What is a common problem in a partnership?

Homes are closely tied to the business.

Why does the founder of a C-Corporation often become the CEO as well?

Most familiar with the Board of Directors & business

How has the SIZE of farms changed since the 1940s?

Farms (in general) are larger now than they were then.

What is the difference between and S and C-Corporation?

An S-Corporation keeps profit and a C-Corporation cannot.

Why are co-ops formed?

for the aid of members in a particular service

Why are most farmers considered sole proprietors?

They manage their own finances and run their own operations

How do corporations differ from all other structures of business?

Corporations have a different tax structure.

How has the NUMBER of farms changed since the 1940s?

There are less farms than there were then.

What distinguishes Article 2 and Article 4 of a partnership agreement?

Article 2: Finances/Article 4: Changing the Partnership

What is the purpose of a purchasing, or supply, co-op?

It supplies producers with inputs.

What is a limited partnership?

One partner makes no decisions; only liable for $ invested

Why is failure a common fate for sole proprietorships?

There is only 1 person responsible for the entire business.

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Final Exam - Ag Business Intro to Ag Business & Structures of Ag Business

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Questions 30

Answers

1
What is a common problem in a partnership?
Disagreements usually are over major issues.
Trust between the partners is solid.
Partners often have same goals for the business.
Homes are closely tied to the business.
2
What type of business is chartered by a state and acts as a separate entity from its owners?
corporation
limited ownership
partnership
sole proprietorship
3
Why does the founder of a C-Corporation often become the CEO as well?
Founder chooses CFO and the CFO chooses founder as the CEO
They have the money to become the CEO.
Founder must become the CEO
Most familiar with the Board of Directors & business
4
Which cooperative governing system has only other cooperatives as members?
universal cooperative
mixed cooperative
centralized cooperative
federated cooperative
5
How has the SIZE of farms changed since the 1940s?
Farms (in general) are smaller now than they were then.
Farms (in general) are larger now than they were then.
6
What is the difference between and S and C-Corporation?
Both give profits back to shareholders; no difference.
They both keep their profits; there is no difference.
A C-Corporation keeps profit and an S-Corporation cannot.
An S-Corporation keeps profit and a C-Corporation cannot.
7
Why are co-ops formed?
They are for the education of the public.
To become aware of businesses the co-ops are formed around
for the aid of members in a particular service
They meet the needs of the communities around the co-ops.
8
Which type of farm produces between 85 and 90 percent of all U.S. food and fiber?
Large Farms
Small Farms
9
In a lawsuit against a sole proprietor, how can the business owner be attacked if uninvolved?
Unlimited liability
Limited Liability
10
Why are most farmers considered sole proprietors?
The individual farmer harvests their crops on their own.
They manage their own finances and run their own operations
They hire help for finances, but do the rest alone
Farmers don’t have to pay taxes on all of their production.
11
How do corporations differ from all other structures of business?
Corporations do not pay taxes.
Corporations have a much higher tax rate than others
Corporations are the only business to pay taxes.
Corporations have a different tax structure.
12
How many people make decisions in a sole proprietorship?
all the board of directors
all the stockholders
one
all the partners
13
Which type of cooperative sells farm supplies to its members?
service
sustainable
purchasing
marketing
14
What is the simplest form of business organization?
limited ownership
sole proprietorship
corporation
partnership
15
A marketing co-op sells products and _____ returns.
avoids
minimizes
markets
maximizes
16
How many articles are in a partnership agreement?
7
3
9
5
17
An LLC prevents __________.
double taxation
federal taxation
triple taxation
taxation
18
What is the most common form of a corporation?
limited liability corporation
S corporation
C corporation
closed corporation
19
The _____ has seven principles for the process of co-ops.
Rossdale System
Rochdale System
Rochdale Structure
Rossdale Structures
20
How has the NUMBER of farms changed since the 1940s?
There are more farms than there were then.
There are less farms than there were then.
21
What is a business organization where the owners are the customers?
sole proprietorship
corporation
cooperative
partnership
22
What distinguishes Article 2 and Article 4 of a partnership agreement?
Article 2: Changing the Partnership/Article 4: finances
Article 2: General Finances/Article 4: Salaries
Article 2: Salaries/Article 4: General Finances
Article 2: Finances/Article 4: Changing the Partnership
23
What is the purpose of a purchasing, or supply, co-op?
It supplies consumers with inputs.
It supplies consumers with outputs.
It supplies producers with inputs.
It supplies producers with outputs.
24
Why does the largest shareholder become the manager of a partnership?
They buy the position.
They are the wealthiest and should be in charge.
A board of directions has to elect them to that position.
They have the most at stake
25
What service can a service co-op offer a strawberry grower?
Cleaning the berries
Marketing the berries
Advertising the berries to local communities
Supplying pesticides to the grower
26
What is a limited partnership?
one does not provide $, no decision making
One partner makes no decisions; only liable for $ invested
one provides capital; no say; not liable
one provides capital; has a say; only liable for $ invested
27
_____ are extra money made by a corporation that is given back to the shareholders.
Multipliers
Stocks
Profits
Dividends
28
Why is failure a common fate for sole proprietorships?
Startup costs are often too high for the owner to maintain.
Stress put on a sole proprietor often causes them to quit.
There is only 1 person responsible for the entire business.
The proprietor cannot hire anyone and has to do work alone
29
Which of these terms is a newer word coined in the mid-1950s?
Agriculture
Agribusiness
30
The "value" of a product is added by 3 ways. Those ways include: form, location, and ________?
Color
Quality
Demand
Time

Final Exam - Ag Business Intro to Ag Business & Structures of Ag Business Flashcards | StudBud