The process of finding the present value of a dollar to be received at some future date is known as:
Answer: discounting
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Business Management
- Opportunity costs are:
- A measurable point where an increase in the addition of a variable cost item decreases the actual output of an enterprise is referred to as
- The cost of producing one additional unit of output is called:
- Inflation means:
- Which of the following does not appear on the net worth statement?
- In developing an enterprise budget, crop insurance should be considered as:
- The producer of a commodity which has an inelastic demand knows that:
- A legal document by which a property owner transfers the title of his land to someone to manage and safeguard for the benefit of beneficiaries is a:
- Rate of return on investment for a farm business is calculated by:
- A banker loaning money to farm operators may require a cash flow analysis to:
- Net farm income represents a return to what factors of production?
- An advantage of making an estate the beneficiary of a life insurance policy is to:
- A feedlot operator purchased 100 feeder steers with an average weight of 700 pounds and sold them at an average weight of 1050 pounds. Total feed cost for the pen was $18,000. Feed cost per pound of gain was equal to:
- A livestock producer wishing to use futures markets to hedge the price of cattle to be sold in the future would initially:
- Accrued interest on a balance sheet refers to:
- If a hedger is to carry a hedge through completion, the hedger:
- A dollar received tomorrow can be worth less than a dollar today, because of:
- It is profitable for a farmer to borrow money to expand his farm business when the borrowed money:
- The return an input would have earned in its best alternative use is called its:
- Corn yields 90 bushels per acre and has a production cost of $140 per acre. Current market prices are $2.50 per bushel for corn and $6.00 per bushel for soybeans. Soybeans can be raised at a production cost of $110 per acre. At what breakeven yield per acre would soybeans generate the same net return per acre as corn?
- Purchase of a call option on corn means:
- When a farmer increases his investment in land, buildings, and equipment without increasing the total units of production, the cost per unit of production:
- At the beginning of last year, you had an outstanding loan for $90,000. The loan carries an interest rate of 12% annual percentage rate. You make one loan payment at the end of the year for $25,400. What is the outstanding balance at the beginning of this year?
- Forward contracting provides the farmer with: