TAMU AGEC 340 (Dr. Lucas Garcia) - Final Exam

Management drives and directs the firms, farms, food companies that come together in the food production and ______________ system

b. marketing

A retail supermarket, a major corn processor, the local farm supply store, and a family farmer each have a person or a group of people responsible for making sure that things get done. Those are ___________.

a. managers

_________________ focuses on the management of food, fiber, and agribusiness firms .

a. Agribusiness Management

_____________ involves understanding customer needs and effective positioning and selling products and services in the marketplace.

b. marketing management

________________ encompasses managing two areas: the mechanics of the personnel administration, and the finer points of motivating people to offer and contribute their maximum potential

a. Human Resource Management

b. Strategic Planning Practices

c. Financial Planning Tactics

d. Training Operations Strategies

a. Human Resource Management

These are key functions of Management in Agribusiness:

a. Financial Management

b. Human Resource Management

c. Marketing Management

d. All of the answer choices

d. All of the answer choices

______________ is a constant threat for most agribusinesses

a. None of the answer choices

b. New computer software

c. Modern Diets

d. Weather uncertainty

d. Weather uncertainty

The __________ breaks down the proportions of the consumer's food dollar that go to the farmer for raw products and to the food industry for "marketing" those raw farm products to end consumers

b. Farm Marketing Bill

The U.S. Food production and marketing system is divided into three sectors: Input Supply Sector, Production Sector, and _______________. This is also known as the agricultural supply chain

a. Food Sector

b. Financial Sector

c. Transportation Sector

d. Quality Assurance Sector

a. Food Sector

The sector is made up of firms that manufacture and distribute the thousands of different inputs - both products and services - to production.

d. Input Supply Sector

The four key tasks of agribusiness managers: Planning, Organizing, Directing, and _______________

a. Allocating

b. Optimizing

c. Controlling

d. Strategizing

c. Controlling

Any planning activity is focused on achieving some goal. A ______________ help to spell out the direction for a firm and describes the destination to achieve that goal.

a. None of the answer choices

b. Strategic planning

c. Tactical planning

d. Contingency planning

a. None of the answer choices

Table 2.3 illustrates the three levels of planning . Under this level, the following are included: Middle Management, Somewhat Flexible, Intermediate-term, Written reports, Less detail, outlined, and general components. Which level is this?

b. Tactical level

Creating a work climate for success helps managers improve employee efforts to the point where employees approach their potential. Which of the following is NOT a principle used to create the right work climate:

c. reprimand in public, credit in private

An important management technique called _____________ holds the basic premise that managers should not spend time on management areas that are progressing according to plan.

a. management by exception

b. management by hierarchy

c. management by preference

d. management by performance

a. management by exception

This type of planning describes the development of alternative plans for various possible business conditions; prepare for the unexpected.

b. Contingency planning

An organizational chart shows the formal organizational structure of a company. This category describes how jobs are broken into components and then assigned.

d. Division of labor

The type of planning involves focus and developing courses of action for the longer term; two to twenty-year (or longer) horizons:

a. Contingency planning

b. Projected planning

c. SWOT analysis planning

d. Strategic planning

d. Strategic planning

TRUE OR FALSE: A leader applies the technical skills of business to the management of things (inventory, production, and so on). "Tells" employees how to complete a task and how the result must be achieved More of an autocratic style

a. FALSE

b. TRUE

a. FALSE

A manager influences the attitudes and behavior of followers and motivates them to do their best work.

- "Motivates" employees to complete the task correctly on time and creates a culture of excellence and success

- More of a participatory style

a. True

b. False

b. False

This type of economics focuses on the "big picture" view of our economic system

c. Macroeconomics

This type of economics studies how individuals, firms, and society choose to combine scarce resources (land, labor, capital, and management) to satisfy the unlimited wants, best meet the needs of of consumers

b. Economics

The latin term means, "with other things the same" or "all other factors held constant"

a. Ceteris Paribus

When discussing shifts in demand curves, the following factors can cause a shift EXCEPT:

a. Income

b. Taste and Preferences

c. Price of substitutes or complements

d. Seasonality or Availability of Products

d. Seasonality or Availability of Products

When we calculate a change in quantity divided by a change in price, we are simply calculating this type of coefficient:

d. Elasticity

A professional manager understands and uses economic concepts to interpret information, both to assess the broader marketplace and to improve the effectiveness of their decision making. Three Economic Concepts are: Economics of Markets, Elasticities of Demand, and _________________

b. Profit

This type of profit is equal to the accounting profit minus opportunity cost:

a. Accounting Profit

b. Managerial Profit

c. Board of Directors Profit

d. Economic Profit

d. Economic Profit

When economists describe profit, costs are divided into categories. This type of cost is associated when payments are made to suppliers of resources (land, labor, materials, fuel, etc.) and usually measured by an accountant

a. Explicit

The process of ___________ means that market equilibrium for quantity and price is determined through transactions between producers and consumers.

b. Price Discovery

Several economic concepts provide insights for agribusiness managers - profit, opportunity costs, economic profit, supply, demand, and ____________.

a. Profit

b. None of the answer choices

c. Investment

d. Elasticity

d. Elasticity

This is the oldest and simplest form of business organization:

a. limited Liability Corporation LLC

b. Partnerships

c. None of the answer choices

d. S-corporation

c. None of the answer choices

As we discuss corporations, the common stockholders in these business organizations elect __________ to supervise the affairs of the corporation.

a. Board of directors

Ancient Egypt had traces of cooperative-like organizations dating back to:

c. 3,000 B.C

Many agribusinesses have formed _________ which are cooperative agreements between firms that go beyond normal firm-to-firm dealings but fall short of being a merger or full partnership and ownership.

a. Strategic Alliances

taxation for corporations must files certain forms with the IRS. Corporations report their sales, expenses, and profits on ___________ for ordinary corporations and ______________ for S-corporations

b. Form 1120 and Form 1120S

When forming your choice of business, it is best to seek professional advice from these folks:

d. Tax Accountants and Lawyers

This is the most popular business organization in the United States

a. Sole Proprietorship

In this type of business organization, the owner is the boss.

a. Sole Proprietorship

b. Partnership

c. Limited Liability Corporation

d. S-corporation

a. Sole Proprietorship

Many businesses, as part of their planning, focus on the future. This business mentality is referred to as:

d. Succession Planning

How many people make up a partnership

d. two or more

USDA's Foreign Agricultural Service (FAS) cited _________, _______________, and _____________ as the top three markets for U.S. agricultural exports

b. Canada, China, Mexico

The Food and Agriculture (FAO) of the United Nations defines ____________________ as the state of affairs where all people at all times have access to the safe and nutritious food to maintain a healthy and active life

d. food security

Two key factors responsible for the growth in the U.S. food industry are: ____________ and ______________.

d. trade, investment

The U.S. exports are composed of two categories: __________________ and bulk commodities

d. Value-added products

The General Agreement on Tariffs and Trade (GATT) was developed in what year?

c. 1947

Global recognition of corporate logos and brands increases both the efficiency and effectiveness of a company's advertising efforts. This is known as:____________

a. brand recognition

International trade, both imports and exports of food and food products, is increasing faster than ____________________.

c. domestic sales

_______________ is the set of socially transmitted behaviors, acts, beliefs, and speech, and all other products of human work and thought, that characterize a particular population.

culture

This determines the worth of one country's currency relative to that of another country

b. exchange rates

According to text, this state is a clear leader in ethnic "mixing" in North America

a. California

This type of management includes a broad spectrum of decisions and activities that center on effectively reaching your customers, prospects, and public, and providing them with products or services that meet their needs and wants

a. marketing management

Marketing is the process of anticipating the needs of targeted customers and finding ways to meet those needs _____________.

b. profitability

When sales growth slows, many firms will adopt a new approach to marketing which centers around intensifying the sales effort and communicating the benefits of their products known as _______________.

a. resource allocation specialities

b. none of the answer choices

c. sales-driven marketing

d. projection planning

c. sales-driven marketing

When the focus of customer needs drives all decisions in the organization -- from product development efforts, to production locations decisions, to asset allocation -- this type of organization is called ___________.

c. investment-drive marketing

This type of plan integrates business activities and resources in an intentional way to meet customers' needs and to generate a profit

c. strategic marketing plan

The first step in the Marketing Planning Process is to conduct: ____________

c. a SWOT analysis

The 4 P's of marketing as listed in the text are: Product, ______________, Promotion, Place, and People

a. Price

b. Planning

c. Projection

d. Prototype

a. Price

This technique, under strengths and weaknesses, involves identifying a non-competitive firm that is known for excellence in a particular area, then carefully studying that firm to see how they deliver this excellence.

a. Benchmarking

b. quarter data analyses

c. none of the answer choices

d. quality control measures

a. Benchmarking

This process groups customers into categories according to some set of characteristics

b. market segmentation

A well-defined market segment will pass the following characteristics: Measured, Substantive, and _____________.

b. actionable

What is the 5th P of marketing that ties the traditional 4 P's together?

a. Prediction

b. Profitability

c. Position

d. Potential

c. Position

The ultimate job of the agribusiness marketer is to craft a marketing mix consistent with the firm's desired position that creates _________ for the customer.

c. value

This is known as the set of tangible and intangible benefits customer receive from the products and services provide.

d. value bundle

As we discussed "Total Product Concept" we were able to break down the following: Potential Product, Value-added product, and expected product. These centered around the initial _____________________.

c. generic product

This type of product focuses on the future :

a. potential product

Under stages of production, the stage is where the customer decides whether or not to try the product.

c. evaluation

This stage of production examines where a potential customer becomes interested enough to learn more about the product

c. interest

The stage of production is where the customer samples the product.

a. adoption

b. evaluation

c. none of the answer choices

d. trial

d. trial

The last era in the product life style is known as:

a. decline

This is where an examination of a company's entire marketing program takes place

a. marketing audit

This step in a marketing audit is to carefully ______________ how the agribusiness is doing with each product or service it markets

a. analyze

This step in the marketing audit focuses on ___________ the firm's distinctive competencies

a. all of the answer choices

b. dismissing

c. punishing

d. identifying

d. identifying

This step in the marking audit relates to human resources and organization

d. assess

______________ involves predicting sales in dollars and physical units as accurately as possible for a specific period of time.

b. sales forecasting

One simple but effective method for analyzing competition is completing a formal strength and weakness analysis for each competitor. This is known as:

a. competitor analysis

THis type of tool allows a company to obtain vital information when analyzing customer needs

a. customer survey

This type of survey is time consuming and expensive but provides a great deal of information to companies

b. personal interview

As a company ecames or performs audits, some of the information collected will be in the form of time, customer, and product lines. This data is categorized as:

b. transactions data

one form of data collection, in respect to customers is to visually see where these purchases are located. This is called:

a. google images

b. product sales charts

c. shipping routes

d. market mapping

d. market mapping

In the end, it is this bundle of products, services, and information that creates ______________ for the buyer.

d. value

____________ is the amount remaining from a sale after the cost of the product,operating expenses, and interest have been paid

profit

___________ is a historical benchmark that represents the skill and ability of decision-makers of the firm.

Profit

What is the collection and use of financial information to make management decisions

Managerial Accounting

What is the collection and use of financial information to meet outside reporting requirements

Financial Accounting

what 4 things should a record system be?

1. Simple and easy to understand

2. Reliable, accurate, consistent, and timely

3. Based on the uniqueness of the particular business

4. Cost effective to implement and maintain

What are the three parts of the accounting process

journal

Ledger Accounts

Accounting Period

what are the three parts of the journal of the accounting process

Recording day-to-day transactions

Chronological order

One journal versus separate journals

in the accounting process, what allows for related transactions or activities to be separated, categorized, and recorded

Ledger Accounts

In the accounting process, what is a Predetermined regular basis in which ledger accounts are summarized

accounting period

what is the equation for assets

Assets = Liabilities + Owner's Equity

define:

what the business owns

assets

define:

what the business owes to "outsiders"

liabilities

define:

what the owners have invested in the business

owners equity or net worth

what is a financial make up or a financial condition as of a specific time

the balance sheet

define the type of asset:

cash/checking or assets that will be converted to cash during a normal operating cycle of the business

current assets

the following are examples of what type of assets:

Cash

Accounts receivable

Inventory

Prepaid expenses

the following are examples of what type of assets:

Equipment (less accumulated depreciation)

Land

Buildings, etc.

fixed assets

define the type of asset:

Items that the business owns that have a relatively long life

fixed assets

define the type of liability:

Outsiders' claims against the business that will fall due within a normal operating cycle (usually 1 year)

Current liabilities

define the type of liability:

Outsiders' claims against the business that will fall due beyond one year

Long-term liabilities