Agribusiness Org & Mgt Exam 1

(O1-3) Unique dimension(s) of the food and agribusiness markets include

all of the above

(O1-4) Countries with higher per capita GDP (over $25,000) typically have a higher percentage of their personal consumption expenditures spent on food consumed at home (2013).

False

O1-4) The Farm Share and Food Marketing bill (p. 13) breaks down the proportion of the consumer's food dollar that goes to the farmer for raw products and the proportion that goes to to "marketing" those products to the consumer.

True

O1-5) In 2017, for every dollar spent on food, about 15 cents went to the farmer.

True

O1-5) In 2017, the largest industry sector of value-added for the 2017 farm-food marketing bill (p.14) was

Food Services

(O1-6) The sector(s) of the food production and marketing system is (are): (Figure 1.5)

all of the above

O1-7) The food retailing sector accounts for 12.6 percent of the value-added to the consumer food dollar. The food retailing stores has fragmented from supermarkets to include the following types of firms, except

Fast Food Eateries

(O1-7) In 2014, Kroger was the largest US food retailer. (Table 1.3)

False

O1-9) The input supply sector for the farm includes:

all of the above

(01-8) In 2012, more than 80% of all farm sales (Figure 1.11) were achieved by farms in which annual sales classification?

Sales of $500,000 or greater

(O2-1) When Don attends the party for the new retirees, he will be operating in which of the management roles?

figurehead

(O2-1) When Michelle meets with the section managers to brief them on the concerns of the city officials, which management role is she performing?

disseminator

(O2-2) If a major competitor of an organization suddenly creates a new type of product that makes the products of its competitors obsolete, this is an example of which type of force in the environment?

micro-environment

O2-4) The development of alternative plans for various possible business conditions is called

Contingency planning

O2-4) Strategic planning by top management in an agribusiness would include the following characteristic(s):

all of the above

(O2-5) You must decide how to structure a work group so its work can be accomplished most efficiently. You have twelve people to deal with. You finally decide to make two of them chiefs and assign the remaining ten to the two teams. What are you doing?

Organizing

(O2-5) A regional tractor manufacturing operation has the following divisions: manufacturing, finance, human resources, marketing, and shipping/receiving. This is an example of ________ departmentalization.

functional

(O2-6) A step-by-step guide to implement a policy for a specific activity is called a:

procedure

(O2-7) A manager assigns a worker a project to be completed and then holds periodic meetings with the worker to determine whether target dates for subparts of the project are being met. Which management function do these meetings represent?

controlling

(O2-7) A management technique that holds the premise that managers should not spend time on areas that are progressing according to plan; but rather, concentrate on areas that are not progressing as planned is called management by exception.

true

(O3-1) Macroeconomics is more likely to be concerned about the __________.

“Big picture” view of our economic system

(O3-2) An implicit cost involves payments to suppliers of resources.

False

(O3-3) Major factor(s) that cause the demand curve to shift include ___________.

expectations

(O3-3) Movement along the demand curve for good X occurs due to the change in?

the price of good X

O3-3) A cereal company introduces a healthier cereal snack that received a high level of positive publicity. Despite running high-speed production lines, the cereal company is still falling short in meeting the demand for the snack nine months after introduction. Which of the following statements is the most plausible explanation for the demand/supply imbalance?

The price of the cereal snack is low relative to the equilibrium price.

O3-4) If the price elasticity of demand is 1.3, the demand is _________.

price elastic

O3-4) If the cross price elasticity of demand is 1.9, the items is _________.

substitutes

O3-4) If the income elasticity of demand is –0.5, the goods are __________.

inferior

(O3-4) Suppose the demand for potato chips is price elastic, what is most likely to happen if grocery stores decide to offer price discounts for potato chips?

Total revenue for potato chips increases

O3-4) The demand for a consumer good will most likely to be more price elastic if ______.

Consumers have more time to shop around

(O4-1) The majority of all business organizations are ___________.

single proprietorships

(O4-2) Advantage(s) of a proprietorship form of organization is (are) ____________.

all of the above

(O4-3) A disadvantage of a partnership is __________.

Unlimited liability of each general partner.

(O4-3) A partner is an individual who cannot take an active role in management, but is known to be a partner by the general public

silent

(O4-3) An example of a partner that would not be active in management and would not be known to the public would be ____________.

Dormant 

(O4-4) Qualification(s) that must be met to form an S-corporation include: _____________.

all of the above

(O4-4) A major disadvantage of forming a corporation is __________.

Double taxation

(O4-5) Cooperatives are member-owned and member-controlled.

True

O4-5) Rochdale Principles exempt cooperatives from anti-trust legislation.

false

(O4-6) Which of the following statements describe the advantages of a Limited Liability Company?

all of the above

O5-2) When the value of the US dollar increases relative to the Chinese currency (Chinese yuan or RMB), US agricultural goods become less expensive for Chinese importers.

false

O5-4) Retaliatory tariffs that a country imposes on imported goods from another country in response to that country’s imposition of a similar tax on its own imports. Select which item(s) accurately describe retaliatory tariffs.

Tariffs are intended to protect a country’s own industries

Escalated and prolonged tariffs can lead to a Trade War

(O5-1) The benefit(s) firms receive from doing business internationally include:______________.

all of the above 

O5-3) Using a trading company or an expert management company to handle the logistics of exporting is called ________.

Indirect exporting

(O5-3) A disadvantage of licensing is that a licensor could find its brand image hurt if the licensee has not maintained sufficient control over the product quality or promotion.

true

(O5-5) Example(s) of a trade agreement would be __________.

all of the above

(O5-2) Which of the following countries/regions is NOT one of the top markets for U.S. agricultural exports in 2021?

Australia

(O5-3) Advantage(s) of exporting over the other methods of entry into another country is (are) ____________.

Increased speed in reaching the global market

(O5-3) The Ferrero Group and The Hershey Company agreed to share North American supply chain processes in order to reduce costs and carbon emissions. This is an example of _________.

Strategic alliance

(O5-3) When a firm handles the details of exporting its product, it is called __________.

direct exporting