AREC 305 ~ FINAL UPDATED ACTUAL
Questions and CORRECT Answers
By forming strategic alliances, small and medium sized farmers and ranchers can : -
CORRECT ANSWER✔✔- achieve marketing advantages that larger operations enjoy
the last step in the decision-making process us to implement the decision - CORRECT
ANSWER✔✔- false
more time should be spent on irrevocable decisions than on those which can be easily
reversed - CORRECT ANSWER✔✔- true
standardization of farm financial ratios and accounting practices will help farm managers : -
CORRECT ANSWER✔✔- compete with nonfarm businesses for capital
which of the following shows the proper sequence of management functions as they would be
applied to a specific problem? - CORRECT ANSWER✔✔- planning, implementation,
control
"what managers do" is best described by which of the following? - CORRECT
ANSWER✔✔- make decisions
because weather and prices are unpredictable, it is impossible to plan more than one year in
advance - CORRECT ANSWER✔✔- false
which of the following is an example of a strategic decision? - CORRECT ANSWER✔✔-
determining what type of business/legal organization to use
which phase of the strategic management process would be most influenced by a farm
family's basic values and attitudes about agriculture? - CORRECT ANSWER✔✔- setting
goals
,since farm managers are making the same basic types of decisions in the 21st century as they
did in the previous century, they can rely on rules of thumb to guide their actions -
CORRECT ANSWER✔✔- false
one of the most important areas in which advances in electronics can help farm managers is
in collecting the raw data needed to make better decisions - CORRECT ANSWER✔✔- true
"doubling the number of acres farmed in 10 years" is an example of a - CORRECT
ANSWER✔✔- long-run goal
goals must be known before management decisions can be made - CORRECT
ANSWER✔✔- true
no management decision should be made until all possible information has been acquired -
CORRECT ANSWER✔✔- false
even choosing the best alternative action will sometimes produce undesirable results -
CORRECT ANSWER✔✔- true
goals should have written, specific, measurable, and have a timetable - CORRECT
ANSWER✔✔- true
which of the following is an example of a tactical decision? - CORRECT ANSWER✔✔-
balancing a livestock ration
one force that has helped cause US farms to become larger and fewer is : - CORRECT
ANSWER✔✔- lower production costs per unit by spreading fixed investment in technology
over more units
strategic planning only needs to be done by someone just beginning their business -
CORRECT ANSWER✔✔- false
the term describing how much time is available to make a decision is : - CORRECT
ANSWER✔✔- imminence
, the three major components of a balance sheet are assets, liabilities, and net worth -
CORRECT ANSWER✔✔- true
which of the following is an example of a current asset? - CORRECT ANSWER✔✔- none
of the above --> dairy cows, farm buildings, and farm machinery
the primary purpose of a balance sheet is to record and measure profitability - CORRECT
ANSWER✔✔- false
another term which has the same meaning as owners equity is : - CORRECT ANSWER✔✔-
net worth
inventories of grain and feeder livestock would be valued at fair market value on either a cost
or market basis balance sheet - CORRECT ANSWER✔✔- true
if a business has working capital greater than $0, its current ration will be : - CORRECT
ANSWER✔✔- greater than one
if the debt/asset ration is increasing, then the leverage ration will be : - CORRECT
ANSWER✔✔- increasing
a balance sheet using market-based valuation will always have a higher net worth than it
would if cost-based valuation methods had been used - CORRECT ANSWER✔✔- false
which of the following best describes a balance sheet? - CORRECT ANSWER✔✔- it shows
assets and liabilities at a point in time
total liabilities cannot be greater than total assets - CORRECT ANSWER✔✔- false
the best description of a business which has increased its debt/asset ratio is one which has : -
CORRECT ANSWER✔✔- increased its debt relative to total assets
Questions and CORRECT Answers
By forming strategic alliances, small and medium sized farmers and ranchers can : -
CORRECT ANSWER✔✔- achieve marketing advantages that larger operations enjoy
the last step in the decision-making process us to implement the decision - CORRECT
ANSWER✔✔- false
more time should be spent on irrevocable decisions than on those which can be easily
reversed - CORRECT ANSWER✔✔- true
standardization of farm financial ratios and accounting practices will help farm managers : -
CORRECT ANSWER✔✔- compete with nonfarm businesses for capital
which of the following shows the proper sequence of management functions as they would be
applied to a specific problem? - CORRECT ANSWER✔✔- planning, implementation,
control
"what managers do" is best described by which of the following? - CORRECT
ANSWER✔✔- make decisions
because weather and prices are unpredictable, it is impossible to plan more than one year in
advance - CORRECT ANSWER✔✔- false
which of the following is an example of a strategic decision? - CORRECT ANSWER✔✔-
determining what type of business/legal organization to use
which phase of the strategic management process would be most influenced by a farm
family's basic values and attitudes about agriculture? - CORRECT ANSWER✔✔- setting
goals
,since farm managers are making the same basic types of decisions in the 21st century as they
did in the previous century, they can rely on rules of thumb to guide their actions -
CORRECT ANSWER✔✔- false
one of the most important areas in which advances in electronics can help farm managers is
in collecting the raw data needed to make better decisions - CORRECT ANSWER✔✔- true
"doubling the number of acres farmed in 10 years" is an example of a - CORRECT
ANSWER✔✔- long-run goal
goals must be known before management decisions can be made - CORRECT
ANSWER✔✔- true
no management decision should be made until all possible information has been acquired -
CORRECT ANSWER✔✔- false
even choosing the best alternative action will sometimes produce undesirable results -
CORRECT ANSWER✔✔- true
goals should have written, specific, measurable, and have a timetable - CORRECT
ANSWER✔✔- true
which of the following is an example of a tactical decision? - CORRECT ANSWER✔✔-
balancing a livestock ration
one force that has helped cause US farms to become larger and fewer is : - CORRECT
ANSWER✔✔- lower production costs per unit by spreading fixed investment in technology
over more units
strategic planning only needs to be done by someone just beginning their business -
CORRECT ANSWER✔✔- false
the term describing how much time is available to make a decision is : - CORRECT
ANSWER✔✔- imminence
, the three major components of a balance sheet are assets, liabilities, and net worth -
CORRECT ANSWER✔✔- true
which of the following is an example of a current asset? - CORRECT ANSWER✔✔- none
of the above --> dairy cows, farm buildings, and farm machinery
the primary purpose of a balance sheet is to record and measure profitability - CORRECT
ANSWER✔✔- false
another term which has the same meaning as owners equity is : - CORRECT ANSWER✔✔-
net worth
inventories of grain and feeder livestock would be valued at fair market value on either a cost
or market basis balance sheet - CORRECT ANSWER✔✔- true
if a business has working capital greater than $0, its current ration will be : - CORRECT
ANSWER✔✔- greater than one
if the debt/asset ration is increasing, then the leverage ration will be : - CORRECT
ANSWER✔✔- increasing
a balance sheet using market-based valuation will always have a higher net worth than it
would if cost-based valuation methods had been used - CORRECT ANSWER✔✔- false
which of the following best describes a balance sheet? - CORRECT ANSWER✔✔- it shows
assets and liabilities at a point in time
total liabilities cannot be greater than total assets - CORRECT ANSWER✔✔- false
the best description of a business which has increased its debt/asset ratio is one which has : -
CORRECT ANSWER✔✔- increased its debt relative to total assets
