Model Exit Exam for Agribusiness and Value Chain Management Graduating Class

Agricultural marketing

1. An individual’s desire for something backed by purchasing power is called as

A. Demand
B. Need
C. Want
D. Desire
2. Which one of the following is incorrect about agricultural marketing
A. It deals about all activities performed in marketing of farm products
B. It is the bridge between farm and non-farm sectors
C. It deals about policy related with agricultural marketing
D. It is the study of all about manufacturing sector
3. The type of utility created by moving finished products into the hands of the
consumers is ________________
A. Form Utility
B. B. Place Utility
C. C. Time Utility
D. D. None
4. Which one of the following marks the importance of agricultural marketing in economic
development of the country
A. Widening of the markets
B. Growth of small scale agro-based industries
C. Creation of utility
D. All
5. Which aspect correctly differentiates agricultural products from that of industrial ones
A. The law of increasing marginal return achieved in agriculture
B. Full control over the natural conditions is possible in the agricultural sector
C. Agricultural commodities are bulky and perishable in comparison to industrial ones
D. None of the above
6. Which one of the marketing functions in different from the other
A. Standardization
B. Risk Bearing
C. Transporting
D. Financing
7. Approach to the study agricultural marketing which implies a study of agencies and
institutions, which perform various functions in the marketing process is
A. Commodity Approach
 B. Functional Approach
C. Behavioral Approach
D. Institutional Approach
8. Types of middlemen who take title to products with the major purpose of profiting from
price movements
A. Agent middlemen
B. Speculative Middlemen
C. Brokers
D. D. Commission Men

9. Which one of the following is not under the concept of marketing mix
A. Price
B. C. Product
C. People
D. None of the above

10. Which one of the following statement is correct

A. At zero output level, TVC is zero
B. Changes in TC depend on variations in TFC
C. TFC varies with the level of output
D. TVC always stays constant irrespective of the total product
11. Which one of the following statement describes break-even point correctly
A. It is called as an average pricing method
B. It is the level of quantity at which the firm’s TC varies with TVC
C. It is the point at which TR and TC curve intersect each other
D. It is the point at which firm’s profit is the highest
12. Which one of the following statement is incorrect about perfectly competitive market
structure
A. Firm’s entry and exit to the market is easier
B. There are a large number of buyers and sellers in the market
C. It is a market structure in which a few firms dominate the market
D. It is the market structure in which market concentration is the lowest
13. Method of the promotion defined as communicating with large numbers of potential
customers at the same time is called as
A. Sales promotion
B. Personal selling
C. Mass selling
D. Publicity
14. Types of markets in which the purchase and sale of a commodity is negotiated much
before the actual physical transactions of the commodity
 A. Forward markets
B. Regulated markets
C. Spot markets
D. Domestic Markets
15. Which one of the following is not the condition in which marketable surplus is greater
than marketed surplus
A. Low prices at the harvest time;
B. No demand (transportation, market., government restriction;
C. No storage capacity
D. Over estimation of on-farm consumption requirement
16. The problems of marketing of agricultural products differ from commodity to commodity
mainly because of one of the following
A. The seasonality of production,
B. The variations in its handling,
C. Variation in storage, processing
D. All of the above
17. __________________ is an assortment of types of products and product lines
A. Marketing mix
B. Product mix
C. Customer mix
D. None

Project Planning and Analysis

1. Which one of the following is not the objective of the financial analysis?
A. Judgment of efficient resource Use
B. Assessment of Incentives
C. Measuring secondary costs and benefits
D. Assessment of financial impact
2. Which one of the following statement is true
A. Financial analysis will be made based on economic price
B. SCBA will be made based on efficiency price
C. In financial analysis, resources will be valued by using efficiency price
D. Economic analysis considers financial contribution of the project to the firm

3. The premium price that consumers pay for goods and services due to market distortion is
A. Official Exchange Rate
B. Shadow Exchange Rate
 C. Standard conversion factor
D. All of the above
4. Which one of the following is true about measures of the project worth?
A. There is no one best technique of estimating project worth
B. They are necessary and sufficient conditions
C. One is superior over the other
D. None of the above
5. Which one of the following is not a direct transfer payment in project accounts
A. Subsidy
B. Labor cost
C. Credit Transaction
D. Depreciation
6. Which one of the following is cost in economic and social analysis
A. Tax
B. Subsidy
C. Tariff
D. All of the above
7. Which one of the following statement is true?
A. In economic analysis we use market price to valuate goods and services
B. In financial analysis we use opportunity costs to measure the worth of the project
C. For economic and social cost-benefit analysis we have to use opportunity cost
D. It is accepted that market price reflect true value of the goods and services

8. Types of the costs which are referred as “Bygones are bygones”

A. Depreciation cost
B. Cost of interest
C. Physical cost structures
D. Sunk cost
9. Which one of the following is the tangible benefit of the agricultural project?
A. Increased production
B. Cost reduction
C. Quality improvement
 D. All of the above

10. Which one of the following is the secondary cost and benefits of the agricultural projects?
A. Environmental impacts
B. Maximizing export volume
C. Technological spill-over effects
D. All of the above
11. Aspects of the project which deals with the financial effect of the project on participants,
farmers’ firms, public corporations, project agencies, and the national treasury.
A. Economic aspect
B. Financial aspect
C. Social aspect
D. Technical aspect
12. The identification of project ideas is based on several aspects of development. Which one
of the following is among them?
A. Need
B. Resource availability
C. Natural calamity
D. All of the above
13. Aspects of the project which deals with the concept of opportunity cost is used is ____
A. Commercial aspect
B. Managerial aspect
C. Economic aspect
D. Financial aspect
14. One of the following may be not the reason for the failure of development projects?
A. Administrative problems C. Conducive policy environment
B. Changing market conditions D. Use of inappropriate technologies

Value Chain Analysis and Development

1. Which one of the following is the purpose of forming networked collaboration
between/among firms?
A. Joint selling
B. Learning together
 C. Joint buying
D. All
2. Which one of the following is indicator for VCD monitoring with in the market context
A. Gross margin or profitability
B. Improvements in products and efficiencies
C. Product differentiation
D. Production cost
Answer: C
3. Which one of the following is not an indicator for VCD monitoring with in the supply
chain
A. Gross margin or profitability
B. Improvements in products and efficiencies
C. Market penetration
D. Production cost
4. Farmers can also set out on a new value chain: they can start growing a new crop, keep a
new species of livestock, or start a new enterprise such as dairying or agro tourism. They
may be completely new to these activities, or they may transfer their skills and
experience from their existing enterprises. Such type of upgrading in value chain is called
as
A. Product Upgrading C. Functional Upgrading
B. Process upgrading D. Chain upgrading
5. Farmers can improve their product in various ways. For example, they may plant a new
variety that has more desirable characteristics; or they may stop using agrochemicals and
apply for certification so they can sell their produce as “organic”.
A. Product Upgrading
B. Functional Upgrading
C. Process upgrading
D. None
6. This means producing the same product more efficiently – perhaps by using new
technologies or management methods. For example, farmers may grow more by
switching varieties or applying fertilizer; They may reduce pest attacks and save costs
through integrated pest management rather than spraying; They may husk maize more
quickly using a machine rather than by hand; or They may invest in build new grain
storage bins/container to improve storage. Such types of upgrading is ____________
A. Product Upgrading
B. Functional Upgrading
C. Process upgrading
D. Chain upgrading

7. Which one of the following may be the common objective of the VCD
A. Reduce barriers of entry and facilitate the participation
 B. Develop technological, organizational and marketing solutions
C. Foster collaboration and vertical integration
D. All of the above
8. Which one of the following is types of Ethiopian government support to SMEs
A. Counseling service
B. Market linkage
C. Loan provision
D. All
9. Which one of the following is true about importance of the value chain
A. Value chain approaches have been used to guide product and process innovations
B. It enables business organizations to formulate and implement competitive strategies
C. Uses to examine constraints in the enabling environment in which the chains operate.
D. All of the above
10. Which one of the following is parameter for value chain mapping
A. Flow of the product
B. End market of the product
C. Enabling environments
D. All
11. Which one of the following is not dimension of the value chain
A. Economic Dimension
B. Political dimension
C. Technological dimension
D. Social/cultural dimension
12. Which one of the following statement correctly defines the term value chain
A. It is the full range of value-adding activities required to bring a product or service
B. It includes vertically linked, interdependent processes that generate value
C. It encompass all of the factors of production
D. All of the above

Introduction to Agribusiness Management

1. Which one of the following is correct about household-business firm interaction

A. Business firms are the consuming units that purchase the nation’s goods and services.
B. Business firms own economic resources.
C. Households are the economic actors that produce the nation’s output of goods and
services.
D. Households are the buyers of the product market and firms are buyers of resource
market.
2. Which one of the following is NOT microenvironment of agribusiness organizations
A. Stakeholders
B. Socio-cultural context
C. Employees
 D. Customers
3. Which one of the following is the distinguishing feature of agribusiness from family farm
A. Agribusiness is quite larger than family farm
B. Agribusiness possesses both vertical and horizontal integration
C. Agribusiness can be run as true business
D. All of the above
4. Which one of the following is the distinguishing feature of agribusiness from industrial
ones
A. Agribusinesses are small and compete in a relatively free market
B. Agribusinesses deal with the vagaries of nature
C. Agribusiness are highly personal in nature
D. All
5. Types of agro-industries concerned with breeding of plants, seeds, cattle breeding farm,
fish hatcheries, and poultry farms.
A. Genetic industries
B. Manufacturing industries
C. Extractive industries
D. Commerce
6. Which one of the following statement is correct about commerce and trade
A. Commerce includes trade and aid to trade.
B. Commerce in fact is a branch of trade itself.
C. Commerce is the final state of business activity
D. Trade include aids to trade like transportation, insurance, banking, finance
7. Which one of the following is the nature for the successful agribusiness organization
A. Efficient management
B. C. Proper plant location, layout and size
C. Clear objective
D. All
8. Which one of the following is investment opportunities in agriculture in Ethiopia
A. Expensive labour force
B. Diverse agro-ecological zones
C. Unfavorable weather condition
D. All of the above
9. Skill of management which includes the ability to determine by analysis and examination
of nature and circumstances of particular conditions.
A. Conceptual skill
B. Diagnostic skill
C. Human skill
D. Technical skill
10. Which one of the following managerial skill is important for rational decision making
A. Conceptual skill
B. Diagnostic skill
C. Human skill
D. Technical skill
11. Which one of the following statement is correct about levels of management
A. It indicates the ranks and positions of managers in the hierarchy.
B. It shows that the middle level management is subordinate to the top-level
C. These three levels of management taken together form the ‘hierarchy of management’.
D. All of the above
12. Which one of the following management skill is equally important at all levels
A. Conceptual skill
B. Diagnostic skill
C. Human skill
D. Technical skill

13. Kinds of decisions that have been made but put on hold until some condition is met.
A. Decision which
B. Contingent decisions
C. Decision whether
D. Non-programmed decisions

14. An element of planning which is general, observable, challenging, and un-timed

A. Purposes
B. Objectives
C. Goals
D. Strategies
15. Which one of the following is the 3rd step of the planning process
A. Making Assumptions about the External and Internal Conditions
B. Development of Alternative Courses of Action
C. Establishment of Objectives
D. Selecting the Appropriate Course of Action

16. Which one of the following is the internal sources of recruiting potential candidates
A. Promotion
B. Transfer
C. Demotion
D. All

17. Which one of the following is different from the other

A. Campus recruitment C. Labor unions
B. Unsolicited application D. Employee promotion

18. Which one of the following is not non-voluntary termination of employees

 A. Retirement
B. C. Resignation
C. Layoffs
D. D. Dismissal

19. Which one of the following is the levels of control done by top management
A. Tactical control
B. Operational control
C. Strategic control
D. All of the above

20. Types of control which takes place after the output is made to meet organizational
standards
A. Post-action control
B. Pre control
C. Concurrent control
D. All of the above

21. Management of an organization requires wide knowledge about various disciplines.

Principles and techniques of management are mostly drawn from almost all fields of
study. This statement narrates which characteristics of the management.
A. Management is Universal
B. Management is multidisciplinary
C. Management is pervasive
D. Management is intangible
22. Effective management is important for which of the following organizational elements.
A. Optimum utilization of resources
B. Minimization of cost
C. Business Survival and growth
D. All of the above
Agricultural Credit and Finance

1. A finance which deals with the aspects relating to total credit needs of the economic
sectors
A. Rural Finance
B. Macro finance
C. Micro Finance
 D. Rural credit
2. Which one of the following is the bases of credit which deals with lenders honesty and
integrity
A. Capital
B. Collateral
C. Character
D. Capacity
3. Which one of the following is the not the disadvantage of lease to the lessee
A. Understatement of assets
B. Security value
C. Residual value
D. None of the above
4. Which one of the following is advantage of lease to the lessee
A. Understatement of assets
B. Security value
C. Residual value
D. Asset procurement
5. Which one of the following is not the advantage of the credit
A. Encourages investment
B. Growth of monopolies
C. Utilizes resources
D. Increases productivity of capital
6. Which one of the following is not method of combining equity capital in a farm business?
A. Sole proprietorship
B. Corporation
C. Partnership
D. Formal Agreement
7. Types of forward contract in which farmer receives technical advice and management
services from the input supplier or processor is called as _______
A. Market specification contract
B. Resource provision contract
 C. Production management contract
D. None of the above
8. Types of credit which is provided for a payback period of up to 10 years is
A. Annual credit
B. Intermediate credit
C. Real estate credit
D. Seasonal credit