Regulatory Framework For Business Transactions (RFBT) CEGG Practice Exam

Which member in a cooperative may invest in the common stocks of the cooperative?

Provisionary member Regular member Associate member Temporary member

Correct Answer:

Regular member

Explanation:

Regular membership is the status that gives full ownership rights in a cooperative, including the ability to invest in its capital through common stock. The common stock represents ownership and voting interest in the cooperative, and only those who are fully admitted members have the authority and obligation to subscribe to and hold that stock. Other categories—provisional, associate, or temporary members—are granted restricted rights and typically cannot own common stock or participate in governance through ownership. They may have patronage rights or other limited privileges, but not the capital stock that signifies full ownership. So, the member who may invest in the common stocks is the regular member.

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