1 The business of agribusiness
Exam questions
Fill in the blanks
1. What are the four key functions of Agribusiness Management?
Marketing Management
Financial Management
Supply Chain Management
Human Resources Management
2. The farm-food marketing bill breaks down the proportion of the consumer’s food dollar that
goes to the farmer for raw products and that goes to the food and industry for “marketing”
those products to end consumers.
3. A convenience store is a small grocery store, selling a limited variety of basic foods, snack foods, and
nonfood products, typically with extended hours.
4. The food sector closely tracks consumer tastes and preferences and includes food processing,
marketing, and distribution.
Multiple choice
1. The sector(s) of the food production and marketing system is (are):
a. Food Sector
b. Production Agriculture Sector
c. Input Supply Sector
d. All the above
2. In 2013, the largest component of the farm-food marketing bill was:
a. Food processing
b. Transportation
c. Food services
d. Energy
3. The food wholesaling industry in the food sector consists of the following types of firms, except:
a. Merchant Wholesalers
b. Manufacturers’ Sales Branches and Offices
c. Wholesale Agents and Brokers
d. Institutional Food Service
4. Unique dimension(s) of the food and agribusiness markets include:
a. Rural ties
b. Food as a product
© 2016 Freddie L. Barnard, Jay T. Akridge, Frank J. Dooley, John C. Foltz, and Elizabeth Yeager 1
, c. Government involvement
d. All of the above
5. The farm input supply sector includes:
a. Manufacturing
b. Distribution
c. Services
d. All of the Above
6. The food retailing sector accounts for 13.1 percent of the value-added to the consumer food dollar.
The food retailing sector consists of the following types of firms, except
a. Supercenter
b. Superstore
c. Fast Food/Quick Service
d. Warehouse Club
7. The USDA predicts that ___ percent of the food dollar will be spent on food eaten away from home
by 2020.
a. 28
b. 52
c. 78
d. None of the above
8. For the average US consumer, less than ____ percent of their total personal consumption is for food
consumed at home.
a. 2
b. 7
c. 14
d. 21
9. Which of the following has provided 40 percent of the total debt capital needed by the farm
production system for farmland and operating funds in recent years?
a. Farm Credit System
b. John Deere
c. Farm Financial Standards Council
d. U.S. Bank
10. Most farms (88.2 percent) are classified as what type?
a. Small Family
b. Midsize Family
c. Large-scale Family
d. Non-Family
© 2016 Freddie L. Barnard, Jay T. Akridge, Frank J. Dooley, John C. Foltz, and Elizabeth Yeager 2
,True/False
T F 1. The US food production and marketing system represents 4.9 percent of the total value
added production to GDP.
T F 2. The share of total US employment that is provided by food and agricultural industries
is 6.5 percent.
T F 3. In 2013, for every dollar spent on food, 83 cents went to the farmer.
T F 4. Non-family farms produce the largest share of farm products at 45.3 percent.
T F 5. In 2014, Kroger was the largest US food retailer.
T F 6. Today, there is a growing interest in local foods. It is estimated that almost $4 billion
was spent on local foods in 2012.
T F 7. Wholesale agents buy and/or sell as representatives of others for a commission, so they
typically neither physically handle nor take title to the goods.
T F 8. Operations management focuses on the direction and the control of the processes used
to produce the goods and services that we buy and use each day.
T F 9. Production agriculture includes the farms and ranches that produce the crop and
livestock products that provide inputs to the food and fiber sector.
T F 10. Food processing and manufacturing involves turning raw agricultural commodities
either into ingredients for further processing or final consumer products.
© 2016 Freddie L. Barnard, Jay T. Akridge, Frank J. Dooley, John C. Foltz, and Elizabeth Yeager 3
, 2 Managing the agribusiness
Exam questions
Fill in the blanks
1. Management is defined as the art and science of successfully pursuing desired results with the
resources available to the organization.
2. A mission statement helps to spell out the direction for a firm and describes the destination.
3. Goals are the specific quantitative or qualitative aims of the company or business group that provide
direction and standards that can be used to measure performance.
4. The controlling task represents monitoring the evaluation of activities.
5. A management technique that holds the premise that managers should not spend time on areas that are
progressing according to plan; but rather, concentrate on areas that are not progressing as planned is
called management by exception.
Multiple choice
1. Three of the four key tasks of agribusiness managers are:
a. Planning, coordinating, directing
b. Directing, planning, communicating
c. Controlling, directing, planning
d. Motivating, controlling, directing
2. The development of alternative plans for various possible business
conditions is called:
a. Strategic planning
b. Tactical planning
c. Contingency planning
d. None of the above
3. An organizational chart shows the formal organization structure of a
company and captures ideas about:
a. Division of labor
b. Chain of command
c. Bureaucracy
d. All of the above
4. A step-by-step guide to implement a policy for a specific activity is
called a:
a. Practice
b. Role
c. Procedure
© 2016 Freddie L. Barnard, Jay T. Akridge, Frank J. Dooley, John C. Foltz, and Elizabeth Yeager 1
Exam questions
Fill in the blanks
1. What are the four key functions of Agribusiness Management?
Marketing Management
Financial Management
Supply Chain Management
Human Resources Management
2. The farm-food marketing bill breaks down the proportion of the consumer’s food dollar that
goes to the farmer for raw products and that goes to the food and industry for “marketing”
those products to end consumers.
3. A convenience store is a small grocery store, selling a limited variety of basic foods, snack foods, and
nonfood products, typically with extended hours.
4. The food sector closely tracks consumer tastes and preferences and includes food processing,
marketing, and distribution.
Multiple choice
1. The sector(s) of the food production and marketing system is (are):
a. Food Sector
b. Production Agriculture Sector
c. Input Supply Sector
d. All the above
2. In 2013, the largest component of the farm-food marketing bill was:
a. Food processing
b. Transportation
c. Food services
d. Energy
3. The food wholesaling industry in the food sector consists of the following types of firms, except:
a. Merchant Wholesalers
b. Manufacturers’ Sales Branches and Offices
c. Wholesale Agents and Brokers
d. Institutional Food Service
4. Unique dimension(s) of the food and agribusiness markets include:
a. Rural ties
b. Food as a product
© 2016 Freddie L. Barnard, Jay T. Akridge, Frank J. Dooley, John C. Foltz, and Elizabeth Yeager 1
, c. Government involvement
d. All of the above
5. The farm input supply sector includes:
a. Manufacturing
b. Distribution
c. Services
d. All of the Above
6. The food retailing sector accounts for 13.1 percent of the value-added to the consumer food dollar.
The food retailing sector consists of the following types of firms, except
a. Supercenter
b. Superstore
c. Fast Food/Quick Service
d. Warehouse Club
7. The USDA predicts that ___ percent of the food dollar will be spent on food eaten away from home
by 2020.
a. 28
b. 52
c. 78
d. None of the above
8. For the average US consumer, less than ____ percent of their total personal consumption is for food
consumed at home.
a. 2
b. 7
c. 14
d. 21
9. Which of the following has provided 40 percent of the total debt capital needed by the farm
production system for farmland and operating funds in recent years?
a. Farm Credit System
b. John Deere
c. Farm Financial Standards Council
d. U.S. Bank
10. Most farms (88.2 percent) are classified as what type?
a. Small Family
b. Midsize Family
c. Large-scale Family
d. Non-Family
© 2016 Freddie L. Barnard, Jay T. Akridge, Frank J. Dooley, John C. Foltz, and Elizabeth Yeager 2
,True/False
T F 1. The US food production and marketing system represents 4.9 percent of the total value
added production to GDP.
T F 2. The share of total US employment that is provided by food and agricultural industries
is 6.5 percent.
T F 3. In 2013, for every dollar spent on food, 83 cents went to the farmer.
T F 4. Non-family farms produce the largest share of farm products at 45.3 percent.
T F 5. In 2014, Kroger was the largest US food retailer.
T F 6. Today, there is a growing interest in local foods. It is estimated that almost $4 billion
was spent on local foods in 2012.
T F 7. Wholesale agents buy and/or sell as representatives of others for a commission, so they
typically neither physically handle nor take title to the goods.
T F 8. Operations management focuses on the direction and the control of the processes used
to produce the goods and services that we buy and use each day.
T F 9. Production agriculture includes the farms and ranches that produce the crop and
livestock products that provide inputs to the food and fiber sector.
T F 10. Food processing and manufacturing involves turning raw agricultural commodities
either into ingredients for further processing or final consumer products.
© 2016 Freddie L. Barnard, Jay T. Akridge, Frank J. Dooley, John C. Foltz, and Elizabeth Yeager 3
, 2 Managing the agribusiness
Exam questions
Fill in the blanks
1. Management is defined as the art and science of successfully pursuing desired results with the
resources available to the organization.
2. A mission statement helps to spell out the direction for a firm and describes the destination.
3. Goals are the specific quantitative or qualitative aims of the company or business group that provide
direction and standards that can be used to measure performance.
4. The controlling task represents monitoring the evaluation of activities.
5. A management technique that holds the premise that managers should not spend time on areas that are
progressing according to plan; but rather, concentrate on areas that are not progressing as planned is
called management by exception.
Multiple choice
1. Three of the four key tasks of agribusiness managers are:
a. Planning, coordinating, directing
b. Directing, planning, communicating
c. Controlling, directing, planning
d. Motivating, controlling, directing
2. The development of alternative plans for various possible business
conditions is called:
a. Strategic planning
b. Tactical planning
c. Contingency planning
d. None of the above
3. An organizational chart shows the formal organization structure of a
company and captures ideas about:
a. Division of labor
b. Chain of command
c. Bureaucracy
d. All of the above
4. A step-by-step guide to implement a policy for a specific activity is
called a:
a. Practice
b. Role
c. Procedure
© 2016 Freddie L. Barnard, Jay T. Akridge, Frank J. Dooley, John C. Foltz, and Elizabeth Yeager 1
