FARM BUSINESS MANAGEMENT
the person who rents from someone else is also known as - Answer the tenant
in marketing, the difference between a futures contract price for a given delivery month
and a current local cash market price is called - Answer the basis
cash income minus cash expense equal - Answer net cash income and cash profit
lenders want to see a cash flow to determine - Answer how much money the borrower
will need and when the borrower can pay back the loan
a loan to purchase seed, fertilizer and chemicals is generally called - Answer an
operating loan
An individual seller typically has very little control over the price he/she receives for their
product at a given point in this type of market - Answer purely competitive
things of value that are owned are generally referred to as - Answer assets
solvency is best measured by - Answer net capital ratio
the size of one soybean futures contract on the Chicago Board of Trade is - Answer
5,000 bu.
At the beginning of last year, a farmer had an outstanding loan of $100,000. The
interest rate was 10% APR. If the farmer made one loan payment at the end of the year
of $25,400 what was the outstanding balance at the end of the year. - Answer $84,600
An ordinary corporation is a business that is normally - Answer owned by investors who
are not customers & controlled on a 1 share of stock, 1 vote basis
money provided to or invested in an agricultural business by the owners is normally
referred to as - Answer equity capital
the nearby hog futures contract closed at $49.80 with a local basis of $1.85. the local
cash market price was? - Answer $49.85
a partial budget is - Answer used to evaluate a change in some aspect of the business
such as purchasing new equipment
the following is bought and sold on the Chicago Board of Trade - Answer corn futures
contracts
a cash flow budget is - Answer a projection
the manager of a cooperative is generally - Answer hired by the board of directors
,FARM BUSINESS MANAGEMENT
economies of size tells us that - Answer bigger businesses use management resources
more efficiently that smaller ones& bigger businesses use assets more efficiently than
smaller ones
cooperative profits can be paid back to customers using - Answer patronage refunds
when a farmer pays a loan in full, the component of the payment equal to the amount
borrowed is - Answer principle
an annuity is - Answer a series of equal annual payments
equity is - Answer the net worth of the business & the owner's share of the buisness
suppose a dairy farmer's cost of milk production increased by 6.5% from the $8.50 per
hundred weight that is was last year. What is the farmer's new cost of milk production. -
Answer $9.05
the tax deductible allowance for the loss in value of a fixed asset due to wear and tear
or obsolescence is known as - Answer depreciation expense
wages or salaries that are lost as a result of attending college instead of working
represents - Answer opportunity cost
the financial method of reporting income by recording income in the year that the cash
is received is known as this method - Answer cash
a measure of a farmer's ability to pay their bills this year is given by the farmer's -
Answer current ratio
according to economics, prices in free markets are determined by the interaction of
supply are - Answer none of the above
(income, production, costs)
net worth of a farm of agricultural business is equal to - Answer equity
An income statement is also called - Answer a profit and loss statement
the traditional parts or factors of production used by farm of agribusiness firms in
production include all of the following except - Answer money
working capital = - Answer current assets- current liabilities
the portion of land debt due after this year is classified as - Answer a non-current liability
, FARM BUSINESS MANAGEMENT
which of the following is most likely to qualify for depreciation for tax purposes - Answer
livestock purchased for breeding or dairy purposes
an enterprise budget is - Answer expected costs and returns associated with a specific
production activity
the price paid for the right but not the obligation to buy or sell futures contract is called -
Answer the premium
most farms in the US are - Answer sole proprietorships
a mortgage is - Answer a loan secured with the creditor's claim on the property of the
borrower
schools, cities, and countries generate most of their funds through - Answer property tax
this type of planning deals with a person's wishes for the disposition of their assets at or
after their death - Answer estate
a constant payment loan with payments consisting of principal and interest is called -
Answer an amortized loan
a farm firm that has relatively more equity than another farm firm is - Answer more
solvent
accounts receivable are - Answer money stilled owed to you at the end of the year
a business expense due to borrowing money is - Answer interest
if a soybean producer expects to receive $5.50 per bushel for his/her soybeans, has
total fixed costs of $60/acre and has total variable costs of $160/acre, the expected
break-even soybean yield for this producer is - Answer 40 bu/acre
the price at which market demand will likely equal market supply is called the - Answer
equilibrium price
the total cash corn market price closed at $3.75 with a local basis for #0.25. The nearby
futures market price closed at - Answer $4.00
property or anything else of value that is pledged to a lender as loan security is -
Answer collateral
principal and interest that must be paid within a year are examples of - Answer current
liablities
the person who rents from someone else is also known as - Answer the tenant
in marketing, the difference between a futures contract price for a given delivery month
and a current local cash market price is called - Answer the basis
cash income minus cash expense equal - Answer net cash income and cash profit
lenders want to see a cash flow to determine - Answer how much money the borrower
will need and when the borrower can pay back the loan
a loan to purchase seed, fertilizer and chemicals is generally called - Answer an
operating loan
An individual seller typically has very little control over the price he/she receives for their
product at a given point in this type of market - Answer purely competitive
things of value that are owned are generally referred to as - Answer assets
solvency is best measured by - Answer net capital ratio
the size of one soybean futures contract on the Chicago Board of Trade is - Answer
5,000 bu.
At the beginning of last year, a farmer had an outstanding loan of $100,000. The
interest rate was 10% APR. If the farmer made one loan payment at the end of the year
of $25,400 what was the outstanding balance at the end of the year. - Answer $84,600
An ordinary corporation is a business that is normally - Answer owned by investors who
are not customers & controlled on a 1 share of stock, 1 vote basis
money provided to or invested in an agricultural business by the owners is normally
referred to as - Answer equity capital
the nearby hog futures contract closed at $49.80 with a local basis of $1.85. the local
cash market price was? - Answer $49.85
a partial budget is - Answer used to evaluate a change in some aspect of the business
such as purchasing new equipment
the following is bought and sold on the Chicago Board of Trade - Answer corn futures
contracts
a cash flow budget is - Answer a projection
the manager of a cooperative is generally - Answer hired by the board of directors
,FARM BUSINESS MANAGEMENT
economies of size tells us that - Answer bigger businesses use management resources
more efficiently that smaller ones& bigger businesses use assets more efficiently than
smaller ones
cooperative profits can be paid back to customers using - Answer patronage refunds
when a farmer pays a loan in full, the component of the payment equal to the amount
borrowed is - Answer principle
an annuity is - Answer a series of equal annual payments
equity is - Answer the net worth of the business & the owner's share of the buisness
suppose a dairy farmer's cost of milk production increased by 6.5% from the $8.50 per
hundred weight that is was last year. What is the farmer's new cost of milk production. -
Answer $9.05
the tax deductible allowance for the loss in value of a fixed asset due to wear and tear
or obsolescence is known as - Answer depreciation expense
wages or salaries that are lost as a result of attending college instead of working
represents - Answer opportunity cost
the financial method of reporting income by recording income in the year that the cash
is received is known as this method - Answer cash
a measure of a farmer's ability to pay their bills this year is given by the farmer's -
Answer current ratio
according to economics, prices in free markets are determined by the interaction of
supply are - Answer none of the above
(income, production, costs)
net worth of a farm of agricultural business is equal to - Answer equity
An income statement is also called - Answer a profit and loss statement
the traditional parts or factors of production used by farm of agribusiness firms in
production include all of the following except - Answer money
working capital = - Answer current assets- current liabilities
the portion of land debt due after this year is classified as - Answer a non-current liability
, FARM BUSINESS MANAGEMENT
which of the following is most likely to qualify for depreciation for tax purposes - Answer
livestock purchased for breeding or dairy purposes
an enterprise budget is - Answer expected costs and returns associated with a specific
production activity
the price paid for the right but not the obligation to buy or sell futures contract is called -
Answer the premium
most farms in the US are - Answer sole proprietorships
a mortgage is - Answer a loan secured with the creditor's claim on the property of the
borrower
schools, cities, and countries generate most of their funds through - Answer property tax
this type of planning deals with a person's wishes for the disposition of their assets at or
after their death - Answer estate
a constant payment loan with payments consisting of principal and interest is called -
Answer an amortized loan
a farm firm that has relatively more equity than another farm firm is - Answer more
solvent
accounts receivable are - Answer money stilled owed to you at the end of the year
a business expense due to borrowing money is - Answer interest
if a soybean producer expects to receive $5.50 per bushel for his/her soybeans, has
total fixed costs of $60/acre and has total variable costs of $160/acre, the expected
break-even soybean yield for this producer is - Answer 40 bu/acre
the price at which market demand will likely equal market supply is called the - Answer
equilibrium price
the total cash corn market price closed at $3.75 with a local basis for #0.25. The nearby
futures market price closed at - Answer $4.00
property or anything else of value that is pledged to a lender as loan security is -
Answer collateral
principal and interest that must be paid within a year are examples of - Answer current
liablities
