Farm Management MCQ Quiz Questions And Answers

36 Questions | Total Attempts: 1174

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Farm Management MCQ Quiz Questions And Answers - Quiz

What do you know about farm management practices? Do you think you can crack this 'Farm management MCQ quiz' that we have designed below? Farm management is not very easy and simple to understand. It involves making a lot of important decisions about how to organize and operate a farm for maximum production and profit. If you wish to see how much you know about it, then try this quiz and see how many marks you can score. Good luck!


Questions and Answers
  • 1. 
    The difference between the local cash market and the futures market is called the 
    • A. 

      Average

    • B. 

      Basis

    • C. 

      Contract

    • D. 

      Deduction

    • E. 

      None of the above

  • 2. 
    Which of the following land characteristics is used to determine an agricultural land's value for Missouri property tax calculations?
    • A. 

      The slope of the land

    • B. 

      The erosion of potential land

    • C. 

      The color of the soil

    • D. 

      The productivity potential of the land 

    • E. 

      All of the above

  • 3. 
    How many square feet are in an acre?
    • A. 

      5,280

    • B. 

      12,250

    • C. 

      43,560

    • D. 

      100,000

    • E. 

      None of the above

  • 4. 
    A firm should shut down in the short-run if it can not cover its 
    • A. 

      Fixed cost

    • B. 

      Total cost

    • C. 

      Variable cost

    • D. 

      Time cost

    • E. 

      Overhead costs

  • 5. 
    When an increase in production of one enterprise causes a reduction in the production of another enterprise, the two enterprises are said to be:
    • A. 

      Independent

    • B. 

      Complementary

    • C. 

      Supplementary

    • D. 

      Competitive

    • E. 

      None of the above

  • 6. 
    Missouri agricultural land productivity values are set by:
    • A. 

      An average of current agricultural land sales

    • B. 

      Using the values set at the federal level

    • C. 

      Using 83.3% of Iowa's values

    • D. 

      The Missouri State Tax Commission

    • E. 

      None of the above

  • 7. 
    How many bushels are in a corn futures contract?
    • A. 

      1,000

    • B. 

      3,000

    • C. 

      5,000

    • D. 

      7,000

    • E. 

      None of the above

  • 8. 
    The money on deposit to ensure the performance of a futures contract is called
    • A. 

      Basis

    • B. 

      Commission

    • C. 

      Margin

    • D. 

      Premium

    • E. 

      None of the above

  • 9. 
    The demand curve shows the relationship between:
    • A. 

      Consumer tastes and quantity demand

    • B. 

      Price in the quantity demand

    • C. 

      Price in production cost

    • D. 

      Money income and quantity demand

    • E. 

      None of the above

  • 10. 
    A farmer has total assets of $400,000 of which land is $300,000.  The farmer's debt: equity ratio is 3:1.  What will the farmer's debt: equity ratio be if his land goes up in value by 15%?
    • A. 

      0.75

    • B. 

      0.92

    • C. 

      1.18

    • D. 

      2.07

    • E. 

      2.45

  • 11. 
    The process of finding the future value of a present sum is called:
    • A. 

      Amortizing

    • B. 

      Budgeting

    • C. 

      Compounding

    • D. 

      Discounting

    • E. 

      None of the above

  • 12. 
    John invested $4,000 of retirement savings in a load mutual fund.  The expected annual rate of return is 6%.  How many years will it take for the $4,000 to double?  Utilize the Rule of 72 when calculating the answer.
    • A. 

      3

    • B. 

      6

    • C. 

      9

    • D. 

      12

    • E. 

      None of the above

  • 13. 
    An upward trend of market prices is referred to as a
    • A. 

      Bear market

    • B. 

      Bull market

    • C. 

      Boar market

    • D. 

      Buck market

    • E. 

      None of the above

  • 14. 
    Farmer Smith has a debt-to-asset ratio of 55%.  His debt-to-equity ratio must be
    • A. 

      Negative

    • B. 

      45%

    • C. 

      Less than 100%

    • D. 

      Less than 25%

    • E. 

      Greater than 100%

  • 15. 
    The selling of a commodity futures contract to protect a producer from price fluctuations in the market place at the time the product is sold is called:
    • A. 

      Hedging

    • B. 

      Hedger to arrive

    • C. 

      Intrinsic value

    • D. 

      Put option

    • E. 

      None of the above

  • 16. 
    In Missouri which of the following is not taxed as personal property:
    • A. 

      Calves between 300-600 pounds

    • B. 

      Sows

    • C. 

      Grain stored on farm premises

    • D. 

      Horses

    • E. 

      None of the above

  • 17. 
    The best indication that a farmer is making financial progress year-to-year is 
    • A. 

      An increase in net worth on the balance sheet

    • B. 

      A decrease in the value of total liabilities on the balance sheet

    • C. 

      An increase in the value of total assets on the balance sheet

    • D. 

      An increase of total cash flow on the cash flow statement

    • E. 

      A decrease in the value of his non-current liabilities

  • 18. 
    The ability of larger firms to be more profitable than smaller firms in the same industry is an example of:
    • A. 

      Diminishing returns

    • B. 

      Imperfect competition

    • C. 

      Inelastic supply

    • D. 

      Economies of scale

    • E. 

      None of the above

  • 19. 
    The person who makes transactions for farmers hedging is
    • A. 

      An accountant

    • B. 

      A broker

    • C. 

      A banker

    • D. 

      A commissioner

    • E. 

      None of the above

  • 20. 
    The best measure of a firm's ability to make a short-term loan payment is
    • A. 

      Debt/asset ratio

    • B. 

      Current ratio

    • C. 

      Solvency ratio

    • D. 

      Leverage ratio

    • E. 

      Net capital ratio

  • 21. 
    If the price of a commodity increases by 5% and the quantity purchased decreases by 10%, then the demand for this commodity is:
    • A. 

      Upward sloping

    • B. 

      Inelastic

    • C. 

      Elastic

    • D. 

      Unitary

    • E. 

      Unstable

  • 22. 
    To provide protection against wind damage to the farm home, a person should purchase
    • A. 

      Life insurance

    • B. 

      Property insurance

    • C. 

      Accident and health insurance

    • D. 

      Liability insurance

    • E. 

      None of the above

  • 23. 
    To purchase insurance, a person pays a/an
    • A. 

      Deductible

    • B. 

      Indemnity

    • C. 

      Loss

    • D. 

      Premium

    • E. 

      None of the above

  • 24. 
    The _________ tax is often referred to as the "death tax".
    • A. 

      Excise

    • B. 

      Medicare

    • C. 

      Estate

    • D. 

      Property

    • E. 

      None of the above

  • 25. 
    Agricultural Real Estate is assessed at 12% of its 
    • A. 

      True value

    • B. 

      Real value

    • C. 

      Productive capacity

    • D. 

      Appraised value

    • E. 

      None of the above

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