AGEC 440 Exam 1 questions well
answered passed
Agribusiness - correct answer ✔✔A number of interrelated subsectors which work together
formally and informally to produce goods and services
- a system!
Agribusiness is a ________ - correct answer ✔✔System
Consumer sovereignty - correct answer ✔✔the power of consumers to decide what gets
produced
Consumer sovereignty is a _____ - correct answer ✔✔principle
Assumption of Consumer sovereignty - correct answer ✔✔Consumer preferences are well
defined and have perfect knowledge
distinctive characteristics of agribusiness sector - correct answer ✔✔1. Food is intertwined with
culture
2. uncertainty underlying biologic basis of crop and livestock production
3. political intervention across sub sectors and between nations (farm bill)
4. Ag and food tech development
5. competitive structures
6. food is necessity
Food is ________ with _________ - correct answer ✔✔intertwined; culture
, Castle's Concern - correct answer ✔✔Economic theory is sacrificing relevance for abstract rigor
Maximizing choices assumes ______ and _______ knowledge - correct answer ✔✔full;
complete
Goals of Agribusiness Management - correct answer ✔✔- Focus on the decisions and actions of
the managers within the food and agribusiness sector
- To improve the performance of the firms decision makers and success
interrelated formally and informally - correct answer ✔✔Agbusiness 3 terms
operating profit/invested capital - correct answer ✔✔ROIC Formula
(Market Value Debt/Firm Market Value)(Cost of debt)+(Market value of equity/Firm Market
Value)(Cost of equity) - correct answer ✔✔WACC Formula
RFR+Bj[E(Rm,t)-RFR] - correct answer ✔✔Cost of Equity Formula
Firms systematic risk - correct answer ✔✔Bj abbreviated meaning
Expected Rate of return on a portfolio - correct answer ✔✔E(Rm,t) abbreviated meaning
aj+bjRm,t+ej,t - correct answer ✔✔Rj,t Formula ( historical returns )
Firm market value/replacement cost of assets
answered passed
Agribusiness - correct answer ✔✔A number of interrelated subsectors which work together
formally and informally to produce goods and services
- a system!
Agribusiness is a ________ - correct answer ✔✔System
Consumer sovereignty - correct answer ✔✔the power of consumers to decide what gets
produced
Consumer sovereignty is a _____ - correct answer ✔✔principle
Assumption of Consumer sovereignty - correct answer ✔✔Consumer preferences are well
defined and have perfect knowledge
distinctive characteristics of agribusiness sector - correct answer ✔✔1. Food is intertwined with
culture
2. uncertainty underlying biologic basis of crop and livestock production
3. political intervention across sub sectors and between nations (farm bill)
4. Ag and food tech development
5. competitive structures
6. food is necessity
Food is ________ with _________ - correct answer ✔✔intertwined; culture
, Castle's Concern - correct answer ✔✔Economic theory is sacrificing relevance for abstract rigor
Maximizing choices assumes ______ and _______ knowledge - correct answer ✔✔full;
complete
Goals of Agribusiness Management - correct answer ✔✔- Focus on the decisions and actions of
the managers within the food and agribusiness sector
- To improve the performance of the firms decision makers and success
interrelated formally and informally - correct answer ✔✔Agbusiness 3 terms
operating profit/invested capital - correct answer ✔✔ROIC Formula
(Market Value Debt/Firm Market Value)(Cost of debt)+(Market value of equity/Firm Market
Value)(Cost of equity) - correct answer ✔✔WACC Formula
RFR+Bj[E(Rm,t)-RFR] - correct answer ✔✔Cost of Equity Formula
Firms systematic risk - correct answer ✔✔Bj abbreviated meaning
Expected Rate of return on a portfolio - correct answer ✔✔E(Rm,t) abbreviated meaning
aj+bjRm,t+ej,t - correct answer ✔✔Rj,t Formula ( historical returns )
Firm market value/replacement cost of assets
