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WorksheetsFL FFA Farm Business
Total questions: 60
Worksheet time: 3600secs
Which of the following defines inflation?
a sustained increasing the general price level
a decrease in the opportunity cost of holding money
a surplus of goods caused by an inability to afford them
a decrease in wages
The capital structure of a firm is:
working capital minus current liabilities
the ratio of variable costs to fixed costs
another name for capital rationing
the mix of debt and equity of the firm
The tax basis for assets and liabilities determined after adjustments for prior depreciation is
sunk costs
book value
variable costs
purchase price
Which of the following is not an impact of increasing minimum wage?
the lowest amount employers can pay employees rises
the general price level of goods and services increases
employers hire fewer employees
the general population is able to purchase more goods and services
A change in demand for a product cannot be caused by a change in:
population
taste and preferences
price of a complimentary product
price of the product
When a farm is insolvent it will have:
negative net worth
current liabilities greater than current assets
a debt to asset ratio less than one
both b and c
The government chooses to establish a price floor on wages. What impact will this decision have on the labor market?
It will increase the demand for labor causing a shortage at the established price
It will decrease the demand for labor causing a surplus at the established price
It will decrease the supply of labor causing shortage at the established price
It will decrease the price of labor
Which of the following is considered a highly competitive market in which the products are differentiated in some way from one another?
Perfectly Competitive Market
Monopolistic Competition
Oligopoly
Monopoly
Which of the following is NOT a decision faced by a firm in a perfectly competitive industry?
How much to produce?
What price to charge?
How to produce?
How much of each input to use?
The price of polyester will have a direct impact on the demand for cotton. This is because polyester and cotton are considered to be ___________________ goods.
Normal
Inferior
Substitute
Complimentary
The government chooses to impose tariffs on the imports of foreign produced beef. What impact will this have on the market for beef?
domestic imports of beef will decrease
the price of beef will increase
less beef will be consumed
All of the above
Milk has an inelastic demand curve. What will happen to the quantity demanded of Milk if price increases?
The quantity demanded will increase at a faster rate than the price increased
The quantity demanded will increase at a slower rate than the price increased
The quantity demanded will decrease at a faster rate than the price increased
The quantity demanded will decrease at a slower rate than the price increased
The real interest rate is:
the observed interest rate minus the expected rate of inflation
the observed interest rate
the observed interest rate minus the nominal interest rate
the real interest rate minus the rate of inflation
Which is not a factor that would shift demand for a food product
Unemployment
Cost of farm level production
Price of a substitute food product
Population
The process of discounting is the inverse of?
amortizing
present value
compounding
investing
Assets pledged to guarantee payments on a loan are:
compensating assets
inventory
market assets
collateral assets
Which of the following is considered a current asset?
Accrued interest
Taxes paid this year
Accounts payable
Accounts receivable
Which of the following is defined as the lowest interest rate that can be charged commercially?
Nominal Interest Rate
Discount Rate
Prime Rate
Premium Interest Rate
Which of the following assets will not be depreciated over its service life?
buildings
furniture
land
equipment
A Treasury bill is:
borrowing by the Federal Government with a maturity date of 20 or more years
short term (3 to 6 month) borrowing by the Federal Government.
short term (3 to 6 month) borrowing by a corporation
lending by the Federal Government with a maturity date of 20 or more years.
Which of the following business structures is owned by more than one individual with business profits taxed as personal income?
Sole Proprietorship
Partnership
Corporation
Cooperative
Which of the following represents an ownership interest in the corporation?
corporate bond
contract
common stock
covenant
The price of one country's currency in terms of another country's currency is:
Balance of payments
Exchange rate
Comparative advantage
Tariff
What is the final step in the decision making process?
Identify the problem
Analyze alternative courses of action
Implement course of action
Follow Up
If the debt to equity ratio is increasing, then the debt to asset ratio will be:
increasing
decreasing
constant
not enough information to determine
A company’s _____ is used to communicate the purpose of the company.
Goals
Objectives
Mission Statement
Critical Tasks
Marginal product:
is equal to average product at average product’s maximum
is never negative.
increases when average product decreases.
is never equal to average product.
The additional satisfaction that a person receives from consuming an additional unit of a product is:
utility
marginal utility
marginal product
marginal analysis
Some companies rely heavily on mass promotions and brand loyalty to sell their products. Which of the following is this an example of?
Direct marketing
Niche marketing
Push marketing
Pull marketing
The cost that is measured by the income a production input would receive in its best alternative employment is:
the basis
the marginal cost
salvage value
opportunity cost
Before calculating the depreciation of an asset, its resale value at the end of its useful life should be estimated. This amount is known as:
the basis
the marginal cost
salvage value
opportunity cost
The Statement of Cash Flows shows a firm’s uses of cash and sources of cash for a period of time. An example of a use of cash is:
a decrease in a liability account
an increase in an equity account
an increase in a liability account
a decrease in an asset account
The methods of reporting income and expenses are:
budget and forecast
cash and accrual
fixed and variable
amortized and depreciated
The sorting of unlike lots of the same product into uniform categories, according to quality standards is:
wholesaling
inventory
grading
niche marketing
What is the name commonly used to refer to the day on which Presidential Primaries and Caucuses are held early in an election year?
Black Friday
Cyber Monday
Union Wednesday
Super Tuesday
On an income statement the cost of owning a piece of equipment (tractor) is allocated as:
amortization
depreciation.
depletion
cost of goods sold.
Which of the following is NOT considered a current liability?
accounts receivable
the interest and principal due this year on the real estate mortgage.
accounts payable.
taxes due this year
Which one of the following would be expected to lead to the largest increase in market equilibrium quantity, all other things the same?
Increase in demand and decrease in supply.
Decrease in demand and increase in supply
Increase in demand and increase in supply.
Decrease in demand and increase in supply
The amount of money deposited by buyers and seller of futures contracts to insure performance is a/an:
down payment.
margin.
option.
strike price.
Which of the following is a widely used liquidity ratio?
networking capital.
inventory turnover.
debt ratio
current ratio.
What type of firms generally has the highest proportion of inventory to total assets(inventory makes up a higher percentage of total assets)
retailers
wholesalers
manufactures
financial.
Which of the following costs are for one unit of output?
average fixed cost
average variable cost
average total cost
all of the above
A ratio showing the number of units of production generated per unit of resource (or input) is:
a liquidity ratio.
a leverage ratio
an efficiency ratio.
a profitability ratio
What profit measure is calculated from an income statement?
gross profit margin
operating profit margin.
net profit margin.
all the above.
An option that allows the buyer to exercise a contract that specifies that a commodity or product will be sold/delivered at a future time for a specific price is a:
futures contract.
call option.
a forward contract
a put.
A firm uses $100,000 of cash to buy PP&E;
the Current ratio will increase.
the Quick ratio will increase
the Current ratio will decrease.
none of the above
What can be found on an income statement?
assets, revenues and expenses.
revenues, expenses and net profit (loss).
revenues, expenses, and stockholders' equity.
assets, liabilities and stockholders' equity.
A firm has total current assets of $500,000, total assets of $1,000,000, total current liabilities of $450,000 and real estate debt of $600,000.
the debt to asset ratio is .6
the working capital ratio is 1.11
the firm is insolvent
the firm has little liquidity.
The basis of a futures contract reflects:
time differences.
location differences.
quality differences.
all the above
An example of an annuity is:
the interest portion of an amortized loan payment
the principal portion of an amortized loan payment.
an amortized loan payment.
none of the above.
The process of estimating the market value of a group of assets (such as a farm), is:
appreciation
appraisal
cash accounting.
mark-to-market.
The cost of a resource as measured by its highest value in forgone us is?
marginal cost
opportunity cost
cost of goods sold.
alternative cost.
The branch of economics that deals with the economic behavior of individuals,either producers or consumers is:
microeconomics.
macroeconomics.
freakonomics.
unit economics.
The debt to equity ratio for a firm is 100%that means that:
the firm is close to being bankrupt
the debt to asset ratio is 50%.
the firm is profitable.
the firm does not use leverage.
What is the balancing equation for the balance sheet?
Assets + Liabilities = Stockholders' Equity
Assets + Stockholders' Equity = Liabilities
Assets = Liabilities + Stockholders' Equity
Revenue–Expenses= Net Income
Combine two or more firms at the same stage of production or marketing, for example two firms that transport commodities, is:
vertical integration
horizontal integration
vertical interdependence
horizontal interdependence
Frank Farmer has just harvested and put in storage 10,000 bushels of corn at the same time he sells two 5,000-bushel corn futures contracts, he has:
speculated on the futures market.
a call option for two 5,000-bushel corn futures contract
a hedge.
a put position
Which of the following is NOT a discounted cash flow method for making an investment analysis?
Net Present Value.
Average Accounting Rate of Return.
Payback Analysis.
Both b and C
An enterprise budget:
is another name for partial budget.
includes variable cash costs.
excludes fixed cash costs.
includes principal expenses.
The discount rate used to calculate the net present value of on an investment for the firm is the:
internal rate of return.
cost of capital.
prime interest rate.
either A or B.
