TEST BANK
Farm Management
Ronald Kay
10th Edition
PR
O
FD
O
C
1
,Table of Contents
Part 1: Management
1. Farm Management Now and In the Future
2. Management and Decision Making
Part 2: Measuring Management Performance
3. Acquiring and Organizing Management Information
4. The Balance Sheet and Its Analysis
5. The Income Statement and Its Analysis
6. Farm Business Analysis
Part 3: Applying Economic Principles
7. Economic Principles – Choosing Production Levels
8. Economic Principles – Choosing Input and Output Combinations
9. Cost Concepts and Decision Making
Part 4: Budgeting for Greater Profit
10. Enterprise Budgeting
11. Whole-Farm Planning
PR
12. Partial Budgeting
13. Cash Flow Budgeting
Part 5: Improving Management Skills
14. Farm Business Organization and Transfer
15. Managing Risk and Uncertainty
16. Managing Income Taxes
O
17. Investment Analysis
18. Enterprise Analysis
Part 6: Acquiring Resources for Management
FD
19. Capital and Credit
20. Land – Control and Use
21. Human Resource Management
22. Machinery Management
O
C
2
,Chapter 1.
(ANSWERS AT THE END OF EVERY CHAPTER)
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 accounting practices for farming operations will make comparisons with other
farms and nonfarm businesses more meaningful.
⊚ true
⊚ false
3) One of the most important areas in which advances in electronics can help farm managers is
in collecting the raw data needed to make better decisions.
PR
⊚ true
⊚ false
4) Since farm managers will be making the same basic types of decisions in the 21st century as
they did in the previous century, they can rely on rules of thumb to guide their actions.
O
⊚ true
⊚ false
FD
5) Product differentiation means producing crops and livestock with different characteristics for
specific markets.
⊚ true
⊚ false
O
6) Entering into vertical integration alliances helps farms or ranches become more independent.
⊚ true
⊚ false
C
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
7) One force that has helped cause farms in the United States to become larger and fewer is
A) competition from foreign producers.
B) lower production costs per unit by spreading fixed investment in technology over
more units.
C) more labor used in agricultural production.
D) declining nonfarm wage rates.
3
, 8) Improved data collection technology such as satellite or drone-based photography will be
most helpful to farm managers for
A) preparing up-to-date financial statements.
B) balancing livestock rations.
C) prescribing fertility and pest control practices for smaller land units.
D) producing more uniform products.
9) Standardization of farm financial ratios and accounting practices will help farm managers
A) compete with nonfarm businesses for capital.
B) summarize their account books in less time.
C) pay less income tax.
D) manage hired employees more effectively.
10) Agricultural processors will probably want more uniform products in the future in order to
PR
A) pay lower prices to producers.
B) diversify their product lines.
C) reduce environmental contamination.
D) make more efficient use of processing and packaging equipment.
O
11) By forming strategic alliances, small and medium-sized farmers and ranchers can
A) increase their managerial freedom.
FD
B) achieve advantages of diversification.
C) achieve marketing advantages that larger operations enjoy.
D) increase their own volume of production.
12) An increase in the number of nonfarmers living in rural areas will cause
O
A) farmland values to decrease.
B) farmers to pay more attention to off-farm effects of their production practices.
C) less regulation of agricultural production practices.
C
D) profit maximization to be the only criterion for adopting new technologies.
13) Globalization refers to the process of
A) reducing trade barriers among countries.
B) protecting a country’s farmers by taxing competing products from other countries.
C) a gradual rise in the average temperature of the earth.
D) countries producing a greater variety of agricultural products for their own needs.
4
Farm Management
Ronald Kay
10th Edition
PR
O
FD
O
C
1
,Table of Contents
Part 1: Management
1. Farm Management Now and In the Future
2. Management and Decision Making
Part 2: Measuring Management Performance
3. Acquiring and Organizing Management Information
4. The Balance Sheet and Its Analysis
5. The Income Statement and Its Analysis
6. Farm Business Analysis
Part 3: Applying Economic Principles
7. Economic Principles – Choosing Production Levels
8. Economic Principles – Choosing Input and Output Combinations
9. Cost Concepts and Decision Making
Part 4: Budgeting for Greater Profit
10. Enterprise Budgeting
11. Whole-Farm Planning
PR
12. Partial Budgeting
13. Cash Flow Budgeting
Part 5: Improving Management Skills
14. Farm Business Organization and Transfer
15. Managing Risk and Uncertainty
16. Managing Income Taxes
O
17. Investment Analysis
18. Enterprise Analysis
Part 6: Acquiring Resources for Management
FD
19. Capital and Credit
20. Land – Control and Use
21. Human Resource Management
22. Machinery Management
O
C
2
,Chapter 1.
(ANSWERS AT THE END OF EVERY CHAPTER)
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 accounting practices for farming operations will make comparisons with other
farms and nonfarm businesses more meaningful.
⊚ true
⊚ false
3) One of the most important areas in which advances in electronics can help farm managers is
in collecting the raw data needed to make better decisions.
PR
⊚ true
⊚ false
4) Since farm managers will be making the same basic types of decisions in the 21st century as
they did in the previous century, they can rely on rules of thumb to guide their actions.
O
⊚ true
⊚ false
FD
5) Product differentiation means producing crops and livestock with different characteristics for
specific markets.
⊚ true
⊚ false
O
6) Entering into vertical integration alliances helps farms or ranches become more independent.
⊚ true
⊚ false
C
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
7) One force that has helped cause farms in the United States to become larger and fewer is
A) competition from foreign producers.
B) lower production costs per unit by spreading fixed investment in technology over
more units.
C) more labor used in agricultural production.
D) declining nonfarm wage rates.
3
, 8) Improved data collection technology such as satellite or drone-based photography will be
most helpful to farm managers for
A) preparing up-to-date financial statements.
B) balancing livestock rations.
C) prescribing fertility and pest control practices for smaller land units.
D) producing more uniform products.
9) Standardization of farm financial ratios and accounting practices will help farm managers
A) compete with nonfarm businesses for capital.
B) summarize their account books in less time.
C) pay less income tax.
D) manage hired employees more effectively.
10) Agricultural processors will probably want more uniform products in the future in order to
PR
A) pay lower prices to producers.
B) diversify their product lines.
C) reduce environmental contamination.
D) make more efficient use of processing and packaging equipment.
O
11) By forming strategic alliances, small and medium-sized farmers and ranchers can
A) increase their managerial freedom.
FD
B) achieve advantages of diversification.
C) achieve marketing advantages that larger operations enjoy.
D) increase their own volume of production.
12) An increase in the number of nonfarmers living in rural areas will cause
O
A) farmland values to decrease.
B) farmers to pay more attention to off-farm effects of their production practices.
C) less regulation of agricultural production practices.
C
D) profit maximization to be the only criterion for adopting new technologies.
13) Globalization refers to the process of
A) reducing trade barriers among countries.
B) protecting a country’s farmers by taxing competing products from other countries.
C) a gradual rise in the average temperature of the earth.
D) countries producing a greater variety of agricultural products for their own needs.
4
