allocation of monetary funds based on a determined structure

blueprints for the execution and organization of revenues and expenditures; a specific plan for spending and saving money

amount of income received before the costs of goods and taxes

amount of income after costs of goods and taxes are deducted

remains the same regardless of business activity

may change or fluctuate; sometimes can be hard to predict

items of ownership which can be converted into cash

money owed; debts

assets minus liabilities

The processing subsystem directly link the product to the consumer

Agribusiness subsystems must work interdependent and interrelated

Follow your food from farm to fork means that agribusiness work starts from point of production to point of consumption

Input subsystem comprises of farmers who directly produce products for direct or intermediate consumption

Agribusiness is an open system

Supply chain is also called as value chain

Marketing subsystem prolongs the shelf life of the perishable products that makes them available for a longer time

Consumer subsystem provides assistance and back-ups to other subsystems of agribusiness

Gaps or weaknesses in any of the subsystem would make the whole agribusiness system collapse

The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves

An enterprise which derives a significant portion of its revenue.

Develop products for distribution from raw goods, such as forestry, farming & mining

Change raw goods into a more finished form using facilities such as cotton mils, oil refineries, textile mills

Change raw or processed goods using facilities such as boot factories, furniture factories, cotton processing and citrus fruit processing

Move finished goods from one business to another, also known as the "middlemen"

Provide intangible goods to consumers and other businesses

A good which cannot be physically touched; usually involving a service, such as going to the doctor

Organization in which agriculturalists bring together their resources in a specific area of activity

Provides goods and services to individuals and operates on donations, volunteers, and philanthropists

Encourages appropriate standards of conservation, restoration management and the proper use of soil, water and natural resources

Enhances profit opportunities for cattle & beef producers by increasing business and creating consumer demand

Supports the members management of the financial risks of everyday life and successfully recover from any insured loss

Increases opportunities for the success of US pork producers and other industry stakeholders

Which of the following is NOT a factor that price is determined by?

The quantity of a product that is available to buyers at a given time

Which of the following is NOT a factor that influences the supply of products?

Defined as the quantity of a product that buyers will purchase at a specific given price at a given time

Which of the following is NOT a factor that affects demand?

Diversification involves the broadening of the range of services specifically by adding new lines of service.

Horizontal integration prevents duplication and competition of functions.

The extension of business activities to another stage of operation is called vertical integration.

The grouping together of business units with similar business activities under the control of the same firm is known as horizontal integration.

Diversifying business is a conversion of agribusiness firm into a multi-purpose type.

Horizontal integration and diversification complements each other and are closely related.

The main motive of diversification is to expand the business coverage to a larger service area.

Horizontal integration involves the addition of subsequent stages in the process of movement of farm to table.

Too much vertical integration usually demands a more complex management and requires more capital support.

Too much vertical integration usually demands a more complex management and requires more capital support.