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AREC 305 ~ FINAL EXAM QUESTIONS AND ANSWERS (100% PASS
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AREC 305 ~ FINAL EXAM QUESTIONS AND ANSWERS (100% PASS
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©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Monday, July 29, 2024 12:15 PMAREC 305 ~ FINAL EXAM QUESTIONS AND ANSWERS (100% PASS)
By forming strategic alliances, small and medium sized farmers and ranchers can : -
✔️✔️achieve marketing advantages that larger operations enjoy
the last step in the decision-making process us to implement the decision - ✔️✔️false
more time should be spent on irrevocable decisions than on those which can be easily
reversed - ✔️✔️true
standardization of farm financial ratios and accounting practices will help farm
managers : - ✔️✔️compete with nonfarm businesses for capital
which of the following shows the proper sequence of management functions as they
would be applied to a specific problem? - ✔️✔️planning, implementation, control
"what managers do" is best described by which of the following? - ✔️✔️make decisions
because weather and prices are unpredictable, it is impossible to plan more than one
year in advance - ✔️✔️false
which of the following is an example of a strategic decision? - ✔️✔️determining what type
of business/legal organization to use
which phase of the strategic management process would be most influenced by a farm
family's basic values and attitudes about agriculture? - ✔️✔️setting goals
since farm managers are making the same basic types of decisions in the 21st century
as they did in the previous century, they can rely on rules of thumb to guide their actions
- ✔️✔️false
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 - ✔️✔️true
"doubling the number of acres farmed in 10 years" is an example of a - ✔️✔️long-run goal
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,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Monday, July 29, 2024 12:15 PM
goals must be known before management decisions can be made - ✔️✔️true
no management decision should be made until all possible information has been
acquired - ✔️✔️false
even choosing the best alternative action will sometimes produce undesirable results -
✔️✔️true
goals should have written, specific, measurable, and have a timetable - ✔️✔️true
which of the following is an example of a tactical decision? - ✔️✔️balancing a livestock
ration
one force that has helped cause US farms to become larger and fewer is : - ✔️✔️lower
production costs per unit by spreading fixed investment in technology over more units
strategic planning only needs to be done by someone just beginning their business -
✔️✔️false
the term describing how much time is available to make a decision is : - ✔️✔️imminence
the three major components of a balance sheet are assets, liabilities, and net worth -
✔️✔️true
which of the following is an example of a current asset? - ✔️✔️none of the above --> dairy
cows, farm buildings, and farm machinery
the primary purpose of a balance sheet is to record and measure profitability - ✔️✔️false
another term which has the same meaning as owners equity is : - ✔️✔️net worth
inventories of grain and feeder livestock would be valued at fair market value on either a
cost or market basis balance sheet - ✔️✔️true
if a business has working capital greater than $0, its current ration will be : - ✔️✔️greater
than one
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, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Monday, July 29, 2024 12:15 PM
if the debt/asset ration is increasing, then the leverage ration will be : - ✔️✔️increasing
a balance sheet using market-based valuation will always have a higher net worth than
it would if cost-based valuation methods had been used - ✔️✔️false
which of the following best describes a balance sheet? - ✔️✔️it shows assets and
liabilities at a point in time
total liabilities cannot be greater than total assets - ✔️✔️false
the best description of a business which has increased its debt/asset ratio is one which
has : - ✔️✔️increased its debt relative to total assets
which of the following assets would have the same value using either a cost or a market
basis valuation? - ✔️✔️prepaid expenses
on a cost basis balance sheet, net worth will increase if land values increase - ✔️✔️false
the degree to which a farms assets adequately cover or exceed its liabilities is referred
to as : - ✔️✔️solvency
a lender would usually prefer to have farm assets valued at their ______ value on a
balance sheet that is part of a loan application - ✔️✔️market
the "cost value" shown on a balance sheet for a asset such as a tractor is equal to : -
✔️✔️the original purchase price less depreciation expense taken to date
a negative owner's equity indicates an insolvent business - ✔️✔️true
which of the following would not increase the net worth of a farm business? - ✔️✔️loans
received to purchase land
using $20,000 in cash and a new loan of $80,000 to purchase land for $100,000 will
cause equity to : - ✔️✔️not change
if $50,000 cash on hand is used to pay a $50,000 operating loan then on the day of the
transaction : - ✔️✔️net worth will not change but the current ration will change
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