Ag Biz/Fin 1
Using a futures contract to transfer price risk is called?
Hedging
A market characterized by falling prices is considered a _______ trend.
Bear
____________ is a mix of assets, enterprises or investments
Portfolio
This financial statement is considered the financial "snapshot" of a business.
Balance Sheet
The debt-to-equity ratio helps determine whether a business is _________.
Solvent
Financing, investing, and operating activities are sections found in what financial statement?
Statement of Cash Flows
_________________ refers to the ease with which an asset can be converted into cash without affecting its market price.
Liquidity
Given assets of $750,000 and liabilities of $300,000, calculate the firm’s net worth.
$450,000
_____________ involves a strategy for identifying and developing future leaders of a business who may assume the responsibilities of older leaders upon death or retirement.
Succession Planning
A market characterized by rising prices is considered a _______ trend.
Bull
What rate is considered the bellwether rate for short-term bank commercial loans?
Prime Rate
If an agribusiness firm has owner’s equity of $900,000 and total liabilities of $400,000, what is the total value of the firm’s assets?
$1,300,000
Which of the following is not a financial intermediary:
Credit union
Insurance company
Mutual fund
Investment banker
Investment banker
Financial Institutions will look at the 5 C's of credit during their credit analysis. What are the 5 C's of Credit?
Character, Capacity, Capital, Collateral, and Conditions
To create common size income statement, you ____________ all items on the income statement by total _____________.
divide; revenue
What type of budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point?
Incremental
What are the two basic types of corporate stock?
Common & Preferred
To evaluate a decision to switch to a heavier market weight for feeding beef, which type of budget would be the easiest and most appropriate:
whole farm budget
enterprise budget
partial budget
cash flow budget
partial budget
Name the 4 financial statements commonly used to assess the position and progress of the farm business
Balance Sheet
Income Statement
Equity Statement
Cash Flow Statement
A business that involves 2 or more owners, where liability is unlimited for the general partner and limited for the other partner(s), falls under what legal structure?
Limited Partnership
What is the payback period of a $5,000 investment that has annual returns of $625?
8 years
Oakland is analyzing a proposed project to determine how changes in the variable costs per unit would affect the project's NPV. What analysis is this?
Sensitivity
In a CAPM model (capital asset pricing model) the relevant measure of risk is:
Beta
Standard Deviation of returns
Variance of Returns
Beta
Assume that a firm faces fixed costs of $50,000 and average variable variable costs of $5 per unit. The price per unit is $10. What is the break-even level of output?
10,000 units
Montana will be receiving a $5,000 bonus one year from now. The process of determining how much that bonus is worth today is called ______________?
Discounting