Business Praxis
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Created by:
mmfennell16 on June 29, 2011
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80 terms
Terms | Definitions |
|---|---|
 the difference between consumers would be willing to pay for something purchased | consumer surplus |
| the difference between the minimum total amount producers are required to pay for them to voluntary offer for sale a given quantity of goods and what is actually paid for this quantity. | producer surplus |
| are additional costs that are imposed upon the production of more than one unit | marginal costs |
| are additional benefits from the production of more than one unit. | marginal benefits |
| an analysis of behavior that compares costs and benefits that are a result of marginal changes | Marginal analysis |
| the value of a resource's best alternative use. | opportunity cost |
| the excess of outlays over a certain period of time | profit |
| the difference between total expense and total revenue over a given time period. | loss |
| refers to planned expenses over a specific period of time | budget |
| the actual income or expenditures that have taken place. | actual |
| anything that is owned by an individual that has a cash value | assets |
| amounts owned for items received, services rendered, expenses incurred, assets acquired, construction performed, and amounts received by not as yet earned | liabilities |
| an accounting term that reflects an assets increase of value. | appreciation |
| the reverse of appreciation in that depreciation measures the fall of value in assets over their normal lifetime. | depreciation |
| a credit equal to a certain percentage of an investment made in qualified property in a project during its attainment or entitlement periods. | investment credit |
| a procedure that analyzes the various activities of a specific business. The analysis is for determining what particular portions of a business are profitable. | enterprise analysis |
| a ratio of two numbers of level or flows of a company. | financial ratio |
| insures cattle producers against price declines for cattle, fed cattle or calves | Livestock Risk Program |
| meant to help improve and stabilize farm income as well as bringing about a better balance between supply and demand of commodities | Commodity loans and loan deficiency |
| The U.S. department of Agriculture was established in? | 1862 |
| eliminated subsidies, favoring instead fixed payments for farmers-Congress 1996 | Freedom to Farm Act |
| What is owned and what is owed | balance sheet |
| is a record of what the farm has earned over the past business year. | income statement |
| are often deductible, dependent on the income basis of the item. | Expenditures |
| may include those associated with the business with a useful life for less than a year. | Expenses |
| a commodity is bought and sold at the same time in two separate markets thus capitalizing on the discrepancy in prices is between the two markets. | commodity arbitrage |
| the commodity being sold at exchange markets because they want a fixed minimum price that they will receive | hedging |
| an agreement between a buyer and seller to take delivery of a certain commodity or other financial item at a particular date and with the terms of payment agreed upon | futures contract |
| increasing the value and appeal to the consumer of a particular agricultural product | Value-added agriculture |
| tools in marketing used to improve the prices, income and market power of prices for an agricultural producers. | marketing order |
| a common form of business which is owned and controlled by one person | Sole Proprietorship |
| a voluntary association of two or more people who will operate a business | partnership |
| provides limited liability protection along with flexibility to operate and tax obligation without restriction that are put upon certain corporations and limited liability partnerships. | limited liability company |
| a private business organization owned and controlled by those who use its services, supplies or products. | cooperative |
| people who own and finance the cooperative also use the cooperative. | user-owned principle |
| This is when those who control the cooperative are those who also use it. | User-control |
| They will elect a board of directors, set policies, adopt budgets and distribute benefits from the cooperative to its members. | User-control |
| the sole purpose of the cooperative is to provide and distribute benefits to its users on the base of their use. | User-benefit principle |
| formed by businesses in order to obtain services or purchase certain supplies at a lower cost. | Business cooperative |
| provides benefits of ownership and employment opportunities to its members. | worker cooperatives |
| between a buyer operating at one stage of the value chain and someone on the other end who is selling it | market-specific production contract |
| a seller may be directly affected by some attribute that is valuable to the buyer's end, or just the opposite. | Production-Management contracts |
| According to the Law of Supply and Demand as the Price goes up what goes down or as the prices goes down what goes up? | quantity |
| Today the ratio of agriculture workers to the remaining population is approximately | 1 to 9 |
| an economic system in which productive property, though owned by individuals, is used to produce goods that reflect government of state preferences. | Facism |
| The _______ of a country is defined as the market value of all final goods and services produced within that country in a given period of time. | GDP |
| the total supply of goods and services produced by a national economy during a specific time period. | aggregate supply |
| the total demand for goods and services in a national economy during a specific time period. | aggregate demand |
| determines changes in taxes, government, spending on goods and services, and transfer payments that are intended to affect overall (aggregate) demand in the economy. | fiscal policy |
| a written description of a new business venture that describes all aspects of the proposed agribusiness | business plan |
| the difference between the actual amount paid for the loan and the actual amount received from it. | cost of capital |
| The total earned before deductions | gross pay |
| The amount of money left after deductions | net pay |
| a set amount of money due on a set date. | fixed expenses |
| vary in amount and frequency and offer the best opportunities for adjustments in a money plan | variable expenses |
| The money the owner invests in the business. | owner equity |
| the form of liability when money is borrowed is usually a ______, which is a formal written promise to pay a certain amount of money, plus interest, at a definite future time. | note payable |
| the value of what is received from goods sold and services rendered, plus what comes in from other financial sources. | revenue |
| the term used when the cost of foods sold is deducted from sales revenue. | gross profit |
| the result when operating expenses are deducted from gross profit. | operating income |
| _____ is determines by subtracting nonoperating costs from operating income. | net income |
| ____ is the difference between total assets and total liabilities. | net worth |
| __________ compares events within the year with what happened in other similar forms. | comparative analysis |
| __________ these are things that do not depreciate (loss value) or are notkept for more than one year. | nondepreciable assets |
| _______ are those that occur regardless of the use of the machinery. | fixed ownership costs |
| _________ are those that depend on how much the machinery is used. | operating costs |
| refers to the mix of equity and debt capital used by the farm, or the degree to which all debts are secured. | solvency |
| as long as a perfectly competitive market is allowed to operate under no controls or regulation, the price will adjust to the point where quantity demanded equals quantity supplied | equilibrium price |
| if you super impose the demand curve on the supply curve for the same product, the point where they intersect is considered the ______. | point of equilibrium |
| An __________ is a material or goods used in creating a final product. | input |
| _________ measure business cycles and economic activity through a variety of data and statistics. | economic indicators |
| involves using government spending and taxation to influence the economy. | monetary policy |
| diseases that do get into the country | eradicates |
| a market where actual commodities are bought and sold. | cash market |
| a market where traders buy and sell future contracts. | futures market |
| the taxes that governments charge when products cross national borders. | tariffs |
| two or more countries agree to eliminate trade restrictions with each other, but establish common and uniform tariffs for other nonparty countries. | customs union |
| similar to a customs union except that there are no common and uniform tariffs on other countries products. | free trade area |
| is also a customs union, but it allows free mobility of factors of production. | common market |
| Will you pass the praxis? | YES |
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