WorksheetsAF 1 - Agribusiness
Total questions: 28
Worksheet time: 14mins
Name
Class
Date
1.
What is the name of the one page summary of information about a job applicant?
a)
resume
b)
interest survey
c)
job application
d)
letter of recommendation
2.
Into what lending agency was the Production Credit Agency and the Federal Land Bank merged?
a)
Commodity Credit Corporation
b)
Farmers Home Administration
c)
Fannie Mae/Fannie Mac
d)
Farm Credit Services
3.
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)?
a)
Law of Diminishing Returns
b)
Law of Comparative Advantage
c)
Law of Opportunity Costs
d)
Law of Resource Substitution
4.
On what document does a borrower sign to indicate the loan will be paid on or before a specified date?
a)
registration form
b)
promissory note
c)
installment document
d)
reliability voucher
5.
When seeking a production loan, what information must you provide to a potential credit source?
a)
personal resume
b)
letters of recommendation
c)
list of items you will purchase with the borrowed money
d)
personal financial statement and cash flow projections
6.
If a farmer is deciding whether to rent additional land, this would fall under what decision making category?
a)
operational
b)
capital outlay
c)
organizational
d)
long-term
7.
What type of organization is licensed to manage the buying and selling of goods using a licensed broker?
a)
direct sales agency
b)
trade exchange
c)
commodity exchange
d)
wholesale market
8.
As an agribusiness manager, what is one of the best ways to minimize risk?
a)
fail to pay loans on time
b)
maintain a proper debt to income relationship
c)
increase the amount of loan if given the opportunity
d)
take out multiple lines of credit through different credit sources
9.
Where do food retailers (grocery stores) primarily purchase their food?
a)
food stores
b)
farm outlets
c)
food cooperatives
d)
food wholesalers
10.
Which economic factors determine the price a producer receives for his or her products?
a)
supply and demand
b)
amount invested in the crop
c)
futures market
d)
breakeven prices
11.
What is the major reason agribusinesses fail?
a)
poor management
b)
death of the manager
c)
labor problems
d)
lack of capital
12.
What is a disadvantage of being an employee instead of an owner?
a)
receiving overtime pay
b)
working regular hours
c)
getting fringe benefits
d)
having little or no control over our future
13.
Which is a major advantage of owning your own agribusiness?
a)
shorter work week
b)
financial responsibility
c)
control over your own destiny
d)
use personal money for business expenses
14.
Which is the business function that involves selecting a product or service to be marketed for profit?
a)
selling function
b)
buying function
c)
promoting function
d)
financing function
15.
What are the five basic ways American business is organized?
a)
buy, sell, profit, distribution, finance
b)
buy, sell revenue, marketing, finance
c)
buy, sell, promote, distribution, financing
d)
buy, sell, marketing, profit, financing
16.
What are the three main types of cooperatives?
a)
market, purchase, and service based
b)
market, sales, and serviced based
c)
sales, purchasing, and service based
d)
market, purchasing, and sales based
17.
Approximately 75% of the milk sold in the US is sold through farmer-owned, milk-marketing organizations known as what?
a)
direct sellers
b)
terminal marketers
c)
cooperatives
d)
vertical integrators
18.
Which type of business is inexpensive to set up, but has personal liability?
a)
sole proprietorship
b)
corporation
c)
LLC
d)
sub-chapter S corporation
19.
What type of business is expensive to set up, but has no personal liability?
a)
sole proprietorship
b)
corporation
c)
LLC
d)
partnership
20.
If a farmer is deciding whether to sell cattle this week or next, this would fall under what decision making category?
a)
organizational
b)
operational
c)
capital outlay
d)
short-term
21.
Which business function includes studying the product or service to determine the reasons that customers will want and need the product or service?
a)
buying
b)
distribution
c)
promoting
d)
selling
22.
As a financial record, what is the role of a cash flow statement?
a)
project costs and other expenses
b)
availability of funds
c)
identify the units of product on hand
d)
verify the business makes a profit each year
23.
At one time, New York state raised sheep. Today those farms produce milk because the popularity of milk and the potential profit that can be generated from milk products is greater than that of sheep production. This scenario is an example of what economic law?
a)
Law of Comparative Advantage
b)
Law of Diminishing Returns
c)
Law of Opportunity Costs
d)
Law of Supply and Demand
24.
What government owned credit source provides loans for specific crops like grain and peanuts?
a)
Commodity Credit Corporation
b)
Fannie Mae
c)
Farmers Home Administration
d)
Freddie Mac
25.
Which type of cooperative receives products from its members and then resells those products for the best possible price?
a)
market based
b)
purchasing based
c)
service based
d)
sales based
26.
Loans used to purchase land and buildings are classified as what type of loan?
a)
short-term
b)
intermediate-term
c)
long-term
d)
non-risk
27.
What should a proper debt-to-net worth ratio not exceed?
a)
1:1
b)
2:1
c)
3:1
d)
4:1
28.
What type of organization is created, owned, and controlled by its members?
a)
cooperative
b)
entrepreneurial
c)
mid-marketing
d)
small business
100 %
