AG BUSINESS MGMT TEST 1 (9/19)

Characteristic(s) of a market-driven organization would include a. "Sell what you have and do" b. "Focus on product and sales volume" c. "Solve a problem" d. None of the above

"Solve a problem"

In management, directing includes which of the following

(all) selecting, allocating, and training personnel assigning duties and responsibilities creating the desire for success

Advantage(s) of a strategic alliance is (are)

- Firms can collaborate on technology or the development of new products - Firms can improve supply chain efficiency - Firms can gain economies of scale in production and/or marketing

Advantage(s) of a proprietorship form of organization is (are)

- Minimal legal requirements needed to start - Owner has complete control over the business - Pays no income tax as a separate business entity

The benefit(s) firms receive from doing business internationally include

- Take advantage of scale economies - capture benefits of a global brand - reduce risk by diversifying across markets

4 key elements of agribusiness mgmt

1. marketing mgmt 2. financial mgmt 3. supply chain mgmt 4. human resources mgmt

The USDA predicts that ___ percent of the food dollar will be spent on food eaten away from home by2020

52

For the average U.S. consumer, less than ____ percent of their total personal consumption is for food consumed at home

7

In 2006, _____ percent of all U.S. corporations had annual receipts of less than $1 million

81%

Example(s) of a regional trade group would be

APEC, EU, ASEAN

TRUE OR FALSE: Accounting methods for noncurrent assets, such as machinery, are standardized across the world to facilitate trade.

FALSE

TRUE OR FALSE: Forecasting change is just a guessing game of what the manager expects to happen.

FALSE

TRUE OR FALSE: In 2006, about 83 percent of all U.S. business annual receipts came from proprietorships.

FALSE

TRUE OR FALSE: In a limited partnership, each individual partner, regardless of the percentage of capital contributed, has equal rights and liabilities, unless stated otherwise in a partnership agreement

FALSE

TRUE OR FALSE: It has been said that usually about 70 percent of a message is verbal.

FALSE

TRUE OR FALSE: The "statement of cash flows" does exist in all countries.

FALSE

TRUE OR FALSE: The greatest advantage of the corporate form of organization is taxation and regulation

FALSE

TRUE OR FALSE: The value of relationships in a culture is most easily viewed by the importance of the business associations of the firm.

FALSE

TRUE OR FALSE: When dealing in the area of international business, you should always expect foreign clients to be on time for appointments

FALSE

TRUE OR FALSE: With free flow of communication, communication should only flow laterally

FALSE

TRUE OR FALSE: In 2014, Kroger was the largest U.S. food retailer.

FALSE

TRUE OR FALSE: In 2017, for every dollar spent on food, 85 cents went to the farmer

FALSE

TRUE OR FALSE: Non-family farms produce the largest share of farm products at 45.3 percent.

FALSE

TRUE OR FALSE: The share of total U.S. employment that is provided by food and agricultural industries is 4.3 percent

FALSE

TRUE OR FALSE: Today, there is a growing interest in local foods. It is estimated that almost $4 billion was spent on local foods in 2012

FALSE

TRUE OR FALSE: Warehouse clubs and supercenters now sell more food in $ than grocery stores

FALSE

The mission statement falls within which step of the planning process

Set performance objectives, the benchmarks for achieving strategic goals

TRUE OR FALSE: A corporation is a special legal entity endowed by law with the powers, rights, liabilities, and duties of a person.

TRUE

TRUE OR FALSE: A disadvantage of licensing is that a licensor could find its band image hurt if the licensee has not maintained sufficient control over the product quality or promotion.

TRUE

TRUE OR FALSE: A relatively new type of business organization that closely resembles a partnership, but provides its members limited liability is a limited liability company.

TRUE

TRUE OR FALSE: Each state has what are called "Blue-sky Laws," which regulate the way in which corporation stock may be sold and which protect the rights of investors

TRUE

TRUE OR FALSE: For managers to be effective leaders they need initiative, which is the willingness totake action.

TRUE

TRUE OR FALSE: Goals are the specific quantitative or qualitative aims of the company or business groupthat provide direction and standards one can use to measure performance.

TRUE

TRUE OR FALSE: In 2006, single proprietorships accounted for 4 percent of total U.S. business receipts.

TRUE

TRUE OR FALSE: In the year 2010, the non-Latin whites in California, Texas, New Mexico, and Hawaii were not the majority of the state population for each of those states.

TRUE

TRUE OR FALSE: One disadvantage of a cooperative is that in many states each member only has one vote regardless of how many shares of cooperative stock the individual owns.

TRUE

TRUE OR FALSE: Sanitary and phytosanitary regulations are intended to protect human, animal, or plant life or health.

TRUE

TRUE OR FALSE: When the value of the U.S. dollar decreases relative to the currencies of other competitors, U.S. agricultural goods become less expensive.

TRUE

TRUE OR FALSE: A partnership pays no income tax as a separate business entity.

TRUE

TRUE OR FALSE: Food processing and manufacturing involves turning raw agricultural commoditieseither into ingredients for further processing or final consumer products

TRUE

TRUE OR FALSE: Management is the process of achieving desired results with the resources available.

TRUE

TRUE OR FALSE: Operations management focuses on the direction and the control of the processes usedto produce the goods and services that we buy and use each day

TRUE

TRUE OR FALSE: Production agriculture includes the farms and ranches that produce the crop andlivestock products that provide inputs to the food and fiber sector.

TRUE

TRUE OR FALSE: Wholesale agents buy and/or sell as representatives of others for a commission, so theytypically neither physically handle nor take title to the goods

TRUE

TRUE OR FLASE: The legal document that is filed with the state and which sets forth the basic purpose of a corporation and the means of financing is called the articles of incorporation.

TRUE

TRUEOR FALSE: A factor that is opening the doors of world markets for smaller businesses is technology

TRUE

One method used to enter an international market is called an ___________, which is to purchase a firm or a controlling interest in a firm in another country.

acquisition

A strategic marketing plan involves which of these marketing activity(ies) a. Choose a target market b. Develop the appropriate marketing mix c. Choose a position d. All of the above

all of the above

What step in the planning process answers these questions? "Where are we?" and "How did we get here?"

analyze the facts

Management is the ______ and the ______ of successfully pursuing desired results with the resources available to the organization.

art, science

A benefit a company works toward in globalization is name or

brand recognition

farm food marketing bill

breaks down the proportion of the consumer's food dollar that goes to the farmer for raw products and that goes to the food and industry for "marketing" those products to end consumers

The legal document of a corporation that specifies such rules of operation as the election of directors, duties of officers and directors, voting procedures, and dissolution procedures is called

bylaws

Qualification(s) that must be met to form an S-corporation include:

cannot be more than 100 stockholders and stockholders must be individual persons rather than corps

What is not a unique element that agribusinesses operate under

certainty of the weather

food sector

closely tracks consumer tastes and preferences and includes food processing, marketing, and distrubution

this stock usually carries privilege of voting for the board of directors

common

The form of business organization in the U.S. that generated the greatest amount in business receipts in 2006 was the

corporation

One of the three specific features that delineate cooperatives from non-cooperative businesses is to operate at _______

cost

set of socially transmitted behaviors, arts, beliefs, speech, and all other products of human work and thought that characterize a particular population

culture

When a firm handles the details of exporting their product it is called

direct exporting

example of a partner that would not be active in management and would not be known to the public would be

dormant

disadvantage of forming a corporation is that

double taxation

Which of the following has provided 40 percent of the total debt capital needed by the farm productionsystem for farmland and operating funds in recent years

farm credit system

the food retailing sector accounts for 12.6 percent of the value-added to the consumer food dollar. The food retailing sector consists of the following types of firms, except

fast food / quick service

All effective agribusiness managers execute each of the tasks below except what

fighting

sector(s) of food production and marketing systems

food sector, production ag sector, input supply sector

in 2017, the largest component of the farm food marketing bill was

food services

Example(s) of high-value products would include

fresh fruit, beverages, frozen dinners

The first step of the planning process is

gathering facts

direct investments by a firm into a particular country

greenfield investments

Agricultural exports are composed of two categories

high value products and bulk commodities

Advantage(s) of exporting over the other methods of entry into another country is (are)

increased speed in reaching the global market

Using a trading company or an expert management company to handle the logistics of exporting is called

indirect

The food wholesaling industry in the food sector consists of the following types of firms EXCEPT

institutional food service

A ______ ______ is a form of strategic alliance that involves two or more firms that share resources in research, production, marketing, or financing, as well as, costs and risks

joint venture

______ partner permits individuals to contribute money or other ownership capital without incurring the full legal liability of a general partner

limited

In order for policies to become widespread practices they should

make sense, are relevant, and are enforced

the farm input supply sector includes

manufacturing, distribution, services

defined as the process of anticipating the needs of targeted customers and finding ways to meet those needs profitably

marketing

Well defined market segments will have what three characteristics (pass what three "tests")

measurable, substantive, actionable

The food wholesaling industry in the food sector consists of the following types of firms

merchant wholesalers, manufactuers' sales branches and offices, wholesale agents and brokers

The controlling task represents the ________ and _______ of activities

monitoring, evaluation

An example of a high value product is a. Wheat b. Corn c. Soybeans d. None of the above

none of the above

In 1947, an international organization was established to reduce trade barriers through multi-lateral trade negotiations. The organization is known as a. EU b. WTO c. NAFTA d. None of the above

none of the above

1. What is not included in the SWOT analysis? a. Strengths b. Weaknesses c. Objectives d. Threats

objectives

the framework of a company

organizational structure

_____ represents the systematic classification and grouping of human and other resources in a manner consistent with the firm's goals

organizing

coops are member ________ and member ______

owned, controlled

allow cooperatives to distribute net returns or margins to members or patrons

patronage refunds

Adjustments by international agribusiness firms are generally made in the area of

product adaptations, individual changes, and institutional adaptations

What key decisions must a marketer make (also known as the marketing mix 5 "Ps"

product, price, promotion, place, people

Unique dimension(s) of the food and agribusiness markets include:

rural ties, food as a product, government involvement

Organizations that focus primarily on communicating the benefits of their products are

sales-driven

partner is an individual who cannot take an active role in management, but is known to be a partner by the general public.

silent partner

Most farms (88.2 percent) are classified as what type

small family

convince store

small grocery store, selling a limited variety of basic foods, snack foods, and nonfood products, typically with extended hours

Short terms plans consistent with the strategic plan are

tactical plans

Good marketers recognize that "one size does not fit all" and focus their efforts on the unique needs of specific

target markets

disadvantage of a partnership

unlimited liability of each general partner