AgBus- Quiz 3-1

risks that can negatively affect production levels and lead to significant losses; ex: weather damage, fire, theft, etc.

• production

• market

• financial

• institutional

• personal

uncertainty about commodity prices and the possibility of a change in prices that would adversely affect the business; ex: changes in input prices or selling prices

• production

• market

• financial

• institutional

• personal

exists because of the need to finance business operations and maintain cash flow levels adequate to repay debts and meet other financial obligations; ex: borrowing money or repaying loans

• production

• market

• financial

• institutional

• personal

risks related to fulfilling business agreements and contracts, tort liability, and environmental liability and concerns about water quality, erosion, and pesticide use; ex: government prices and programs, tax, credit, and trade policies

• production

• market

• financial

• institutional

• personal

risks associated with individuals and their relationships to each other; ex: resignation, accident, illness divorce, etc.

• production

• market

• financial

• institutional

• personal

planning tool to estimate income, expenses, and profit

• balance sheet

• income statement

• budget

• cash flow

demonstrates how much money is available for the accounting period

• balance sheet

• income statement

• budget

• cash flow

What might a lender look at when determining whether or not to give out a loan?

• Character

• Capital

• Employment

• Ability to repay the loan

• All of these