TEST BANK Farm Management 10th Edition by Ronald Kay
Chapter k1.
TRUE/FALSE k- kWrite k'T' kif kthe kstatement kis ktrue kand k'F' kif kthe kstatement kis kfalse.
1) In kthe kfuture, kfarm kmanagers kwill khave kto kbe kconcerned kabout kthe kenvironmental
keffects kof ktheir kpractices kon ktheir kown kfarms, kbut knot kaway kfrom ktheir kown kfarm.
⊚ k true
⊚ k false
2) Standardized kaccounting kpractices kfor kfarming koperations kwill kmake kcomparisons kwith
kother kfarms kand knonfarm kbusinesses kmore kmeaningful.
⊚ k true
1
, ⊚ k false
3) One kof kthe kmost kimportant kareas kin kwhich kadvances kin kelectronics kcan khelp kfarm
kmanagers kis kin kcollecting kthe kraw kdata kneeded kto kmake kbetter kdecisions.
⊚ k true
⊚ k false
4) Since kfarm kmanagers kwill kbe kmaking kthe ksame kbasic ktypes kof kdecisions kin kthe k21st
kcentury kas kthey kdid kin kthe kprevious kcentury, kthey kcan krely kon krules kof kthumb kto
kguide ktheir kactions.
⊚ k true
⊚ k false
5) Product kdifferentiation kmeans kproducing kcrops kand klivestock kwith kdifferent
kcharacteristics kfor kspecific kmarkets.
⊚ k true
⊚ k false
6) Entering kinto kvertical kintegration kalliances khelps kfarms kor kranches kbecome kmore
kindependent.
⊚ k true
⊚ k false
MULTIPLE kCHOICE k- kChoose kthe kone kalternative kthat kbest kcompletes kthe kstatement
kor kanswers kthe kquestion.
7) One kforce kthat khas khelped kcause kfarms kin kthe kUnited kStates kto kbecome klarger kand kfewer
kis
A) competition kfrom kforeign kproducers.
B) lower kproduction kcosts kper kunit kby kspreading kfixed kinvestment kin
ktechnology kover kmore kunits.
C) more klabor kused kin kagricultural kproduction.
D) declining knonfarm kwage krates.
2
,8) Improved kdata kcollection ktechnology ksuch kas ksatellite kor kdrone-based kphotography
kwill kbe kmost khelpful kto kfarm kmanagers kfor
A) preparing kup-to-date kfinancial kstatements.
B) balancing klivestock krations.
C) prescribing kfertility kand kpest kcontrol kpractices kfor ksmaller kland kunits.
D) producing kmore kuniform kproducts.
9) Standardization kof kfarm kfinancial kratios kand kaccounting kpractices kwill khelp kfarm kmanagers
A) compete kwith knonfarm kbusinesses kfor kcapital.
B) summarize ktheir kaccount kbooks kin kless ktime.
C) pay kless kincome ktax.
D) manage khired kemployees kmore keffectively.
10) Agricultural kprocessors kwill kprobably kwant kmore kuniform kproducts kin kthe kfuture kin korder
kto
A) pay klower kprices kto kproducers.
B) diversify ktheir kproduct klines.
C) reduce kenvironmental kcontamination.
D) make kmore kefficient kuse kof kprocessing kand kpackaging kequipment.
11) By kforming kstrategic kalliances, ksmall kand kmedium-sized kfarmers kand kranchers kcan
A) increase ktheir kmanagerial kfreedom.
B) achieve kadvantages kof kdiversification.
C) achieve kmarketing kadvantages kthat klarger koperations kenjoy.
D) increase ktheir kown kvolume kof kproduction.
12) An kincrease kin kthe knumber kof knonfarmers kliving kin krural kareas kwill kcause
A) farmland kvalues kto kdecrease.
B) farmers kto kpay kmore kattention kto koff-farm keffects kof ktheir kproduction kpractices.
C) less kregulation kof kagricultural kproduction kpractices.
D) profit kmaximization kto kbe kthe konly kcriterion kfor kadopting knew ktechnologies.
13) Globalization krefers kto kthe kprocess kof
A) reducing ktrade kbarriers kamong kcountries.
B) protecting ka kcountry’s kfarmers kby ktaxing kcompeting kproducts kfrom kother kcountries.
C) a kgradual krise kin kthe kaverage ktemperature kof kthe kearth.
D) countries kproducing ka kgreater kvariety kof kagricultural kproducts kfor ktheir kown kneeds.
3
, 14) Vertical kintegration krefers kto kthe kprocess kby kwhich kfarmers kor kranchers
A) grow ktaller kcrops.
B) grow ka kgreater kvariety kof kproducts.
C) increase kthe ksize kof ktheir koperation kby kleasing kor kbuying kmore kland.
D) enter kinto kagreements kwith kprocessors kor kdistributors kto ksupply kthem
kwith ktheir kproducts.
15) A kbeef kcow-calf koperator kwho kspecializes kin kraising khigh-quality kbreeding kstock kand
kcalves kfor kexhibiting kat klivestock kshows kwould kbe kclassified kas
A) high-volume, klow-margin kproducer.
B) low-volume, khigh-margin kproducer.
C) service kprovider.
D) part-time koperator.
16) According kto kthe kU.S. kCensus kof kAgriculture, kthe klargest kpercentage kof kfarms kin kthe
kUnited kStates kwould kbe kconsidered
A) large, kcorporate kfarms.
B) medium-size kfamily kfarms.
C) small, kpart-time kfarms.
D) large kcommunally koperated kfarms.
17) Over kthe kpast k30 k years kthe knumber kof kfarm kunits kin kthe kUnited kStates khas
A) declined ksharply.
B) declined kgradually.
C) stayed kthe ksame.
D) increased kgradually.
SHORT kANSWER. kWrite kthe kword kor kphrase kthat kbest kcompletes keach kstatement
kor kanswers kthe kquestion.
18) Describe kone kcharacteristic kor kaspect kof kagriculture kthat kcauses kdecision-making
kto kbe kdifferent kfrom kdecision-making kin kother ksectors kof kthe keconomy.
4
Chapter k1.
TRUE/FALSE k- kWrite k'T' kif kthe kstatement kis ktrue kand k'F' kif kthe kstatement kis kfalse.
1) In kthe kfuture, kfarm kmanagers kwill khave kto kbe kconcerned kabout kthe kenvironmental
keffects kof ktheir kpractices kon ktheir kown kfarms, kbut knot kaway kfrom ktheir kown kfarm.
⊚ k true
⊚ k false
2) Standardized kaccounting kpractices kfor kfarming koperations kwill kmake kcomparisons kwith
kother kfarms kand knonfarm kbusinesses kmore kmeaningful.
⊚ k true
1
, ⊚ k false
3) One kof kthe kmost kimportant kareas kin kwhich kadvances kin kelectronics kcan khelp kfarm
kmanagers kis kin kcollecting kthe kraw kdata kneeded kto kmake kbetter kdecisions.
⊚ k true
⊚ k false
4) Since kfarm kmanagers kwill kbe kmaking kthe ksame kbasic ktypes kof kdecisions kin kthe k21st
kcentury kas kthey kdid kin kthe kprevious kcentury, kthey kcan krely kon krules kof kthumb kto
kguide ktheir kactions.
⊚ k true
⊚ k false
5) Product kdifferentiation kmeans kproducing kcrops kand klivestock kwith kdifferent
kcharacteristics kfor kspecific kmarkets.
⊚ k true
⊚ k false
6) Entering kinto kvertical kintegration kalliances khelps kfarms kor kranches kbecome kmore
kindependent.
⊚ k true
⊚ k false
MULTIPLE kCHOICE k- kChoose kthe kone kalternative kthat kbest kcompletes kthe kstatement
kor kanswers kthe kquestion.
7) One kforce kthat khas khelped kcause kfarms kin kthe kUnited kStates kto kbecome klarger kand kfewer
kis
A) competition kfrom kforeign kproducers.
B) lower kproduction kcosts kper kunit kby kspreading kfixed kinvestment kin
ktechnology kover kmore kunits.
C) more klabor kused kin kagricultural kproduction.
D) declining knonfarm kwage krates.
2
,8) Improved kdata kcollection ktechnology ksuch kas ksatellite kor kdrone-based kphotography
kwill kbe kmost khelpful kto kfarm kmanagers kfor
A) preparing kup-to-date kfinancial kstatements.
B) balancing klivestock krations.
C) prescribing kfertility kand kpest kcontrol kpractices kfor ksmaller kland kunits.
D) producing kmore kuniform kproducts.
9) Standardization kof kfarm kfinancial kratios kand kaccounting kpractices kwill khelp kfarm kmanagers
A) compete kwith knonfarm kbusinesses kfor kcapital.
B) summarize ktheir kaccount kbooks kin kless ktime.
C) pay kless kincome ktax.
D) manage khired kemployees kmore keffectively.
10) Agricultural kprocessors kwill kprobably kwant kmore kuniform kproducts kin kthe kfuture kin korder
kto
A) pay klower kprices kto kproducers.
B) diversify ktheir kproduct klines.
C) reduce kenvironmental kcontamination.
D) make kmore kefficient kuse kof kprocessing kand kpackaging kequipment.
11) By kforming kstrategic kalliances, ksmall kand kmedium-sized kfarmers kand kranchers kcan
A) increase ktheir kmanagerial kfreedom.
B) achieve kadvantages kof kdiversification.
C) achieve kmarketing kadvantages kthat klarger koperations kenjoy.
D) increase ktheir kown kvolume kof kproduction.
12) An kincrease kin kthe knumber kof knonfarmers kliving kin krural kareas kwill kcause
A) farmland kvalues kto kdecrease.
B) farmers kto kpay kmore kattention kto koff-farm keffects kof ktheir kproduction kpractices.
C) less kregulation kof kagricultural kproduction kpractices.
D) profit kmaximization kto kbe kthe konly kcriterion kfor kadopting knew ktechnologies.
13) Globalization krefers kto kthe kprocess kof
A) reducing ktrade kbarriers kamong kcountries.
B) protecting ka kcountry’s kfarmers kby ktaxing kcompeting kproducts kfrom kother kcountries.
C) a kgradual krise kin kthe kaverage ktemperature kof kthe kearth.
D) countries kproducing ka kgreater kvariety kof kagricultural kproducts kfor ktheir kown kneeds.
3
, 14) Vertical kintegration krefers kto kthe kprocess kby kwhich kfarmers kor kranchers
A) grow ktaller kcrops.
B) grow ka kgreater kvariety kof kproducts.
C) increase kthe ksize kof ktheir koperation kby kleasing kor kbuying kmore kland.
D) enter kinto kagreements kwith kprocessors kor kdistributors kto ksupply kthem
kwith ktheir kproducts.
15) A kbeef kcow-calf koperator kwho kspecializes kin kraising khigh-quality kbreeding kstock kand
kcalves kfor kexhibiting kat klivestock kshows kwould kbe kclassified kas
A) high-volume, klow-margin kproducer.
B) low-volume, khigh-margin kproducer.
C) service kprovider.
D) part-time koperator.
16) According kto kthe kU.S. kCensus kof kAgriculture, kthe klargest kpercentage kof kfarms kin kthe
kUnited kStates kwould kbe kconsidered
A) large, kcorporate kfarms.
B) medium-size kfamily kfarms.
C) small, kpart-time kfarms.
D) large kcommunally koperated kfarms.
17) Over kthe kpast k30 k years kthe knumber kof kfarm kunits kin kthe kUnited kStates khas
A) declined ksharply.
B) declined kgradually.
C) stayed kthe ksame.
D) increased kgradually.
SHORT kANSWER. kWrite kthe kword kor kphrase kthat kbest kcompletes keach kstatement
kor kanswers kthe kquestion.
18) Describe kone kcharacteristic kor kaspect kof kagriculture kthat kcauses kdecision-making
kto kbe kdifferent kfrom kdecision-making kin kother ksectors kof kthe keconomy.
4
