This quiz works best with JavaScript enabled. Home > Agriculture > Business > Agribusiness > Agribusiness – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Agribusiness Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In terms of marketing a product, what is a promotion? A) Letting people know about goods & services in a positive way that will make them want to buy. B) Letting people know about goods & services, but not encouraging them to buy it. C) A catchy phrase or jingle. D) Feedback via attendance, contributions, or purchases. Show Answer Correct Answer: A) Letting people know about goods & services in a positive way that will make them want to buy. 2. Dividing total job into specific job, design connecting, span of control, are A) Organizing. B) Leading. C) Planning. D) Controlling. Show Answer Correct Answer: A) Organizing. 3. A lender will only lend money to an agribusiness or farmer if there is enough ..... and/or the agribusiness or farmer will make enough money to pay off the loan. A) Character. B) Collateral. C) Contracts. D) Equity. Show Answer Correct Answer: B) Collateral. 4. Determining reasons that customers may wish to buy a product or service is called the: A) Buying function. B) Selling function. C) Distribution function. D) Promoting function. Show Answer Correct Answer: B) Selling function. 5. Which person or component starts and ends the Ag Production cycle? A) Harvester. B) Farmer. C) Consumer. D) Retailer. Show Answer Correct Answer: B) Farmer. 6. Succession planning refers to: A) Planning to increase the size of the farm business. B) Planning for next year's success of the business. C) Planning to raise a new variety of soybeans that have not been tried before. D) Planning to move the business to the younger generation. Show Answer Correct Answer: D) Planning to move the business to the younger generation. 7. Which of the following is NOT an example of a liability? A) Feed. B) Equipment loans. C) Car loans. D) Feed store bills. Show Answer Correct Answer: A) Feed. 8. Which of the following is required as a part of a company's financial reports? A) Statement of cash flow. B) Net worth statement. C) Statement of ownership equity. D) Net income statement. Show Answer Correct Answer: A) Statement of cash flow. 9. The government has set a price floor for milk at $ 14/cwt (cwt = 100 pounds), but market conditions indicate that the market equilibrium is $ 11/cwt. What effect will the price floor have? A) Cause a surplus of milk in the market. B) Cause a shortage of milk in the market. C) Stimulate establishment of new dairies. D) No effect on the supply of milk. Show Answer Correct Answer: A) Cause a surplus of milk in the market. 10. Cattle on feed should be marketed when A) Their marginal cost of gain is no longer below their original purchase price. B) They have reached their maximum weight. C) Their marginal cost of gain is no longer below their selling price. D) Their average cost of gain is no longer below their selling price. Show Answer Correct Answer: C) Their marginal cost of gain is no longer below their selling price. 11. 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 Opportunity Costs. C) Law of Comparative Advantage. D) Law of Resource Substitution. Show Answer Correct Answer: A) Law of Diminishing Returns. 12. A farmer increases an investment in land, building, and equipment to increase the total units of production. The cost per unit of production A) Varies with the operator. B) Remains the same. C) Decreases. D) Increases. Show Answer Correct Answer: C) Decreases. 13. A good which cannot be physically touched; usually involving a service, such as going to the doctor A) Intangible good. B) Processed good. C) Tangible good. D) Manufactured good. Show Answer Correct Answer: A) Intangible good. 14. Which of the following is NOT a benefit of budgeting? A) Establishing a projected goal. B) Setting up emergency funds. C) Relying on debt. D) Improving credit score. Show Answer Correct Answer: C) Relying on debt. 15. Holding combinations of investments is called A) Variations. B) Verification. C) Diersification. D) Dissatisfaction. Show Answer Correct Answer: C) Diersification. 16. What is the length of non-current? A) 0-12 months. B) 2 months. C) 12+ months. D) 6 months. Show Answer Correct Answer: C) 12+ months. 17. The selection of a product or service to be sold for profit is called the: A) Distribution function. B) Selling function. C) Promoting function. D) Buying function. Show Answer Correct Answer: D) Buying function. 18. Which agricultural commodity must be imported to the United States? A) Coffee. B) Rice. C) Wheat. D) Sugar. Show Answer Correct Answer: A) Coffee. 19. Which of the following operates on donations and volunteers rather than income and profit? A) Production firms. B) Service firms. C) Producers organizations. D) Non-profit organizations. Show Answer Correct Answer: D) Non-profit organizations. 20. Which of the following requires applicants to qualify? A) Fair Labor Standards Act of 1938. B) Child Law for Agricultural Employment. C) Migrant and Seasonal Agricultural Worker Protection Act. D) H-2A Program. Show Answer Correct Answer: D) H-2A Program. 21. The government agency that regulates drainage of cattle yards and protects wetlands is the A) FDA. B) USDA. C) FTC. D) EPA. Show Answer Correct Answer: D) EPA. 22. 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. Show Answer Correct Answer: A) Market, purchase, and service based. 23. It refers to the ability of the agribusiness firm to recover all its investments and generate sufficient income. A) Environmental Sustainability. B) Social Sustainability. C) Economic Sustainability. D) None of above. Show Answer Correct Answer: C) Economic Sustainability. 24. An example of an Entrepreneurship SAE would be: A) John raises laying hens and sells the eggs to his neighbors. B) Jill has a lawn mowing business in her community. C) Jeff raises a garden every summer, then uses the produce to can and feed his family through the winter. D) All of these are Entrepreneurship SAEs. Show Answer Correct Answer: D) All of these are Entrepreneurship SAEs. 25. About what percentage of your food dollars goes back to the farmer? A) 20%. B) 30%. C) 15%. D) 35%. Show Answer Correct Answer: A) 20%. 26. The price of beef goes up in the grocery store due to a shortage of beef production in the country. This represents the economic concept of A) Supply and demand. B) Inelasticity. C) Elasticity. D) Inflation. Show Answer Correct Answer: A) Supply and demand. 27. A depreciable asset's book value will equal its salvage value A) Only at the mid-point of its useful life. B) Only on the purchase date. C) Only at the end of the useful life. D) Every year of its useful life. Show Answer Correct Answer: C) Only at the end of the useful life. 28. A local farm lending agency has operating loans for 3.5% on up to $ 25, 000 a year with no additional charges. You secure your loan for the $ 25, 000 for a 1 year period, but complete the payments in 5 months. Through changing your financial option how much did you save your farm business in interest? A) $ 510.39. B) $ 574.98. C) $ 482.16. D) $ 611.27. Show Answer Correct Answer: A) $ 510.39. 29. Which is not a function of managers? A) Actuating. B) Controlling and evaluating. C) Organizing people and resources. D) Setting policy. Show Answer Correct Answer: D) Setting policy. 30. Which of the following compares the sources of cash to the uses of the cash over a specific period of time? A) Net worth statement. B) Net income statement. C) Statement of ownership equity. D) Statement of cash flow. Show Answer Correct Answer: D) Statement of cash flow. Next →Related QuizzesBusiness QuizzesAgriculture QuizzesAgribusiness Quiz 2Agribusiness Quiz 3Agribusiness Quiz 4Agribusiness Quiz 5Agribusiness Quiz 6Agribusiness Quiz 7Agribusiness Quiz 8Agribusiness Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books