AGEC 340- Final Exam Questions &
answers already passed
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
answers already passed
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
