FBM 2022 Exam
A farm business income statement can show a profit in a year, and yet the business is unprofitable. A. True B. False
A
A farmer would use the futures market with the objective to A. transfer risk. B. increase risk. C. participate in government farm programs. D. obtain a loan
A
A financial management tool showing the projected costs and returns associated with a specific production process is a/an A. enterprise budget. B. long-term budget. C. cash flow projection. D. whole farm budget.
A
A producer who suspects that corn markets will be bullish in the coming year thinks corn prices will A. increase. B. decrease. C. exceed a 3-year average. D. A and C
A
A supply schedule is a A. table showing the quantity supplied of a good or service at different price levels. B. calendar of a producer's shipment dates. C. calendar of days the market is open. D. table showing shifts in supply
A
A tier refers to the townships running east and west in six-mile increments. A. True B. False
A
A whole farm cash flow projection is a form of budgeting that can be used to A. determine operating credit needs. B. determine year-end asset values. C. determine living expenses. D. calculate total farm equity.
A
All other factors held equal, small carryover stocks would tend to have what effect on a commodity's price? A. Increase price B. Decrease price C. Increase storage costs D. B and C
A
An owner of an LLC is also called a A. member. B. stockholder. C. director. D. trustee.
A
Assume the Bradleys build their sheep budget with a five-year projection. From that analysis, they determine the IRR is 5.6%. IRR stands for A. Internal Rate of Return. B. Internal Revenue Review. C. Issued Revenue Rate. D. Initial Rate of Revenue.
A
Bradley Acres has 2 family members instead of the 2.6 family members in the area average. For questions 2 through 5, does the family spend more or less per family member than the area average? Gifts A. More B. Less
A
Bradley Acres has 2 family members instead of the 2.6 family members in the area average. For questions 2 through 5, does the family spend more or less per family member than the area average? Household supplies A. More B. Less
A
C-Corporations persist after the death of the owners. A. True B. False
A
For questions 5 through 7, determine which expenses are more or less than 10% of the total cash family living investment & non farm capital purchase/total personal expenditures The Bradleys' cash donations A. More than 10% B. Less than 10%
A
For questions 5 through 7, determine which expenses are more or less than 10% of the total cash family living investment & non farm capital purchase/total personal expenditures The Bradleys' income and social security taxes A. More than 10% B. Less than 10%
A
For the Bradleys the yield protection in revenue protection insurance is based on A. their farm's actual production history of yields. B. their county's actual production history of yields. C. their state's actual production history of yields. D. whatever yield the Bradleys want to buy.
A
For which of the following risks is risk control the most appropriate treatment method? A A high frequency and low severity risk B. A low frequency and high severity risk C. A high frequency and high severity risk D. A low frequency and low severity risk
A
If the asset-turnover rate is above 45% and the operating expense ratio is 60% or less, and the net farm income ratio is above 20% on the financial scorecard, the farm business is strong. A. True B. False
A
In economics, an additional unit is known as A. marginal. B. opportunity cost. C. ceteris paribus. D. utility.
A
In limited partnerships, management duties and liabilities are NOT shared equally amongst all partners. A. True B. False
A
In the production function, diminishing marginal returns mean output A. is increasing at a decreasing rate. B. is increasing at an increasing rate. C. is decreasing. D. remains the same.
A
Income from sale of purchased finishing lambs held over from the prior year. A. Schedule F B. Schedule C C. Form 4562 D. Schedule D E. Schedule E
A
Marketing cooperatives allow farmers and ranchers to gain market power by combining their resources. A. True B. False
A
Net cash farm income (NCFI) results from subtracting cash expenses from the gross cash farm income. What additionally must be added or subtracted from the (NCFI) to calculate the net farm income? A. Sale of capital items, depreciation, total inventory change B. Depreciation, total inventory change C. Sale of capital items, depreciation, total inventory change, principal payments D. All of the above
A
Of the types of business organizations listed below, which type of organization allows for the easiest transfer of ownership? A. C-Corporation B. S-Corporation C. LLC D. General Partnership
A
Personal income for this farm family is sufficient to meet the anticipated family living expenses. A. True B. False
A
Principal due in the next 12 months on term debt is classified as A. current liabilities. B. long term liabilities. C. noncurrent liabilities. D. None of the above
A
Residential property in towns and cities is generally described by using the recorded plat system. A. True B. False
A
Restructuring debt in the balance sheet to reduce periodic principal and interest payments usually occurs when business cash flow falls short of expectations. A common strategy used by the lender and business owner to alleviate cash flow difficulties is to A. convert all, or part of the short-term and/or intermediate liabilities to long- term liabilities to reduce payments. B. convert all, or part, of the intermediate and/or long liabilities to short-term liabilities to reduce payments. C. recapitalize paid debt and make no other changes to reduce payments. D. None of the above
A
The Bradleys are considering two loan repayment options. For option 1 they would make only annual interest payments with the principal being paid at the maturity of the loan. For option 2 they would pay interest and principal payments annually. If no additional principal payments are made, which loan would have the largest cumulative interest paid over the life of the loan? A. Option 1 B. Option 2 C. They would be the same
A
The asset that is a current asset is A. 1000 tons of haylage. B. a hay baler. C. a hay storage shed. D. 100 acres of land for growing haylage.
A
The current ratio for this farm is stronger at the end of the year than the beginning of the year. A. True B. False
A
The physical quantity of outputs that can be obtained from various amounts of variable inputs combined with fixed inputs is best known as the A. production function. B. macroeconomics. C. market function. D. market economics.
A
The projected working capital to gross revenues (percentage) is stronger for this farm at the end of the year than at the beginning of the year. A. True B. False
A
The range refers to columns of townships running north and south (quadrangle). A. True B. False
A
The rate the Federal Reserve charges institutions that borrow money from them is known as the A. discount rate. B. discount window. C. federal funds rate. D. borrowing rate.
A
The satisfaction created by the consumption of goods and services is known as A. utility. B. ceteris paribus. C. economic model. D. opportunity cost
A
There are approximately _______ acres in a township. A. 23,040 B. 22,050 C. 19,580 D. 64,000
A
This farm has no operating loan. A. True B. False
A
What is the beginning cash balance for this cash flow plan? A. $106,638 B. $329,060 C. $476,025 D. $745,122 E. None of the above
A
When Addie markets Bradley Acres' grain, she is always watching the basis, which is the difference between a local cash price and the nearby futures price. A. True B. False
A
When considering what the future value of an investment will be, one utilizes the concept of A. compounding. B. discounting. C. expanding. D. amortization.
A
Which of the following best describes risk transfer? A. Paying another party to assume a portion of a risk B. A methodology to reduce the severity of a risk C. A methodology to reduce the frequency of a risk D. Ceasing an activity to eliminate the possibility of incurring a loss E. Setting aside funds to pay for any losses that may occur
A
Which of the following contributes the largest amount of expense? A. Fertilizer B. Crop Chemicals C. Seed D. Repairs
A
Which of the following is NOT one of the requirements for a perfectly competitive market? A. Resources are restricted from moving in and out of production. B. Each firm is small relative to the total market. C. Each firm produces a homogenous (similar) product. D. All market participants share the same knowledge about the market.
A
Which of the following is an example of legal risk? A. A change in tariff rates and food export regulations B. A change in consumers' tastes and preferences C. A change in interest rates D. A and C E. A, B, and C
A
Which of the following statements about agricultural cooperatives is TRUE? A. A cooperative is owned and operated by member-owners who are also customers. B. A primary objective of a cooperative is to generate the highest possible returns to member-owners. C. A and B D. Neither A or B
A
A working mother orders organic chicken nuggets, a bag salad mix and a gallon of milk with a grocery delivery service for dinner just before leaving the office at night. She is especially grateful for this convenience. In economic terms, she draws utility in which ways with this service? A. Form, price, value B. Form, place, time C. Place, price, value D. Time, place, price
B
According to the Farm Financial Scorecard, the projected term debt coverage ratio for this farm is vulnerable. A. True B. False
B
According to the Farm Financial Scorecard, the rate of return on assets for this farm is strong. A. True B. False
B
According to the IRS code, owners of a C-Corporation must be US citizens. A. True B. False
B
Addie has 15,000 bushels of soybeans she'd like to sell in March. How many futures contracts can satisfy this sale? A. 1 B. 3 C. 5 D. None of the above
B
Amos purchased corn seed in the fall of 2021 and stored it over the winter. If he is able to claim this expense on his taxes, when would that occur? A. 2022 B. 2021 C. Must be depreciated due to time of purchase, not an deductible expense D. Seed purchased in the year before planting is not a deductible farm expense
B
Amos sees the cash price decreasing relative to the futures price and calls to tell Addie that the basis is A. a strengthening basis. B. a weakening basis. C. an under basis. D. a basis risk.
B
An analyst has prepared a partial financial scorecard for four farms. Which farm demonstrates the greatest level of financial risk? Financial Metric Farm A | Farm B | Farm C | Farm D Current Ratio 1.36 | 1.02 | 2.30 | 1.68 Working Capital $400,365 | $405,894 | $100,456 | $212,365 Total Assets $1,503,204 | $1,130,546 | $735,025 | $1,236,145 A. Farm A B. Farm B C. Farm C D. Farm D
B
An insolvent business is best reflected? A. 95% B. 110% C. 0% D. 50%
B
As stated in the resource materials, the Bradleys are nearing retirement. During their farming career, they have grown their farmland holdings significantly. As they are planning to retire, they have found that leaving a family legacy of farming and protecting their farmland for future generations is very important for them. Which of the following types of business organizations would best suit the Bradleys' goal of leaving their farm for future generations of their family? A. A partnership B. A trust C. A sole-proprietorship D. None of these are appropriate.
B
Bradley Acres has 2 family members instead of the 2.6 family members in the area average. For questions 2 through 5, does the family spend more or less per family member than the area average? Food and meals expenses A. More B. Less
B
Economics deals with the allocation of _______ resources among a/an _______ number of competing, alternative uses. A. unlimited, scarce B. scarce, unlimited C. unlimited, unlimited D. scarce, scarce
B
For questions 5 through 7, determine which expenses are more or less than 10% of the total cash family living investment & non farm capital purchase/total personal expenditures Personal interest for Area Average A. More than 10% B. Less than 10%
B
Four large conglomerates control most of the meat supply chain in the United States. The controlling of a market by a handful of firms results in a _____ market. A. vertically integrated B. concentrated C. competitive D. open
B
If a person dies without a last will and testament, the disbursement of his or her assets will be guided by A. county ordinances. B. state laws. C. federal laws. D. international laws regarding disbursement of assets
B
In which months are corn futures contracts available for Addie to buy or sell? A. March, May, June, September, November B. March, May, July, September, December C. April, June, September, November D. April, July, September, December
B
McDonald's offers a handful of seasonal products, such as the McRib sandwich. If they were to offer seasonal products year-around, customers might lose interest in the seasonal products. What economic principle is McDonald's leveraging? A. Law of increasing marginal utility B. Law of diminishing marginal utility C. Law of increasing marginal cost D. Law of diminishing marginal cost
B
Much of the United States land is measured using two lines at right angles to each other. These are called A. base lines. B. principal meridians. C. tiers. D. range lines.
B
Net farm income for a business represents a return to A. paid family and paid operator labor B. owners' investments in the business C. internal revenue service D. None of the above
B
Noting that a business's balance sheet on the first day of the business year has total liabilities of $675,000, total assets of $2,150,000 and a debt-to-asset ratio of 31%, calculate its net worth. A. $ 1,400,000 B. $ 1,475,000 C. $ 2,550,000 D. $ None of the above
B
Pete from Pete's Produce farm stand notices that when he raised prices on his value-added products, quantity sold decreased but not by as much as he expected. Pete noticed that unit for unit, the change in price was greater than the change in quantity demanded. Pete concludes that his value-added products are A. more elastic. B. more inelastic. C. unitary elastic. D. None of the above
B
Review the cost comparative balance sheets for years 2012 - 2021 for the Bradleys. How many years did their retained earning change in a negative manner? A. 1 B. 2 C. 3 D. 4
B
Scenario: A business currently needs $205,000 of net farm income (NFI). Assume it maintains careful discipline in all aspects of managing the business and experiences a good year with an NFI of $300,000. If there are no changes in deferred liabilities and market evaluation values from the previous year, what is the effect upon its net worth at the end of the year? A. It will stay the same due to inflation B. It would increase by $95,000 C. It would decrease by $100,000 D. None of the above are realistic
B
Some properties in the U.S., especially in the original 13 colonies, do NOT have a form of legal land description. A. True B. False
B
The Bradleys also purchased rye seed in the fall of 2021, and Amos planted the seed as the cover crop. If he is able to claim this expense on this taxes, when would that occur? A. 2022 B. 2021 C. Must be depreciated due to time of purchase, not an deductible expense D. Cover crop seed is not a deductible farm expense
B
The ________ in the Bradleys' 2021 Financial Analysis summarizes the sources, uses and balances of available cash. A. balance sheet B. statement of cash flows C. statement of owner equity D. income statement
B
The allowed time for the term of a machinery loan is set by the asset class. A. True B. False
B
The projected term debt coverage ratio will improve (get stronger) if there is a 10% decrease in gross income. A. True B. False
B
Township and Range Lines crossing each other form squares which are called A. meridians. B. townships. C. sections. D. land parcels.
B
What is the projected change in working capital for this farm for 2022? A. -$53,330 B. $125,326 C. $222,422 D. $521,692 E. None of the above
B
What month has the largest principal payment expense? A. January B. April C. August D. December E. None of the above
B
Which of the following is an example of financial risk that applies to the Bradleys' operation? A. A change in corn prices B. A change in interest rates C. A change in lamb demand D. A and C E. A, B, and C
B
Which of the following statements about trusts is false? A. A trust is a legal arrangement by which a person (settlor) transfers ownership of specific assets to another person or group to manage the property. B. Trustors are the people who manage a trust. C. A trust can be used to manage estate taxes. D. All of the above are true.
B
Which of the following would be considered a fixed cost? A. Hired seasonal labor B. Depreciation on machinery C. Crop production inputs D. Feed purchases
B
________ an entry or multiple entries on the balance sheet. It is an obligation for which settlement will occur at a later period. An example is taxes due at a later time, especially if there is a premature sunsetting of a business. A. Total intermediate liabilities are B. Deferred liability is C. Contributed capital is D. Taxable dividends are
B
A balance sheet that includes the adjusted basis of the non-current assets is a A. market basis balance sheet. B. an asset balance sheet. C. cost basis balance sheet. D. all of the above are correct.
C
A farmer uses revenue protection insurance to protect a corn crop. This type of insurance would protect against which of the following? A. Low prices B. Low yields C. Low yields and low prices D. Failure of grain buyer to make a payment upon delivery
C
A futures contract is a mechanism for A. coordinating physical commodity delivery at a later date. B. narrowing the local basis at a given commodity date. C. facilitating price discovery at a later date. D. All of the above
C
A member of a corporation's board of directors is also called A. a director. B. a stockholder. C. an officer. D. a trustor.
C
A producer buys 2,500 units of a product for $5.00 per unit in Market A. She simultaneously turns around and sells all 2,500 units for $7.00 per unit in Market B. A producer's ability to profit from price discrepancies in different markets is called A. marginal value. B. margin. C. arbitrage. D. None of the above
C
A tariff assessed on French cheeses by the US government likely results in which of the following effects? A. A decrease in the quantity of French cheeses supplied to US consumers B. An increase in the quantity of US or non-French cheeses demanded by US consumers C. A & B D. Neither A or B
C
Addie wants to hedge the price of soybeans sold in the fall. What actions should she take in May? A. Buy futures contracts expecting to buy more contracts when the soybeans are sold. B. Buy futures contracts expecting to sell those contracts when the soybeans are sold. C. Sell futures contracts expecting to buy them back when the soybeans are sold. D. Sell futures contracts expecting to sell more contracts when the soybeans are sold.
C
All inputs are variable in the A. medium run. B. short run. C. long run. D. None of the above.
C
An iPad that the Bradleys use in the business. A. 0 years B. 3 years C. 5 years D. 7 years E. 15 years
C
Change in net worth in an accounting period is best illustrated in the A. balance sheet. B. statement of cash flows. C. statement of owner equity. D. income statement.
C
Crop insurance helps farmers in instances of ________. A. Low yields B. Low prices C. A & B D. Neither A or B
C
Deductions detailed for depreciation and amortization. A. Schedule F B. Schedule C C. Form 4562 D. Schedule D E. Schedule B
C
Fence maintenance is crucial to a livestock operation. However, even with the utmost diligence, animal escapes can happen. Which of the following types of insurance would protect the Bradleys from the risk of lawsuits arising from a claim for damages caused by an escaped animal? A. A Life Insurance Policy B. An Umbrella Property Insurance Policy C. A Commercial Liability Insurance Policy D. A Commercial Property Insurance Policy
C
How many sections are usually in a township? A. 12 B. 24 C. 36 D. 48
C
If Anthony increases his sheep herd, which of the following variable costs would be most affected? A. Labor B. Machinery C. Feed D. Farm insurance
C
If a fence were to be blown down by a derecho (high speed straight line wind), which of the following types of insurance would compensate the Bradleys for damages to their fence? A. A Life Insurance Policy B. A Umbrella Liability Insurance Policy C. A Commercial Property Insurance Policy D. A Commercial Liability Insurance Policy
C
In a partial budget, the calculation to determine net change would be A. (additional revenue + reduced returns) - (additional costs + reduced costs). B. additional revenue + reduced costs. C. (additional revenue + reduced costs) - (additional costs + reduced returns). D. additional revenue - additional costs.
C
The Farm Financial Score Card indicates when the current ratio is less than ______ and the working capital to gross revenues % is less than _______, the liquidity of the business is in the most vulnerable status. A. 2.0, 30 B. 1.5, 20 C. 1.3, 10 D. 3.0, 35
C
The micro-macro paradox suggests commodity producers, such as those growing row crops, should stay focused on which 2 practices? A. Value-added production, paying down debt B. Paying down debt, prioritizing production efficiency C. Tracking forces behind market price changes, prioritizing operational efficiency D. Paying down debt, tracking forces behind market price changes
C
The most commonly used type of business organization for US farms and ranches is the A. corporation. B. partnership. C. sole-proprietorship. D. LLC.
C
The price of gasoline goes up, but consumers are still purchasing the same quantities. The demand for gasoline is best described as A. elastic demand. B. unit elastic demand. C. inelastic demand. D. fixed elastic demand
C
The primary purpose of a balance sheet is to illustrate A. value of assets, liabilities, and net farm income. B. value of profit, net farm income, and liabilities. C. value of net worth, liabilities, and assets. D. key measures of a farm financial scorecard.
C
To measure using metes and bounds it is necessary to start with A. a principal meridian. B. a base line. C. a known landmark. D. an intersection of a principal meridian and a base line
C
What is the difference between the Bradleys' Working Capital at the end of 2021 compared to the beginning of the year? A. $587,895, higher B. $505,600, lower C. $82,295, higher D. $106,600, lower
C
What is the projected capital debt repayment margin? A. $102,405 B. $125,326 C. $126,073 D. $172,748 E. None of the above
C
What is the total loan payment for this farm for 2022? A. $7,475 B. $27,675 C. $46,675 D. $67,695 E. None of the above
C
________________ receive the majority of the Farm Bill spending. A. Crop insurance programs B. Conservation programs C. Nutrition programs D. Commodity programs
C
A cattle feeder wishes to hedge against future corn price increases. Which of these actions would accomplish that goal? A. Buy a corn put option B. Sell a corn call option C. Sell a corn futures contract D. Buy a corn futures contract
D
A decrease in the U.S. exchange rate causes domestic goods to become A. less expensive for U.S. consumers. B. more expensive for U.S. consumers. C. more expensive for consumers abroad. D. less expensive for consumers abroad.
D
A hedge-to-arrive contract has 3 components, two of which are known at the time the contract is purchased. The known components include _______ and ______. The third component is unknown until a later date. That component is the ______. A. delivery month, futures price, premium B. futures price, basis, and delivery month C. margin, basis, delivery month D. futures price, delivery month, basis
D
A legal land description is read by A. reading it from the smallest to the largest parcel. B. locating the section in the township. C. finding the location in the quarter. D. All of the above
D
Addie can hedge new crop soybeans beginning in which contract month? A. March B. June C. August D. November
D
Addie is trying to determine how much more revenue her farm will earn if she sells one more unit of output. Addie is analyzing her farm's A. marginal profit. B. average revenue. C. price per unit. D. marginal revenue.
D
Anthony has $5,000. Instead of investing these funds at a 4.5% interest at the bank in his town, he chose to invest this money into his livestock SAE. The 4.5% interest he did not receive is a/an A. cost of debt. B. production cost. C. investment cost. D. opportunity cost.
D
Federal marketing orders are intended to promote agricultural products by collectively influencing A. product demand. B. product supply. C. product price. D. Any of the above
D
For his feasibility study exploring an increase in herd size, Anthony wants to calculate the expected marginal revenue by adding ewes. What formula will he use? A. Change in net profit divided by change in total revenue B. Net profit divided by total expenses C. Total revenue divided by quantity sold D. Change in total revenue divided by change in quantity sold
D
How much did the Bradleys spend on recreation in 2021? A. $610 B. $379 C. $5,723 D. $3,009
D
If Anthony got a machinery loan in taking over the operation of the farm, how would this loan and the purchase of the equipment impact his balance sheet? A. It will not affect it. B. It will only increase his current liabilities. C. It will only increase his intermediate liabilities. D. It will increase both his current and intermediate liabilities.
D
If the farm business increases the number of crop acres, which of the following costs are least likely to change? A. Average fixed costs per acre B. Total variable costs C. Average total costs per acre D. Average variable costs per acre
D
In which month does this farm receive patronage dividends income? A. January B. April C. August D. December E. None of the above
D
Recent farm subsidy programs have attempted to A. offset market price risk for producers. B. maintain a relatively affordable and plentiful food supply for consumers. C. prop up US food prices abroad. D. A and B E. All of the above
D
The "Invisible Hand" in economics means A. the rich will get richer, and the poor will get poorer. B. people will steal when necessary. C. government intervention is needed in markets. D. markets find equilibrium without intervention.
D
The Bradleys are contemplating securing an operating loan for crop inputs. Calculate the cost of the interest per acre for 824 acres when borrowing $300,000 at 4.75% APR for 150 days. Base the calculation on a 365 day year. Round to the nearest cent. A. $9.07 B. $8.07 C. $9.01 D. $7.11
D
The additional cost associated with producing one additional unit of output is known as A. incremental cost. B. average cost. C. supplemental cost. D. marginal cost
D
The combining of several steps in the food system into a single management system is known as A. globalization. B. concentration. C. consolidation. D. vertical integration.
D
The grain bins on the Bradley farm. A. 0 years B. 3 years C. 5 years D. 7 years E. 15 years
D
The present system of Governmental Land Surveys was adopted in 1785. This system is called the A. township divisions system. B. section subdivision system. C. fractional section system. D. rectangular system.
D
The primary purpose of income tax management is to A. minimize the tax obligation. B. have zero taxes due. C. defer income taxes to the future. D. maximize after-tax income.
D
The totals market valuation equity of the business owned by Amos and Adeline Bradley at the end of 2021 was A. $ 232,200 B. $ 172,287 C. $ 2,612,545 D. $ 169,267
D
Thomas Jefferson authorized a system of land measurements to define locations of properties in the western territory for the following main reasons. A. So that private ownership of property could be easily defined. B. So that property could be exchanged to another owner more easily. C. A checkerboard system could create more reliable delineations. D. All of the above E. None of the above
D
To conduct a thorough investment analysis, one should consider A. income taxes. B. inflation. C. risk. D. All the above
D
Using best practices for humane animal handling mitigates __________ risk arising from injuries to workers from startled livestock, and __________ risk associated with the loss of market animals. A. human, market B. financial, production C. market, human D. human, production
D
What is the maximum tax liability for taxpayers choosing married, filing jointly as their tax status? A. $647,850 B. $174,253.50 C. The maximum is not listed. D. There is no maximum.
D
When evaluating an investment, it is important to consider the impact of time. This general concept is referred to as A. future value. B. nominal value. C. net present value. D. time value of money.
D
When the Bradleys' 2021 efficiency measures are compared to the efficiency measures of the Area Average, you observe the measures of the Bradley operation that are worse than the Area Average benchmark values. They are A. asset turnover rate, net farm income ratio and operating expense ratio. B. net farm income ratio, interest expense ratio and operating expense ratio. C. net farm income ratio and deprecation expense ratio. D. depreciation expense ratio and asset turnover rate
D
Which enterprise would contribute the least to the total Net Farm Income? A. Corn All Fields Field Unit A Owned B. Corn All Fields Field Unit B Cash Rented C. Soybeans All Fields Combined Unit F Shared Rented D. Rye Cover Crop Unit B Cash Rented
D
Which month of the year has the largest ending cash balance? A. January B. April C. August D. December E. None of the above
D
Which of the following is NOT a type of cooperative? A. Marketing B. Credit C. Processing D. All of the above
D
Which of the following is NOT one of the steps in the risk management process? A. Identify B. Plan C. Prioritize D. All of these are steps in the risk management process
D
Which of the following is a benefit of a corporate business structure? A. Ownership is easily divided into shares. B. A corporation does not dissolve with the death of an owner. C. It benefits estate planning. D. All of the above
D
Which of the following is a factor of production? A. Land B. Labor C. Capital D. All of the above
D
Which of the following is an example of market risk that applies to the Bradleys' sheep operation? A. A change in tastes and preferences for leather goods B. A change in lamb consumption C. A switch from wool to polyester as a primary fabric material D. All of these are examples of market risk
D
Which of the following statements is a best practice when selecting a business organization structure? A. Business owners should select the simplest business organization that still meets their needs and goals. B. Partnership agreements should always be written and reviewed by legal and tax professionals before they are signed. C. Future plans and aspirations of the business owner should be taken into account when deciding the optimal business structure. D. All of the above
D
Which of the following would be a part of an integrated plan to manage the human safety risks associated with a farming operation? A. Ensure that employees wear appropriate personal protective gear to prevent injuries. B. Ensure that safe pesticide mixing and handling procedures are followed. C. Have the appropriate insurance policies in place to pay for damages associated with work-related injuries. D. All of the these are part of an integrated plan to manage human safety risks
D
___________ is an example of risk control. A. An insurance policy B. A fire suppression system C. Following label directions when applying pesticides D. B and C E. None of the above
D
Excessive rainfall is an example of __________ risk. A. market B. legal C. financial D. human E. production
E