CHAPTER 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 2017, 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
c. Government involvement
d. All of the above
1
,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 12.6 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 U.S. 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
2
,True/False
T F 1. Warehouse clubs and supercenters now sell more food in $ than grocery stores.
T F 2. The share of total U.S. employment that is provided by food and agricultural industries
is 4.3 percent.
T F 3. In 2017, for every dollar spent on food, 85 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 U.S. 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.
3
, CHAPTER 2 - MANAGING THE AGRIBUSINESS
EXAM QUESTIONS
Fill in the Blanks
1. Management is the art and the science of successfully pursuing desired results with the resources
available to the organization.
2. The first step of the planning process is gathering facts.
3. Organizing represents the systematic classification and grouping of human and other resources in a
manner consistent with the firm’s goals.
4. The controlling task represents the monitoring and evaluation of activities.
5. An organizational structure is the framework of a company.
Multiple Choice
1. All effective agribusiness managers execute each of the tasks below except what?
a. Planning
b. Organizing
c. Fighting
d. Controlling
2. In management, directing includes which of the following:
a. Selecting, allocating, and training personnel
b. Assigning duties and responsibilities
c. Creating the desire for success
d. All of the above
3. The mission statement falls within which step of the planning process?
a. Forecast future developments
b. Set performance objectives, the benchmarks for achieving strategic goals
c. Develop alternative courses of action and select those that are most suitable
d. Develop a means of evaluating progress, and readjust the plan as the process unfolds
4. Short terms plans consistent with the strategic plan are:
a. Tactical plans
b. Contingency plans
c. Strategic plans
d. Quick plans
5. What is not a unique element that agribusinesses operate under:
a. Seasonal nature of business
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 2017, 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
c. Government involvement
d. All of the above
1
,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 12.6 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 U.S. 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
2
,True/False
T F 1. Warehouse clubs and supercenters now sell more food in $ than grocery stores.
T F 2. The share of total U.S. employment that is provided by food and agricultural industries
is 4.3 percent.
T F 3. In 2017, for every dollar spent on food, 85 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 U.S. 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.
3
, CHAPTER 2 - MANAGING THE AGRIBUSINESS
EXAM QUESTIONS
Fill in the Blanks
1. Management is the art and the science of successfully pursuing desired results with the resources
available to the organization.
2. The first step of the planning process is gathering facts.
3. Organizing represents the systematic classification and grouping of human and other resources in a
manner consistent with the firm’s goals.
4. The controlling task represents the monitoring and evaluation of activities.
5. An organizational structure is the framework of a company.
Multiple Choice
1. All effective agribusiness managers execute each of the tasks below except what?
a. Planning
b. Organizing
c. Fighting
d. Controlling
2. In management, directing includes which of the following:
a. Selecting, allocating, and training personnel
b. Assigning duties and responsibilities
c. Creating the desire for success
d. All of the above
3. The mission statement falls within which step of the planning process?
a. Forecast future developments
b. Set performance objectives, the benchmarks for achieving strategic goals
c. Develop alternative courses of action and select those that are most suitable
d. Develop a means of evaluating progress, and readjust the plan as the process unfolds
4. Short terms plans consistent with the strategic plan are:
a. Tactical plans
b. Contingency plans
c. Strategic plans
d. Quick plans
5. What is not a unique element that agribusinesses operate under:
a. Seasonal nature of business
