FBLA - Agribusiness

FBLA objective test practice

business cycle

the repeated rise and fall of economic activity over time

business plan

a written description of a new business venture that describes all aspects of the proposed agribusi- ness; it helps you focus on exactly what you want to do, how you want to do it, and what you expect to accomplish

business survey

a survey that a business conducts to determine the market potential for a selected business

capital

goods used to produce other goods and services; the investment that the owner has put into the business

capital intensive

having a high capital cost per unit of output; requiring greater expenditure in the form of capital than of labor

capitalism

an economic system where individuals own resources and have the right to use their time and resources however they choose

collateral

something of value deposited with a lender as a pledge to secure repayment of a loan

diligence

steady application; constancy in an effort to accomplish something

entrepreneur

person who accepts all the risks pertain- ing to forming and operating a small business. This also entails performing all business functions associated with a product or service and includes social responsibility and legal requirements

financial institutions

any business that lends money

financial resources

any place that a consumer or business person can acquire money

free enterprise

economic system that allows individu- als to organize and conduct business with a minimum of government control; individuals privately own what they produce

investors

one who provides money to others, usually a business, for later income or profit

niche

place or position in the community suitable for a person or thing

rapport

a harmonious or sympathetic relationship

small business

a business that is independently operated, is not dominant in its field, and meets certain size standards in terms of number of employees and annual receipts

agribusiness input sector

all resources that go into production

agriculture to produce farm commodities.

agribusiness output sector

any phase of the agribusiness sector after the commodity leaves the farm, such as sales or marketing.

agriservices sector

the portion of the agricultural

industry concerned with researching new and better ways to produce and market food, to protect food producers

and consumers, and to provide special, custom services to all the other phases of agriculture.

distillation

the process of separating the components

of a mixture by differences in boiling point; the evaporation and subsequent condensation of a liquid, as when water is boiled in a retort and the steam is condensed in a coil receiver.

E-85

Fuel blend that is 85 percent ethanol and 15 percent gasoline (formerly called gasohol).

ecologists

one who is concerned with the interrelationship of organisms and their environment.

economists

a specialist in economics which is the

science that deals with the production, distribution, and consumption of goods and services.

enterprises

projects on a farm, such as the production

of any crop or livestock.

envrionmentalists

any person who advocates or works

to protect the air, water, and other natural resources.

ethanol

the alcohol product of fermentation that is

used in alcoholic beverages and for industrial (fuel)

purposes.

exports

shipments of commodities or products, such as agricultural commodities, to foreign countries.

fermentation

the process of food by means of yeast,

molds, or bacteria.

gasohol

registered trade name for a blend of

90 percent unleaded gasoline with 10 percent fermentation ethanol.

gross domestic product (GDP)

measures the value of goods and services that a country produces in a year.

humus

organic matter in the soil that has reached

an advanced stage of decomposition and has become colloidal in nature.

imports

shipments of commodities and products, such as agricultural commodities, from foreign countries for sale, use, or donation.

industralization

the process of becoming mechanized

or industrialized.

outstanding loans

loans that have not yet been paid.

private agriservices

any services not included in federal,

state, or local government programs; for example, the Farm Credit System.

production efficiency

receiving optimum output from a reasonable input.

public agriservices

groups at the federal, state, and

local levels that provide special services to production agriculturalists and others.

value-added

condition of having had an operation

performed that increases worth and price, such as being packaged or processed.

Aggregate

Total

Agricultural Economics

An applied social science dealing with how humans choose to use technical knowledge and scarce productive resources such as land, labor, capital, and management to produce food and fiber and to distribute agricultural commodities and products for consumption to various members of society over time

Allocation

The distribution or apportioning of something for a specific purpose

Capital

Goods used to produce other goods and services; the investment that the owner has put in the business

Capitalism

An economic system in which individuals own resources and have the right to use their time and resources however they choose

Communism

Economic system in which the government has total control of economic matters and private individuals have none

Economics

Many and varied definitions; most often defined as the science of allocating scarce resources (land, labor, capital, and management) among different and competing choices and utilizing those resources to best satisfy human wants and needs

Fascism

Economic system in which productive property, though owned by individuals, is used to produce goods that reflect government or state preferences

Free Markets

The movement of goods and services among nations without political or economic obstruction

Goods

Things that have economic utility or satisfy an economic want

Macroeconomics

Concerned with the study of the economy on a large scale, or nationally

Microeconomics

Concerned with the study of the economy on a small scale

Needs

Things that are really crucial to daily living

Normative Economics

Subjective statements about economic issues based on opinion only, often without a basis in fact or theory; value-based, emotional statements that focus on "what ought to be"

Positive Economics

Statements based on economic theory rather than emotion or social philosophy; objective statements dealing with matters of fact and questions about how things actually are

Profit

A valuable term

Scarce

Deficient in quantity or number in relation to demand

Scarcity

Economic term describing a situation in which there are not enough resources available to satisfy people's needs or wants

Services

Nontangible products that cannot be held, stored, or touched. They can include benefits, activities, or satisfactions that are offered for sale.

Socialism

Economic system in which there is public ownership of all productive resources. The government, or the state, directs all decision making.

Subsectors

Parts of the economy: household sector (all consumers), business sector) all firms, and government sector (all government agencies)

Subsidies

Government grants of money to aid or encourage a private enterprise that serves to benefit the public

Wants

Things that are not crucial to daily living

Define Demand

The relationship between price and quantity that illustrates how much consumers are willing and able to purchase at various prices.

Define Diminishing Marginal Utility

When a product or service is consumed, a time comes when the utility (or pleasure or benefit) of consuming that product or service declines.

Define Economic Opportunities

The possible business prospects available today's global economy.

Define Economic Principles

The basic premises that explain the free enterprise system.

Define Economics

The science of allocating and utilizing scarce resources of land, labor, capital, and management in the most optimum manner among different and competing choices to satisfy human wants.

Define Equilibrium Price and Quantity

The point at which the supply and demand schedules intersect and at which the quantity offered for sale matches exactly the quantity that consumers are willing to purchase.

Define Free Enterprise

A system in which economic agents are free to won property and engage in commercial transactions.

Define Government Policy

United States Department of Agriculture policies that are designed to regulate agribusinesses.

Define Hedging

To offset risk in the market, hedgers use the forward or futures market to guarantee a transaction or price and thereby reduce exchange risk.

Define Human Resources

The people who work in agribusiness. labor used as an input into the production process.

Define International Markets

All markets outside the borders of the Untied States.

Define Marketing

The coordination of agricultural production with consumer demands including the conception, pricing, promotion, and distribution of products and services.

Define Marketing Plan

An agribusiness's written plan of action that details the time frames and activities for implementing a strategy to market its goods and/or services.

Define Supply

The relationship between price and quantity that illustrates how much producers are willing to supply at various prices.

Two Entity Model

an operation consists of production entity and landholding entity ( partnership, corporation, sole proprietorship, LLC)

production entity

own the machinery, equipment and livestock

-active in the farming/ranching

landholding entity

owns the land and leases the land to production entity for use

Sole Proprietorship definition

a form of business where the owner is actually the business; the business is not separate legal entity

Sole proprietorship

easy to administer, but does not limit personal liability

-terminates at owners death

-difficult to transfer to subsequent generations

-can operate under owners name or trade name (dba "doing business as")