TEST BANK Farm Management 10th Edition by Ronald Kay
m m m m m m m m
Chapter 1.m
TRUE/FALSE m-mWritem'T'mif mthemstatementmismtruemandm'F'mif mthemstatementmismfalse.
1) Inmthemfuture,mfarmmmanagersmwillmhavemtombemconcerned mabout mthemenvironmentalmeffects
mof mtheirmpracticesmonmtheirmownmfarms,mbut mnot mawaymfrommtheirmownmfarm.
⊚m true
⊚m false
2) Standardized maccountingmpracticesmformfarmingmoperationsmwillmmakemcomparisonsmwithmoth
ermfarmsmand mnonfarmmbusinessesmmoremmeaningful.
⊚m true
⊚m false
3) Onemof mthemmost mimportant mareasminmwhichmadvancesminmelectronicsmcanmhelpmfarmmmanagers
misminmcollectingmthemraw mdatamneeded mtommakembettermdecisions.
⊚m true
⊚m false
4) Sincemfarmmmanagersmwillmbemmakingmthemsamembasicmtypesmof mdecisionsminmthem21st mcentury
masmtheymdid minmthempreviousmcentury,mtheymcanmrelymonmrulesmof mthumbmtomguidemtheirmaction
s.
⊚m true
⊚m false
5) Product mdifferentiationmmeansmproducingmcropsmand mlivestockmwithmdifferent mcharacteristicsmf
ormspecificmmarkets.
⊚m true
⊚m false
6) Enteringmintomverticalmintegrationmalliancesmhelpsmfarmsmormranchesmbecome mmorem independent.
⊚m true
⊚m false
MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmormanswersmthemquestion.
7) Onemforcemthat mhasmhelped mcausemfarmsminmthemUnited mStatesmtombecomemlargermand mfewermis
A) competitionmfrommforeignmproducers.
B) lowermproductionmcostsmpermunit mbymspreadingmfixed minvestment minmtechnologymov
ermmoremunits.
C) moremlabormused minmagriculturalmproduction.
D) decliningmnonfarmmwagemrates.
1
,8) Improved mdatamcollectionmtechnologymsuchmasmsatellitemormdrone-
based mphotographymwillmbemmost mhelpfulmtomfarmmmanagersmfor
A) preparingmup-to-datemfinancialmstatements.
B) balancingmlivestockmrations.
C) prescribingmfertilitymand mpest mcontrolmpracticesmformsmallermland munits.
D) producingmmoremuniformmproducts.
9) Standardizationmof mfarmmfinancialmratiosmand maccountingmpracticesmwillmhelpmfarmmmanagers
A) competemwithmnonfarmmbusinessesmformcapital.
B) summarizemtheirmaccount mbooksminmlessmtime.
C) paymlessmincomemtax.
D) managemhired memployeesmmoremeffectively.
10) Agriculturalmprocessorsmwillmprobablymwant mmoremuniform mproductsminmthemfutureminmordermto
A) paymlowermpricesmtomproducers.
B) diversifymtheirmproduct mlines.
C) reducemenvironmentalmcontamination.
D) makemmoremefficient musemof mprocessingmand mpackagingmequipment.
11) Bymformingmstrategicmalliances,msmallmand mmedium-sized mfarmersmand mranchersmcan
A) increasemtheirmmanagerialmfreedom.
B) achievemadvantagesmof mdiversification.
C) achievemmarketingmadvantagesmthat mlargermoperationsmenjoy.
D) increasemtheirmownmvolumemof mproduction.
12) Anmincreaseminmthemnumbermof mnonfarmersmlivingminmruralmareasmwillmcause
A) farmland mvaluesmtomdecrease.
B) farmersmtompaymmoremattentionmtomoff-farmmeffectsmof mtheirmproductionmpractices.
C) lessmregulationmof magriculturalmproductionmpractices.
D) profit mmaximizationmtombemthemonlymcriterionmformadoptingmnew mtechnologies.
13) Globalizationmrefersmtomthemprocessmof
A) reducingmtradembarriersmamongmcountries.
B) protectingmamcountry’smfarmersmbymtaxingmcompetingmproductsmfrommothermcountries.
C) amgradualmriseminmthemaveragemtemperaturemof mthemearth.
D) countriesmproducingmamgreatermvarietymof magriculturalmproductsmformtheirmownmneeds.
2
,14) Verticalmintegrationmrefersmtomthemprocessmbymwhichmfarmersmormranchers
A) grow mtallermcrops.
B) grow mamgreatermvarietymof mproducts.
C) increasemthemsizemof mtheirmoperationmbymleasingmormbuyingmmoremland.
D) entermintomagreementsmwithmprocessorsmormdistributorsmtomsupplymthemmwithmth
eirmproducts.
15) A mbeef mcow-calf moperatormwhomspecializesminmraisingmhigh-
qualitymbreedingmstockmand mcalvesmformexhibitingmat mlivestockmshowsmwould mbemclassified ma
s
A) high-volume,mlow-marginmproducer.
B) low-volume,mhigh-marginmproducer.
C) servicemprovider.
D) part-timemoperator.
16) AccordingmtomthemU.S.mCensusmof mAgriculture,mthemlargest mpercentagemof mfarmsminmthemUnit
ed mStatesmwould mbemconsidered
A) large,mcorporatemfarms.
B) medium-sizemfamilymfarms.
C) small,mpart-timemfarms.
D) largemcommunallymoperated mfarms.
17) Overmthempast m30myearsmthemnumbermof mfarmmunitsminmthemUnited mStatesmhas
A) declined msharply.
B) declined mgradually.
C) stayed mthemsame.
D) increased mgradually.
SHORTmANSWER.mWritemthemwordmormphrasemthatmbestmcompletesmeachmstatementmormans
wersmthemquestion.
18) Describemonemcharacteristicmormaspect mof magriculturemthat mcausesmdecision-
makingmtombemdifferent mfrommdecision-makingminmothermsectorsmof mthemeconomy.
3
, 19) Namemonemmajormtrend mthat myoumthinkmmaymtakemplaceminmU.S.magriculturemovermthemnext m
25myears.
20) Describemhow myoumthinkmamgood mfarmmmanagermwillmrespond mtomthismtrend.
21) Describemamcurrent mtrend minmconsumermdemand mformagriculturalmproducts,mand msuggest mamw
aymthat mproducersmcould mrespond mtomit.
4
m m m m m m m m
Chapter 1.m
TRUE/FALSE m-mWritem'T'mif mthemstatementmismtruemandm'F'mif mthemstatementmismfalse.
1) Inmthemfuture,mfarmmmanagersmwillmhavemtombemconcerned mabout mthemenvironmentalmeffects
mof mtheirmpracticesmonmtheirmownmfarms,mbut mnot mawaymfrommtheirmownmfarm.
⊚m true
⊚m false
2) Standardized maccountingmpracticesmformfarmingmoperationsmwillmmakemcomparisonsmwithmoth
ermfarmsmand mnonfarmmbusinessesmmoremmeaningful.
⊚m true
⊚m false
3) Onemof mthemmost mimportant mareasminmwhichmadvancesminmelectronicsmcanmhelpmfarmmmanagers
misminmcollectingmthemraw mdatamneeded mtommakembettermdecisions.
⊚m true
⊚m false
4) Sincemfarmmmanagersmwillmbemmakingmthemsamembasicmtypesmof mdecisionsminmthem21st mcentury
masmtheymdid minmthempreviousmcentury,mtheymcanmrelymonmrulesmof mthumbmtomguidemtheirmaction
s.
⊚m true
⊚m false
5) Product mdifferentiationmmeansmproducingmcropsmand mlivestockmwithmdifferent mcharacteristicsmf
ormspecificmmarkets.
⊚m true
⊚m false
6) Enteringmintomverticalmintegrationmalliancesmhelpsmfarmsmormranchesmbecome mmorem independent.
⊚m true
⊚m false
MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmormanswersmthemquestion.
7) Onemforcemthat mhasmhelped mcausemfarmsminmthemUnited mStatesmtombecomemlargermand mfewermis
A) competitionmfrommforeignmproducers.
B) lowermproductionmcostsmpermunit mbymspreadingmfixed minvestment minmtechnologymov
ermmoremunits.
C) moremlabormused minmagriculturalmproduction.
D) decliningmnonfarmmwagemrates.
1
,8) Improved mdatamcollectionmtechnologymsuchmasmsatellitemormdrone-
based mphotographymwillmbemmost mhelpfulmtomfarmmmanagersmfor
A) preparingmup-to-datemfinancialmstatements.
B) balancingmlivestockmrations.
C) prescribingmfertilitymand mpest mcontrolmpracticesmformsmallermland munits.
D) producingmmoremuniformmproducts.
9) Standardizationmof mfarmmfinancialmratiosmand maccountingmpracticesmwillmhelpmfarmmmanagers
A) competemwithmnonfarmmbusinessesmformcapital.
B) summarizemtheirmaccount mbooksminmlessmtime.
C) paymlessmincomemtax.
D) managemhired memployeesmmoremeffectively.
10) Agriculturalmprocessorsmwillmprobablymwant mmoremuniform mproductsminmthemfutureminmordermto
A) paymlowermpricesmtomproducers.
B) diversifymtheirmproduct mlines.
C) reducemenvironmentalmcontamination.
D) makemmoremefficient musemof mprocessingmand mpackagingmequipment.
11) Bymformingmstrategicmalliances,msmallmand mmedium-sized mfarmersmand mranchersmcan
A) increasemtheirmmanagerialmfreedom.
B) achievemadvantagesmof mdiversification.
C) achievemmarketingmadvantagesmthat mlargermoperationsmenjoy.
D) increasemtheirmownmvolumemof mproduction.
12) Anmincreaseminmthemnumbermof mnonfarmersmlivingminmruralmareasmwillmcause
A) farmland mvaluesmtomdecrease.
B) farmersmtompaymmoremattentionmtomoff-farmmeffectsmof mtheirmproductionmpractices.
C) lessmregulationmof magriculturalmproductionmpractices.
D) profit mmaximizationmtombemthemonlymcriterionmformadoptingmnew mtechnologies.
13) Globalizationmrefersmtomthemprocessmof
A) reducingmtradembarriersmamongmcountries.
B) protectingmamcountry’smfarmersmbymtaxingmcompetingmproductsmfrommothermcountries.
C) amgradualmriseminmthemaveragemtemperaturemof mthemearth.
D) countriesmproducingmamgreatermvarietymof magriculturalmproductsmformtheirmownmneeds.
2
,14) Verticalmintegrationmrefersmtomthemprocessmbymwhichmfarmersmormranchers
A) grow mtallermcrops.
B) grow mamgreatermvarietymof mproducts.
C) increasemthemsizemof mtheirmoperationmbymleasingmormbuyingmmoremland.
D) entermintomagreementsmwithmprocessorsmormdistributorsmtomsupplymthemmwithmth
eirmproducts.
15) A mbeef mcow-calf moperatormwhomspecializesminmraisingmhigh-
qualitymbreedingmstockmand mcalvesmformexhibitingmat mlivestockmshowsmwould mbemclassified ma
s
A) high-volume,mlow-marginmproducer.
B) low-volume,mhigh-marginmproducer.
C) servicemprovider.
D) part-timemoperator.
16) AccordingmtomthemU.S.mCensusmof mAgriculture,mthemlargest mpercentagemof mfarmsminmthemUnit
ed mStatesmwould mbemconsidered
A) large,mcorporatemfarms.
B) medium-sizemfamilymfarms.
C) small,mpart-timemfarms.
D) largemcommunallymoperated mfarms.
17) Overmthempast m30myearsmthemnumbermof mfarmmunitsminmthemUnited mStatesmhas
A) declined msharply.
B) declined mgradually.
C) stayed mthemsame.
D) increased mgradually.
SHORTmANSWER.mWritemthemwordmormphrasemthatmbestmcompletesmeachmstatementmormans
wersmthemquestion.
18) Describemonemcharacteristicmormaspect mof magriculturemthat mcausesmdecision-
makingmtombemdifferent mfrommdecision-makingminmothermsectorsmof mthemeconomy.
3
, 19) Namemonemmajormtrend mthat myoumthinkmmaymtakemplaceminmU.S.magriculturemovermthemnext m
25myears.
20) Describemhow myoumthinkmamgood mfarmmmanagermwillmrespond mtomthismtrend.
21) Describemamcurrent mtrend minmconsumermdemand mformagriculturalmproducts,mand msuggest mamw
aymthat mproducersmcould mrespond mtomit.
4
