A farmer or rancher has certain duties toward people that are on their land. The people that are on the farmers or rancher's land can be divided into three groups. Which one of the following is not one of the three groups?

A farmer or rancher has certain duties toward people that are on their land. The people that are on the farmers or rancher's land can be divided into three groups. Which one of the following is not one of the three groups?

Answer: Neighbors

___ is the buying and selling of commodity futures to protect a grower or producer from extreme price fluctuations in the marketplace at the time the product is sold.

___ is the buying and selling of commodity futures to protect a grower or producer from extreme price fluctuations in the marketplace at the time the product is sold.

Answer: Hedging

A person appointed in a will or by the court system to carry out requests and dispose of all property in accordance with the deceased is a:

A person appointed in a will or by the court system to carry out requests and dispose of all property in accordance with the deceased is a:

Answer: Executor

When demand and supply are equal, price is said to be at

When demand and supply are equal, price is said to be at

Answer: equilibrium.

Failure to comply with the terms of a contract is known as:

Failure to comply with the terms of a contract is known as:

Answer: Breach of contract

Cooperatives are best characterized by the fact that

Cooperatives are best characterized by the fact that

Answer: each member has some voice in the cooperative business affair

Dana's cow gets out and is found by Chris. Chris has several options, which one is NOT true?

Dana's cow gets out and is found by Chris. Chris has several options, which one is NOT true?

Answer: The stray cow becomes the property of Chris after 24 hours.

Most states have laws that govern boundary fences. In some states the fencing regulations are left largely to local government. Although, laws vary and are subject to change, which one usually prevails?

Most states have laws that govern boundary fences. In some states the fencing regulations are left largely to local government. Although, laws vary and are subject to change, which one usually prevails?

Answer: There are state laws that require landowners to enclose their land with a fence tight enough and strong enough to turn livestock.

Dane has a herd of Angus cows. One rainy night a driver runs into the fence and then drives away leaving the fence broken. One of the Angus cows wanders out on the road. Another car driven by Christy hits the cow. The cow dies and Christy=s car is damaged. Who is responsible?

Dane has a herd of Angus cows. One rainy night a driver runs into the fence and then drives away leaving the fence broken. One of the Angus cows wanders out on the road. Another car driven by Christy hits the cow. The cow dies and Christy=s car is damaged. Who is responsible?

Answer: No ones at fault

A riparian is someone who:

A riparian is someone who:

Answer: owns land bordering a stream

A contains the financial history of your business transaction for a given time period.

A contains the financial history of your business transaction for a given time period.

Answer: Cash flow summary

The formula for measuring price elasticity is:

The formula for measuring price elasticity is:

Answer: Percentage change in quantity/ Percentage change in price

Gail and her fellow producers often base their price expectations on past price levels. If prices are higher in one year, then they probably will increase production the next. Then the supply will increase and prices will fall. If there is an increase in demand the prices will:

Gail and her fellow producers often base their price expectations on past price levels. If prices are higher in one year, then they probably will increase production the next. Then the supply will increase and prices will fall. If there is an increase in demand the prices will:

Answer: this cannot be determined based on the data given

A cash lease is good for livestock grazing because it is simple, and reduces the chance of controversy. Frank uses a cash lease when he leases grazing land. He and the landowner set a fixed price per acre when they make their deal. This is the most common type of cash lease. The landlord may prefer the cash lease because:

A cash lease is good for livestock grazing because it is simple, and reduces the chance of controversy. Frank uses a cash lease when he leases grazing land. He and the landowner set a fixed price per acre when they make their deal. This is the most common type of cash lease. The landlord may prefer the cash lease because:

Answer: there is fixed rent

By using distant banks buyers have the use of your money interest free while checks are in transit. What is this called?

By using distant banks buyers have the use of your money interest free while checks are in transit. What is this called?

Answer: Float

Of the following which is not an example of a tangible function?

Of the following which is not an example of a tangible function?

Answer: Financing

Liquidity is best defined as:

Liquidity is best defined as:

Answer: the ability to meet cash obligations as they come due

A(n) is a marketplace where there are many businesses producing the same product. A single buyer or seller can=t influence the price structure. No producer is so large as to control or perceptively affect market supply or demand.

A(n) is a marketplace where there are many businesses producing the same product. A single buyer or seller can=t influence the price structure. No producer is so large as to control or perceptively affect market supply or demand.

Answer: perfect competition

Ray owns a greenhouse in North Georgia. Two hundred yards away from Ray's greenhouse is a chicken house owned and operated by Marc. On a cold stormy night, part of the roof of the chicken house blew off into the side of the greenhouse and broke a good portion of the glass. This damage allowed the cold temperature to kill all of the Easter Lilies Ray was growing for the Easter holiday. In this case is Marc responsible for the anything?

Ray owns a greenhouse in North Georgia. Two hundred yards away from Ray's greenhouse is a chicken house owned and operated by Marc. On a cold stormy night, part of the roof of the chicken house blew off into the side of the greenhouse and broke a good portion of the glass. This damage allowed the cold temperature to kill all of the Easter Lilies Ray was growing for the Easter holiday. In this case is Marc responsible for the anything?

Answer: Yes, Marc is responsible for both the repairs and the Easter Lilies

In a production function, levels of production are divided into:

In a production function, levels of production are divided into:

Answer: three stages called I, II, and III

You have been showing hogs for several years. An example of a variable cost in your established show hog project is

You have been showing hogs for several years. An example of a variable cost in your established show hog project is

Answer: feed.

A poultry producer is producing 100,000 broilers a year, but after determining he was in stage I of production he decided he needed to. This would allow him to maximize his profit.

A poultry producer is producing 100,000 broilers a year, but after determining he was in stage I of production he decided he needed to. This would allow him to maximize his profit.

Answer: increase his flock to a number greater than 100,000.

Out of the following, which one usually has a low capital turnover ratio and low profitability?

Out of the following, which one usually has a low capital turnover ratio and low profitability?

Answer: Beef cow-calf operations

The ability to pay debts as they come due is called:

The ability to pay debts as they come due is called:

Answer: solvency

Assets are items that have a market value. They are separated into three categories which are , ,and .

Assets are items that have a market value. They are separated into three categories which are , ,and .

Answer: Current, Intermediate, and Long-term

____ is used to record income and expenses that cannot be attributed directly to an enterprise at the time incurred.

____ is used to record income and expenses that cannot be attributed directly to an enterprise at the time incurred.

Answer: Overhead enterprise

Goals are important in farm management because:

Goals are important in farm management because:

Answer: they give direction in decision making.

In the 1996 Farm Bill the Government set the price of peanuts at a minimum of $610 a ton. This price setting can best be termed as a:

In the 1996 Farm Bill the Government set the price of peanuts at a minimum of $610 a ton. This price setting can best be termed as a:

Answer: price floor

The price of corn was high this year. What factor probably caused the price to be higher than normal?

The price of corn was high this year. What factor probably caused the price to be higher than normal?

Answer: There was a shortage of corn.

Of the following, which one is NOT an example of business expenses?

Of the following, which one is NOT an example of business expenses?

Answer: items purchased for resale

Which of the following Net Capital Ratios would indicate the best financial position? (Total Assets/Total Liabilities

Which of the following Net Capital Ratios would indicate the best financial position? (Total Assets/Total Liabilities

Answer: 2.8

A person appointed in a will or by the court system to carry out requests and dispose of all property in accordance with the deceased is a:

A person appointed in a will or by the court system to carry out requests and dispose of all property in accordance with the deceased is a:

Answer: Executor

When demand and supply are equal, price is said to be at:

When demand and supply are equal, price is said to be at:

Answer: equilibrium.

Failure to comply with the terms of a contract is known as:

Failure to comply with the terms of a contract is known as:

Answer: Breach of contract

Cooperatives are best characterized by the fact that:

Cooperatives are best characterized by the fact that:

Answer: each member has some voice in the cooperative business affair.

Dana's cow gets out and is found by Chris. Chris has several options, which one is NOT true?

Dana's cow gets out and is found by Chris. Chris has several options, which one is NOT true?

Answer: The stray cow becomes the property of Chris after 24 hours

Most states have laws that govern boundary fences. In some states the fencing regulations are left largely to local government. Although, laws vary and are subject to change, which one usually prevails?

Most states have laws that govern boundary fences. In some states the fencing regulations are left largely to local government. Although, laws vary and are subject to change, which one usually prevails?

Answer: There are state laws that require landowners to enclose their land with a fence tight enough and strong enough to turn livestock.

Dane has a herd of Angus cows. One rainy night a driver runs into the fence and then drives away leaving the fence broken. One of the Angus cows wanders out on the road. Another car driven by Christy hits the cow. The cow dies and Christy's car is damaged. Who is responsible?

Dane has a herd of Angus cows. One rainy night a driver runs into the fence and then drives away leaving the fence broken. One of the Angus cows wanders out on the road. Another car driven by Christy hits the cow. The cow dies and Christy's car is damaged. Who is responsible?

Answer: No one is at fault

A riparian is someone who:

A riparian is someone who:

Answer: owns land bordering a stream.

_________ are the cash value of assets based on actual cost or market value less sale expenses.

_________ are the cash value of assets based on actual cost or market value less sale expenses.

Answer: Current values

Money that is owed to you at the end of the year is termed:

Money that is owed to you at the end of the year is termed:

Answer: accounts receivable

What is the single best record keeping system for everyone?

What is the single best record keeping system for everyone?

Answer: There is no single best record keeping system for everyone

________ is a type of accounting system.

________ is a type of accounting system.

Answer: Single-entry

When the price of a product is increased with no change in factors other than price, less product will be purchased. This is the:

When the price of a product is increased with no change in factors other than price, less product will be purchased. This is the:

Answer: Law of Demand.

Cash flow summaries, net worth statement, income statement, and detailed enterprise analysis are all forms of:

Cash flow summaries, net worth statement, income statement, and detailed enterprise analysis are all forms of:

Answer: records

A document that shows the exact size, location, ownership, and method of ownership of property is a

A document that shows the exact size, location, ownership, and method of ownership of property is a

Answer: deed.

A pork producer who does not produce this year will lose some money including _____.

A pork producer who does not produce this year will lose some money including _____.

Answer: depreciation

If a tractor purchased in 1987 for $12,000 is valued at $14,000 today, then it has

If a tractor purchased in 1987 for $12,000 is valued at $14,000 today, then it has

Answer: appreciated.

If all other factors remain the same and the supply of a product goes up, then the price of that product will probably

If all other factors remain the same and the supply of a product goes up, then the price of that product will probably

Answer: fall.

Mr. Brown is the owner of the local hardware store. He does not farm but likes to buy and sell in the futures market. He is a

Mr. Brown is the owner of the local hardware store. He does not farm but likes to buy and sell in the futures market. He is a

Answer: speculator.

With which method of record keeping is it easiest to determine the net farm income and analyze the strong and weak points of an agricultural business from year to year?

With which method of record keeping is it easiest to determine the net farm income and analyze the strong and weak points of an agricultural business from year to year?

Answer: accrual method

Ann knows that she will need $100,000 for living expenses when she retires in 20 years. She used __________ to determine how much she needs to invest today at 10% interest to accumulate the needed funds.

Ann knows that she will need $100,000 for living expenses when she retires in 20 years. She used __________ to determine how much she needs to invest today at 10% interest to accumulate the needed funds.

Answer: discounting

An advantage of a farm corporation is that:

An advantage of a farm corporation is that:

Answer: it limits liability of the owners.

Suppose John Brown has 100 acres of cropland. He wants to plant it in corn and soybeans. To decide what ratio of corn and beans will give him the most returns he should use a:

Suppose John Brown has 100 acres of cropland. He wants to plant it in corn and soybeans. To decide what ratio of corn and beans will give him the most returns he should use a:

Answer: partial budget.

If the price of a product increases and the demand does not change, the demand for the product is said to be:

If the price of a product increases and the demand does not change, the demand for the product is said to be:

Answer: inelastic

If demand for a product goes down and all other factors remain the same, then the price of that product will probably:

If demand for a product goes down and all other factors remain the same, then the price of that product will probably:

Answer: decrease

An agreement to buy and receive or to sell and deliver a commodity at an upcoming date with certain specified characteristics is a:

An agreement to buy and receive or to sell and deliver a commodity at an upcoming date with certain specified characteristics is a:

Answer: futures contract.

The ability of a business to pay off liabilities without disrupting business is termed:

The ability of a business to pay off liabilities without disrupting business is termed:

Answer: liquidity

A business that is owned and controlled by one person is a:

A business that is owned and controlled by one person is a:

Answer: sole proprietorship

Suppose farmer Johnson buys a new cotton picker for $160,000. It has a useful life of six years and a salvage value of $40,000. What is the annual depreciation using the straight line method? "

Suppose farmer Johnson buys a new cotton picker for $160,000. It has a useful life of six years and a salvage value of $40,000. What is the annual depreciation using the straight line method? " 

Answer: - $20,000

Suppose that the government passed a law setting the maximum interest rate that could be charged to agricultural producers by commercial banks at 5%. A likely result would be that

Suppose that the government passed a law setting the maximum interest rate that could be charged to agricultural producers by commercial banks at 5%. A likely result would be that

Answer: commercial banks would not

A producer most often uses a cash flow statement to

A producer most often uses a cash flow statement to

Answer: estimate the amount of credit needed and when it will be needed.

A plan that projects expected returns and costs is called a

A plan that projects expected returns and costs is called a

Answer: budget.

The total quantity of goods and services produced is called

The total quantity of goods and services produced is called

Answer: supply.

Speculators in the futures market

Speculators in the futures market

Answer: accept the price risk the hedgers are seeking to avoid.

Hedgers and speculators in the futures market are different in that

Hedgers and speculators in the futures market are different in that

Answer: speculators do not produce a product to sell.

How much will the total soil cost be for Ann's 8,000 hanging baskets?

How much will the total soil cost be for Ann's 8,000 hanging baskets?

Answer: $4,080

When Jill sold her crossbred steer she received $1,250. She figured her total expenses to be $975. The percentage net return realized was:

When Jill sold her crossbred steer she received $1,250. She figured her total expenses to be $975. The percentage net return realized was:

Answer: 25%

The price of a commodity is basically determined by the:

The price of a commodity is basically determined by the:

Answer: supply and demand for the product

The process of searching for the equilibrium or market clearing price is called price discovery

The process of searching for the equilibrium or market clearing price is called price discovery

Answer: TRUE

A spouse who works for the other spouse has to pay social security taxes

A spouse who works for the other spouse has to pay social security taxes

Answer: FALSE

Fixed costs occur no matter what or how much product is produced.

Fixed costs occur no matter what or how much product is produced.

Answer: TRUE

Stage 3 of production begins when the marginal product (M.P.) becomes zero.

Stage 3 of production begins when the marginal product (M.P.) becomes zero.

Answer: TRUE

Planning the acquisition, enjoyment and distribution of property for the benefit of their family is a(n):

Planning the acquisition, enjoyment and distribution of property for the benefit of their family is a(n):

Answer: estate plan

The coordination of activities that are involved with the moving of a commodity from the producer to the ultimate consumer is:

The coordination of activities that are involved with the moving of a commodity from the producer to the ultimate consumer is:

Answer: marketing

What type of insurance protects the farmer from lawsuits if he/she causes personal injury or property damage to another person?

What type of insurance protects the farmer from lawsuits if he/she causes personal injury or property damage to another person?

Answer: liability insurance

The purpose of insurance is to:

The purpose of insurance is to:

Answer: reduce risk and uncertainty

A decline in the value of an asset over its useful life associated with use, age and obsolescence is:

A decline in the value of an asset over its useful life associated with use, age and obsolescence is:

Answer: depreciation

A budget for corn would be a(n):

A budget for corn would be a(n):

Answer: enterprise budget

Ann made $41,303 profit on her nursery operation last year. Her capital investment was $216,108. What was her rate of return to capital invested?

Ann made $41,303 profit on her nursery operation last year. Her capital investment was $216,108. What was her rate of return to capital invested?

Answer: 19%

Efforts to reduce tariffs, taxes, domestic subsidies and other barriers to free trade are not important and do not affect the American farmer.

Efforts to reduce tariffs, taxes, domestic subsidies and other barriers to free trade are not important and do not affect the American farmer.

Answer: FALSE

The accounting system that keeps balance in financial transactions is:

The accounting system that keeps balance in financial transactions is:

Answer: double entry accounting

Goals that can be achieved in less than one year and usually provide immediate satisfaction are:

Goals that can be achieved in less than one year and usually provide immediate satisfaction are:

Answer: short-term goals

If you negligently keep an object or condition on your land that is attractive and dangerous to children, you will be liable if a child is injured by that object or condition. This is called:

If you negligently keep an object or condition on your land that is attractive and dangerous to children, you will be liable if a child is injured by that object or condition. This is called:

Answer: doctrine of attractive nuisance

Jason borrowed $1,000 from the bank at 8% interest. He is to make a lump

Jason borrowed $1,000 from the bank at 8% interest. He is to make a lump

Answer: sum payment at the end of the year. If simple interest is used, what is the total amount he will pay - $1,080

If a farmer's equity is $560,000 and his liabilities are $270,000, his debt

If a farmer's equity is $560,000 and his liabilities are $270,000, his debt

Answer: equity ratio is: - 0.48

A legal statement of a person's wishes concerning the disposal of property after death is a(n):

A legal statement of a person's wishes concerning the disposal of property after death is a(n):

Answer: will

You are only liable for personal injuries if you intentionally inflict them on a trespasser.

You are only liable for personal injuries if you intentionally inflict them on a trespasser.

Answer: TRUE

A legally enforceable arrangement or agreement between two or more parties is a(n):

A legally enforceable arrangement or agreement between two or more parties is a(n):

Answer: deal

If an employee is paid wages of $2,500 during the year, the employer is required to pay social security tax for that employee.

If an employee is paid wages of $2,500 during the year, the employer is required to pay social security tax for that employee.

Answer: TRUE

When earnings are distributed to owners and then those earnings are taxed as personal income for each owner, this is a

When earnings are distributed to owners and then those earnings are taxed as personal income for each owner, this is a

Answer: partnership

Sums of money paid or received in periodic payments for a specific period of time are annuities.

Sums of money paid or received in periodic payments for a specific period of time are annuities.

Answer: TRUE

Compounding calculates the present value of a future sum of money.

Compounding calculates the present value of a future sum of money.

Answer: FALSE

A contract calling for delivery of a carefully described commodity at some later time period is a(n):

A contract calling for delivery of a carefully described commodity at some later time period is a(n):

Answer: futures contract

When a price ceiling is imposed at a level below the equilibrium price, this creates a shortage.

When a price ceiling is imposed at a level below the equilibrium price, this creates a shortage.

Answer: TRUE

If the variable operating costs of Lisa's watermelon production is $334.57 and the yield is 7 tons, what is Lisa's break

If the variable operating costs of Lisa's watermelon production is $334.57 and the yield is 7 tons, what is Lisa's break

Answer: even price per ton? - $47.80

A business is solvent if:

A business is solvent if:

Answer: total assets exceed total liabilities

One of the best measures of liquidity is:

One of the best measures of liquidity is:

Answer: current ratio

An estimate of monthly cash inflows and outflows is a:

An estimate of monthly cash inflows and outflows is a:

Answer: cash flow projection

The percent change in quantity divided by the percent change in price is defined as:

The percent change in quantity divided by the percent change in price is defined as:

Answer: elasticity

The demand curve shows the relationship between:

The demand curve shows the relationship between:

Answer: price and the quantity demanded