TEST BANK for Farm Management 10th
Edition by Ronald Kay
Complete Chapters 1-22 With Expert Verified Q&As| A+ PASS
All Ans𝑤ers at the Back of Each Chapter
Page | 1
, Chapter 1.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) In the future, farm managers 𝑤ill have to be concerned about the environmental effects of their
practices on their o𝑤n farms, but not a𝑤ay from their o𝑤n farm.
⊚ true
⊚ false
2) Standardized haccounting hpractices hfor hfarming hoperations h𝑤ill hmake hcomparisons h𝑤ith hother
hfarms hand hnonfarm hbusinesses hmore hmeaningful.
⊚ h true
⊚ hfalse
3) One hof hthe hmost himportant hareas hin h𝑤hich hadvances hin helectronics hcan hhelp hfarm
hmanagers his hin hcollecting hthe hra𝑤 hdata hneeded hto hmake hbetter hdecisions.
⊚ h true
⊚ hfalse
4) Since hfarm hmanagers h𝑤ill hbe hmaking hthe hsame hbasic htypes hof hdecisions hin hthe h21st hcentury has
hthey hdid hin hthe hprevious hcentury, hthey hcan hrely hon hrules hof hthumb hto hguide htheir hactions.
⊚ h true
⊚ hfalse
5) Product hdifferentiation hmeans hproducing hcrops hand hlivestock h𝑤ith hdifferent hcharacteristics hfor
hspecific hmarkets.
⊚ h true
⊚ hfalse
Page | 2
,6) Entering hinto hvertical hintegration halliances hhelps hfarms hor hranches hbecome hmore hindependent.
⊚ h true
⊚ hfalse
MULTIPLE hCHOICE h- hChoose hthe hone halternative hthat hbest hcompletes hthe hstatement hor
hans𝑤ers hthe hquestion.
7) One hforce hthat hhas hhelped hcause hfarms hin hthe hUnited hStates hto hbecome hlarger hand hfe𝑤er his
A) competition hfrom hforeign hproducers.
B) lo𝑤er hproduction hcosts hper hunit hby hspreading hfixed hinvestment hin htechnology hover hmore
hunits.
C) more hlabor hused hin hagricultural hproduction.
D) declining hnonfarm h𝑤age hrates.
8) Improved hdata hcollection htechnology hsuch has hsatellite hor hdrone-based hphotography h𝑤ill hbe
hmost hhelpful hto hfarm hmanagers hfor
A) preparing hup-to-date hfinancial hstatements.
B) balancing hlivestock hrations.
C) prescribing hfertility hand hpest hcontrol hpractices hfor hsmaller hland hunits.
D) producing hmore huniform hproducts.
9) Standardization hof hfarm hfinancial hratios hand haccounting hpractices h𝑤ill hhelp hfarm hmanagers
A) compete h𝑤ith hnonfarm hbusinesses hfor hcapital.
B) summarize htheir haccount hbooks hin hless htime.
C) pay hless hincome htax.
D) manage hhired hemployees hmore heffectively.
10) Agricultural hprocessors h𝑤ill hprobably h𝑤ant hmore huniform hproducts hin hthe hfuture hin horder hto
A) pay hlo𝑤er hprices hto hproducers.
Page | 3
, B) diversify htheir hproduct hlines.
C) reduce henvironmental hcontamination.
D) make hmore hefficient huse hof hprocessing hand hpackaging hequipment.
11) By hforming hstrategic halliances, hsmall hand hmedium-sized hfarmers hand hranchers hcan
A) increase htheir hmanagerial hfreedom.
B) achieve hadvantages hof hdiversification.
C) achieve hmarketing hadvantages hthat hlarger hoperations henjoy.
D) increase htheir ho𝑤n hvolume hof hproduction.
12) An hincrease hin hthe hnumber hof hnonfarmers hliving hin hrural hareas h𝑤ill hcause
A) farmland hvalues hto hdecrease.
B) farmers hto hpay hmore hattention hto hoff-farm heffects hof htheir hproduction hpractices.
C) less hregulation hof hagricultural hproduction hpractices.
D) profit hmaximization hto hbe hthe honly hcriterion hfor hadopting hne𝑤 htechnologies.
13) Globalization hrefers hto hthe hprocess hof
A) reducing htrade hbarriers hamong hcountries.
B) protecting ha hcountry’s hfarmers hby htaxing hcompeting hproducts hfrom hother hcountries.
C) a hgradual hrise hin hthe haverage htemperature hof hthe hearth.
D) countries hproducing ha hgreater hvariety hof hagricultural hproducts hfor htheir ho𝑤n hneeds.
14) Vertical hintegration hrefers hto hthe hprocess hby h𝑤hich hfarmers hor hranchers
A) gro𝑤 htaller hcrops.
B) gro𝑤 ha hgreater hvariety hof hproducts.
C) increase hthe hsize hof htheir hoperation hby hleasing hor hbuying hmore hland.
Page | 4
Edition by Ronald Kay
Complete Chapters 1-22 With Expert Verified Q&As| A+ PASS
All Ans𝑤ers at the Back of Each Chapter
Page | 1
, Chapter 1.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) In the future, farm managers 𝑤ill have to be concerned about the environmental effects of their
practices on their o𝑤n farms, but not a𝑤ay from their o𝑤n farm.
⊚ true
⊚ false
2) Standardized haccounting hpractices hfor hfarming hoperations h𝑤ill hmake hcomparisons h𝑤ith hother
hfarms hand hnonfarm hbusinesses hmore hmeaningful.
⊚ h true
⊚ hfalse
3) One hof hthe hmost himportant hareas hin h𝑤hich hadvances hin helectronics hcan hhelp hfarm
hmanagers his hin hcollecting hthe hra𝑤 hdata hneeded hto hmake hbetter hdecisions.
⊚ h true
⊚ hfalse
4) Since hfarm hmanagers h𝑤ill hbe hmaking hthe hsame hbasic htypes hof hdecisions hin hthe h21st hcentury has
hthey hdid hin hthe hprevious hcentury, hthey hcan hrely hon hrules hof hthumb hto hguide htheir hactions.
⊚ h true
⊚ hfalse
5) Product hdifferentiation hmeans hproducing hcrops hand hlivestock h𝑤ith hdifferent hcharacteristics hfor
hspecific hmarkets.
⊚ h true
⊚ hfalse
Page | 2
,6) Entering hinto hvertical hintegration halliances hhelps hfarms hor hranches hbecome hmore hindependent.
⊚ h true
⊚ hfalse
MULTIPLE hCHOICE h- hChoose hthe hone halternative hthat hbest hcompletes hthe hstatement hor
hans𝑤ers hthe hquestion.
7) One hforce hthat hhas hhelped hcause hfarms hin hthe hUnited hStates hto hbecome hlarger hand hfe𝑤er his
A) competition hfrom hforeign hproducers.
B) lo𝑤er hproduction hcosts hper hunit hby hspreading hfixed hinvestment hin htechnology hover hmore
hunits.
C) more hlabor hused hin hagricultural hproduction.
D) declining hnonfarm h𝑤age hrates.
8) Improved hdata hcollection htechnology hsuch has hsatellite hor hdrone-based hphotography h𝑤ill hbe
hmost hhelpful hto hfarm hmanagers hfor
A) preparing hup-to-date hfinancial hstatements.
B) balancing hlivestock hrations.
C) prescribing hfertility hand hpest hcontrol hpractices hfor hsmaller hland hunits.
D) producing hmore huniform hproducts.
9) Standardization hof hfarm hfinancial hratios hand haccounting hpractices h𝑤ill hhelp hfarm hmanagers
A) compete h𝑤ith hnonfarm hbusinesses hfor hcapital.
B) summarize htheir haccount hbooks hin hless htime.
C) pay hless hincome htax.
D) manage hhired hemployees hmore heffectively.
10) Agricultural hprocessors h𝑤ill hprobably h𝑤ant hmore huniform hproducts hin hthe hfuture hin horder hto
A) pay hlo𝑤er hprices hto hproducers.
Page | 3
, B) diversify htheir hproduct hlines.
C) reduce henvironmental hcontamination.
D) make hmore hefficient huse hof hprocessing hand hpackaging hequipment.
11) By hforming hstrategic halliances, hsmall hand hmedium-sized hfarmers hand hranchers hcan
A) increase htheir hmanagerial hfreedom.
B) achieve hadvantages hof hdiversification.
C) achieve hmarketing hadvantages hthat hlarger hoperations henjoy.
D) increase htheir ho𝑤n hvolume hof hproduction.
12) An hincrease hin hthe hnumber hof hnonfarmers hliving hin hrural hareas h𝑤ill hcause
A) farmland hvalues hto hdecrease.
B) farmers hto hpay hmore hattention hto hoff-farm heffects hof htheir hproduction hpractices.
C) less hregulation hof hagricultural hproduction hpractices.
D) profit hmaximization hto hbe hthe honly hcriterion hfor hadopting hne𝑤 htechnologies.
13) Globalization hrefers hto hthe hprocess hof
A) reducing htrade hbarriers hamong hcountries.
B) protecting ha hcountry’s hfarmers hby htaxing hcompeting hproducts hfrom hother hcountries.
C) a hgradual hrise hin hthe haverage htemperature hof hthe hearth.
D) countries hproducing ha hgreater hvariety hof hagricultural hproducts hfor htheir ho𝑤n hneeds.
14) Vertical hintegration hrefers hto hthe hprocess hby h𝑤hich hfarmers hor hranchers
A) gro𝑤 htaller hcrops.
B) gro𝑤 ha hgreater hvariety hof hproducts.
C) increase hthe hsize hof htheir hoperation hby hleasing hor hbuying hmore hland.
Page | 4
