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Ag Business Unit

Total questions: 27

Worksheet time: 18mins

Name
Class
Date
1.

What is a business plan?

a)

The group of consumers most likely to purchase a product

b)

Time spent working in a business having a value

c)

A statement of goals and strategies for achieving those goals

d)

Wealth in the form of money or other assets owned by a person

2.

What are the THREE main parts of a business plan?

a)

Products, services, and seasonality

b)

Markets, goals, and strategies

c)

Time, money, and value

d)

Business description, business timeline, and time Investment analysis

3.

What goes into the business description of a business plan?

a)

Products and services, seasonality, and market

b)

Business description, business timeline, and time investment analysis

c)

Comparative analysis, timeline description, and value

d)

Business timeline, comparative analysis, and investment

4.

What is a market? Specifically, what is a niche market?

a)

It compares products and services to others. Helps examine product viability

b)

Group of consumers to purchase a product. Company offers a different product or service than competitors

c)

A place to purchase food items. Employees collect orders and return items to the customer at the front

d)

An online shopping app. A store that sells multiple varieties of options such as Walmart

5.

What is the statement that looks at potential competitors of a certain business and why is it important?

a)

Business Description. To help customers understand what they sell

b)

Business Plan. To show customers what they do

c)

Capital. To contribute wealth throughout the business

d)

Comparative Analysis. To compare the product or service to others

6.

Why is your time investment important?

a)

Time spent working improves business reports

b)

Time spent working shows dedication

c)

Time spent working in a business has a value

d)

Time spent working helps to stay organized

7.

What is the main part of the financial plan and why is it important?

a)

A detail budget because it lists the money a business plans to deal with over the course of the upcoming year.

b)

To hold a business accountable so the business is organized

c)

A decision based on profitability because it shows determination towards a business

d)

Considering money values to show what needs to be done to keep a business running

8.

What is a capital? List THREE examples in an agricultural business.

a)

The most important city or town of a country or region, usually its seat of government and administrative center. Des Moines IA, New York City NY, and St. Paul MN

b)

Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose. Machinery, equipment, and animals breed

c)

A detail budget that has value and helps a business stay in shape. products, services, and goals

d)

Money used to purchase items around the world such as Canada, Argentina, and Brazil

9.

What is an asset?

a)

The items of value that are owned by the business

b)

The wealth that a business obtains

c)

Debts or financial obligations of a business

d)

Money earned

10.

What is the difference between current and noncurrent assets?

a)

Current- Is consumable, Noncurrent- Is Consumable

b)

Current- Isn't consumable, Noncurrent- Is consumable

c)

Current- within one year, Noncurrent- Lasts more than a year

d)

Current- Lasts more than a year, Noncurrent- within one year

11.

Give three examples of current assets in an agricultural business.

a)

Feed, seed, and cash in the bank

b)

Machinery, sales, and equipment

c)

Shipping, trading, and migration

d)

Cattle, buildings, and machinery

12.

What is depreciation?

a)

An increase in current asset value overtime

b)

A decrease in noncurrent asset value overtime

c)

A decrease in current asset value overtime

d)

An increase in noncurrent asset value overtime

13.

What are liabilities?

a)

Money paid out

b)

Money earned

c)

Debts or financial obligations of a business

d)

The items of value that are owned by the business

14.

List three examples of liabilities in an agricultural business

a)

Feed, seed, and cash in the bank

b)

Machinery, buildings, and breeding animals

c)

Feed, equipment, and animals

d)

Cattle, feed, and machinery

15.

What is a loan? What is interest?

a)

The amount of money earned over expenses. Property owned by a business

b)

Money paid out. The amount of money earned over expenses

c)

Sums of money paid back over time. Money paid out regularly at a particular rate for the use of money lent

d)

Money earned. A decrease in noncurrent asset value overtime

16.

Give THREE examples of noncurrent assets in an agricultural business.

a)

Machinery, buildings, and breeding animals

b)

Feed, seed, and cash in the bank

c)

Feed, equipment, and animals

d)

Crops insurance, goals, and strategies

17.

How do we find net worth, what does our net worth tell us?

a)

Divide the total liabilities from the total assets. The business value

b)

Subtract the total liabilities from the total assets. The actual value of the business

c)

Add the total liabilities from the total assets. Money earned

d)

Multiply the total liabilities from the total assets. Money paid out

18.

What is income?

a)

Money earned

b)

Money paid out

c)

Debts or financial obligations of a business

d)

The items of value that are owned by a business

19.

List THREE examples of income in an agricultural business.

a)

Selling fertilizer, business advice, and paychecks

b)

Purchasing machinery, new buildings, and chemicals

c)

Selling crops, custom work performed, and government programs or cooperative distributions

d)

Purchasing cattle, feed, and seed

20.

What is expense?

a)

Money earned

b)

What a business owns

c)

What a business owes

d)

Money paid out

21.

What is profit?

a)

Money earned over a certain amount of time

b)

The amount of money earned over expenses

c)

Money paid out

d)

Money earned

22.

What's the difference between cash sale and capital sale?

a)

cash sale is what causes debt while capital sale increases a businesses income

b)

cash sale is how much you sell something for while capital sale is how long it takes to acquire a businesses earnings

c)

cash sale is a sale of a product or service that is paid when delivered while capital sale is selling something for more than it's worth to acquire it

d)

Cash sale increases a businesses income while capital sale causes debt

23.

What is an example of a cash sale in an agricultural business?

a)

Purchasing lumber

b)

Selling livestock

c)

Purchasing livestock

d)

Purchasing Feed

24.

What is an example of a capital sale in an agricultural business?

a)

Selling feeder cows

b)

Selling livstock

c)

Purchasing feed

d)

Purchasing equipment

25.

What is the difference between cash purchase and a capital purchase?

a)

Cash purchase includes wealth throughout a business, capital purchase includes wealth separately throughout a business

b)

Cash purchase is property owned by a business, a capital purchase refers to a property acquisition with no financing

c)

Cash purchase refers to a property acquisition with no financing, a capital purchase is property owned by a business

d)

Cash purchase is what business people use when in need of money, capital purchase is a way of paying off debts in a business

26.

What is an example of a cash purchase in an agricultural business?

a)

New buildings

b)

Equipment

c)

Selling feed

d)

Buying feed

27.

What is an example of a capital purchase in an agricultural business?

a)

Selling livestock

b)

Purchasing feed

c)

Equipment or new buildings

d)

Selling feed