AGEC 340- Final Exam Questions With
Correct Answers
Why |would |a |non-agribusiness |company |make |different |decisions |under |similar |situations |to |
that |of |an |agribusiness? |- |CORRECT |ANSWER✔✔-Non-agriculture |businesses |do |not |have |to |
deal |with |all |of |the |unique |factors |that |an |Agribusiness |does.
How |does |our |textbook |define |Management |in |Agribusiness? |- |CORRECT |ANSWER✔✔-
Management |is |the |Art |and |Science |of |successfully |pursuing |the |desired |results |with |the |
available |resources |to |the |organization.
What |is |management |by |exception? |- |CORRECT |ANSWER✔✔-When |a |manager |allocates |more |
time |to |the |underdeveloped |parts |of |a |company.
what |is |the |ultimate |goal |of |the |agribusiness |manager? |- |CORRECT |ANSWER✔✔-Maximize |
long |run |profits |of |a |firm |by |profitably |satisfying |customer |needs.
What |is |the |equation |for |long |run |business |success |using |the |3 |E's? |- |CORRECT |ANSWER✔✔-
Efficiency |+ |Effectiveness |+ |Economic |Well |Being
What |is |the |difference |between |a |manager |and |leader? |- |CORRECT |ANSWER✔✔-Managers
|"tell" |people
Leaders |"motivate" |people
What |is |the |simple |definition |of |agribusiness |management |that |we |discussed |in |class? |- |
CORRECT |ANSWER✔✔-The |accomplishment |of |task |through |people
How |does |an |Agribusiness |firm |earn |the |right |to |make |a |profit? |- |CORRECT |ANSWER✔✔-Only |
by |satisfying |customer |needs |does |a |firm |earn |the |right |to |make |a |profit.
, Explain |the |difference |between |Implicit |and |Explicit |cost. |- |CORRECT |ANSWER✔✔-Explicit: |
Payment |made |to |suppliers |of |resources |such |as |land, |labor, |materials, |fuel |and |the |like.
Implicit: |Cost |for |which |there |is |no |cash |outlay
What |is |the |equation |for |accounting |profit? |- |CORRECT |ANSWER✔✔-Total |revenue |- |
Opportunity |Cost
What |is |derived |demand? |- |CORRECT |ANSWER✔✔-The |need |for |a |product |that |indirectly |
relates |to |consumer |demand
Give |an |example |of |derived |demand. |- |CORRECT |ANSWER✔✔-Agricultural |producers |demand |
for |fertilizer |is |derived |from |the |demand |for |corn
What |is |the |Equation |for |Price |Elasticity |of |Demand? |- |CORRECT |ANSWER✔✔-Price |elasticity |
of |Demand |= |% |change |in |Q |/ |% |change |in |P
Why |should |an |agribusiness |seek |the |assitance |of |an |attorney |and |an |accountant |when |
determining |its |legal |structure? |- |CORRECT |ANSWER✔✔-Because |state |and |federal |laws, |
particularly |tax |laws, |regarding |a |legal |structure |are |constantly |changing
Which |Legal |structure |carrie |the |most |risk |and |has |the |most |liability |exposure |for |the |owners |
of |the |business? |- |CORRECT |ANSWER✔✔-Sole |Proprietorship
What |is |the |oldest |and |most |widespread |legal |structure |used |by |businesses |in |the |U.S.? |- |
CORRECT |ANSWER✔✔-Sole |Proprietorship
Correct Answers
Why |would |a |non-agribusiness |company |make |different |decisions |under |similar |situations |to |
that |of |an |agribusiness? |- |CORRECT |ANSWER✔✔-Non-agriculture |businesses |do |not |have |to |
deal |with |all |of |the |unique |factors |that |an |Agribusiness |does.
How |does |our |textbook |define |Management |in |Agribusiness? |- |CORRECT |ANSWER✔✔-
Management |is |the |Art |and |Science |of |successfully |pursuing |the |desired |results |with |the |
available |resources |to |the |organization.
What |is |management |by |exception? |- |CORRECT |ANSWER✔✔-When |a |manager |allocates |more |
time |to |the |underdeveloped |parts |of |a |company.
what |is |the |ultimate |goal |of |the |agribusiness |manager? |- |CORRECT |ANSWER✔✔-Maximize |
long |run |profits |of |a |firm |by |profitably |satisfying |customer |needs.
What |is |the |equation |for |long |run |business |success |using |the |3 |E's? |- |CORRECT |ANSWER✔✔-
Efficiency |+ |Effectiveness |+ |Economic |Well |Being
What |is |the |difference |between |a |manager |and |leader? |- |CORRECT |ANSWER✔✔-Managers
|"tell" |people
Leaders |"motivate" |people
What |is |the |simple |definition |of |agribusiness |management |that |we |discussed |in |class? |- |
CORRECT |ANSWER✔✔-The |accomplishment |of |task |through |people
How |does |an |Agribusiness |firm |earn |the |right |to |make |a |profit? |- |CORRECT |ANSWER✔✔-Only |
by |satisfying |customer |needs |does |a |firm |earn |the |right |to |make |a |profit.
, Explain |the |difference |between |Implicit |and |Explicit |cost. |- |CORRECT |ANSWER✔✔-Explicit: |
Payment |made |to |suppliers |of |resources |such |as |land, |labor, |materials, |fuel |and |the |like.
Implicit: |Cost |for |which |there |is |no |cash |outlay
What |is |the |equation |for |accounting |profit? |- |CORRECT |ANSWER✔✔-Total |revenue |- |
Opportunity |Cost
What |is |derived |demand? |- |CORRECT |ANSWER✔✔-The |need |for |a |product |that |indirectly |
relates |to |consumer |demand
Give |an |example |of |derived |demand. |- |CORRECT |ANSWER✔✔-Agricultural |producers |demand |
for |fertilizer |is |derived |from |the |demand |for |corn
What |is |the |Equation |for |Price |Elasticity |of |Demand? |- |CORRECT |ANSWER✔✔-Price |elasticity |
of |Demand |= |% |change |in |Q |/ |% |change |in |P
Why |should |an |agribusiness |seek |the |assitance |of |an |attorney |and |an |accountant |when |
determining |its |legal |structure? |- |CORRECT |ANSWER✔✔-Because |state |and |federal |laws, |
particularly |tax |laws, |regarding |a |legal |structure |are |constantly |changing
Which |Legal |structure |carrie |the |most |risk |and |has |the |most |liability |exposure |for |the |owners |
of |the |business? |- |CORRECT |ANSWER✔✔-Sole |Proprietorship
What |is |the |oldest |and |most |widespread |legal |structure |used |by |businesses |in |the |U.S.? |- |
CORRECT |ANSWER✔✔-Sole |Proprietorship
