AGEC 440 STUDYS CORRECT ANSWERS AND
QUESTIONS SET A+
✔✔E - ✔✔Which of the following is NOT included in concept strategy?
A) Strategy is a postulate of a theory of how to compete successfully.
B) Strategy is success oriented.
C) Strategy includes anticipating the competitive moves of a firm's opponent .
D) Strategy is an allocation of resources that maintain or improves firm performance.
E) A good is one that addresses the needs of the market, even if the firm does not have
the assets(i.e. strengths) to pursue them.
✔✔D - ✔✔Which of the following is NOT considered to be a distinctive characteristic of
the Food and Agribusiness system?
A) Food is intertwined with culture, domestically and internationally.
B) Uncertainty is the biological basis of crop and livestock production.
C) Government intervention (i.e subsidies and price support).
D) The agribusiness system is exclusively driven by a large number of small scaled
producers, processors, and retailers.
E) Public and private investment in Ag. Research
✔✔A - ✔✔Which of the following best defines the concept of competitive advantage?
A) Resources that create value relative to competing firms.
B) Resources that generate positive economic value or profits.
C) Products and Services that yield better value than competing firms.
D) Products and Services that generate positive economic value or profits.
E) All of the above.
✔✔C - ✔✔Which of the following statements best describes educational training in
Agribusiness management?
A) Agribusiness is concerned with decisions made at the industry level and therefore
Economics- in terms of its understanding of markets- is the cornerstone of basis for
agribusiness education.
B) Economic theory has been criticized for sacrificing relevance for abstract vigor.
Therefore, economics has no value in dealing with "real world" business problems.
, C) Problems in agribusiness are diverse and complex and therefore economics alone is
not likely to be sufficient with dealing with Agribusiness problems.
D) None of the above.
✔✔E - ✔✔The article titled "McDonals's ban of beef reared with GM food" is an
example of which of the following concepts?
A)Consumer preferences based on limited information
B)Environmental conservation
C) Consumer sovereignty
D) Rational consumer choice
E) A and C
✔✔B - ✔✔Which of the following best "defines" the concept of firm performance?
A) Performance is based on the market's valuation of a firm's strategy.
B) Performance rests upon the productive or value creation assets.
C) Performance is measured by financial/ accounting ratios.
D) Performance occurs only when a firm has a competitive advantage.
✔✔B - ✔✔The following is an example of a firms survival method?
A) A firm has earned 23.2% Return on Invested Capital (ROIC).
B) A firm was established since 1876.
C) A firm's Tobin's q = 1.8.
D) A firm's cost of equity is 12%.
E) None of the above.
✔✔A - ✔✔In using the firms survival method, a firm that is still operating is making.
A) At least normal economic profits.
B) Below normal economic profits
C) Strictly above normal economic profits.
D) None of the above
✔✔C - ✔✔Which of the following performance measures is NOT based or derived from
a firm's historical financial performance?
A) Return on Invested Capital
B) Weighted Average Cost of Capital
C)Tobin's q
D) Economic profits
E) None of the above
✔✔D - ✔✔The Weighted Average Cost of Capital is used comparison (note comparison
also includes differences) with which of the following measures:
A) Tobins q
B) Returned on Invested Capital
C) Economic Profits
D) B and C
E) Event study method
QUESTIONS SET A+
✔✔E - ✔✔Which of the following is NOT included in concept strategy?
A) Strategy is a postulate of a theory of how to compete successfully.
B) Strategy is success oriented.
C) Strategy includes anticipating the competitive moves of a firm's opponent .
D) Strategy is an allocation of resources that maintain or improves firm performance.
E) A good is one that addresses the needs of the market, even if the firm does not have
the assets(i.e. strengths) to pursue them.
✔✔D - ✔✔Which of the following is NOT considered to be a distinctive characteristic of
the Food and Agribusiness system?
A) Food is intertwined with culture, domestically and internationally.
B) Uncertainty is the biological basis of crop and livestock production.
C) Government intervention (i.e subsidies and price support).
D) The agribusiness system is exclusively driven by a large number of small scaled
producers, processors, and retailers.
E) Public and private investment in Ag. Research
✔✔A - ✔✔Which of the following best defines the concept of competitive advantage?
A) Resources that create value relative to competing firms.
B) Resources that generate positive economic value or profits.
C) Products and Services that yield better value than competing firms.
D) Products and Services that generate positive economic value or profits.
E) All of the above.
✔✔C - ✔✔Which of the following statements best describes educational training in
Agribusiness management?
A) Agribusiness is concerned with decisions made at the industry level and therefore
Economics- in terms of its understanding of markets- is the cornerstone of basis for
agribusiness education.
B) Economic theory has been criticized for sacrificing relevance for abstract vigor.
Therefore, economics has no value in dealing with "real world" business problems.
, C) Problems in agribusiness are diverse and complex and therefore economics alone is
not likely to be sufficient with dealing with Agribusiness problems.
D) None of the above.
✔✔E - ✔✔The article titled "McDonals's ban of beef reared with GM food" is an
example of which of the following concepts?
A)Consumer preferences based on limited information
B)Environmental conservation
C) Consumer sovereignty
D) Rational consumer choice
E) A and C
✔✔B - ✔✔Which of the following best "defines" the concept of firm performance?
A) Performance is based on the market's valuation of a firm's strategy.
B) Performance rests upon the productive or value creation assets.
C) Performance is measured by financial/ accounting ratios.
D) Performance occurs only when a firm has a competitive advantage.
✔✔B - ✔✔The following is an example of a firms survival method?
A) A firm has earned 23.2% Return on Invested Capital (ROIC).
B) A firm was established since 1876.
C) A firm's Tobin's q = 1.8.
D) A firm's cost of equity is 12%.
E) None of the above.
✔✔A - ✔✔In using the firms survival method, a firm that is still operating is making.
A) At least normal economic profits.
B) Below normal economic profits
C) Strictly above normal economic profits.
D) None of the above
✔✔C - ✔✔Which of the following performance measures is NOT based or derived from
a firm's historical financial performance?
A) Return on Invested Capital
B) Weighted Average Cost of Capital
C)Tobin's q
D) Economic profits
E) None of the above
✔✔D - ✔✔The Weighted Average Cost of Capital is used comparison (note comparison
also includes differences) with which of the following measures:
A) Tobins q
B) Returned on Invested Capital
C) Economic Profits
D) B and C
E) Event study method
