The Global Agri-Food System & Management
The Agribusiness Manager
Marketing
Production, Organization, Inventory Management
Budgeting, Accounting, Forecasting
Capital Budgeting
100
People buy food for a hierarchy of reasons. When examining the hierarchy, the base level is:
a. Status and social causes
b. Promoting health
c. Convenience
d. Taste/Variety
e. Nutritious, safe, affordable
e. Nutritious, safe, affordable
100
Long-run business success is achieved by which of the following formulas.
a. Efficiency + Excellence + Economic Well Being
b. Efficiency + Effectiveness + Economic Well Being
c. Efficiency + Effectiveness + Economic Deficiency
d. Inefficiency + Ineffectiveness + Economic Deficiency
b. Efficiency + Effectiveness + Economic Well Being
100
The mission of marketing is to bridge the gap between the conflicting needs of _____________ and ____________ by completing the production process.
a. employer; employees
b. consumers; marketers
c. consumers; producers
d. marketers; producers
consumers; producers
100
Costs that are directly traceable are known as indirect costs.
True
False
False
100
Which budget summarizes the expected sales, production activities, production activities, and related cost of the budgetary period in order to determine an estimate of profitability?
a. An operating budget
b. A cash flow budget
c. A capital expenditure budget
d. A sensitivity analysis budget
e. None of the above
a. operating budget
100
Net working capital is the difference between:
a. assets and liabilities
b. current assets and current liabilities
c. sales and cost of goods sold
d. account receivable and account payable
b. current assets and current liabilities
200
A beef packer falls into which component industry of the agrifood system?
a. Input suppliers
b. Producers
c. Commodity processors
d. Food manufactures
e. Food retailers
c. Commodity processors
200
A high level of liquidity and solvency should be listed under what part of the SWOT analysis?
Strength
200
In every economic system, the five barriers exist that prevent producers from satisfying consumer needs. The fact that the product is not available where consumers desire it represents which of the following barriers?
a. Ownership separation
b. Time separation
c. Space separation
d. Value separation
c. Space separation
200
The reorder point (ROP) tells a production manager...
a. The number of items to buy in each order that will minimize total cost
b. When to reorder to minimize the changes of stockouts
c. How to maintain high maintenance costs
d. None of these
b. When to reorder to minimize the changes of stockouts
200
Collecting the GPA of the department of agricultural sciences students at the end of their first semester at WTAMU would be an example of:
a. cross-sectional data
b. time series data
c. rotational data
d. both B and C
a. cross-sectional data
200
Does the average rate of return method take time value of money into consideration?
a. Yes
b. No
No
300
What are the four functions of management?
a. Organizing, marketing, coding, controlling
b. Organizing, planning, marketing, financial analysis
c. Planning, organizing, directing, controlling
d. Planning, organizing, coding, controlling
c. Planning, organizing, directing, controlling
300
Marginal utility is defined as the change in satisfaction received from consuming an additional good or service.
A. True
B. False
True
300
The level of sales a single firm can expected to receive from a target market is the definition of:
a. Market potential
b. Sales forecast
c. Market share
d. Market niche
e. Target marketing
b. Sales forecast
300
A sole proprietorship has many advantages and disadvantages. Which of the following is a disadvantage of having a sole proprietorship?
a. The owner assumes all the risk.
b. The business ends when the owner dies.
c. The owner is responsible for all capital requirements.
d. There is no distinction between personal and business assets.
e. All of the above
e. All of the above
300
If the price of fertilizer rose 5% last year, using the extrapolation method, we would project a 3% rise this year.
a. True
b. False
b. False
300
Which liquidity ratio is the ultimate test of liquidity because it only considers the most liquid assets?
a. Current ratio
b. Acid test ratio
c. Quick ratio
d. All of the above
b. Acid test ratio
400
______________ involves influencing the attitudes and behavior of followers to motivate them to do this best work.
A. management
B. leadership
C. goal setting
D. Michael-Scott style management
B. leadership
400
As you increase the number of substitutes for a good, the demand curve becomes more inelastic.
A. true
B. false
b. False
400
If a study by Lay's potato chips discovered the Average Texas consumes 2 bags of chips in a year, how many bags of chips does the 10,000 WT student population consumer in a year?
a. 20,000 bags
b. 10,000 bags
c. 5,000 bags
d. 200,000 bags
20,000 bags.
400
The liability of owners is different for a sole proprietorship, partnership, and corporation. Which of the following is true?
a. A sole proprietor cannot be held liable for any debt incurred.
b. In a general partnership, each partner can be held liable for business debt.
c. In a corporation, each shareholder can be held liable for all of the business debt.
d. In a limited partnership, each limited partner can be held liable for all business debt.
b. In a general partnership, each partner can be held liable for business debt.
400
Which of the following best describes an income statement?
a. It shows changes in assets and liabilities over the last accounting period.
b. It shows changes in assets and liabilities at a specific point in time.
c. summarizes the revenues and expenses of a business at a specific point in time
d. summarizes the revenues and expenses of a business over a given period
d. summarizes the revenues and expenses of a business over a given period
400
An agribusiness firm has current assets of $300,000 and current liabilities of $100,000 in Year 1. In Year 2, they firm has current assets of $500,000 and current liabilities of $200,000. What is the current ratio of year 2? What does the change from Year 1 to year 2 tell us?
a. 2.50; this firm is more liquid in Year 2
b. 2.50; this firm is less liquid in Year 2
c. 3.00; this firm is more liquid in Year 2
d. 3.00; this firm is less liquid in Year 2
b. 2.5 the firm is less liquid in year 2
500
The best measure of long-run efficiency and effectiveness is net profit.
A. True
b. False
True
500
The cross price elasticity of demand for steak with respect to the price of potatoes it estimated to be -0.25%. Are steak and potatoes substitutes or complements?
a. Substitutes
b. Complements
c. Cannot be determined
d. None of the above
b. Complements
500
Market research shows that potential customers of a proposed new product are college graduates (25%); female (55%); very high income (20%); rural (40%); and over 35 years of age (30%). If the percentage figures represent the percentage of the population and the population of the country is 300,000,000, what is the expected annual market potential (measured in dollars) if we assume each of these consumers is buying 3 units of this product per month at $12/unit?
$427,680,000
500
According to the table below, maximum contribution occurs when the amount of input equals to ___________ units.
3
500
Given the information below, calculate the 3-month moving average for March, April, and May.
March: $4.20
April: $4.33
May: $4.50
500
Which investment would you prefer to have?
a. $5,000 now
b. $8,000, 5 years from now assuming a 10% annual interest rate compounded annually
c. $10,000, 5 years from now assuming a 10% annual interest rate compounded quarterly
c. $6,102.69