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FOB412S - FUNDAMENTALS OF AGRIBUSINESS MANAGEMENT - 1ST OPP - NOV 2024 |
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nAmlBIA UnlVERSITY
OF SCIEnCE TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING (TVET)
QUALIFICATION: NUST BRIDGING PROGRAMME -TVET AGRICULTURE STREAM
QUALIFICATION CODE: 04NBTA
LEVEL: 4
COURSE CODE: FOB412S
COURSE NAME: FUNDAMENTALS
OF AGRIBUSINESS MANAGEMENT
SESSION: NOVEMBER 2024
DURATION: 3 HOURS
PAPER: 1
MARKS: 100
EXAMINER(S)
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
Ms. E MATALI
MODERATOR: Mr. A MERORO
INSTRUCTIONS
1. The paper has 3 SECTIONS (A, Band C).
2. Write clearly and neatly using a black or blue ink pen.
3. Show all your work clearly and neatly.
4. Each section must start on a new page.
5. All written work MUST be done in blue or black ink.
PERMISSIBLE MATERIALS: 1. Non-Programmable Calculator without the cover
THIS QUESTION PAPER CONSISTS OF_ 4_ PAGES (Including this front page)
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SECTION A
QUESTION 1
[10 marks]
Write down the letter corresponding to your choice next to the question number.
1.1. What is agribusiness?
a) The process of growing crops.
b) The management of agricultural products and services as a business.
c) The marketing of agricultural machinery.
d) Farming for subsistence.
(2 Marks)
1.2. Which of the following is NOT a function of management in agribusiness?
a) Planning
b) Organizing
c) Forecasting
d) Production
(2 Marks)
1.3. An agribusiness that controls all stages of production from growing crops to selling
to consumers is practicing:
a) Horizontal integration
b) Vertical integration
c) Cooperative management
d) Diversification
(2 Marks)
1.4. Which financial statement shows the assets, liabilities, and equity of an
agribusiness at a specific point in time?
a) Income Statement
b) Cash Flow Statement
c) Balance Sheet
d) Profit and LossStatement
(2 Marks)
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1.5. Which of the following best defines working capital in agribusiness?
a) Total assets of the business
b) The capital used for day-to-day operations
c) Long-term investments in machinery
d) Land value
(2 Marks)
SECTION B
QUESTION 2
2.1. Define agribusiness and explain its importance in the global economy.
[30 marks]
(5 Marks)
2.2. List and briefly explain four factors that influence agribusiness decisions.
(8 Marks)
2.3. Mention three challenges that agribusinesses face in developing countries. (6 Marks)
2.4. Explain the difference between fixed costs and variable costs in agribusiness. Provide
examples of each.
(6 Marks)
2.5. Why is financial planning important for agribusiness management?
(5 Marks)
SECTION C
QUESTION 3
[GOmarks]
3.1. You are provided with the following information for Green Valley Farms as of 31st
December 2023. Study the table and answer the questions that follow.
Information
• Assets:
•Cashin hand: N$10,000
• Accounts receivable: N$ 5,000
• Inventory (crops and livestock): N$ 12,000
• Farm machinery (at cost): N$ 25,000
• Land: N$ 50,000
• Accumulated depreciation on machinery:
N$ 5,000
• Liabilities:
• Accounts payable: N$7,000
• Bank loan (long-term): N$20,000
• Owner's Equity:
• Owner's capital (as of 1st January
2023): N$60,000
• Revenue (for the year):
• Crop sales: N$45,000
• Livestock sales: N$25,000
• Expenses (for the year):
• Wages: N$20,000
• Feed and seed: N$8,000
• Depreciation: N$5,000
• Interest on loan: N$2,000
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3.1.1. Prepare the Balance Sheet for Green Valley Farms as of 31st December 2023. {20 Marks)
3.1.2. Prepare the Income Statement for the year ending 31st December 2023. {20 Marks)
3.2. Green Valley Farms has the following financial information for the year 2023: Study the
information and answer the questions that follow.
• Total Revenue:
N$120,000
• Cost of Goods Sold {COGS):
N$60,000
• Total Assets:
N$200,000
• Total Liabilities:
N$80,000
• Net Profit:
N$30,000
• Owner's Equity:
N$120,000
• Current Assets:
N$50,000
• Current Liabilities:
N$30,000
Required:
3.2.1. Calculate the Gross Profit Margin.
3.2.2. Calculate the Net Profit Margin.
{5 marks)
{5 marks)
3.2.3. Calculate the Return on Assets {ROA).
3.2.4. Calculate the Current Ratio.
(5 marks)
(5 marks)
TOTAL MARKS [100)
END OF PAPER
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