Quiz 1 Flashcards
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. (T/F)
TRUE
Goals must be defined before management decisions can be made TF
TRUE
A beef cow-calf operator who specializes in raising high-quality breeding stock and calves for exhibiting at livestock shows would be classified as
- Part time operator
- High – volume, low –margin
- Service provider
- Low – volume, high – margin producer
Low - volume, high - margin producer
The last step in the decision – making process is to implement the decision
FALSE
Deciding whether to sell wheat today or wait until later in case prices improve is an example of a tactical decision. TF
TRUE
Internal scanning includes assessing a business’ financial, physical, and human resources. TF
TRUE
Standardization of farm financial ratios and accounting practices will help farm managers
- summarize their account books in less time.
- manage hired employees more effectively.
- pay less income tax.
- compete with nonfarm businesses for capital.
Compete with nonfarm businesses for capital
Vertical integration refers to the process by which farmers or ranchers
- increase the size of their operation by leasing or buying more land.
- grow taller crops.
- grow a greater variety of products.
- enter into agreements with processors or distributors to supply them with their products
Enter into agreements with processors or distributors to supply them with their products.
One characteristic that makes decision making in agriculture different from other types of business is
- prevalence of very large business units.
- predictability of the production processes.
- fixed supply of a major resource such as land.
- more government regulation
Fixed supply of a major resource such as land
According to the U.S. Census of Agriculture, the largest percentage of farms in the United States would be considered
- large, corporate farms
- small, part-time farms.
- large communally operated farms.
- medium-size family farms
small, part - time farms
