Agribusiness

The controls in the controlling function of management should: A) Measure progress toward goals and alert management to serious deviation B) Always be the dominant business task of the CEO (Chief Executive Officer) or President C) Correctly determine the cause of deviation from the plans D) Be unnecessary if the correct standard, metric, or benchmark is clearly stated E) Permit responsibility to be clearly established in the event of a disaster

A) Measure progress toward goals and alert management to serious deviation

T/F: A sustainable competitive advantage can come from being either the highest cost provider of a product or by offering a differentiated product.

False

T/F: Agribusiness managers need only to be great communicators, motivators, and leaders to be successful

False

T/F: Consumer tastes and preferences have become more homogenous and predictable as a result of globalization.

False

T/F: The agri-food (and fiber) system includes the agribusiness firms that are put suppliers, producers, commodity processors, food manufacturers, food distributors, and food retailers.

False

T/F: The four functions of management are planning, organizing, controlling, and deciding.

False

T/F: The three major types of budgets are the operating budget, the income statement, and the capital expenditures budget.

False

T/F: When thinking about the five barriers to consumer satisfaction, the processing function of marketing helps consumers overcome the barrier of ownership separation.

False

The following types of budgets are related to each other: a) Capital expenditures and operating budgets, only b) Cash flow and operating budgets, only c) Operating, cash flow, and capital expenditures budgets d) Cash flow and capital expenditures budgets, only

c) Operating, cash flow, and capital expenditures budgets

The best forecasts are those that: a) Show the "big picture" b) None of the other answer choices are correct c) Relate the impact of macroeconomic variables to changes in a firm's sales and costs d) Cost the most e) Use the most sophisticated methods and models

c) Relate the impact of macroeconomic variables to changes in a firm's sales and costs

There are six steps in the decision-making process, which of the following is not one: A) Analyze the alternatives B) None of the other answer choices are correct. C) Follow-up D) Identify the problem E) Implement the best alternative.

B) None of the other answer choices are correct.

The main objective of the directing function of management is to: A) Put the firm in the best position relative to future conditions and customer demands B) Provide feedback to management on the firm's progress towards its goals C) Motivate and lead employees to accomplish the firm's purpose and objectives via the other three functions of management D) Accomplish the firm's purpose and objectives efficiently and effectively E) Select a legal organizational structure for the firm

C) Motivate and lead employees to accomplish the firm's purpose and objectives via the other three functions

The main objective of the planning function of management is to: A) Provide feedback to management on the firm's progress towards goals set in planning B) Select a legal organizational structure for the firm C) Put the firm in the best possible position relative to future business conditions and customer demands D) Accomplish the firm's purpose and objectives efficiently and effectively E) Motivate and lead employees to accomplish the firm's goals

C) Put the firm in the best possible position relative to future business conditions and customer demands

An agribusiness's purpose and objective should include the following: A) Personnel plan B) SWOT (strengths, weaknesses, opportunities and threats) analysis C) Description of how the firm will gain its competitive edge in the marketplace D) None of the other answer choices are correct E) Income statement

C)Description of how the firm will gain its competitive edge in the marketplace

Which of the following statements is not true? A) Buying and selling functions overcome the barrier of ownership separation B) The storage function overcomes the barrier of time separation C) The grades and standards function overcomes the barrier of information separation D) The transportation function overcomes the barrier of time separation E) The processing function overcomes the barrier of value separation

D) The transportation function overcomes the barrier of time separation

The organizing function of management does all of the following, except: A) Gives employees an identity in the firm and influences how they perceive their work and its contribution toward the goals of the firm B) Enables a business to organize by team, product, or market. C) Covers all the issues surrounding how to set up a business so things are done well (efficiently) and the right things are being done (effectively) D) Uses forecasting to evaluate both past and current conditions to make prediction of future customer demands and business conditions E) Establishes the legal structure of the firm (i.e. sole proprietorship, corporation, partnership, etc.)

D) Uses forecasting to evaluate both past and current conditions to make prediction of future customer demands and business conditions

T/F: Demand is a schedule of how much consumers are willing and able to buy at various prices.

True

T/F: The agri-food (and fiber) system includes the agribusiness firms that are put suppliers, producers, commodity processors, food manufacturers, food distributors, and food retailers.

True

T/F: The budgeting process is valuable because the agribusiness manager is required to think clearly through the firm's costs and revenues.

True

T/F: The long-run success of agribusiness requires that they be the first choice of their customers, employees, and investors.

True

T/F: The long-run success of an agribusiness requires that they be the first choice of their customers, employees, and investors.

True

T/F: The role of marketing is to bridge the gap between the conflicting needs of producers and consumers by completing the production process.

True

The business plan is designed to: a) Communicates the purpose and objectives of the firm b) Give the firm its competitive edge c) Help the manager better understand what to do d) All of the other answer choices are correct e) Look nice and sleek on the desk of the CEO of the firm

a) Communicates the purpose and objectives of the firm

If the calculated income elasticity of granola is +0.9, then: a) Granola is a necessity b) For each 1% increase in income, the quantity demanded of granola decreases 0.9% c) All of the other answer choices are correct d) Granola is an inferior good e) Granola is a luxury good

a) Granola is a necessity

The four Ps of marketing in the marketing mix are: a) Promotion, Price, Product, Place b) Product, Place, Production, Price c) Promotion, Purpose, Price, Product d) Purpose, Plan, Product, Price e) Place, Price, Population, Product

a) Promotion, Price, Product, Place

Which of the following would be part of the business plan: a) Evidence of a thorough knowledge of customers b) All of the other answer choices are correct c) Clear statement of the firm's purpose and objective d) A 3-5 year financial plan e) A good pricing strategy

b) All of the other answer choices are correct

Elasticity is: a) The change in quantity demanded relative to changes in prices and income b) All of the answer choices are correct. c) %ΔQ ÷ 1%Δ in P or I d) Either elastic, inelastic, or unitary e) %ΔQ / %ΔP

b) All of the answer choices

If the calculated price elasticity of granola is -1.5, then: a) Granola is a normal good b) For each 1% increase in price, the quantity demanded of granola decreases by 1.5% c) The demand for granola is elastic d) All of the other answer choices are correct

d) All of the other answer choices are correct

Consumers consume a variety of goods because of the economic principle of: a) Utility maximization b) Diminishing satisfaction principle c) Ethical and moral obligation d) Diminishing marginal utility e) Inverse law of demand

d) Diminishing marginal utility

The cash flow budget is composed of these major components except: a) Savings deposits b) New borrowings c) Repayment of operating loans d) Savings withdrawals e) Retained earnings

e) Retained earnings

When given a choice, consumers will always select the item that gives them the highest satisfaction because of the economic principle of: a) Diminishing satisfaction principle b) Inverse law of demand c) Diminishing marginal utility d) Ethical and moral obligation e) Utility maximization

e) Utility maximization