AgB Week 4 Online Practice

Management decisions for a farm or agribusiness can be classified according to several characteristics. What is the characteristic that pertains to how often a decision is made?

• Importance

• Frequency

• Imminence

• Accessibility

Broad statements that show where a farm or agribusiness would like to be after some period of time are considered:

• Dreams

• Goals

• Plans

• Achievements

One disadvantage of goal setting would be:

• it can appear as a waste of time

• it tends to give purpose

• it prepares for the future

• it frees you from worries

Goals that require 1-10 years before possible achievement are listed as:

• short term

• intermediate

• long term

• median range

The ability of a farm or agribusiness to generate enough cash to pay bills without disrupting the business operations is termed

• liquidity

• solvency

• debt ratio

• asset ratio

Wenogotit Farms has current assets of $347,123 and current liabilities of $121,352. Calculate the current ratio.

• 35%

• 2.86

• $225,771

• $468,475

The simplest and least expensive business organization to create is:

• cooperative

• sole proprietorship

• general partnership

• corporation

The actual dollars that are available to a farm after current assets are sold and current liabilities are paid is called:

• account balance

• working capital

• equity

• profit

The percentage of the total farm debt that is due in one year is termed:

• asset structure

• liability ratio

• debt structure

• liquidity percentage

Which of the following is not considered to be a measure of liquidity?

• working capital

• debt structure

• asset structure

• net capital ratio