AGEC 340 Final Exam
Discuss management by exception and how an agribusiness manager would use this
concept - correct answer-Management by exception involves a manager focusing on
aspects of the firm that are not progressing according to the plan. An agribusiness manager
can use this to decide where to focus their energy on, if one part of the firm is doing what it is
supposed to then the manager doesn't need to spend time focusing on that.
How does a business earn the right to make a profit? - correct answer-By satisfying a
consumers needs
How does an agribusiness manager use economic profits? - correct answer-An agribusiness
manager uses economic profit to decide if they should stay in business. if consistently
having large negative economic profits the firm should evaluate if they should stay in
business or pursue a different career.
How does our textbook define management in agribusiness? - correct answer-
How is accounting profit used by an agribusiness manager? - correct answer-Accounting
profit can be used by an agribusiness manager to help make sound financial decisions and
calculate economic profit.
How or why could agribusinesses and firms outside the agribusiness sectors make different
decisions under similar situations? - correct answer-No firms outside of agribusiness have all
8 unique factors of an agribusiness. These 8 factors would impact the decisions an
agribusiness would make.
If an agribusiness pays $50,000 per year to rent storage tanks to store a chemical
suspended in a liquid solution used in manufacturing their finished product, is this an implicit
or explicit cost? - correct answer-Explicit
In marketing terminology, what are customers called that respond in a similar fashion to a
given offer? - correct answer-Market segment
Target market
Market Niche
List five factors that should be considered when making price decision - correct answer-1)
Type of product
2) Value delivered
3) Cost of product bundle
4) Customer demands
5) Competitive environment
6) Goal of pricing strategy
List four characteristics that make financial ration analysis a good tool for measuring the
performance of a business - correct answer-1) Easy to calculate
, 2) Easy to make comparisons
3) Easy to understand
4) Ability to communicate the firms financial position to the outside world
List the categories of adopters in order of their willingness to adopt new products or
technologies - correct answer-1) Innovators/opinion leaders
2) Early adopters
3) Early Majority
4) Late Majority
5) Laggards
List the eight factors that combine to make the agribusiness sector unique? - correct
answer-1) Food as a product
2) Uncertainty of the weather
3) Seasonality
4) Types of firms
5) Variety of market condition
6) Rural ties
7) Government Involvement
8) Biological Nature
List the stages of diffusion of innovations and provide a brief description for each stage -
correct answer-Awareness- aware of products existence
Interest- Consumers have some interest in product but have not purchased it yet
Evaluation- Initial evaluation of product
Trial- Trying out the product but not integrated into daily use
Adoption- regular use of product
List three factor that influence supply - correct answer-# of buyers
Price of inputs
Taxes
Weather
List three factors that influence demand - correct answer-Consumer preferences
Income
Expectations
Name and describe the three approaches that agribusiness have historically taken to
marketing - correct answer-Product driven- demand exceeds supply, focus on increasing
efficiency
Sales driven- Hard selling, insensitive to customer need
Market- driven- Focus on meeting consumer needs
Name and describe the two types of advertising strategies that we discussed in class -
correct answer-1) Push- getting the consumer to want to buy the product
2) Pull- Getting the consumer to demand you product and pulling it down from the the
manufacturing level
Discuss management by exception and how an agribusiness manager would use this
concept - correct answer-Management by exception involves a manager focusing on
aspects of the firm that are not progressing according to the plan. An agribusiness manager
can use this to decide where to focus their energy on, if one part of the firm is doing what it is
supposed to then the manager doesn't need to spend time focusing on that.
How does a business earn the right to make a profit? - correct answer-By satisfying a
consumers needs
How does an agribusiness manager use economic profits? - correct answer-An agribusiness
manager uses economic profit to decide if they should stay in business. if consistently
having large negative economic profits the firm should evaluate if they should stay in
business or pursue a different career.
How does our textbook define management in agribusiness? - correct answer-
How is accounting profit used by an agribusiness manager? - correct answer-Accounting
profit can be used by an agribusiness manager to help make sound financial decisions and
calculate economic profit.
How or why could agribusinesses and firms outside the agribusiness sectors make different
decisions under similar situations? - correct answer-No firms outside of agribusiness have all
8 unique factors of an agribusiness. These 8 factors would impact the decisions an
agribusiness would make.
If an agribusiness pays $50,000 per year to rent storage tanks to store a chemical
suspended in a liquid solution used in manufacturing their finished product, is this an implicit
or explicit cost? - correct answer-Explicit
In marketing terminology, what are customers called that respond in a similar fashion to a
given offer? - correct answer-Market segment
Target market
Market Niche
List five factors that should be considered when making price decision - correct answer-1)
Type of product
2) Value delivered
3) Cost of product bundle
4) Customer demands
5) Competitive environment
6) Goal of pricing strategy
List four characteristics that make financial ration analysis a good tool for measuring the
performance of a business - correct answer-1) Easy to calculate
, 2) Easy to make comparisons
3) Easy to understand
4) Ability to communicate the firms financial position to the outside world
List the categories of adopters in order of their willingness to adopt new products or
technologies - correct answer-1) Innovators/opinion leaders
2) Early adopters
3) Early Majority
4) Late Majority
5) Laggards
List the eight factors that combine to make the agribusiness sector unique? - correct
answer-1) Food as a product
2) Uncertainty of the weather
3) Seasonality
4) Types of firms
5) Variety of market condition
6) Rural ties
7) Government Involvement
8) Biological Nature
List the stages of diffusion of innovations and provide a brief description for each stage -
correct answer-Awareness- aware of products existence
Interest- Consumers have some interest in product but have not purchased it yet
Evaluation- Initial evaluation of product
Trial- Trying out the product but not integrated into daily use
Adoption- regular use of product
List three factor that influence supply - correct answer-# of buyers
Price of inputs
Taxes
Weather
List three factors that influence demand - correct answer-Consumer preferences
Income
Expectations
Name and describe the three approaches that agribusiness have historically taken to
marketing - correct answer-Product driven- demand exceeds supply, focus on increasing
efficiency
Sales driven- Hard selling, insensitive to customer need
Market- driven- Focus on meeting consumer needs
Name and describe the two types of advertising strategies that we discussed in class -
correct answer-1) Push- getting the consumer to want to buy the product
2) Pull- Getting the consumer to demand you product and pulling it down from the the
manufacturing level
