AGEC 340 Final Exam Practice Questions – Study Guide, Flashcards & Review
Why would a non-agribusiness company make different decisions under similar situations to
that of an agribusiness? - ✔✔Non-agriculture businesses do not have to deal with all of the
unique factors that an Agribusiness does.
How does our textbook define Management in Agribusiness? - ✔✔Management is the Art and
Science of successfully pursuing the desired results with the available resources to the
organization.
What is management by exception? - ✔✔When a manager allocates more time to the
underdeveloped parts of a company.
what is the ultimate goal of the agribusiness manager? - ✔✔Maximize long run profits of a
firm by profitably satisfying customer needs.
What is the equation for long run business success using the 3 E's? - ✔✔Efficiency +
Effectiveness + Economic Well Being
What is the difference between a manager and leader? - ✔✔Managers "tell" people
Leaders "motivate" people
What is the simple definition of agribusiness management that we discussed in class? -
✔✔The accomplishment of task through people
How does an Agribusiness firm earn the right to make a profit? - ✔✔Only by satisfying
customer needs does a firm earn the right to make a profit.
, Explain the difference between Implicit and Explicit cost. - ✔✔Explicit: Payment made to
suppliers of resources such as land, labor, materials, fuel and the like.
Implicit: Cost for which there is no cash outlay
What is the equation for accounting profit? - ✔✔Total revenue - Opportunity Cost
What is derived demand? - ✔✔The need for a product that indirectly relates to consumer
demand
Give an example of derived demand. - ✔✔Agricultural producers demand for fertilizer is
derived from the demand for corn
What is the Equation for Price Elasticity of Demand? - ✔✔Price elasticity of Demand = %
change in Q / % change in P
Why should an agribusiness seek the assitance of an attorney and an accountant when
determining its legal structure? - ✔✔Because state and federal laws, particularly tax laws,
regarding a legal structure are constantly changing
Which Legal structure carrie the most risk and has the most liability exposure for the owners of
the business? - ✔✔Sole Proprietorship
What is the oldest and most widespread legal structure used by businesses in the U.S.? -
✔✔Sole Proprietorship
What is the marketing mix and how is it used by agribuiness managers? - ✔✔The combination
of price, product, promotion, and place strategies implemented by a firm to support a specific
position in the market.
Why would a non-agribusiness company make different decisions under similar situations to
that of an agribusiness? - ✔✔Non-agriculture businesses do not have to deal with all of the
unique factors that an Agribusiness does.
How does our textbook define Management in Agribusiness? - ✔✔Management is the Art and
Science of successfully pursuing the desired results with the available resources to the
organization.
What is management by exception? - ✔✔When a manager allocates more time to the
underdeveloped parts of a company.
what is the ultimate goal of the agribusiness manager? - ✔✔Maximize long run profits of a
firm by profitably satisfying customer needs.
What is the equation for long run business success using the 3 E's? - ✔✔Efficiency +
Effectiveness + Economic Well Being
What is the difference between a manager and leader? - ✔✔Managers "tell" people
Leaders "motivate" people
What is the simple definition of agribusiness management that we discussed in class? -
✔✔The accomplishment of task through people
How does an Agribusiness firm earn the right to make a profit? - ✔✔Only by satisfying
customer needs does a firm earn the right to make a profit.
, Explain the difference between Implicit and Explicit cost. - ✔✔Explicit: Payment made to
suppliers of resources such as land, labor, materials, fuel and the like.
Implicit: Cost for which there is no cash outlay
What is the equation for accounting profit? - ✔✔Total revenue - Opportunity Cost
What is derived demand? - ✔✔The need for a product that indirectly relates to consumer
demand
Give an example of derived demand. - ✔✔Agricultural producers demand for fertilizer is
derived from the demand for corn
What is the Equation for Price Elasticity of Demand? - ✔✔Price elasticity of Demand = %
change in Q / % change in P
Why should an agribusiness seek the assitance of an attorney and an accountant when
determining its legal structure? - ✔✔Because state and federal laws, particularly tax laws,
regarding a legal structure are constantly changing
Which Legal structure carrie the most risk and has the most liability exposure for the owners of
the business? - ✔✔Sole Proprietorship
What is the oldest and most widespread legal structure used by businesses in the U.S.? -
✔✔Sole Proprietorship
What is the marketing mix and how is it used by agribuiness managers? - ✔✔The combination
of price, product, promotion, and place strategies implemented by a firm to support a specific
position in the market.
