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Ag Business Semester Exam

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

 1 

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

 2 

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

 3 

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

 4 

The process of creating, growing, manufacturing or improving products or services are all considered production activities.
 

 5 

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

 6 

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

 7 

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.
 

 8 

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.
 

 9 

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.
 

 10 

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.
 

 11 

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

 12 

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.
 

 13 

Minimum wage is established and set by the federal government.
 

 14 

One of the ways the federal government protects investors is to have laws that require corporations to disclose information affecting shareholders’ investment decisions but there are no laws that prevent shareholders from gaining an advantage at the expense of other shareholders. This is called insider trading and it is still legal.
 

 15 

One way the Federal Government helps businesses is by providing funding and guidelines for public education so that students may be prepared to enter the workforce.
 

 16 

Federal Income Taxes are applied at the same rate for all people no matter how much you make.
 

 17 

Corporate income taxes are imposed at the federal level on corporate profits. They are also imposed by local and state governments.
 

 18 

Sales tax is the same anywhere you go in the United States.
 

 19 

Individuals are often required to pay property taxes (depending upon the state) on the property they own but businesses are exempt from property taxes.
 

 20 

Labor Unions are organizations formed to represent workers and prevent unfair labor practices.
 

 21 

Goods are considered intangible tasks performed in exchange for something of value, such as money.
 

 22 

“Wants” are those goods and services we desire and can be classified as luxury goods.
 

 23 

Land resources can be classified into two categories: nonrenewable and renewable.
 

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

 24 

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.
 

 25 

Which business type is characterized by having just one owner?
a
Sole Proprietorship
c
Investor-Oriented Corporation
b
Partnership
d
Cooperative Corporation
 

 26 

The least common form of business is the.......
a
Sole Proprietorship
c
Investor-Oriented Corporation
b
Partnership
d
Cooperative Corporation
 

 27 

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
 

 28 

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
 

 29 

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
 

 30 

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
 

 31 

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
 

 32 

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
 

 33 

The government provides various types of information for small businesses that help owners make business decisions. Which of the following is NOT one of those pieces of information?
a
National unemployment figures
c
Consumer spending trends
b
Stock market averages
d
current rate of inflation
 

 34 

The Federal Government plays a role in business by protecting consumers. Which of the following is NOT an example of an agency, commission or law (act) that is supposed to protect the consumer as discussed in class?
a
Consumer Credit Agency
b
Consumer Product Safety Commission
c
Fair Credit Reporting Act
d
Fair Packaging and Labeling Act
 

 35 

Which of the following is NOT an example of a good that has an excise tax as discussed in class?
a
gasoline
c
air travel
b
tobacco
d
food
 

 36 

Which is NOT one of the three main types of U.S. Law?
a
Common Law
c
Statutory Law
b
Executive Law
d
Administrative Law
 

 37 

Which is NOT considered to be one of the three questions related to production?
a
How will goods and services be produced?
b
Why will goods and services be produced?
c
Who will receive the goods and services?
d
What goods and services will be produced and how much?
 

 38 

Which of the following do NOT contribute to economic interdependence?
a
Producers
c
Distributors
b
Government
d
Consumers
 

 39 

Which of the following parts of the Business Cycle can be skipped in certain situations?
a
prosperity
b
recession
c
depression
d
recovery
 

 40 

Which of the following factors doesn’t normally affect consumer demand?
a
income
c
substitutes
e
consumer tastes
b
fads
d
production costs
 

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

 41 

A business plan is made up of which 3 components listed below?
 a
Business Description and Analysis
 d
Financial Plan
 b
Consumerism Plan
 e
Social Activities Plan
 c
Organization and Marketing Plan
 f
Business Meeting Plan
 

 42 

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
 

 43 

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

 

 44 

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

 

 45 

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

 

Completion
Complete each statement.
 

 46 

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.
 

 

 47 

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

 

 48 

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

 

 49 

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

 

 50 

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

 

 51 

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.
 

 

 52 

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.
 

 

 53 

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

 

 54 

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

 

 55 

_______________________ Demand is when demand for a product by consumers helps create demand for the product by the retailer from the wholesaler or the industrial market.
 

 

 56 

_________________________ are firms taking something from the Earth or sea.
 

 

 57 

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

 

 58 

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?

___________________________________________________________________
 

 

 59 

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....


___________________________________________________________________
 

 

 60 

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.
 

 

 61 

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).
 

 

 62 

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

 

 63 

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

 

 64 

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

 

 65 

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

 

 66 

___________________ is when the government sets strict rules affecting businesses within certain industries.
 

 

 67 

The ___________  _______________  ________________ is a government agency that was established to provide low-cost loans, advice and other assistance to small businesses.
 

 

 68 

________________________ is the removal or relation of the rules affecting businesses within certain industries.
 

 

 69 

_________________ are special taxes placed on foreign goods sold in the United States.
 

 

 70 

_________________  ________________ are fees or taxes imposed on goods brought into the country.
 

 

 71 

One of the branches of the federal government is the Legislative Branch. There are two parts to the Legislative Branch: the House of Representatives and the ______________.
 

 

 72 

The Taft-Hartley Act of 1947 legalized Right-to-_________ Laws that allow employees the right to work for a company whether or not they decide to join the union.
 

 

 73 

The ______________ Act of 1935 gives workers the right to organize a union and bargain with management.
 

 

 74 

________________  _________________ is when union representatives and management come together to discuss issues arising between employees and employers.
 

 

 75 

The study of economies as a whole is known as ____________________.
 

 

 76 

The study of individual economic units, such as businesses and households, is known as __________________.
 

 

 77 

The good or service that you give up when you choose another good or service is known as _________________   ________________.
 

 

 78 

________________ sell their labor to Producers.
 

 

 79 

________________ sell produced goods and services to distributors.
 

 

 80 

Terms or phrases that describe the state of the Business Cycle are:
-decreased confidence in the economy
-reduction in spending
-increased unemployment
 

 

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
 

 81 

Change raw goods into a more finished form.
 

 82 

Move finished goods from one business to another
 

 83 

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

 84 

Develop products for distribution from raw goods.
 

 85 

Provide intangible goods to consumers and other businesses.
 

 86 

Change raw or processed goods into finished goods ready for the consumer.
 
 
Match the following economic resources with the proper statement, description or definition.
a
Land
d
Labor
b
Need
e
Tangible
c
Capital
f
Management
 

 87 

Provides skills and talents to the production process through people
 

 88 

Consists of various items such as equipment, machinery, tools & factories.
 

 89 

Organizes the other three factors of production.
 

 90 

Is Synonymous with natural resources; consists of such items such as mineral deposits, oil deposits, water, etc.
 



 
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