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Question BankFundamentals of Agribusiness Management

(AG. ECON 5.4)

DEPARTMENT OF AGRICULTURAL ECONOMICS,C. P. COLLEGE OF AGRICULTURE,

S. D. AGRICULTURAL UNIVERSITY, SARDARKRUSHINAGAR- 385 506

Subject: Fundamentals of Agribusiness Management (Agril.Econ.5.4)S.

No.Topic Weightage

1. Importance of Agribusiness in the Indian Economy, Agricultural Policy.

5.58

2. Agribusiness Management, Distinctive features, Importance of Good Management, Definitions of Management, Management Functions.

10.23

3. Planning, Meaning, Definition, Types of Plans (Purpose or Mission, Goals or Objectives, Strategies, Polices, Procedures, rules, programmes, Budget) characteristics of sound plan.

5.12

4. Steps in planning, Organization, Staffing, Directing, Motivation, Ordering, Leading, Supervision, Communication, Control.

6.98

5. Capital Management. Financial Management of Agribusiness: Importance of Financial Statements, Balance sheet, Profit and Loss Statement, Analysis of Financial statements.

34.88

6. Agro-based Industries: Importance and Need, Classification of Industries, Types of Agro-based Industries, Institutional arrangement, Procedure to set up agrobased industries, Constraints in establishing agro-based industries.

3.26

7. Marketing Management: Meaning, Definitions, Marketing Mix, 4Ps of Marketing. Mix, Market segmentation, Methods of Market, Product life cycle.

16.74

8. Pricing policy, Meaning, pricing method. Prices at various stages of Marketing.

1.86

9. Project, definitions, project cycle, Identification, Formulation, Appraisal, Implementation, Monitoring and evaluation, Appraisal and Evaluation techniques, NPW, BCR, IRR, N/K ratio, sensitivity analysis. Characteristics of agricultural projects: preparation of project reports for various activities in agriculture and allied sectors: dairying, poultry, fisheries, agro-industries etc.

15.35

Unit-1Importance of Agribusiness in the Indian Economy, Agricultural

Policy.1 Export Processing Zones is located at___ __in Uttar Pradesh.

A Varanasi B Agra C Noida D Ghaziabad

2 Special Economic Zones scheme was introduced in the ___ _ year.A 2005 B 2015C 2009 D 2000

3 Under Agri. Clinic and Agribusiness Centres scheme Government provide maximum Rs___ _lakh assistance to an individual. A 2 B 10C 5 D 50

4 Monopolies and Restrictive Trade Practices Act was introduced in___ _year.A 2004 B 1982C 1969 D 1985

5 Consumer protection Act was introduced in___ _year. A 1992 B 1986C 1945 D 1948

6 Fruit Products Order -1955 aim is___ _ A Regulate sanitary &

hygienic conditions B Implement food

standardsC Easy access of food products D Regulate food supply

7 Milk and Milk Products Order, 1992 administered by the Department of___ _A National Dairy Development

Board B Agriculture &

CooperationC Animal Husbandry &

Dairying D Consumer Affairs

8 Codex Alimentarius Commission aim is to___ _A Regulate weight of food

product B Frame food

standardsC Easy access of food products D Regulate food supply

9 Full form of HACCP. A Health Analysis and Critical

Control Pointb Hygiene Analysis and

Critical Control PointC Hazard Analysis and

Critical Control PointD None of these

10 AGMARK and BIS standards are___ _for organization to adopt.A Compulsory B VoluntaryC Mandatory D None of these

11 A concept of Agri-business, book written by__________________________A David and Goldberg B A.H. John

C Amaranth D None of these12 Full form of IIM is ______________________.

A Indian Industrial Management

B Industrial Institute of Management

C Indian Institute of Management

D None of these

Unit-2Agribusiness Management, Distinctive features, Importance of Good Management, Definitions of Management, Management Functions. 1 Agribusiness is _________ oriented

A Person B SubsistenceC Market D None

2 The structure of agri-business is generally_______A Horizontal B VerticalC Conglomerate D None

3 Trends that are causing changes in management accounting today include_________.A Advances in technology B Increased global

competitionC A shift from a manufacturing

to a service-based economyD All of the above 

4 _____ is the collection and interpretation of information about forces, events, and relationships that may affect the organizationA Environmental scanning B Stakeholder analysisC Market sampling D Opportunity analysis

5 _____is defined as all business enterprises or sell to farmers / traders / consumers.A Agri. Business B Financial Management

C Operation Management D Human Resource Management

6 _____is not the subject matter of Agri. Economics vis-à-vis Agri. Business Management.

A Non-farm Agricultural Enterprises

B Agricultural Production

C Agricultural Marketing D Agricultural Finance 7 ___ _is the father of Principles of management.

A Henry Fayol B George TerryC Per Drucker D Lawrence A. Appley

8 Management is a distinct process consisting of planning, organizing, ___ _andcontrolling performance. A Leading B ActuatingC Preparation D Both a and b options

9 Management is a decision making process through which of a business

firm are determined.A Purpose B ObjectivesC Both a & b D None

10 The elements of good management is____________and ______________.A Human B TechnicalC Both a & b D None

11 The top level management includes _________and________ having collective responsibility.A CEO & Directors B Supervisors & foremenC Both a & b D None of these

12 Agribusiness involves Input, Output and _______________sectors.A Farm sectors B Business sectorsC Product sectors D All of these

13 Agribusiness can be defined as transition from ___________to ___________agriculture.A Subsistence to

commercialB Improved to ancient

C Commercial to subsistence D None of these14 Management is a _______________process through which purpose and

objectives of a business firm are determined.A Forward thinking B ParticipatoryC Decision making D All of these

15 Karl Marx in his book ___________________ defined capital as crystallized labour.A Entrepreneurship

developmentB Das Kapital

C Agribusiness Management D All of these16 The first Advanced Agribusiness Management seminar was held in;

A Manila B CanadaC U.K. D Germany

17 Agri-business as a concept was born in _____________________.A Philippines University 1957 B Oxford University 1956C Harvard University in

1957D None of these

18 The representatives of the management at bottom level include;A CEO and Directors B Departmental Heads C Supervisors and foremen D None of these

19 The representatives of the management at middle level include;A Supervisors and foremen B Departmental Heads C CEO and Managing Directors D None of these

20 Management accounting makes the use of information contained in financial accounting & .A Marketing accounting B Operation accounting C Cost accounting D Working capital

accounting

21 ________ is the art of getting done through people.A Management B PlanningC Budgeting D All of above

22 Planning is an expensive exercise, in terms of ________.A Money B timeC Both money and time D utility

Unit-3Planning, Meaning, Definition, Types of Plans (Purpose or Mission, Goals or Objectives, Strategies, Polices, Procedures, rules, programmes, Budget) characteristics of sound plan.

1 A good plan must be_________.A Flexible B RigidC Rapid D All

2 ________ is a financial plan for a business prepared in advanceA Inventory B BudgetC Balance sheet D None

3 Planning consists of selecting the enterprise___ _, policies, programmes, procedures and other means of achieving their objectives.A Objectives B ActuatingC Organizing D Both a and b options

4 Speed of decision making in agribusiness is___ _.A Faster B Medium

C Slow D Both a and b options 5 Which factor play important role in management of business

organization.A Material resources B Financial resourcesC Human resources D External Environment

6 ___ _the great economist viewed management and entrepreneurs as the ‘engine of growth’A George Terry B Joseph SchumpeterC Amartya Sen D Henri Fayol

7 In the planning phase monitoring system includes___ _A Organizing B ForecastingC Decide objectives D Appraisal and review

8 ______________ is one of the main function of management.A Planning B ControllingC Budgeting D Organizing

9 ____________________is the first step towards success of management.A Controlling B BudgetingC Planning D Ordering

10 Planning is ____________________about the future course of action.A Backward thinking B Forward thinkingC Decision making D None of these

11 Recruiting, hiring, training, evaluating and compensating are the specific activities of ________. A Planning B DirectingC Staffing D Organizing

Unit-4Steps in planning, Organization, Staffing, Directing, Motivation, Ordering, Leading, Supervision, Communication, Control.1 Which department in accounting is related with recruitment and training

of employees of the organization?A HRM B FinanceC Marketing D Accounting

2 Assigning duties and responsibilities is a function of_________.A Directing B CoordinatingC Controlling D Organizing

3 The planning process meant for solving recurring problem is_________. A Policy B ProcedureC Practice D Motivation

4 _______________ function measures the deviation from the desired course of action.A Planning B ControllingC Budgeting D Organizing

5 ____________________is the last step towards success of management.A Controlling B BudgetingC Planning D Ordering

6 ____________________brings co-operation, harmony and integrity among the people.A Planning B StaffingC Controlling D Organisation

7 ________________________is the process of filling the positions in an organization.A Staffing B OrderingC Organisation D Leading

8 ______________________are the vehicles for messages with proper direction from top to bottom of an organization.A Order B OrganizationC Instruction D Both a & b

9 __________________is one of the steps of planning.A Controlling B StaffingC Forecasting D Capital

10 Process of filling the positions in an organization is ___________________.A Controlling B StaffingC Forecasting D Entreprenuering

11 Human Resource Management includes the functions of _____________.A Acquiring B Maintaining and

motivatingC Training D All of these

12 The _______environmental factors have a direct influence on the organization.A Macro B Micro & MacroC Micro D Business

13 ________refers to expansion on his mental and physical efforts to accomplish the given task.A Motivation B CommunicationC Guiding D Directing

14 In any business organization, the commonly identified functional areas are________.A Production, B MarketingC Finance D All

15 Key elements of organizing process is ________.A Departmentation B DecentralizationC Delegation D All

Unit-5Capital Management. Financial Management of Agribusiness: Importance of Financial Statements, Balance sheet, Profit and Loss Statement, Analysis of Financial statements.1 Patents and Copyrights are_________.

A Material goods B Non material goodsC Transferable goods D Giffen goods

2 Profitability or activity accounting is also known as _______accountingA Management B CostC Responsibility D Activity

3Which of the following would not be included on a balance sheet?A Accounts receivable B Accounts payableC Sales D Cash

4 The objective of financial management is to maximize _________ wealthA Stakeholders B Shareholders

C Bondholders D Directors5 Which if the following refers to capital budgeting?

A Investment in long-term liabilities

B Investment in fixed assets

C Investment in current assets D Investment in short-term liabilities

6 What is difference between shares and bonds?A Bonds are representing

ownership whereas shares are not

B Shares are representing ownership whereas bonds are not

C Shares and bonds both represent equity

D Shares and bond both represent liabilities

7 Which group of ratios shows the extent to which the firm is financed with debt?A Liquidity ratios B Debt ratios C Coverage ratios D Profitability ratios

8 Which of the following is the Double Entry Principle?A Assets + Liabilities =

Shareholders’ Equity B Assets = Liabilities +

Shareholders’ EquityC Liabilities = Assets +

Shareholders’ Equity D None of the given

options9 Trading & Profit & loss account and balance sheet is prepared

from_________.A Ledger balance B Ledger balances, cash

and bank balancesC Cash book and bank book D Trial balance

10 Current liabilities are such obligations which are to be satisfied within_________.A One year B Two yearsC Three years D All of the given options

11 At the end of the year, goods that are unsold are deducted from_________.A Finished good B Closing stockC Cost of goods sold D Opening stock

12 Closing stock is credited in the_________.A Balance sheet B Profit & Loss accountC Cost of good sold statement D None of the given

option13 The journal is a book of _________.

A Last entry B Administrative Expenses

C Original entry D Intermediate entry 14 Assets and liabilities are presented in the balance sheet in the order of

their _________.A Life B ClassificationC Maturity D None of the above

15 Transaction caused a decrease of Rs. 10,000 in both total Assets and total Liabilities. This Transaction could be _________.A Purchase of delivery Truck

for Rs. 10,000 CashB An asset worth Rs.

10,000 was destroyed by fire

C Repayment of Rs. 10,000 bank loan

D Collection of Rs. 10,000 from Debtors

16 Which of the following can not be classified as Account?A Assets B Liabilities

C Income D Proprietor17 Money lying in our bank account is our _________.

A Liability B AssetsC Expense D None of the given

option18 Liquidity is _________.

A The amount of cash to liquidate

B The funds available for use

C The ability of business to receive its cash

D The ability of a business to pay its debts in time

19 Salaries and wages are our _________.A Direct expenses B Indirect expensesC Both direct and indirect

expensesD None of the given

options20 Assets which have no physical existence and which cannot be seen,

touched or felt are called _________.A Current assets B Tangible assetsC Fictitious assets D Intangible assets

21 The arithmetical accuracy of books of account is verified through _________.A Journal B Trial BalanceC L edger D None of the given

options22 Return on Assets and Return on Investment Ratios belong to

A Liquidity Ratios B Profitability RatiosC Solvency Ratios D Turnover

23 Which of the following is a measure of Debt Service capacity of a firm?A Current Ratio B Acid Test Ratio

C Interest Coverage Ratio D Debtors Turnover.24 Gross Profit Ratio for a firm remains same but the Net Profit Ratio is

decreasing. The reason for such behavior could be:A Increase in Costs of Goods

SoldB If Increase in

ExpenseC Increase in Dividend D Decrease in Sales

25 A dairy cow held for breeding and production purposes is known as aA Short-term asset B Intermediate assetC Capital asset D Long-term liability

26 Land is considered to be a:A Short-term asset B Long-term assetC Intermediate-asset D Short-term liability

27 Which of the following is the equation for determining net worth?A Net Worth = Assets – B Net Worth = Assets +

Liabilities LiabilitiesC Net Worth = Assets /

LiabilitiesD Net Worth = Liabilities –

Assets28 Solvency of a business can be determined by evaluating the:

A Cash flow statement B Debt to equity ratioC Price to earnings ratio D Net income

29 A plan of action for a business is known as _________________A Balance sheet B Cash flow statementC Budget D Financial statement

30 Capital is a _______________factor of production.A Original B NaturalC Man-made D All of these

31 ________________is defined as the property of assets of being easily turned in to money.A Solvency B LiquidityC Fixed assets D All of these

32 ______________are those which are owned by the farmer.A Liabilities B AssetsC Net worth D None of these

33 _______________ are those which are owed by the farmer to the others.A Liabilities B AssetsC Net worth D None of these

34 Balance sheet is a statement of financial position of a firm at a:A Period of time B Particular point of

timeC Specific period of time D None of these

35 Income statement is also called as___________.A Net worth statement B Cash flow statementC Profit-loss statement D All of these

36 ___________________is the lifeline of business.A Budget B ProfitC Expenditure D Returns

37 Produced means of further production is________________________.A Income B CapitalC Wealth D None of these

38 The difference of Cash in-flow and Cash out-flow is called as________________.A Net worth /Yr B Net cash flow/YrC Net out flow/Yr D None of these

39 The area of financial management would include the ______________________.A Acquiring finance B Distributing incomeC Utilizing finance D All of these

40 Working capital is also called as____________________.A Fixed capital B Circulating capitalC Net working capital D All of these

41 Capital is _______________ as its supply can be altered according to the need.A Supply elastic B Supply unity elasticC Supply inelastic D None of these

42 Capital is___________________ among factors of production.A Highly Immobile B Both a & bC Highly mobile D None of these

43 The life blood of a business is termed as _________________.A Working capital B Gross working capitalC Circulating capital D All of these

44 The minimum amount of current assets which is needed to conduct a business even during the dull/slack season of the year is________________.A Temporary working capital B Negative working

capitalC Cash working capital D Permanent working

capital45 The most realistic approach in working capital management

is_______________.A Temporary working capital B Negative working

capitalC Cash working capital D Permanent working

capital46 When current liabilities are more than current assets the situation arises

is_____________.A Temporary working capital B Negative working

capitalC Cash working capital D Permanent working

capital47 Choose the appropriate tests of working capital policy.

A Structural Health B LiquidityC Circulation D All of these

48 _________________show what a company owns and what it owes at a fixed point in time.A Income statement B Balance sheetC Cash flow statement D Shareholders’ equity

49 _____________show how much money a company made and spent over a period of time.A Cash flow statement B Shareholders’ equityC Balance sheet D Income statements

50 _________________show the exchange of money between a company and the outside world over a period of time.A Cash flow statement B Shareholders’ equityC Balance sheet D Income statements

51 _______________shows changes in the interests of the company’s shareholders over time.

A Cash flow statement B Shareholders’ equityC Balance sheet D Income statements

52 Net worth represents _________________in the business.A Debt equity B Equity value C Owner’s equity D None of these

53 The aim of cost accounting is to ascertain the .A Cost of production B ProductionC Cost of operation D Demand

54 Financial management defined as a managerial activity which is concerned with the and of the financial resources of the firm.A Planning & Controlling B Demand & marketing C Production & Supply D All of the above

55 Working capital decisions are called decisions.A Long term asset B Short term asset mixC Capital asset D All of the above

56 A firm raises funds in order to acquire assets and it’s called as e xpenditure.

A Long term & capital B Medium term & capitalC Short term & operation D Medium term &

operation57 The term refers to the capital required for day-to-

day operations of a business enterprise.A Short term asset B Medium term assetC Working capital D All of the above

58 Trading account is prepared to findout .A Gross profit or loss B Net profit or lossC Financial position D All of the above

59 Wages is an example of .A a) Capital expenses B Direct expensesC b) Indirect expenses D None of above

60 Opening stock is .A Debited in trading

account B Credited in trading

account

C Credit in profit and loss account

D None of above

61 Balance sheet is a .A Statement B Account C Ledger D All of the above

62 Fixed assets have .A Short life B No life

C Long life D None of above63 Cash in hand is an example of .

A Current assets B Current liabilityC Fixed assets D None of above

64 Capital is a .A Income B Assets C Liability D Both ‘b’ &’c’

65 Current liabilities are recorded in the balance sheet on .A Not recorded B Liability side C Assets side D Both ‘b’ &’c’

66 Net profit is added to .A Gross profit B CapitalC Drawings D All of the above

67 ____________ account enables the trader to findout gross profit or loss.A Trading B Fund flowC Cash flow D Balance sheet

68 All incomes are _____________ in the profit and loss account.A Credited B Expenses C Debited D Both ‘a’ & ’c’

69 Transaction which provide benefit to the business for more than one year is called as____.A Capital transaction B Revenue transactionC Daily transaction D Both ‘a’ & ’b’

70 Revenue expenditure is intended to benefit _______.A Subsequent year B Previous year

C Current year D Both ‘a’ & ’c’71 Depreciation on fixed asset is a _________ expenditure.

A Revenue expenditure B Capital expenditure C Asset Expenditure D Working expenditure

72 Amount spent on acquiring a copy right is an example for_________.A Revenue expenditure B Capital expenditure C Asset Expenditure D Working expenditure

73 Bank Reconciliation statement is prepared by the_________.A Bank B Creditor of a businessC Customer of a bank D All of the above

74 To the banker/creditor, the most important ratio group is_________.A Asset utilization B ProfitabilityC Liquidity D Debt utilization

75 For the purposes of reconciliation only the ________ column of the cash book are to be considered.A Bank B Balance sheetC All D All of the above

Unit-6Agro-based Industries: Importance and Need, Classification of

Industries, Types of Agro-based Industries, Institutional arrangement, Procedure to set up agrobased industries, Constraints in establishing agro-based industries.1 Loans advanced to the agro-input manufacturing industries are

called_________.A Direct B IndirectC Open D Key

2 There should be a minimum of_________ members to form a public limited companyA Ten B NineC Seven D Two

3 A large organization with separate legal status is known as _________.A Limited Company B Sole proprietorshipC Partnership D None of the given

options4 Vertical integration is most common in which of the following

agricultural enterprises?A Horses B BeefC Grain D Poultry

5 Which of the following business types allows the most liability protection for the owners?A Partnership B Sole proprietorshipC Corporation D None of these

6 Agro-based industries are the example of ___________________.A Resource based B Skill basedC Demand based D Ancillary

7 Establishment of agro-based industries is based on the availability of ___________.A Labour B MarketingC Raw material D Transportation

Unit-7Marketing Management: Meaning, Definitions, Marketing Mix, 4Ps of Marketing. Mix, Market segmentation, Methods of Market, Product life cycle.1 Marketing mix of a business firm is represented by_________.

A 4Ps B 5PsC 6Ps D 7Ps

2 Which of the following is not a component of product life cycle?A Conception B EvaluationC Preparation D Maturity

3 A marketing philosophy summarized by the phrase "a good product will sell itself" is characteristic of the_________ periodA Production B S alesC M arketing D Relationship

4 The Coca Cola organisation is an official sponsor of the Olympics. The

firm is engaging in _________.A Place marketing B Event marketingC Person marketing D Organization marketing

5 Which of the following is NOT an element of the marketing mix?A Distribution B ProductC Target market D Pricing

6 Assembling, processing, packing is act as a _________________integration.A Horizontal B ConglomerationC Vertical D None of these

7 4Ps of marketing is known as _________________.A Niche Marketing B Both a & bC Marketing Mix D None of these

8 4Ps of marketing is stand for _________________.A Product B Promotion/PlaceC Price D All of these

9 A specific group of potential buyers for which a business positions its products and services is_________________.A Target Market B SegmentationC Niche market D All of these

10 If one firm assumes other functions (succeeding) related to consumption function is called_________________. A Forward integration B Both a & bC Backward integration D None of these

11 If one firm assumes the other functions (proceeding) related to the production function is called _______________.A Forward integration B Both a & bC Backward integration D None of these

12 If one firm assumes several functions which do not have any relationship is called__________.A Forward integration B Conglomerate

integrationC Horizontal integration D Vertical integration

13 From the following choose the correct example of Conglomerate integration.A Hindustan Lever Ltd. B Co-operative farming

societiesC Co-operative marketing

societiesD Poultry farming

14 In which stage of product life cycle the high profit is earned.A Introduction stage B Maturity stageC Growth stage D Decline

15 Firm adopting production concept of marketing to produce products at _______with _________production efficiency so as to keep lower selling price.A Low cost & higher B Low cost & LowerC Higher cost & higher D None of these

16 _______is used by the firm to produce high quality products and continuous up- gradation.A Product concept B Selling concept C Production concept D Marketing concept

17 _______integrates all functions and parts of an organization to serve the consumers.

A Production B MarketingC Operation D Product

18 _______ is used by the firm to increase the sales in the short term.A Campaign B Discount C Sales promotion D None of these

19 Four P’s of marketing mix defined by the_______A David and Goldberg B Jerome MccarthyC Amaranth D Smith

20 _______is the only component of marketing mix which provides revenue to the firms.A Promotion B Product C Place D Price

21 _______ is a face to face interaction with one or more prospective consumers.A Online selling B Retail sellingC Personal selling D Wholesale selling

22 Producer - consumer type marketing channel represents_______level.A Single B ZeroC Double D Three

23 _______is a process of dividing customers into different groups or segments having similar wants.

A Market segmentation B Marketing C Market integration D Consumerism

24 _______denotes list of all the products produced by the organization.

A Product line B Product mixC Both a & b D None of these

25 _______refers to group of similar products.

A Product line B Product mixC Both a & b D None of these

26 _______means fixing the exact place of the product in the target market.A Market segmentation B Product PositioningC Market integration D None of these

27 ‘AMUL’ Brand is associated with _______A Visakha Dairy B GCMMF C Heritage D Britania

28 ‘Penetrating the market: Increasing Market share’ This marketing

objective relates to ___________ stage.A Introduction B Growth C Maturity D Decline

29 Buyers who purchase product at growth stage are referred as___________A Innovators B Early adopters C Middle Majority D Laggards

30 ‘Emphasis on brand differences’: This advertising concept applies at _____ Stage.A Introduction B GrowthC Maturity D Decline

31 ‘Retention of more shelf space’: This distribution applies to_______A Introduction B Growth C Maturity D Decline

32 Cash flow will be negative at _______ stageA Introduction B GrowthC Maturity D Decline

33 _______ indicate the reasons for purchasing a product by the consumers.A Basic product B Core ProductC Expected Product D Augmented Product

34 _______ indicates the additional features which exceeds consumer expectation.A Basic product B Core productC Expected product D Augmented product

35 _______ is considered as Fifth ‘P’ by some marketers.A Product B PriceC Place D Package

36 A brand includes _______.A Name B TermC Symbol or design D All of the above

Unit-8Pricing policy, Meaning, pricing method. Prices at various stages of Marketing.1 _______ is not a demand / market based pricing.

A What the traffic can bear B Skimming priceC Marginal cost pricing D Penetration pricing

2 _______ is not a competition based pricing.A Penetration pricing B Premium pricingC Discount pricing D Parity pricing

3 The method of pricing in which price is set in such a way that it is affordable by all sections of society is called _______A Product line pricing B Marginal cost pricingC Social welfare pricing D Skimming Price

4 In _______ method initially very high price are set to realize very high profits.A Rate of return pricing B Parity pricing

C Penetration pricing D Skimming Price

Unit-9Project, definitions, project cycle, Identification, Formulation, Appraisal, Implementation, Monitoring and evaluation, Appraisal and Evaluation techniques, NPW, BCR, IRR, N/K ratio, sensitivity analysis. Characteristics of agricultural projects: preparation of project reports for various activities in agriculture and allied sectors: dairying, poultry, fisheries, agro-industries etc.1 The sum of net benefit during the life period of the project is _______.

A BCR B Payback periodC IRR D NPW

2 Appraisal of the project is done assess _________ of investment.A Technical feasibility B Economic viabilityC Speedy implementation D Gestation period

3 If assets are more than liabilities in Net worth statement, net worth is on ______ sideA Left B RightC Middle D Not included

4 Which of the following should be included while calculating the cash flows associated with a project?A Cash flows at the time of

investment B Cash flows during the

life of project C Cash flows at the termination

date D All of the given

options5 Conversion cost is_________.

A Total factory cost B The cost incurred in converting raw material into finished goods

C The cost incurred in converting raw material into work in process

D None of the given options

6 The cost of the asset after the expiry of its useful life is called___________A Written down value B Residual valueC Expired value D None of the given

options7 The formula used for calculating the breakeven point is_______________.

A Fixed costs/Revenue per unit - Variable costs

B Revenue per unit/ Fixed costs - Variable costs

C Variable costs/Revenue per unit - Fixed costs

D Fixed costs/Variable costs - Revenue per unit

8 The breakeven point is the point where_______________.A Total Revenue > Total cost B Total Revenue =

Total cost

C Total Revenue < Total cost D Total cost > Total revenue

9 A negative net working capital occurs when current liabilities are in_______of current asset.A Less B Excess C Equal D None of above

10 Future value of present sum is estimated by the .A A=P (1-i)t B A=P (1+i)-t C A=P (1-i)-t D A=P (1+i)t

11 Present value of future sum is estimated by the .A Discounting B Both “a” & “b”C Compounding D All of the above

12 The annual stream of gross benefits of the project is the . A The amount of capital

investedB The return of capital

and return on capital

C Input costs are deducted D All of the above

13 Internal Rate of Return (IRR) is the . A The time value of money is

accountedB Actual rate of return

from the different projects

C Marginal efficiency of capital D It is the discount rate at which the present values of the net cash flows are just equal to zero

14 In the computation of Internal Rate of Return the is accounted.A Time value of durable B Time value of moneyC Both “a” & “b” D All of the above

15 Investment depends upon . A The revenues that will be

generated by the stateB Sensitive to the

business cycleC Borrowed capital D All of the above

16 The payback period of the project is . A Ratio to Gross investment to

annual cash revenueB Annual net cash

revenue to gross revenue

C Investment of the project to annual net cash revenue

D Gross annual investment to gross net returns

17 Profit Margin is the_________.A Net income to sales B Gross incomes to salesC Gross sales to income D Net sales to net income

18 Assets Turnover Ratio is the _________.A Average sales to total assets B Average sales to

average total assetsC Sales to average total

assetsD Sales to total assets

19 Capital structure ratio is the_________. A Long term debt to share

holders equityB Long term debt to

share holders equity plus long term debt

C Total liabilities to stock holders’ equity

D Total stock holders’ equity to total liabilities

20 A liquidity ratio measures a company's ability_________.A Is to pay its bills b Is the company's

current liabilitiesC Is the company's current

assetsD All of the above

21 Acid test ratio is the_________. A Current assets minus current

inventoryB Net assets to current

liabilitiesC Ratio to the cash asset D The cash ratio

22 Net income to sales is _________. A Profit Margin B Gross incomes to salesC Gross sales to income D Net sales to net income

23 Assets Turnover Ratio is the_________.A Average sales to total assets B Average sales to

average total assetsC Sales to average total

assetsD Sales to total assets

24 Activity ratios measure_________.A Company sales per

another asset accountB Most common are

accounts receivable, inventory, and total assets

C The efficiency of the company in using its resources

D Companies invest heavily in accounts receivable or inventory

25 The inventory turnover ratio is the_________.A Total annual sales to

inventory costB Total annual costs of

goods sold to all kinds of inventory cost

C Inventory cost to annual sales

D All kind of annual sales with total inventory cost

26 Profitability ratio is_________.A Profit margin B Return on assetsC Return on equity D All of the above

27 Gross Profit Margin is the _________.A The value of gross profit

earned by the company B The value of gross

profit earned by the company over sale

C Total sales minus cost of sold goods

D Gross income minus total cost

28 Return on Assets is the_________.A The assets of the firm are

used most effectivelyB Ratio of net income

to total assets C Ratio of gross income to

assetsD Ratio of gross assets to

total income29 Return on Equity is the_________.

A Return on equity is the ratio of shareholders equity with net income

B Return on equity is the ratio of net Income with shareholder equity

C Return on equity is the ratio of shareholders equity with gross income

D Return on equity is the ratio of gross Income with shareholder equity

30 Ratio analysis has________.A Units B no unitsC positive units D negative units

311. The reduction in the value of the asset due to wear and tear or time of obsolescence is________.

A Demand B AppreciationC Depreciation D Supply

32 Benefit cost ratio classified under_______criterion.A Discounting B Non- discountingC Accounting D Non-accounting

33 ________refers to those idle resources which have economic value.A Income B IdeaC Investment D Inventory