals a day. A cooperative can help Mang
Bogart and Mang Kiko by . . .
a. providing opportunities to improve their livelihood
b. training them so they can gain useful skills
c. making them envious of the success of other members of the
community
d. both (a) and (b)

2
 4. Barangay Malayo has only one small store selling items needed every
day. Its residents either buy from this one store at high prices or make
long trips to the poblacion to buy cheaper goods. A cooperative can
help Barangay Malayo by . . .
a. buying a jeepney which residents can use to go to stores in the
poblacion
b. putting up a store in the community that will sell items at
reasonable prices
c. building a road that will serve as a short cut to the poblacion
d. teaching its members to consume less or to make do with less
5. The residents of Barangay Sampaguita are skilled at fine embroidery.
They get orders from many stores in Manila. However, they do not have
enough capital to buy fabric and thread. They have no choice but to get
capital from moneylenders who charge very high interests. A
cooperative can help Barangay Sampaguita by . . .
a. asking moneylenders not to charge high interest
b. informing the people about other existing moneylenders who
charge lower interest
c. lending money to the residents and charging lower and more
reasonable interest
d. educating the residents about other possible businesses they could
invest on
B. Match the activity in Column A with the type of cooperative in Column B.
Write the letter of your answer in the blank before each number.
Column A Column B
_____ 1. Buys and sells goods to both members a. multi-purpose
and nonmembers cooperative
_____ 2. Undertakes two or more business b. credit
activities similar to those undertaken by cooperative
other types of cooperatives c. consumers’
cooperative
_____ 3. Lends money to members and
d. producers’
encourages them to put up savings cooperative
_____ 4. Offers services of different types such as e. marketing
medical, power and transportation cooperative
_____ 5. Produces agricultural and industrial f. service
products cooperative

3
 Well, how was it? Do you think you fared well? Compare your answers with
those in the Answer Key on pages 35–37 to find out.
If all your answers are correct, very good! This shows that you already know
much about the topic. You may still study the module to review what you already
know. Who knows, you might learn a few more new things as well.
If you got a low score, don’t feel bad. This means that this module is for you. It
will help you to understand important concepts that you can apply in your daily life.
If you study this module carefully, you will learn the answers to all the items in the
test and a lot more! Are you ready?
You may go now to the next page to begin Lesson 1.

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 LESSON 1

The Importance of Working Together

Why is it important for people to learn to work together? What are the advantages
of working together compared to working alone? These questions will be answered in
this lesson.
After studying Lesson 1, you should be able to:
♦ explain the importance of working with other people toward the common
good; and
♦ give examples of situations demonstrating how working together with other
people can be more beneficial than working alone.

Let’s Read

The Aguilars and the Marianos have been

next-door neighbors for many years. Mr. Aguilar
and Mr. Mariano both work at the city hall. Mrs.
Aguilar and Mrs. Mariano are both plain
housewives. The two families enjoy each other’s
company. The two mothers chat now and then.
One family invites the other family on special
occasions.
The two mothers have been worrying about
the rising cost of food. Every time they went to
the market, they felt that they spent more yet
bought less. They decided to do something about
this.
Mrs. Mariano noticed that there were many things that both families frequently
bought. For example, both of them always had rice, dried fish, vinegar and other
condiments in their shopping lists. Mrs. Mariano knew that these items would be
cheaper when bought in bulk.
She made a suggestion to Mrs. Aguilar. They would buy these items in big
quantities and divide the goods between the two households. That way, they could save
money.

5
 They tried Mrs. Mariano’s plan for
a month. Instead of buying rice by the
kilo, they had a kaban delivered to
them. Instead of buying vinegar and
other condiments in small 250-milliliter
bottles, they bought these in 2-litre
bottles. Then they divided the goods
between the two families. At the end of
the month, they sat together and
computed how much they had saved.
They were very pleased to find that each
of them had saved P150.
Mrs. Aguilar also suggested a way for them to cope with rising prices. Both of
them had dressmaking skills. They could supply their neighbor Aling Nene with
simple house clothes for her dress stall in the market. They talked to Aling Nene
about this and made their first delivery after two months. Between the two of them,
they earned a profit of P1,000.
The two ladies were very proud of the success of their plans. Their husbands
appreciated their efforts to help improve the family income. They were even able to
teach their children a thing or two about hard work, thrift and helping one another.

Let’s Review

Review the important points of the story by completing the following sentences.

Mrs. Mariano and Mrs. Aguilar were worried about the rising c_______ of
food.
Mrs. Mariano had a p______. They would buy goods by the b______ and
divide these between them. This way, they would be able to supply their families’
basic needs at l_______ cost.
After one month, they found out that each of them had s______ P150.
The two ladies had dressmaking s_______. They supplied the dress stall in
the market with simple house clothes.
Their first delivery earned them a p________ of P1,000.
Mrs. Mariano and Mrs. Aguilar were happy with their s_______. Their
husbands also appreciated their e_______.
What they did also taught their children about hard w_______, t______ and
h______ one another.

6
 Go over the words that you wrote in the blanks. These are words that are
important in the discussion of cooperatives. You will encounter some of them again in
this module and in the second module on cooperatives.
Now, reflect on these questions:

1. Why do you think the plans of Mrs. Mariano and Mrs. Aguilar succeeded?
2. In the end, who benefitted from their success?
3. Could one of them have succeeded without the help of the other?

You don’t need to write your answers to these questions but do take time to think
about them. After you have thought about them, read the Answer Key on pages 37–38.

Let’s Think About This

We are often taught by our parents and elders to be self-reliant. They encourage
us to fend for ourselves without depending on others for help. But did you know that
working together with other people can help us achieve our goals faster and more
easily?
When we work together with other people, we share the work that needs to be
done. Things can also be done faster and better than when we work by ourselves.
People working together, however, must share a common goal in order for them
to successfully reach their objectives. In fact, people with the same objectives should
work together to make their tasks easier.
In the story that you read, both Mrs.
Mariano and Mrs. Aguilar wanted to cope with
the rising cost of food. This was their common
goal. To achieve their goal, they decided to
work together. By working together, they saved
some money without having to buy less food.
They also used their skills to help them earn
extra income. In the end they both achieved
their goal.
Could they have succeeded if they worked
separately? Perhaps, but it would have been
more difficult. For example, what would have
happened if Mrs. Aguilar decided to buy by the
bulk alone? She would have had to spend for say, a kaban of rice, all by herself. She
may not have this amount ready at once. However, she shared the cost with Mrs.
Mariano. So both of them were able to buy the amount of rice they needed at a
cheaper price than if they bought by the kilo.

7
 What about their dressmaking venture? Could Mrs. Aguilar have succeeded just
by herself? Let us say that she received a big order of clothes. She would have gotten
very tired from working long hours to meet this order. However, she and Mrs.
Mariano decided to work together. They were able to deliver the goods on time and
both of them earned good money.
By working together, Mrs. Aguilar and Mrs. Mariano were able to improve the
lives of their families. They were also able to help each other during a time of need.
What Mrs. Aguilar and Mrs. Mariano did can also be done by a bigger group.
Several people with common needs and common goals can work together. They can
plan how to achieve their objectives. Then they can carry out this plan together. If they
succeed, each member would have helped not only himself/herself but the other
members of the group as well.

Let’s Try This

Think about a problem, a need or an objective that you share with another person.
This person may be a sibling, relative or friend. If you were to work with him/her to
solve a common problem or achieve a common objective, describe what you would
do. How will you share the tasks that need to be done? How can you be sure that your
plans can be carried out? If there are costs involved, how will you share these costs?
Write down your answers.
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

After doing this assignment, compare your answers with those in the Answer Key
on page 38.
This is the end of Lesson 1. Is it now clear to you what working together means?
Before you start with Lesson 2, review what you have learned in this lesson.

8
 Let’s See What You Have Learned

Read the story below carefully.

Juan, Pedro and Dario are fishermen from
Barangay Matubig, Batangas. They grew up
together in the same community and are very
good friends. Their families are also close with
one another.
Juan, Pedro and Dario share the same
problem, which is earning enough to meet their
families’ needs. They only rent their fishing
boats from Mr. Chua, who charges them
expensively. Their income is reduced into half
after paying their boat rental, which makes it
difficult for them to save money.
Since the three experience the same problems, they thought of buying a big
fishing boat wherein they could all work together. They consulted their families about
their plan and their families were very supportive. They all agreed that they should buy
a second-hand fishing boat which could be paid monthly. This way, it won’t be difficult
to pay for the boat.
Their families suggested that in terms of income, they would divide their
earnings equally, including the payment for the fishing boat.
Juan, Pedro and Dario were able to buy a boat from Mr. Saliendra. Mr. Saliendra
sold his big fishing boat because he wanted to buy a bigger one. He even agreed that he
be paid at the end of every month for the boat. The boat was to be paid for three years
or even less depending on the income of the three.
Juan, Pedro and Dario weren’t the only ones who worked together; their wives
also helped them in earning money. Their wives put up a stall near the town to sell
some of their husbands’ catch. Their wives took turns in a day to look after their
goods. They also saved money and deposited it in a bank. Some of the money they
earned was used for maintaining their small store.
After five years, Juan, Pedro and Dario were able to buy two additional boats.
They were even able to hire new fishermen. Their business expanded. They were able
to save money in the bank and provide for the needs of their families.
Another good thing that happened was that their wives’ business also grew. Now,
they don’t only have three stalls in different towns; they also supply fish to
restaurants. The fish are in turn supplied by their fisherman husbands.
Every Sunday, the three families gather and have lunch together. Sometimes, they
talk about their past when they could barely buy anything.

9
Answer the following questions.

1. What was the problem of Juan, Pedro and Dario?

_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

2. How did they solve their problem?

_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

3. Did their families support their plan? How?

_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

4. What did their wives do in order to support them?

_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

5. Explain the importance of working with other people toward a common goal.
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

6. Do you think working together made it possible for Juan, Pedro and Dario to
improve the quality of their lives? Why or why not?
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

10
 You may discuss your answers with your Instructional Manager or Facilitator. You
may also discuss these with a member of your family, a friend or a co-learner. Do they
agree or disagree? Why or why not?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________

You may compare your answers with those in the Answer Key on pages 38–39.

Let’s Remember

♦ If people have a common goal, there is a reason for them to work

together.
♦ In many instances, it helps a lot for people to work together. When
they work together, things can be done better and faster. The benefits
for the group and for each individual can also be greater.
♦ When people work together, they help each other and themselves.

11
 LESSON 2

The Benefits That Cooperatives Can Give

You and Your Community
By now, you must have realized how working together can benefit everybody in a
group. One group where we can work with other people to achieve a common
objective is the cooperative.
In this lesson, you will find out what a cooperative is. You will also learn the
benefits that a cooperative can give you and your family.
After studying Lesson 2, you should be able to:
♦ define what a cooperative is; and
♦ explain the benefits that cooperatives can give you, your family and your
community.

Start by reading the story of Buboy on the next page.

12
 Let’s Read

Buboy used to live in an old run-down shanty. He had five children and a sick
wife. He worked as an unskilled construction laborer and earned very little.
Danilo, Buboy’s friend, was a member of a cooperative where he was being
trained to be a cook. Danilo encouraged Buboy to join his cooperative. Through his
help, Buboy was able to join the cooperative. There, he met other men and women
who wanted to gain skills to improve their livelihood. They all received training to be
good cooks. They were also trained on simple business operations so they could run
their own eateries.
Buboy was also able to borrow P5,000, which he used as capital to put up a small
eatery located close to a factory. His wife and children helped him with his small
business. With what he earned, he was able to pay the monthly installment for his loan
and have enough money for their everyday needs. He was even able to save a small
amount.
Buboy is a good husband and father. He is prudent, diligent and hardworking. As a
member of his cooperative, he is aware of his duties. He makes sure that he pays his
monthly dues on time. He is also neat and orderly with himself and his environment.
The eatery business grew. Buboy is now the owner of a small restaurant that
makes a daily profit of P1,500. His family lives in a comfortable apartment that they
rent. He is hoping to save enough for a house and lot of their own. He has a circle of
friends who are always ready to help him. Buboy and his family are very happy with
the way their life has turned out.

13
 Let’s Review

Review Buboy’s story in your mind. Then write down your answers to the
following questions:
1. Compare Buboy’s situation before and after he joined a cooperative.
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

2. What are the good qualities in Buboy that helped him make progress in life?
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

After answering the questions, compare your answers with those in the Answer
Key on page 39. Are your answers correct?
If you were to join a cooperative, you can gain the same benefits that Buboy did.
You can learn new and useful skills. You can find better ways of earning a living. If you
need capital to start a business, it may be possible for you to borrow from your
cooperative. Joining a cooperative can also further develop your good traits, such as
diligence and orderliness.
Now, read this story about the town of Pag-asa.
14
 Let’s Read

There used to be no cooperative in the

town of Pag-asa. The place lacked order and
was dirty. Jobs were rare and incomes were
low. People had to walk far to buy their daily
needs. The source of electricity was
unreliable and there was no running water.
One day, some members of a
nongovernment organization (NGO) visited
Pag-asa. A government expert on
cooperatives came with them. The members of the NGO discussed with the
community members what cooperatives are and the benefits these bring. Later, the
visitors helped the community form its own cooperative.
The cooperative helped the people find ways to raise their incomes. They learned
about different means of livelihood. Some produced goods they could sell. Others put
up their own stores. People did not have to walk far
anymore to buy the things they needed every day.
The members of the cooperative had duties and
they were aware of these. They knew that their
cooperative could be of help to them only if they all
did their share. They attended meetings, made their
payments on time, and helped new members do the
same.
The good attitudes that they learned from the
cooperative spilled over to the other residents of
Pag-asa. They began to work together on projects
that concerned their community. They started taking responsibility for cleaning up
their surroundings. They worked with the municipal government to have better electric
and water systems.

15
 Let’s Review

The following are sentences that describe Pag-asa before and after a cooperative
was formed in the community. If a sentence describes a condition before a
cooperative was formed, write it under the column labelled “BEFORE.” If a sentence
describes a condition after a cooperative was formed, write it under the column
labelled “AFTER.”
1. The town’s electric and water systems improved.
2. The surroundings were dirty and the place lacked order.
3. More stores were put up in town.
4. People had better means of livelihood.
5. Few people had jobs. Those who did earned very little.
6. People had to walk far to buy their daily needs.

BEFORE AFTER

After completing your table, compare it with that found in the Answer Key on
page 39.

Let’s Learn

We are all members of one or more groups. We are born to our families. As we
grow, we realize that we are also members of a community. As members of a group,
we learn to find things in common with other members. We get to know them and
learn to work together with them.
Another group where we can work with other people to achieve a common
objective is the cooperative.

16
 What is a cooperative?
A cooperative is an organization voluntarily formed by at least 15 members. It is
registered with the government. Its members have a common interest or objective.
They are convinced that by coming together, they can work toward achieving that
objective.
The members put their resources together to come up with the capital required by
the cooperative. They also share the risks and benefits of the activities of their
cooperative.
What are the benefits that cooperatives can give you and your community?
As the stories of Buboy and the town of Pag-asa have taught you, cooperatives
provide benefits not just for its members but for the community as a whole. These
benefits are discussed below. Study each one carefully.
1. The members of a cooperative put
their money together to come up with the
capital needed by the cooperative. By putting
their money into the business of their
cooperative, we say that the members invest
in their cooperative.
What do the members receive by
investing in the cooperative?
All members are paid interest on the
capital they have invested. They are given this amount whether or not they patronize
the business of their cooperative. To patronize the business of your cooperative is to
buy the goods that it sells or use the services that it offers.
Now, when a member patronizes the business of his/her cooperative, he/she is
given a patronage refund. The amount of his/her patronage refund depends on how
much he/she has spent on the goods and services offered by his/her cooperative. For
example, if he/she is a member of a consumers’ cooperative, his/her patronage refund
depends on how much he/she spent on the goods sold by the cooperative store. If he/
she is a member of a credit cooperative, his/her patronage refund is bigger the more
loans he/she gets. He/She must bear in mind of course, that he/she must be diligent
with his/her payments. Members who do not patronize the business of their
cooperative are not entitled to a patronage refund.
A member’s patronage refund is usually given once a year, and is his/her share of
the cooperative’s profits. The profits of a cooperative are used for many purposes.
Some are used for the education and training of its members while some are used for
the patronage refunds.

17
 2. Cooperatives also provide
opportunities for their members to be further
educated or trained.
What will they learn?
They can be taught new skills or crafts, or
the basics of simple business operations. For
example, Buboy learned cooking well enough to
start his own eatery. Thus, there are also
opportunities for members to improve their
means of livelihood. Better means of livelihood
can mean higher income for the members. If people have higher incomes, they are
better able to look after the needs of their own families.
A community that has members who can
look after their own families is a progressive
community.
3. Cooperatives aim to offer products and
services that are of good quality and are
reasonably priced. This benefits not only the
members but also nonmembers who patronize
the business of the cooperative. In this way, the
cooperative also serves the community. People
do not have to spend well-earned money on
goods that are too expensive or are of poor
quality.
4. There are many good values and
attitudes that members can learn from a
cooperative. They can learn these by
participating in its activities. They can also learn
these from the education and training they
receive.
Can you name some of these values and
attitudes?

Members are encouraged to be thrifty and to save. They become self-reliant and
they learn self-discipline. Members also work together not just for their own good but
also for the good of all. They learn to work with and help other people.

18
 Because of these values and attitudes, members become better members of their
communities. They become more concerned about the welfare of their communities.
In the end, the good traits that members gain benefit not only themselves but also the
entire community.
Do you now appreciate the benefits that a cooperative can give you and your
family? You may wish to take down some notes to help you remember important
points in this lesson.

Let’s Review

Write T if the sentence is true and F if it is not. Write your answers in the blanks.
_____ 1. A cooperative is an organization voluntarily formed by 5 members.
Its members have no common interest or objective.
_____ 2. A cooperative requires a capital which will be used for its programs
and services.
_____ 3. Members of the cooperative are paid interest on the capital they
have invested.
_____ 4. A patronage refund is the interest a member receives once a year
from the cooperative if he/she patronizes the business of his/her
cooperative.
_____ 5. Members who don’t patronize the business of their cooperative
also receive a patronage refund which is less than that of a member
who patronizes the cooperative’s business.
_____ 6. Cooperatives provide opportunities for their members to be further
educated or trained.
_____ 7. Cooperatives aim to earn money from consumers without
considering the quality of their products and services.
_____ 8. Participating in a cooperative would enable members to learn more
good values and attitudes.
_____ 9. Members of a cooperative are taught to be dependent on the
cooperative.
_____ 10. A cooperative is only beneficial to some people in the community.

Compare your answers with those in the Answer Key on page 40.

19
 Let’s Try This

1. Inspect your own community. Observe its social, economic and

environmental conditions and identify problem areas. Write down your
observations.
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

2. Find out if there is a cooperative in your community. Do you think a

cooperative would be beneficial to you and your community? In what ways?
Write down your answers.
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

After answering this activity, compare your answers with those in the Answer Key
on pages 40–41.

This is the end of Lesson 2. Do you now have a clear idea of what a cooperative is?
Are you interested in joining one? Before going to the last lesson, review what you
have just studied by answering the test and reading the lesson summary.

20
 Let’s See What You Have Learned

So, what did you learn from the lesson? Try to solve the crossword puzzle below
in order to find out.
1

Across:
(4) A member who patronizes the business of his/her cooperative is given this.
The amount he/she will receive depends on how much he/she has spent on
the goods and services offered by his/her cooperative.
(5) The members are given this amount whether or not they patronize the
business of their cooperative.
(6) A cooperative should be _________________ with the government.
Down:
(1) It is an organization voluntarily formed by at least 15 members. Its members
have a common interest or objective.
(2) Cooperatives aim to offer products and services that are of good ________
and are reasonably priced.
(3) Members of cooperatives are provided opportunities to be ___________
and trained.
Did you enjoy answering the crossword puzzle? You may compare your answers
with those in the Answer Key on page 41.

21
Let’s Remember

♦ A cooperative is a registered organization voluntarily formed by at least 15

members. These members work toward achieving a common objective.
♦ The members of a cooperative put their money together to raise capital for
the cooperative. They also share the risks and benefits of the undertakings of
the cooperative.
♦ These are the most important benefits of a cooperative to an individual and
to the community:
a. Cooperatives can offer opportunities to its members to earn more
income. Members receive interest on the capitals they have invested. If
they avail of the goods and services of the cooperative, they also
receive a patronage refund.

b. Cooperatives also offer opportunities for education and training. In this

way, members can improve their means of livelihood.

c. Cooperatives serve their members and the community by offering

quality goods and services at reasonable prices.

d. There are good values and attitudes that members can learn from their
cooperatives. Some of these are discipline, self-reliance, thrift and
working together for the common good. These good values and attitudes
benefit not only the individual but also his cooperative and community.

22
 LESSON 3

Types of Cooperatives

You now know what a cooperative is and how it can benefit you and your
community. The next thing that you should be familiar with are the types of
cooperatives that you can form or join.
After studying Lesson 3, you should be able to:
♦ identify and describe the different types of cooperatives; and
♦ give examples of the activities of the different types of cooperatives.

Let’s Read

One Sunday, Professor Luna visits Barangay Concordia. The residents greet her
warmly.

Professor Luna: Good afternoon to all of you!

Barangay Good afternoon, ma’am. Welcome to our barangay!

residents:

Mang Cardo: Professor Luna, we are glad that you can spend some time with
us. We are also fortunate because Kapitan Joe is here with us.

23
Professor Luna: That’s great! How are you today, Kapitan Joe? May I
congratulate all of you for preparing the barangay hall for our
meeting. I brought with me some reading materials on
cooperatives. I also have some posters. Can you please post
them at the hall entrance? Oh, I see that you already have some
materials here. Have you read them?

Kapitan: Most of them, ma’am. One of the teachers in our high school
also explained them to our residents.

Professor Luna: That’s great! Now you are really helping each other. Do you have
questions about what you have read so far?

Aling Maura: Ma’am, is there only one type of cooperative? I learned

from the radio that some cooperatives lend money to their
members. My relatives from another province tell me that they
have a transport cooperative there. Why, it looks like there are
many types of cooperatives!

Professor Luna: That’s right, Aling Maura. There are many types of
cooperatives…. Wait a minute, isn’t that Kapitan Marco
coming? He is the barangay captain of Barangay Mapalad.
Kapitan! Kapitan!

Kapitan Marco: Good day to all of you! How are you, Professor Luna?

Professor Luna: I’m fine, thank you. Kapitan Marco, they have some
questions about the different types of cooperatives. Perhaps you
can help them?

Kapitan Marco: Gladly! Ladies and gentlemen, I am happy that you want to learn
more about cooperatives. The cooperative established in my
own barangay, Barangay Mapalad, is a marketing cooperative. It
sells the palay harvested by its members. Do you know that with
an initial investment of P50,000, a cooperative can earn a profit
of P20,000? Its members share this profit among themselves.

Mang Ruben: What a remarkable cooperative you have!

Kapitan Marco: Thank you. Now, let me tell you about the different types
of cooperatives. You can also read about them from the
Cooperative Code of the Philippines, or Republic Act No.
6938. It was signed into law in 1990 by former President
Corazon Aquino. This law gives us the rules we should
follow in forming a cooperative.
24
Professor Luna: Are you all ready to listen to Kapitan Marco?

Kapitan Marco: Thank you, Professor Luna. The different types of

cooperatives are:

Credit Cooperative

A credit co-op encourages thrift, saving

and wise spending among its members. It
puts together deposits from members and
lends money to them at reasonable interest
rates. Members usually borrow money for
their businesses or for other needs, such as
education and medical care.

Consumers’ Cooperative

A consumers’ co-op is a good answer to rising

prices and poor quality of goods and services.
Members work together to provide themselves
and even nonmembers with quality goods and
services at reasonable prices. They contact
suppliers directly and buy items by the bulk.

Producers’ Cooperative

The members of a producers’ cooperative help

each other in buying raw materials and equipment.
They also study and improve their production
techniques to ensure the quality of their products.
They may also look for ways to better market or sell
their products. Members usually engage in either
agricultural or industrial production.

25
 Marketing Cooperative

Some producers such as small farmers are

often not business-minded and do not know
how to sell their products. The main concern
of a marketing cooperative is to help its
members sell or market their products. It also
helps its members get the supplies they need
for the production of their goods.

Service Cooperative

A service cooperative provides its members

and even nonmembers essential services
such as medical and dental care, hospitalization,
transportation, communication, insurance and
electric power.

Multi-purpose Cooperative

This co-op is involved in two or more business

activities that are undertaken by the other types
of cooperatives.

Professor Luna: Thank you very much, Kapitan. I hope the residents
of this barangay are happy with what you have shared with them.

Kapitan Joe: Thank you, Kapitan Marco and Professor Luna. Both of you
have given us much information about cooperatives. We hope
we can use it to form our own cooperative. In the meantime, it
looks like our merienda is ready. My friends, while we are
taking our snacks, you may still ask Professor Luna and
Kapitan Marco some questions.

Did you carefully read what was discussed during the meeting? They discussed
important things that you should try to remember about cooperatives. If you think that
you need to take down some notes to help you remember, do so on a piece of paper,
or better still, in a notebook.

26
 Let’s Review

Using what you have just learned, identify the type of cooperative described in
each paragraph below. Write your answers in the blanks.
1. This cooperative sets up a store selling different kinds of goods. An amount
of money is collected from each member. The cooperative uses this money
to buy goods it can sell. It also rents store space in the house of one of its
members. Any member may go to the store to buy things that are needed by
his family. What type of cooperative is this?
_________________________________________________________

2. This cooperative manages an automotive or car repair shop. From the money
the members raised as capital for business, they bought some machines and
equipment. Members who are skilled in automotive and body repair man the
shop, following a schedule they have agreed on. What type of cooperative is
this?

_________________________________________________________

3. A family owns a large parcel of land in a certain barangay. Before migrating

to the United States, they accepted the offer of a group of small farmers who
wanted to lease several hectares of their land. This group planted the land
with palay, vegetables and fruits. They also raised some chickens. They then
found ways to sell their products. What type of cooperative is this?
_________________________________________________________

Check your answers using the Answer Key on page 41. Were you able to identify
the cooperatives described in the paragraphs? If you have identified all three correctly,
nice going! If not, just review what Kapitan Marco taught the barangay residents.
Things should be clearer to you by then.

27
 Let’s Try This

Now, try describing the other types of cooperatives. Can you give examples of
their activities, such as those described in the paragraphs that you have just read in the
Let’s Review activity on page 27?
Do this for two types of cooperatives. Use the space below.
1. _________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

2. _________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

Compare your answers with those in the Answer Key on pages 41–42.

Let’s Think About This

By now, it must be clear to you that cooperatives have things in common. They
are voluntarily formed by a group of persons who have a common objective. Through
the cooperative, they achieve this objective and work for the good of all.
How do cooperatives differ? Cooperatives differ in the kind of activities that
they undertake. These depend on the specific objective that the members try to meet.
You may have observed this after reading the talk of Kapitan Marco.
For example, credit co-ops lend money that can be used for business and other
needs. Consumers’ co-ops sell goods and products to members and nonmembers.
Producers’ co-ops help their members buy the things they need for production.
Marketing co-ops find ways for their members to sell their products and get good
money for them. Service cooperatives offer services needed every day, such as
medical, transportation and electric power services.
These different types of cooperatives have different activities. However, they are
all groups with members working on a common objective.
This is the end of Lesson 3. When somebody asks you about cooperatives, you
should be able to tell him/her what you know about the types of cooperatives. You
should also be able to discuss the objectives and activities of each type.

28
 Let’s See What You Have Learned

Describe each type of cooperative given below.

1. Credit Cooperative
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

2. Consumers’ Cooperative
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

3. Producers’ Cooperative
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

4. Marketing Cooperative
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

5. Service Cooperative
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

29
 6. Multi-purpose Cooperative
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

You may compare your answers with those in the Answer Key on pages 42–43.
Review what you have learned in this lesson by reading the summary below.

Let’s Remember

♦ All cooperatives are similar in that the members work together to achieve a
common objective. They differ in the specific objectives they try to achieve
and the activities that they undertake.
♦ The different types of cooperatives are:
1. Credit cooperatives
2. Consumers’ cooperatives
3. Producers’ cooperatives
4. Marketing cooperatives
5. Service cooperatives
6. Multi-purpose cooperatives

You have reached the end of this module! I hope you had a nice time getting to
know all about cooperatives. Another module, titled How to Form a Cooperative, will
teach you how you may go about forming your own cooperative. We hope you will be
interested in studying that, too.
Go over what you have learned in this module by reading the summary on the next
page.

30
 Let’s Sum Up

♦ In many instances, it helps a lot for people with a common goal to work
together. When they work together, things are done better and faster. The
benefits for the group and each individual can also be greater. When people
work together, they help each other and themselves.
♦ A cooperative is a registered organization voluntarily formed by at least 15
members. These members put their resources together to raise the capital
and other requirements of the cooperative. They also have a share in the
earnings and benefits of the cooperative.
♦ These are the most important benefits of a cooperative to an individual and
to the community:
1. Cooperatives can provide opportunities for earning more income to its
members.
2. Cooperatives also offer opportunities for education and training.
3 Cooperatives serve its members and the community by offering quality
goods and services at reasonable prices.
4. There are good values and attitudes that members can learn from their
cooperatives. These traits benefit the individual, cooperative and
community.
♦ All cooperatives are similar in that members work together to achieve a
common objective. They differ in the specific objectives they try to achieve
and the activities that they undertake. The different types of cooperatives
are:
1. Credit cooperatives
2. Consumers’ cooperatives
3. Producers’ cooperatives
4. Marketing cooperatives
5. Service cooperatives
6. Multi-purpose cooperatives

As the last activity of this module, answer the test on the next page. It will help
you find out how much you have learned from the three lessons of the module.

31
 What Have You Learned?

Encircle the letter of the correct answer.

1. In a cooperative, the members help each other and . . .
a. forget about achieving their personal objectives
b. also achieve their personal objectives for joining the cooperative
c. get nothing for themselves
d. both (a) and (c)
2. A cooperative can be helpful in communities where . . .
a. the only source of capital for small businesses are moneylenders who
charge very high interests
b. there are not enough stores selling everyday needs at reasonable prices
c. farmers find it difficult to buy good farm equipment and supplies at
reasonable prices
d. all of the above
3. Which of the following does not describe a cooperative?
a. It is a registered organization composed of at least 15 members.
b. The members have a common objective.
c. The members were required by their mayors to join the cooperative.
d. The members put their resources together to raise the capital of the
cooperative.
4. Who are entitled to receive a patronage refund?
a. All members of a cooperative.
b. Members who avail of the goods and services that the cooperative
offers, or members who patronize the business of their cooperative.
c. Members who attend all the meetings of the cooperative.
d. Members and nonmembers who avail of the goods and services of a
cooperative.
5. Which of the following describes a patronage refund?
a. It is the money the cooperative gives you when you return a defective
product.
b. It is the interest on the capital a member has invested in the cooperative.

32
 c. It is a member’s share of the profits of his cooperative, which he
receives if he/she avails of the goods and services offered by his/her
cooperative.
d. It is the money earned by a member after he/she has been trained on a
useful skill in the cooperative.
6. The tricycle and jeepney drivers in the poblacion of San Lucas earn well
from their trade. However, when their vehicles break down, they spend a lot
of money to get them fixed. The two repair shops in the poblacion charge
high rates and do not even have stocks of all the spare parts the drivers need.
A cooperative can help the tricycle and jeepney drivers by . . .
a. helping them move to another place where there are good repair shops
b. putting up its own repair shop where repairs are reasonably priced
c. getting spare parts directly from the suppliers at cheaper prices
d. both (b) and (c)
7. When the members of a cooperative learn values such as self-reliance and
hard work, the community benefits too. How?
a. The members of the cooperative are also members of the community.
The values that they learn from their cooperatives also help them
become better members of their community.
b. The cooperative forces its members to participate in community
activities.
c. The cooperative offers values education courses at the local high
school.
d. both (b) and (c)
8. The residents of Barangay Matamis are skilled in making pastillas and other
sweet native delicacies. Once a week, middlemen visit their barangay and buy
their products. Making these products need care and dedication so they
wonder why they are paid very little for their delicacies. They decide to form
a cooperative to help them find buyers willing to pay better prices. This type
of cooperative is called a . . .
a. producers’ cooperative
b. marketing cooperative
c. candy cooperative
d. consumers’ cooperative

33
 9. The town of Caminar is known for its excellent shoemakers. They get big
orders from many stores in Manila. However, it seems that they always lack
production supplies such as leather, buckles and dyes. They also want to
improve the styles of their shoes so they can sell them to exporters. The
shoemakers decide to form a cooperative that will get them reliable supplies
at lower prices. It will also help them get equipment and machines that will
improve the quality of their shoes. This type of cooperative is called a . . .
a. producers’ cooperative
b. marketing cooperative
c. shoe cooperative
d. consumers’ cooperative
10. Cooperatives offer opportunities for education and training to its members
so that . . .
a. they can improve their skills and have better means of livelihood
b. they can learn the basics of running a small business
c. they will learn to be self-reliant and hardworking
d. all of the above
Check your answers using the Answer Key on pages 43–44.
If your score is:
0–5 You should carefully study the entire module again.
6–7 You should go back to the parts of the module that you did not
understand.
8–9 Very good! Just review the items of the test that you did not get
right.
10 Excellent! You have learned a lot from this module. You can now
move on to the next one.

34
 Answer Key

A. Let’s See What You Already Know (pages 2–4)

A. 1. The correct answer is letter (b). People working together for a
common objective would naturally want to achieve that objective.
They can do this if they work hard together and think of the
common good.
Letter (a) is wrong. People with a common objective will not do
things that will prevent them from achieving their objectives. One
of these is meddling with each other’s affairs.
Letter (c) is wrong. They can put their money or resources
together to raise the amount that they need. This is an undertaking
common to all cooperatives.
Letter (d) is wrong. Even if a group of people have a common goal,
they would not be able to accomplish it if they always disagree on
how to reach their objectives or are too lazy to carry out their
tasks. The proper attitude is always important for anyone or any
group to accomplish anything.
2. The correct answer is (e) — both (a) and (c). Cooperatives are
most helpful in communities where people’s needs are not met.
Usually, these are employment opportunities (a) and everyday
needs like food, shelter, electricity and water (c).
Letters (b), (d) and (f) are not very good answers. The two groups
of people described in (b) and (d) do not seem to have a great and
urgent need. One group is composed of those who are employed
and can send their children to school (b). The other group is
composed of those living in places where there are stores selling
everyday needs at reasonable prices (d). Actually, there is nothing
that can stop these people from forming cooperatives to further
improve their conditions. However, cooperatives are most helpful
in communities where people have a common great need.
3. The correct answer is (d) — both (a) and (b). Both Mang Bogart
and Mang Kiko find it hard to look after the needs of their families
because they do not earn enough. One goal of all cooperatives is to
help their members earn higher incomes. They can do this by
providing opportunities to improve their livelihood (a) and training
them so they can gain useful skills (b).
Letter (c) is wrong. Cooperatives do not encourage their
members to be envious of the success of other people.

35
4. The correct answer is (b). The people of Barangay Malayo need
stores from which they can buy their everyday needs at reasonable
prices. One way for a cooperative to solve this problem would be
to put up stores that sell everyday items. This is actually done by
consumers’ cooperatives, and many people are attracted to these
cooperatives.
Letters (a) and (c) are not good answers. Stores that sell everyday
needs are best located within the community. Having a jeepney
for the long rides to the poblacion is not the best solution to the
problem. Neither is building a shortcut to the stores in the
poblacion.
Letter (d) is not a good answer. A cooperative helps improve the
lives of its members not make life harder for them. It is difficult
enough for the members of Barangay Malayo to get enough basic
necessities, much more make do with less.
5. The correct answer is letter (c). One type of cooperative is the
credit cooperative which could lend money to people or other
organizations at reasonable interests. This type of cooperative
encourages people to establish their business through financial
support by lending money.
Letter (a) is not a good answer. Cooperatives won’t solve the
problem of Barangay Sampaguita by asking moneylenders to charge
lower interests. This is because a cooperative doesn’t have any
control over these moneylenders.
Letter (b) is also not a good answer. Informing people about
existing moneylenders which charge lower interests does not
exactly solve the problem. A cooperative, such as a credit
cooperative, would primarily provide the needed services of a
consumer or client. This is done through processing loan
applications.
Letter (d) is incorrect. Cooperatives encourage people to attain
their objectives. If a people’s organization or a group in the
community is seen to have potential for a certain business,
cooperatives help these people to be successful in this business.
The cooperative may help through giving loans, through marketing
and many more ways.

36
 B. 1 (c) consumers’ cooperative
2. (a) multi-purpose cooperative
3. (b) credit cooperative
4. (f) service cooperative
5. (d) producers’ cooperative

B. Lesson 1
Let’s Review (pages 6–7)
The completed sentences should read as follows:

Mrs. Mariano and Mrs. Aguilar were worried about the rising cost of
food.
Mrs. Mariano had a plan. They would buy goods by the bulk and divide
these between them. This way, they would be able to supply their families’
basic needs at lower cost.
After one month, they found out that each of them saved P150.
The two ladies had dressmaking skills. They supplied the dress stall in
the market with simple house clothes.
Their first delivery earned them a profit of P1,000.
Mrs. Mariano and Mrs. Aguilar were happy with their success. Their
husbands also appreciated their efforts.
What they did also taught their children about hard work, thrift and
helping one another.

Answers to reflection questions:

1. You may have observed that Mrs. Mariano and Mrs. Aguilar had several
good traits. These traits helped them to carry out their plans and
succeed. Notice that when both of them saw a problem, they thought of
a plan to solve the problem. They did not let the problem discourage
them. They planned carefully and worked hard to carry out their plans.
They knew that if they succeeded, they would be helping both their
families.
2. In the end, both of them and their families benefitted from their
success.

37
3. Perhaps either one of them could have succeeded without the help of
the other. However, it would have been harder, would have taken longer,
and the benefits may not have been as many. By working together, the
tasks were easier and done faster, and they were able to get more
benefits.
Let’s Try This (page 8)
Surely, you can think of a number of problems or needs that you can
work on with other people. For example, you may have noticed that your
household waste is piling up.You became interested in building a compost pit
in your backyard. You asked your older brother to help you and he agreed.
The first thing that you might do is to find out if a compost pit will
really be helpful to your household. Will it help reduce your household
waste? If it will, you have to find out how to make one. What materials do
you need? Do you have to spend for them? How big an area do you need?
How is a compost pit maintained? Are there tasks that you have to do every
day?
The next thing that you might do is to discuss how you will share the
tasks. What tasks can your older brother do better? What tasks can you do
better? How will you make sure that both you and your brother work on your
assignments? If there are materials that you have to buy, you have to find out
if you have the money for them. If you do not have the money, you have to
talk about how you would raise the amount together.

Let’s See What You Have Learned (pages 9–11)

1. Juan, Pedro and Dario’s problem was their lack of income. They found
it difficult to provide for the needs of their families.
2. The three of them bought a second-hand fishing boat that they were able
to pay in installments.
3. Yes, their families supported their husbands’ plan. Their families even
suggested that their income be equally divided among the three.
4. The wives of Juan, Pedro and Dario put up a stall near the town in order
to sell some of the fish caught by their husbands.
5. There is a saying which goes, “Two heads are better than one.” This
saying simply means that it is easier to accomplish any given task if
there is cooperation with other people. Furthermore, if people work
toward a common goal, they argue less and accomplish more.
Working with other people can make our work easier. We are
able to attain our goals because people we know or people who could
help us support us. We are able to see better options on how to attain
our goals.

38
 Working together, however, doesn’t mean that we should be
dependent on others to do our work for us. We should take note of our
responsibility to do whatever we can to get what we want to attain.
Look at the ants, they all work together. But you would see that
each ant has its own task — some collect food while others look for
food. As a consequence, they all have something to eat during the rainy
days.
6. Yes, working together helped improve the lives of Juan, Pedro and
Dario. They started working together by planning on how to solve their
problem. This led to further cooperation, which eventually helped them
pay for the fishing boat they bought from Mr. Saliendra. As a result,
they were even able to buy two additional fishing boats and even
establish their own fishing business.
C. Lesson 2
Let’s Review (page 14)
1. Before Buboy joined a cooperative, he lived in an old run-down shanty.
He was an unskilled construction laborer and earned very little. He
could not provide for his five children and sick wife. After he joined a
cooperative, he learned to cook well enough to open an eatery. Together
with his family, he worked patiently on his business. He now has a
restaurant that makes a daily profit of P1,500. He and his family have
moved to an apartment that they rent. They are saving for a house and lot
of their own. Buboy also has a circle of friends who are ready to help
him.
2. Buboy is prudent, diligent and hardworking. He cares for the welfare of
his family. He does his duties as a member of his cooperative. He is
also neat and orderly with himself and his environment.
Let’s Review (page 16)
The completed table should be like this:
BEFORE AFTER

2. The surroundings were dirty 1. The town’s electric and

and the place lacked order. water systems improved.

5. Few people had jobs. Those 3. More stores were put up in

who did earned very little. town.

6. People had to walk far to buy 4. People had better means of

their daily needs. livelihood.

39
 Let’s Review (page 19)
1. F - A cooperative is an organization voluntarily formed by at least 15
members. Its members have a common interest or objective.
2. T - The capital is the money invested by the members of the cooperative
which will be used for the co-op’s programs and services.
3. T - The members of the cooperative are given interest by the end of the year
in return for the investment they made in their co-op.
4. T - A patronage refund is the interest a member receives once a year from
the cooperative if he/she patronizes the business of his/her cooperative.
5. F - The members who receive a patronage refund are the only members
who patronize the co-op’s business or service. For example, in a credit
cooperative, if the member has been making loans and has been able to pay
his/her loans on time, he/she will receive a patronage refund.
6. T - Cooperatives aim to provide opportunities for their members to be
further educated or trained.
7. F - A cooperative should aim to provide quality products and services to its
members. This is because it encourages people to patronize its products and
services.
8. T - Participating in a cooperative would enable members to learn more good
values and attitudes. Cooperatives aim to let people work together, thus
leading to self-reliance and productivity.
9. F - Cooperatives are established not only for the purpose of earning money,
but also for helping people become more productive and skillful in life. A
member is expected to participate for him/her to be productive.
10. F - A community cooperative is open to all the people in the community. It
encourages all residents to be members so that they could avail of the
benefits and privileges a member can receive. There are also cooperatives
such as consumers’ cooperatives and marketing cooperatives which are
open to non-members. However, a credit cooperative is exclusive to its
members.
Let’s Try This (page 20)
1. When you inspect the conditions in your community, one of the first things
that you might observe are its problems. For example, you might observe
that there is lack of public transportation, or that there are many unemployed
people. You may also observe problems of certain groups in your
community. For example, you may notice that there are many farmers in the
place but they find it difficult to sell their products.

40
2. You already know how a cooperative can be beneficial to a community. After
observing the problems of your own community, you can think of how
cooperatives may help solve these problems. A cooperative may help by
lending capital to small businesses such as those involved in public
transportation. It may also help by teaching the members useful skills that
they can use to earn a living. It can also help by helping farmers look for
better ways to sell their harvests.
Let’s See What You Have Learned (page 21)

1
C
O
O
4
P A T R O N A G E R E F
E
R
A
T
5
I N T E R E S T
V
6
R E G I S T E R E D

D. Lesson 3
Let’s Review (page 27)
After carefully reading the talk of Kapitan Marco, the different types
of cooperatives should not be difficult to identify.
1. consumers’ cooperative
2. service cooperative
3. producers’ cooperative

Let’s Try This (page 28)

The other types of cooperatives not described in Let’s Review (page 27)
are the marketing, credit and multi-purpose cooperatives. You may have tried
describing them in the following manner:
Marketing cooperative — The coffee farmers of a certain town formed a
cooperative. They contacted several coffee shops in Manila. They talked
directly with the coffee shop managers and offered their produce. They put
their harvests together to be able to meet the demands of big coffee shops.
This way of selling their products is much better than selling their harvests
to middlemen who offer them very low prices.

41
Credit cooperative — The employees of a certain factory put their money
together and formed a cooperative. Their cooperative lends to members who
need money for medical emergencies, the education of their children and
other purposes. The cooperative lends at reasonable rates. This is good for
the members who used to borrow from moneylenders at very high rates.
Multi-purpose cooperative — The residents of a barangay decided that
they have two major problems. One is the lack of stores where they can buy
cheap and quality goods. The other is the lack of capital for small
businesses. They put their money together to raise the capital for a
cooperative. The cooperative put up a store that sold food items and other
necessities at good prices. They also used some of the money to lend to
members who wished to engage in small businesses such as poultry raising,
dressmaking and car repair.

Let’s See What You Have Learned (pages 29–30)

These are the different types of cooperatives and their descriptions.
1. Credit Cooperative
A credit co-op encourages thrift, saving and wise spending among its
members. It puts together deposits from members and also lends money
to members at reasonable interest rates. Members borrow their money
for their businesses or for other needs such as education and medical
care.
2. Consumers’ Cooperative
A consumers’ co-op is a good answer to rising prices and poor quality
of goods and services. Members work together to provide themselves,
and even nonmembers, with quality goods and services at reasonable
prices. They contact suppliers directly and buy items by the bulk.
3. Producers’ Cooperative
The members of a producers’ cooperative help each other in buying
their raw materials and equipment. They also study and improve their
production techniques to ensure the quality of their products. They may
also look for ways to better market or sell their products. Members
engage in either agricultural or industrial production.
4. Marketing Cooperative
The main concern of a marketing cooperative is to help its members
sell or market their products. It also helps its members get supplies
needed for production.

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 5. Service Cooperative
A service cooperative provides its members and even nonmembers
essential services such as medical and dental care, hospitalization,
transportation, communication, insurance and electric power.
6. Multi-purpose Cooperative
This co-op is involved in two or more business activities that are
undertaken by the other types of cooperatives.

E. What Have You Learned? (pages 32–34)

1. The correct answer is (b). The members of a cooperative have a
common objective. When they work together, they do not only help
each other; they also end up achieving their personal objectives.
Letters (a) and (c) are incorrect. People do not join a cooperative only
to achieve personal objectives (a) or to get something for themselves
(c), but also to achieve goals common to the group.
2. The correct answer is (d), all of the above. Letters (a), (b) and (c) all
describe a problem in the community that a cooperative can help to
solve.
3. The correct answer is (c). Membership in a cooperative is voluntary.
Nobody can force you to join a cooperative.
Letters (a), (b) and (d) are incorrect. They are actually traits common to
all cooperatives.
4. The correct answer is (b). A patronage refund is given to members who
avail of the goods and services of his/her cooperative.
Letters (a) is incorrect. Not all members are entitled to a patronage
refund. Only those who patronize the business of their cooperative
receive a patronage refund.
Letter (c) is incorrect. Attendance in meetings is not the basis for
receiving patronage refunds.
Letter (d) is incorrect. Nonmembers who avail of the goods and
services of a cooperative are not entitled to patronage refunds.

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 5. The correct answer is (c). This is the proper definition of a patronage
refund.
Letter (a) is wrong. It defines a simple refund.
Letter (b) is wrong. It tells you what a member receives for investing
his capital in the cooperative.
Letter (d) is wrong. A patronage refund is given to a member who
patronizes the business or service of the cooperative. It is not obtained
by developing skills.
6. The correct answer is (d) — both (b) and (c). They describe what a
service cooperative can do to help the tricycle and jeepney drivers of
San Lucas. It can put up a repair shop where services are reasonably
priced (b). It can also buy spare parts directly from suppliers so they
will be cheaper (c).
Letter (a) is wrong. There is good business for the drivers in San Lucas.
They have no reason to move to another place.
7. The correct answer is (a). Whatever the members learn from their
cooperative, they can also use to help improve their community.
Letter (b) is not a good answer. It is not likely that the cooperative will
force its members to participate in community activities. However, the
members of a cooperative learn about working with and helping other
people. Because of this, they may also practice these in their own
communities.
Letter (c) is not a good answer. It does not describe a main objective or
activity of a cooperative.
Questions 8 and 9 describe the specific activities of some types of
cooperatives.
8. Letter (b), marketing cooperative, is the correct answer. This
cooperative will help them market or sell their product, pastillas.
9. The correct answer is (a), producers’ cooperative. This cooperative will
help them get the raw materials and equipment they need to be able to
make shoes at low prices.
10. The correct answer is (d) — all of the above. Letters (a), (b) and (c) all
explain why cooperatives offer education and training opportunities to
their members.

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 References

Cooperative Development Authority. Basic Information on Cooperatives.

Quezon City: CDA Manila Extension Office, 1995.
Fajardo, F.R. and F.P. Abella. Cooperatives. 4th ed. Manila: Rex Book Store, Inc.,
1999.
Republic of the Philippines. Cooperative Code of the Philippines: Republic Act
No. 6938.

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