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AGEC 340 FINAL EXAM (LATEST 2025 UPDATE) EXAM
QUESTIONS AND DETAILED ANSWERS| 100% VERIFIED CORRECT
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“Four key functions of managment - CORRECT ANSWER Marketing, Financial, Supply
Chain, and Human Resource mgmt"
"Marketing management definition - CORRECT ANSWER the process by which products
flow through the US food system from producer to final consumer"
"Key aspects of Marketing managment - CORRECT ANSWER -understanding customer
needs and effectively positioning and selling products and services in the marketplace. -requires selling, advertising, web page design, and pricing. -everything is focused on costumer needs and wants, quest for customer satisfaction."
"Financial management key aspects - CORRECT ANSWER -Profit is the driver for
agribusiness as they work to generate the greatest possible returns from their resources. -generating the data needed to make good decisions, using the tools of finance to make effective decisions, and managing the assets, liabilities, and owners' investments in the firm." "Which sector includes farms and ranches that produce the crop and livestock products that provide combined purchased inputs, natural resources, and managerial talent to produce crop
and livestock products? - CORRECT ANSWER production sector, and every industry in the
food system is impacted in some way by production agriculture" "------ the ---- defines a farm as "any place from which $1000 or more of --------- products were
produced and ------ during a given-----" - CORRECT ANSWER FARM, USDA, agricultural,
sold, year" "---- farm----- determined by prices of ---- products, production yields and farm production-------.
Farm prices can be----- volatile, moving------ quickly in response to ----- yields or ------- -
CORRECT ANSWER Net, income, farm, expenses, highly, upward, low, oversupplying"
"planning process - CORRECT ANSWER -gather facts and info that have a bearing on the
situation. -analyze the situation and what problems are involved -forecast future development (able to figure out a need) -set performance objectives, the benchmarks to achieve goals -develop alternative course of action and select the most suitable -develop a means of evaluating process, and readjust plan as process unfolds"
"what represents the systematic classification and grouping of human and other resources in a
manner consistent with the firm's goals? - CORRECT ANSWER Organizing"
"what does an organizational chart show? - CORRECT ANSWER shows the formal
organizational structure of a company."
"in the division of labor- jobs are----- into------ and then assigned - CORRECT ANSWER
broken, components"
"In the chain of command- ---- between ------ and those they supervise - CORRECT ANSWER
links, managers"
"Bureaucracy- a ------ organization that has ------ systems and process - CORRECT ANSWER
complex, multilayered"
"Directing is ----- efforts of others toward ----- a common goal - CORRECT ANSWER guiding,
achieving"
"if Qs>Qd there is a - CORRECT ANSWER surplus"
"if Qd>Qs there is a - CORRECT ANSWER shortage"
"SHIFTS IN DEMAND
change in number of ----- change in price of ----- change in price of ----- change in consumer ----- change in------
change in consumer tastes and ------- - CORRECT ANSWER consumers
complements substitutes income expectations preferences" "SHIFTS IN SUPPLY change in ----- change in the price of ----- change in w----- changes in price of ------
"price elasticity of demand is less than 1, then demand is -------, TR of price increases then
TR------, if TR of price decreases then TR------ - CORRECT ANSWER inelastic, increases,
decreases" "Income elasticity of demand is the ----- formula as price elasticity of demand. if there is a + coefficient then it is a ----- good, QD ----- as income -----
if there is a - coefficient it is a ----- good, QD ---- as income------ - CORRECT ANSWER same,
normal, increases, increases, inferior, falls, increases"
"cross price elasticity of demand midpoint formula - CORRECT ANSWER (Qx,2-Qx,1)
(Py,1+Py,2) ------------- X. ----------- (Py,2-Py,1). (Qx,1+Qx,2) same ^ X (Py,1) I ------ PEF (qx,1)" "in a cross price elasticity of demand greater than 0 is a ----- equal to 0 is a -----
less than 0 is a ----- - CORRECT ANSWER substitute
independent complement" "each individual partner- regardless of the percentage of capital contributed- has equal rights-
and liabilities, unless stated otherwise in a partnership agreement. - CORRECT ANSWER
general partnership"
"one general partner has unlimited liability, and all other partners have limited liability -
CORRECT ANSWER limited partnership"
"every owner has limited liability, and LLP protects each partner from debts against the
partnership and they are responsible for the actions of other partners. - CORRECT ANSWER
limited liability partnership"
"what are some advantages of Partnership - CORRECT ANSWER *easy to start- little expense
*partners as individuals pay taxes only on the income generated from their share of the profits, with no business tax
*control and management are concentrated among the partners"
"what are some disadvantages of partnership - CORRECT ANSWER *each general partner
has unlimited liability *taxed on income as a separate individual (can be an advantage or disadvantage) *lack of continuity and stability of a partnership *one very important consideration is the need for a careful drafted, written partnership agreement."
"What are the top export markets for USA? - CORRECT ANSWER Canada, 25 billion
China, 33billion and Mexico. 26billion"
"what are some benefits of international business - CORRECT ANSWER -expand sales
-take advantage of scale economics -capture the benefits of a global brand -reduce risks by diversifying across markets -lower costs pf production -access lower-costs raw materials through international sourcing -broaden access to credit -leverage experiences from operating in international markets into domestic markets"
"what are the four international agribusiness trends? - CORRECT ANSWER -Growing
population in the global market -U.s. agribusiness trade and investment growth -bulk commodities, high-value products -world trade organization"
"growing population in the global market characteristics - CORRECT ANSWER -the FAO
defines food security as the state of affairs, where everyone has access to healthy food. -predictions put the global population between 8and12 and billion in 2050 -little double that food demand will increase in the future"
"US agribusiness trade and investment growth, characteristics - CORRECT ANSWER -US
food industry is growing abroad -trade and investment are key factors responsible for the growth -US agricultural industry is dependent on the export market. -International trade is very DEPENDENT upon changes in policy competitive markets and characteristics of consumer food differ between developed and developing countries"
"Marketing managment - CORRECT ANSWER Drive the actions of the company
know your attendance"
"financial management - CORRECT ANSWER generating the data needed to make a good
decision"
"activities in the marketing department - CORRECT ANSWER Selling
Advertising Promotions Market research New product development Customer service Pricing"
"Financial Managment tools - CORRECT ANSWER Budgeting
Ratio analysis Financial Forecasting Breakeven analysis"
"Supply chain management goals - CORRECT ANSWER Push for Quality
Drive to lower costs Changes in the supply chain Be more efficient in meeting consumers demands"
"Human resources focus - CORRECT ANSWER Organizational structure
Finding and hiring people Compensation Evaluation of performance"
"Unique Dimensions of Agribusiness* - CORRECT ANSWER Food as a product:
Biological nature of production agriculture:
Seasonality: Weather: Types of firms: Variety of market conditions: Rural ties: Government intervention:"
"Is it cheaper to ship raw or finished product? - CORRECT ANSWER Finished/ processed"
"Sectors the food system - CORRECT ANSWER Food sector
Production Agriculture sector Input supply sector"
"Sector of the food system - CORRECT ANSWER Food Sector
Production Agriculture sector Input supply sector"
"Attributes of an agribusiness manager - CORRECT ANSWER Technically knowledgeable
about their product. Effective communicator Ability to motivate people Proficient in the technical skills of management. Is a leader and agent of change Strong understanding of the biological and institutional factors surrounding the production of food and fiber."
"Strategic planning - CORRECT ANSWER Develop courses of action for the longer term. Two
to twenty-year horizon"
"tactical planning - CORRECT ANSWER Short-term plans to support the strategic plan.
a crucial part of implementing the strategic plan. Focused on tomorrow or next month or year"
"Contingency planning - CORRECT ANSWER Develops alternative plans for various possible
business conditions A part of the strtegic and tactical planning process prepares for the unexpected to happen"
"Steps in the planning process - CORRECT ANSWER Gather facts and information
Analyze the situation and identify what problem are involved Forecast change set goals Develop alernatives Evaluate results and adjust the plan"
"3 ways that managers directs - CORRECT ANSWER Polices
Procedures Practices"
"Management by exception - CORRECT ANSWER Manager should NOT spend time on areas
that are progressing according to plan They should focus on the areas that are not progressing as they should"
"Macroeconomics elements - CORRECT ANSWER National income
GDP
Inflation
Unemployment Interest rates"
"Microeconomics elements - CORRECT ANSWER Land - Rent
Labor - Wages Capital - Interest Management - Salary"
""Maximizing the long-run profits of the firm..." - CORRECT ANSWER Efficient"
""... by profitably satisfying customer's needs." - CORRECT ANSWER Effective"
"Accounting Profits vs Economic Profits - CORRECT ANSWER Accounting:
*measures the performance and success of a business. *measurable costs Economic: *examines the opportunity cost of alternatives uses for resources within a buisness *alt. profits - opp. cost=Economic profit"
"Types of Costs - CORRECT ANSWER Explicit:
measurable payments made to suppliers such as *land *labor *material *fuel ect. Implicit: Costs for which have no cash outlay."
"reward for taking a risk - CORRECT ANSWER "profit is the reward for taking a risk""
"how do profits exist - CORRECT ANSWER Profits exist because some people have access to
information that is not widespread business is managed more efficiently"
Income elasticity cross price elasticity"
"Price elasticity of demand - CORRECT ANSWER Measures consumers response to change in
prices"
"Income elasticity of demand - CORRECT ANSWER Measures the response of quantity
demanded to change in income"
"cross price elasticity of demand - CORRECT ANSWER Measures how the quantity
demanded for one product responds to a price change in a different product"
"Price elasticity equation - CORRECT ANSWER elasticity=
%change in quantity demanded / %change in price"
"Interpreting price elasticity of demand - CORRECT ANSWER Greater than 1.0: Elastic
equal to 1.0: unit elastic Less than 1.0: inelastic"
"Elastic price relations - CORRECT ANSWER price increases:
Total revenue decreases Price decreases: Total revenue increases"
"Unit elastic price relations - CORRECT ANSWER Price increases:
Total revenue is unchanged Price decreases: Total revenue is unchanged"
"Inelastic price relations - CORRECT ANSWER Price increases:
Total revenue increases Price decreases: Total revenue decreases"
"interpret cross price elasticity of demand - CORRECT ANSWER Demand < 0.0: Complement
good
Demand = 0.0: Independent good Demand > 0.0: Substitute good"
"Things to consider when deciding on legal structure - CORRECT ANSWER *Ability to
acquire resources (barrow money) *continuity of existence (will the buisness survive after a death) *liability of owners *Participation of management *transferability of owenership *record keeping *tax planning"
"Thing to ask yourself when evaluating various legal structures - CORRECT ANSWER What
type of business is it? where will business be conducted? what are the owners' objectives? how much start-up capital do you have? how much capital is needed? (know the concept, don't memorize)"
"Factors to consider when evaluating various legal structures - CORRECT ANSWER Stability
Continuity Transfer of ownership *How desirable is it to keep your affairs private?"
"Sole Proprietorship - CORRECT ANSWER Most flexible legal structure
The owner holds ALL the rights to the business Easiest legal structure to start and end Oldest and most widespread legal structure
"Terminating a Partnership - CORRECT ANSWER Dissolution under a partnership usually
takes place when the terms of business in the agreement is finished. if the duration is not fixed, any partner may terminate the partnership at will. (careful thought should be given to termination at the time the partnership is formed)"
"Corporations - CORRECT ANSWER Like a living person
A legal entity separate and distinct from the shareholders who own it. Has a life of its own and can go on in perpetuity It can enter into contracts, transact business, own property, sue, and be sued."
"What separates a corporation from a partnership and sole proprietorship? - CORRECT
ANSWER The concept of legal seperation"
"Limited Liability Corporation (LLC) - CORRECT ANSWER If business is sued due to
negligent acts commited by its office or employees, the shareholders is only risking the amount they invested Corporation is not liable for its shareholders' personal obligations Can be taxed as either a partnership or corporation, but most are taxed as a partnership."
"Estate Planning - CORRECT ANSWER The act of preparing for the transfer of a person's
wealth and assets after his or her death
- major factor in developing small agribusiness corporations* It is easier to transfer shares of stock by gift or sale than to transfer bulk assets such as land, property, and equipment."
"Subchapter C Corporation - CORRECT ANSWER The most common corporate legal
structure Formed to conduct a commercial activity for profit ?????"
"Subchapter S Corporations - CORRECT ANSWER Closely held corporation
100 or fewer stockholders ownership restricted to a defined class of people such as family members profits distributed like partnership. All shareholders must agree to accept this tax status (can avoid double taxation). *All shareholders are taxed at their personal rates, rather than the S-corporation being taxed directly"
"Professional Corporations (PC) - CORRECT ANSWER Business corporations created to
provide professional services that require a license. Such as: Physicians Dentists Law Firms Accounting services"
"Cooperatives - CORRECT ANSWER Nonprofit corporations that exist to benifit their
owners-users by allowing them to band together to buy and sell so they can lower their costs and increase revenue. provides services then turns and gives them profits at the end of the year"
Six Component Industries of the Agri-Food system - CORRECT ANSWER Input Suppliers
Producers Commodity Processors Food Manufacturers Food Distributors Food Retailers"
"Input Suppliers - CORRECT ANSWER Prepare and sell things like feed, seed, fertilizer, and
credit to farmers"
"Producers - CORRECT ANSWER Produce agricultural commodities"
"Commodity Processors - CORRECT ANSWER Process agricultural commodities"
"Controlling function - CORRECT ANSWER concerns giving management feedback on the
firm's progress"
"Directing function - CORRECT ANSWER is about the effective leadership of people"
"Mission of marketing - CORRECT ANSWER bridge the gap between the conflicting needs of
producers and consumers by completing the production process"
"Five barriers to consumer satisfaction - CORRECT ANSWER Ownership Separation
Time Separation Space Separation Value Separation Information Separation"
"Ownership Separation - CORRECT ANSWER inability to transfer ownership"
"time separation - CORRECT ANSWER product is not available when it is desired"
"space separation - CORRECT ANSWER product is not where consumers need it"
"value separtaion - CORRECT ANSWER product is not in the form consumers desire"
"information separtation - CORRECT ANSWER lack of information about the product"
"Marketing approach accept the idea of - CORRECT ANSWER consumer sovereignty"
"Three prerequisites to an efficient economic system - CORRECT ANSWER a free market
economy prices reflect the full value of resources a high degree of interaction between consumers and prodducers"
"two criteria used to evaluate performance of a marketing system - CORRECT ANSWER
efficiency fairness"
"Four P's of marketing mix - CORRECT ANSWER product
place price promotion"
"mass marketing operates on the idea that - CORRECT ANSWER all consumers have the
same needs"
"target marketing operates on the idea that - CORRECT ANSWER consumers have different
needs" "what allows managers to understand the current "health" of the firm, and to determine what
actions to take to improve? - CORRECT ANSWER Financial information"
"What is another way in which the financial agribusiness scene changes? - CORRECT
ANSWER in the sourcing of funds"
"three types of supply chain managment - CORRECT ANSWER supply chain mgmt
operations mgmt logistics mgmt" "which management focuses on quality, lower costs, changes in the supply chain, and general pressures to be more efficient while providing the tools managers need to meet these operation
and logistical challenges? - CORRECT ANSWER supply chain mgmt"
"which management focuses on the direction and the control of the processes used to produce the goods and services that we buy and use each day through strategic use and movement of
resources? and what are some of its issues? - CORRECT ANSWER operations management,
some issues include scheduling, controlling, storing, and shipping." "which management involves the set of activities around storing and transporting goods and
services? What are they trying on ways to lower costs? - CORRECT ANSWER Logistics
management, shipping and inventory costs are huge, logistics mgmt is focusing on lowering them"
"management is about - CORRECT ANSWER people"
"human resource mgmt encompasses managing what two areas: - CORRECT ANSWER -the
mechanics of the personnel administration, and -the finer points of motivating people to offer and contribute their maximum potential." "How to organize a firm, where to find people, how to hire them, and how to compensate them
and how to evaluate them are issues to what mgmt? - CORRECT ANSWER human resource
mgmt"
