AF 1 - Agribusiness

What is the name of the one page summary of information about a job applicant?

• resume
• interest survey
• job application
• letter of recommendation

Into what lending agency was the Production Credit Agency and the Federal Land Bank merged?

• Commodity Credit Corporation
• Farmers Home Administration
• Fannie Mae/Fannie Mac
• Farm Credit Services

What law refers to the amount of profit generated by additional inputs (i.e.., at what point does the cost of adding more fertilizer outweigh the benefit of getting a higher yield)?

• Law of Diminishing Returns
• Law of Comparative Advantage
• Law of Opportunity Costs
• Law of Resource Substitution

On what document does a borrower sign to indicate the loan will be paid on or before a specified date?

• registration form
• promissory note
• installment document
• reliability voucher

When seeking a production loan, what information must you provide to a potential credit source?

• personal resume
• letters of recommendation
• list of items you will purchase with the borrowed money
• personal financial statement and cash flow projections

If a farmer is deciding whether to rent additional land, this would fall under what decision making category?

• operational
• capital outlay
• organizational
• long-term

What type of organization is licensed to manage the buying and selling of goods using a licensed broker?

• direct sales agency
• trade exchange
• commodity exchange
• wholesale market

As an agribusiness manager, what is one of the best ways to minimize risk?

• fail to pay loans on time
• maintain a proper debt to income relationship
• increase the amount of loan if given the opportunity
• take out multiple lines of credit through different credit sources

Where do food retailers (grocery stores) primarily purchase their food?

• food stores
• farm outlets
• food cooperatives
• food wholesalers

Which economic factors determine the price a producer receives for his or her products?

• supply and demand
• amount invested in the crop
• futures market
• breakeven prices