Agribusiness Finance Quiz

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

• Law of Comparative Advantage

• Law of Diminishing Return

• Law of Input Profit

• Law of Resource Substitution

What government owned credit source provides loans for specific crops like grain and peanuts?

• Commodity Credit Corporation

• Farmers Home Administration

• Production Credit Association

• Small Business Administration

In terms of agribusiness finance, a loan of what type is usually used to make a capital investment such as the purchase of land?

• Add on Loan

• Amortized loan

• Discount loan

• Long term loan

Anything a business owns, including cash on hand and equipment is known as?

• Assets

• Debt

• Liabilities

• Net Worth

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

• Ag business plan and method of repayment

• Personal financial statement and cash flow projections

• Assets and liabilities

• Net worth and capital

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

• Have a variable repayment schedule

• Maintain a proper debt to income relationship

• Minimize all insurance policies

• Try new business ventures

Career opportunities such as financial planning, marketing, and market analysis fall into what sector of agriculture?

• Agribusiness

• Ag Profession

• Banking

• Financial

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

• Organizational

• Assessment

• Decisiveness

• Projection

What two types of plans do managers make when setting goals and objectives for their agribusiness?

• Capital and asset

• Net worth and liability

• Risk and on-risk

• Short term and long term

Which is the most common cause for a job application to be eliminated from consideration?

• Lack of experience

• Incomplete information

• Messy application

• Too long