2023 MN State FBM Exam

1. Which type of business would distribute patronage refunds when profitable?

• Cooperative

• Corporation

• Limited partnership

• Sole proprietorship

1. Chemicals should be applied to a crop acre as long as:

• the chemical used increases crop yields per acre.

• the chemical used maintains soil productivity.

• the added production returns increase gross farm income.

• 1. the added production returns are more than the added cost of the chemical used.

Which type of crop insurance policy provides coverage to protect against loss of revenue caused by low prices, low yields, or a combination of both?

• Actual Production History (APH)

• Margin Protection (MP)

• Revenue Protection (RP)

• Yield Protection (YP)

1. The first new crop futures month for wheat is considered to be:

• March

• May

• July

• September

1. _______economics is the study of individuals and business decisions.

• Macro

• Micro

• New

• Traditional

1. The United States of America has which type of income taxation system?

• Flat taxation

• Progressive taxation

• Regressive Taxation

• Income taxes are not collected in the U.S.

The two annual cost components of owning a capital asset are:

• 1. Gasoline and repairs

• 1. Depreciation and interest

• Upkeep and maintenance

• Wear and tear

1. Incorporating a farm enables the business to:

• a. shield the personal liability of the owners.

• b. shield the personal liability of the owners.

• c. gain permanent business status for future generations.

• d. Both A & C

A survivor who inherits property is a(n):

• Descendant

• Executor

• Gaurdian

• Heir

1. Real estate taxes on a property would be an example of:

• a direct cost.

• a fixed cost.

• a long term liability due.

• a variable cost.