Beebe test
Producers who use the futures market to purchase or sell options will work with...?
A broker
A quota is...?
a legal limit on the quantity of a good that may be imported
If you are considering a change in the farm business that affects only a few items in the total farm budget, this change could most appropriately be evaluated using....?
a partial budget
What type of liability is "interest on short term loans?"
accrued liability
What is profit increasing changes on a partial budget?
additional cost and reduced revenue
Crop revenue and insurance protects....?
against declines in price or yield
What shows the expected returns and cost associated with a specific production activity?
an enterprise budget
A balance sheet contains....?
assets and liabilities
As an employer, your responsibilities to your employees do not include...?
avoiding making rules about conducts of employees while at work.
The price difference between the local price and the future price is called....?
basis
External scanning could include assessing....?
changes in consumer tastes
Quantity taken will increase only if the price comes down?
demand
A method of prorating the cost of a capital asset over its useful life is....?
deprecation
The procedure that spreads out the cost of capital assets over their useful life is...?
depreciation
A ranch that just replaced a large number of fences and corrals would most likely see which of the following ratios increase?
depreciation expenses ration
The amount of debt relative to the value of total assets is an example. of....?
financial risk
A prepaid expenses is one where payment is made...?
in an accounting period prior to the one in which the item will be used to produce income
The financial stament that measures the profit of a business is the....?
income statement
If the debt/asset ratio is increasing, then the debt/equity ratio will be...?
increasing
liability insurance is used to protect against....?
legal action
A risk assessment requires managers to consider the...?
magnitude of a bad outcome and the likelihood of a bad outcome
Good income tax management is to...?
maximize after-tax income
The main objective of income tax management is to...?
minimize the tax obligation
Which type of financial statement would be most useful for keeping record of expenses?
net income statement
What is a loan amortization?
paying off debt with a fixed repayment schedule
A projected negative annual cash flow indicates...?
projected cash inflows are less than projected cash outflows
A market that consist of many buyers and sellers trading an uniform commodity like corn is called...?
pure competition
Which marketing tool allows a producer to set minimum selling price but still benefit if prices trend upward significantly?
put options
In a corporation, the ownership relationship between the company and the owners is expressed in terms of...?
shares
Which method of accounting is considered the easiest?
single entry accounting
What is the most common form of ownership for most farmers and ranchers?
sole proprietorship
At a price above equilibrium price, there is....?
surplus
A partial budget would be the most useful type of budget for estimating...?
the change in profit from installing an irrigation system in one field
What does marginal cost measure?
the change in total cost from adding another unit of input
The yield portion of revenue protection insurance on land that the producer has continually farmed is base on...?
the farm's actual production history of yields
Buyers and sellers of the product know everything that there is to know about the product, is what?
theory of perfect competition
Which of the following is an assumption of the theory of oligopoly?
there are barriers to entry and firms produce and sell either homogeneous or differentiated products.
The individual who creates a trust is called the...?
trustor
On a supply and demand diagram, equilibrium is found....?
where the demand and supply curves intersect
The dollar amount that equals current assets minus current debt is....?
working capital
