Term
| what is disadvantage of a sole proprietorship? |
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Definition
| the bank can come after personal assets |
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Term
| what is the disadvantage of a general partnership? |
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Definition
| each partner is responsible for the debt |
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Term
| what will your bank do to eliminate your limited liability if its an S corp? |
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Definition
| make you sign a personal gaurentee |
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Term
| What causes feed disappearance? |
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Definition
| spilling out of the pipes or theft |
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Term
| What has Tyson grown faster than Fosters? |
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Definition
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Term
| the_______was created in an attempt to provide simplicity as well as the corporate veil to S corps and sole prop. |
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Definition
| limited liability ocmpany |
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Term
| ____is an example of a designer egg |
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Definition
| vitamin enriched or omega 3 |
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Term
| _____is an example of a broiler industry product available to consumers |
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Definition
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Term
| What are potential industry jobs for you to consider after graduation? |
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Definition
1. plant manager
2. genetics |
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Term
| How to reduce feed conversion you look at: |
|
Definition
average weight per bird
nutrient density |
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Term
| Appeal to animal welfare: |
|
Definition
offer organic eggs
offer free range eggs |
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Term
| why would fosters commodities buy more corn than was consumed? |
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Definition
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Term
| what are factors that affect feed conversion that you cant control |
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Definition
ingredient quality
time of the year |
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Term
| what incentives can you include in the 'fee for service contract' |
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Definition
pay for extra pound over the average
pay for good cobb score |
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Term
| what does the contract grower provide: |
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Definition
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Term
| T/F Limited Partners:are only at risk for their initial investment. They are not responsible for the entire indebtedness of the company |
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Definition
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Term
| T/F The profit in a C corporation is subject to double taxation, first as tax on corporate profit and then as tax on dividends paid to shareholders |
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Definition
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Term
| T/F Approximately one third of all eggs produced in the US are cage free, free range or pastured |
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Definition
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Term
| T/F Because of the combination of simplicity and limited liability, the LLC has become a very popular method of structuring small businesses |
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Definition
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Term
| General partnerships are only at risk for their initial investment. not responsible for the entire debt |
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Definition
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Term
| T/F C corps can sell stock to public to bring in cas for expansion |
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Definition
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Term
| T/F if your spouse is involved your business can not be stuctured as a sole proprieotrship |
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Definition
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Term
| T/F Recent expansion in per capita consumption of turkey has been due to further processing, positive health perception and lower prices |
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Definition
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Term
| T/F Any company can lavel their products USDA Organic as long as the animals are fed organic ingredients and not given antibiotics. these are the only requirements |
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Definition
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Term
| T/F 77% of all the turkeys produced in the US are sold as whole body |
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Definition
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|
Term
| Turkey and broilers will yield more whole body carcass weight than cattle and sheep |
|
Definition
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Term
| T/F if you are looking for simplicity choose the sole proprietorship |
|
Definition
|
|
Term
|
Definition
| limited liability: the principle that stockholders or employees of a corporation are not personally liable for the debts of the corporation |
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Term
| Define IPO (relates to C corp) |
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Definition
| Initial Public Offering of stocks to get shareholders and more money into the company |
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Term
| when is the best time to go to the bank to get a loan |
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Definition
| when you dont need the money |
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Term
| ___ is an example of a cost to your business that is defined as variable, but in real life becomes fixed |
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Definition
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|
Term
Best/worst cash flow times of
broilers
turkeys
eggs |
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Definition
Best/worst time
borilers summer/winter
turkeys thanksgiving/spring and summer
table egg december/ post easter |
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Term
| Why is the change in price paid to the birld owner less in the broiler industry than in the egg industry |
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Definition
| It is easier in the broiler industry to replace your flock rather than layer hens. Its also easier to adjust for oversupply in the broiler |
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Term
| what factor could cause a significant change in the price that you as the farmer pay for your corn |
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Definition
1. rain/drought
2. disease |
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Term
| The cash flow projection that you take to the bank should demonstrate the following: |
|
Definition
1. need
2. ability to pay back |
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Term
| Why is it important to prepare a cash flow projection before the beginning of each year? |
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Definition
1. no surprises
2. line up for financial shorts |
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Term
| you are the egg quality czar for cal-maine foods. In an effort to reduce the cracked and leaking eggs you would first investigate_____ |
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Definition
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Term
| When you make prebuy purchases at the end of the year to reduce your taxable income for the year, you must follow the following rules to avoid problems in an IRS audit. |
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Definition
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|
Term
| motivation for cash accounting. |
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Definition
| you dont have to do a depreciation schedule for your live poultry |
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Term
| ____ is the term for the amount of the loan you borrow and ____ is the term forthe $$$ you pay the bank each month to use their money |
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Definition
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|
Term
| Which accounting method will most accurately show your company profit? |
|
Definition
|
|
Term
| Receivables/aging of accounts |
|
Definition
| legally enforceable claim for payment to a business by its customer in a certain amount of time |
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Term
|
Definition
| is the limit on the amount you can write off as an expense before you have to depreciate it |
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Term
| recapture of depreciation |
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Definition
| the taxpayer has to report any gain from the disposal of the asset (up to the depreciated value) as ordinary income, not as a capital gain. |
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Term
| points (as related to obtaining a new loan) |
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Definition
| form of prepaid interest, is a percentage of the loan amount |
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Term
| What does a title company do? What is title insurance? |
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Definition
| They make sure you dont have any leans on the propery and you get insurance in case the title company messes up and misses a lean or something against the property |
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Term
A poultry business may currently be in debt to a commercial bank on 4 different types of loans:
1.
2.
3. (may be more than one of these)
4. (may be more than one of these) |
|
Definition
1. long term loan
2. intermediate loan
3. line of credit
4. prebuy |
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Term
When you borrow money, they will want copies of many different documents like:
1.
2.
3. |
|
Definition
1. balance sheet
2. income statement
3. tax returns |
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Term
| What 2 factors will determine how much a company will pay for workers comp |
|
Definition
1. how dangerous the job is
2. how many accidents |
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Term
| if a former employee worked for you ___ days or less and receives unemployment payments those cost will be changed against that employees former employer |
|
Definition
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Term
| under what circumstances can an employee have a company vehicle and none of the cost of the vehicles operation is taxable income for the employee |
|
Definition
| if its a special use vehicle ex tow truck |
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Term
| the loan used for consumables must have a zero balance for ___days once a year |
|
Definition
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|
Term
| What is the advantage of paying employees piece rate? Disadvantage? |
|
Definition
Advantage: gives incentive for employee
Disadvantage:
1. Quality Control
2. Can cost the company |
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Term
| Under what circumstance is a dwelling, provided to an employee, not considered as taxable income for that employee |
|
Definition
| if it is given as conditional employment |
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Term
| You are contemplating hiring someone for a newly developed position in your company? What are some of the costs that your company will have to pay when hiring this person? |
|
Definition
1. workers comp
2. social security
3. training
4. salary
5. unemployment insurance
6. health insurance |
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Term
| what can you do with the extra money made from profits? |
|
Definition
give to partners
invest in stock
buy new equipment |
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|
Term
| Potential reasons for having job description |
|
Definition
helps with hiring/firing
helps weed out applicants
gives expectation for job |
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Term
| salaried employees must be paid overtime unless they supervise__ or more employees |
|
Definition
|
|
Term
| All emplyee assignments can fall into four categories: |
|
Definition
1. get the job done
2. policy and politics
3. fine tuning
4. professional improvement |
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Term
| T/F A new ventilation system would be classified as an intermediate loan and a good candidate for a production credit assn loan |
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Definition
| False- considered long term |
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Term
| T/F If your company needs to cut costs due to an economic downturn, christmas bonuses are an excellent first choice |
|
Definition
| False- dont take away rewards |
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Term
| T/F Employers are not required by law to pay sick leave; however a union contract agreement may require that the employer pay sick leave |
|
Definition
|
|
Term
| T/F Banks consider receivables even those older than 60 days to be good collateral for your loan |
|
Definition
| False- older than 60 days wont get payed back |
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Term
| T/F All agriculture employees are paid 1.5 time pay when they work more than 10hrs per day or 60hrs per week |
|
Definition
|
|
Term
| T/F Unemployment insurance was not intended for employees that quit or who are fired for good cause |
|
Definition
|
|
Term
| T/F As you are promoted within a company they amount of time that you spend in the four task groupings can change significantly |
|
Definition
|
|
Term
| T/F Some employers resist writing job descriptions because they fear that employees will refuse to do tasks not listed on the job description |
|
Definition
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|
Term
|
Definition
|
|
Term
|
Definition
1. land
2. buildings
3. equipment |
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|
Term
| Example of profit centers |
|
Definition
1. hatchery
2. feed mill
3. breeders |
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Term
|
Definition
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|
Term
|
Definition
|
|
Term
| Over the last 70 years the average annual gain for the stock market is approximately ___ per year |
|
Definition
|
|
Term
| What does a profit center have that a cost center does not have |
|
Definition
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|
Term
|
Definition
| Most companies keep a bad debt reserve in the expectation that some small percentage of their creditors will not pay them in full. If the bad debt reserve is accurately estimated, then a company's net income will not be reduced when the debts are actually written off as being uncollectable |
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Term
|
Definition
| if you have a truck that is worth 15000 and you depreciate it over 3 years by the end of year 3 it will be worth 0. thats its book value |
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Term
|
Definition
| if you use the same truck at year 3 it is worth 0, but you an still sell it for a certain amount at any given time. thats the fair market value. |
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Term
| Defined benefits retirement program |
|
Definition
preferred by employees. Calculated by
1.years of service
2. salary
3. multiplier factor |
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|
Term
| defined contribution retirement program |
|
Definition
less friendly to employees
employers will match contribution |
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Term
|
Definition
employee contribution
not taxed going in
cant withdraw until age 59.5
must start drawing out age 70.5 |
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Term
|
Definition
governmental agencies
no required minimum participation
no employer contribution
not taxed going in, taxed coming out
same withdraw rules as 401K |
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Term
|
Definition
small minimum deposit
maximum deposit
59.5/70.5 rule
not taxed going in, taxed coming out |
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Term
|
Definition
TAXED GOING IN, not taxed coming out
NO AGE LIMIT
no minimum distributions |
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Term
|
Definition
simplified employee pension
small employers
same rules as standard IRA |
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