Ag Business Semester Exam

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True/False
Indicate whether the statement is true or false.

The actions of one partner are legally binding for the other partners, including payments of any debt.

In an Cooperative Corporation, each owner gets one vote per share of stock owned.

An advantage of owning a Franchise is that you can get assistance from the parent company.

Though small businesses are important, they provide less than half of all private workforce jobs.

From 1954 to 1997, imports have become a larger part of the U.S. GDP (Gross Domestic Product).

In our modern society, the United States is not interdependent on the world economy; we get all of what we need from inside our borders.

There are many types of social responsibilities that businesses need to be aware of. One of these is Conservation and Recycling. Recycling of consumer products has become more common today than it was in the past.

A socially responsible business will enact product recalls of unsafe products before it is required by the government or because of legal action taken by consumers.

Today, less businesses pay attention to consumer comments and complaints and they realize consumers don’t have much influence on how they run a business.

Managers need strong leadership skills to effectively lead their employees and departments.

If you want to start a business, unless it is going to be really large, a business plan is unnecessary and a waste of your time and energy.

Multiple Choice
Identify the choice that best completes the statement or answers the question.

Which is NOT an advantage of a Sole Proprietorship?

a	It is relatively easy to start.
b	You get to share decision making with others.
c	You’re entitled to all of the profits of the business.
d	Usually there are less taxes and less government regulation.

Which business type is characterized by having just one owner?

a	Sole Proprietorship	c	Investor-Oriented Corporation
b	Partnership	d	Cooperative Corporation

The least common form of business is the.......

a	Sole Proprietorship	c	Investor-Oriented Corporation
b	Partnership	d	Cooperative Corporation

Which is NOT a disadvantage of a Investor-Oriented Corporation?

a	Limited liability for each owner
b	Difficult to set-up
c	More scrutinized by government regulation
d	Can be very complex, especially when dealing with accounting and record keeping

A firm or business owned and operated by its members is known as a(n)....

a	Sole Proprietorship	c	Investor-Oriented Corporation
b	Partnership	d	Cooperative Corporation

Select the answer that is NOT correct to the statement.
Most businesses can be categorized by....

a	size	d	country of origin
b	product	e	profit orientation
c	market

Which of the following has NOT helped increase the globalization of businesses today?

a	Internet technology	c	faster transportation
b	government assistance	d	faster financial flow

Businesses can be categorized as to whether they provide goods or services. Service companies can be broken into four general categories. Which category below is NOT a common classification category for service oriented businesses?

a	Political Services	d	Information Services
b	Business Services	e	Internet Services
c	Professional Services

Which federal act (law) allows the government to break-up companies with too much market control?

a	Clayton Antitrust Act of 1914
b	Sherman Antitrust Act of 1890
c	Federal Trade Commission Act of 1915
d	Federal Reserve Act of 1929

Multiple Response
Identify one or more choices that best complete the statement or answer the question.

A business plan is made up of which 3 components listed below?

Choose all that are correct.
Distributors....

a	buy goods and services from producers.
b	pay wages and benefits to consumers for labor used in production
c	sell goods and services to consumers
d	work for producers to earn wages and benefits
e	turn economic resources into factors of production

Numeric Response

Agriculture accounts for approximately _________% of the child labor worldwide.

According to the U.S. Child Labor Laws for Agricultural Employment, the minimum age for employment during school hours is _________.

Small businesses are usually defined as having less than _____________ employees.

Completion
Complete each statement.

There are two basic forms of Intermediary businesses:wholesalers, which buy finished goods from manufacturers in large quantities and

_________________________, which buy finished goods from manufacturers or wholesalers, generally selling these goods directly to the public.

There are generally two forms of partnerships: General Partnerships and ____________________________ partnerships.

A legal agreement between two or more people to be responsible for a business is a _________________________.

A business which has the right or license to sell a company’s product or service at a designated location is known as _____________________.

For the most part, there are two basic types of Cooperative Corporations: Consumers Coops and __________________ Coops.

The __________ Program is a temporary agricultural program that establishes a means for agricultural employers who anticipate a shortage of domestic workers to bring nonimmigrant foreign workers to the U.S. to perform agricultural labor or services of a temporary or seasonal nature.

A place where products are sold is known as a ____________________________, and is the essence of the exchange process, where customers exchange their money for goods or services.

Businesses targeting a ___________________ market generally sell to customers in one country.

Businesses associated with government agencies are considered public sector employers and businesses not associated with government agencies are considered ___________________ sector employers.

_________________________ are firms taking something from the Earth or sea.

______________________ is any business activity using electronic communication when goods and services are exchanged.

There are many types of social responsibilities that businesses need to be aware of. One of these is Air and Water Pollution. The EPA is the government agency that enforces the laws to ensure companies cannot harm the environment. What does EPA stand for?

__________________________________________________

There are many types of social responsibilities that businesses need to be aware of. One of these is Business Ethics. The AMA, for example, has a code of ethics that all business that belong to this group are supposed to follow. AMA stands for....

__________________________________________________

There are many types of social responsibilities that businesses need to be aware of. One of these is Consumerism. President _________________________ put for the Consumer Bill of Rights during his term to protect consumers.

There are two basic management structures used by most businesses. Most are either organized __________________________ (which is the traditional method) or Horizontally (which is rather new and can be complex).

The type of business structure that involves self-management teams who set their own goals and make their own decisions is known as ______________________________ management.

Self-Managing teams work heavily with the sense of _________________________ - encouraging each other to contribute to and take responsibility for the management process.

One Management Function is known as __________________________, which involves setting standards, evaluation of these standards and solving any problems revealed by the evaluation.

The federal government promotes economic growth by regulating the amount of money in the economy with the _________________ ________________ ________.

Matching

Match the following types of agricultural businesses to their definitions.

a	producers	e	service firms
b	processors	f	non-profit organizations
c	cooperatives	g	manufacturers
d	intermediaries	h	partnerships

Change raw goods into a more finished form.

Move finished goods from one business to another

Provide goods and services to businesses and individuals while often operating on donations and using volunteer workers.

Develop products for distribution from raw goods.

Provide intangible goods to consumers and other businesses.

Change raw or processed goods into finished goods ready for the consumer.