Part i.

true or false

Write true if the statement is correct and false if it is incorrect on the space provided.

1. Economic resources are provided by business firms to households

Answer:-True
2. Value addition is an innovation that enhances or improves an existing products or
introduces new a product
Answer:-True
3. Within the managerial ranks, the number of the managers at each level increases as
individuals move up from an operative to the executive level.
Answer:-False
4. The greater the number of decisions made at the lower level of management, the more the
company is decentralized.
Answer:-True
5. According to Mc Gregor’s views. Theory Y managers assume that the average employee
inherently dislikes work and avoids it whenever possible.
Answer: True
6. The first step in the control process is establishing standards
Answer: True
7. Feed forward control is the intelligent anticipation of a problem and their timely
prevention rather than after the fact reaction
Answer:-True
8. By taking a decision, a manager attempts to increase the gap between the present and the
desired situation
Answer:-False
9. Cost benefit analysis is a relatively simple and widely used technique for deciding
whether to make a change or not.
Answer: - True
10. The term state of nature is used to describe an event below a managers control
Answer: True
Part II. Multiple choices

Choose the correct answer among the given alternatives and write the letter of your choice
on the space provided.

1. One of the following is not essential for a successful agribusiness functioning

A. Efficient management
B. Proper plant location
C. Sound organization
D. None of the above
Answer:- D
2. Which one of the following is an element of micro environment?
A. Economic environment
B. Supplies
C. New technological innovation
D. Cultural environment
Answer:-B
3. Which one of the following is wrong statement about the distinguishing features of an
agribusiness?
A. Most agribusiness tends to be large when compared to other business
B. Unlike other business an agribusiness deals with the basic producer of its raw product
C. Product differentiation is more difficult in an agribusiness than other business
D. The size of an agribusiness does not allow monopoly line enterprise
Answer:-C
4. One of the following is not the problem of an agricultural production

A. there is shortage of skilled manpower in the agribusiness firms

B. when production increase price also increase

C. there is a small size of holdings

D. there is a weak agricultural marketing

Answer:-B
 5. the processing/ manufacturing subsystem of an agribusiness creates one of the following
types of utility
A. place utility
B. location utility
C. form utility
D. time utility
Answer: - C
6. which one of the following is not the problem of agricultural marketing in Ethiopia/
A. presence of many unlicensed traders
B. institutional constraints
C. inadequate marketing facilities
D. presence of market information
Answer:-D
7. one of the following is not the principal factor that threatens the efficiency of Ethiopian
agribusiness development or reforms
A. external shocks
B. general infrastructures and institutional factors
C. the nature of small holder agriculture
D. none of the above
Answer:- B
8. Which of the following market orientation produce a quality product and promote it to
create demand?
A. Product orientation
B. Sales orientation
C. Customer preference orientation
D. Quality orientation
Answer:- B
9. One of the following is not the characteristics of an agribusiness management
A. It is a system of authority
B. It is an all pervasive
C. It is tangible
 D. It is a distinct activity
Answer:-A
10. Which one of the following skill combinations is required for top management in
descending order?

A. Conceptual interpersonal technical

B. interpersonal technical conceptual

C. technical interpersonal conceptual

D. technical conceptual Interpersonal

Answer: D
11. Which one of the following activities comes first in planning process?

A. Determine alternative courses of action

B. Understanding of the existing situation

C. Establishing objectives

D. Evaluating the alternative course of action

Answer:-B

12. Which of the following groups of plans is classified based on scope or breath?

A. Long range plans, intermediate ranges plans and short range plans

B. Standing plan, and single use plan

C. Strategic plan, tactical plan and operational planning

D. None of the above

Answer:- C

13. Which one of the following is the feature of an autocratic leader?

A. Empathizes task performance

B. Permit subordinates to participate in decision making

C. Uses two-way communication

D. It is employee centered consultative permissive

Answer:-A

14. According to Maslow’s needs hierarchy which one of the following needs to be fulfilled
first?

A. Social needs

B. Physiological needs

C. Esteem needs

D. Safety needs

Answer:- B
15. One of the following is the correct feature of controlling
A. It is an end in itself
B. It is a one- step action plan
C. It is a negative force
D. It is universal
Answer:-B
Part III. Short answer

1. Write five major characteristics of agricultural products

 Perishability of the product

 Seasonality of production
 Bulkiness of products
 Variation in quality of products
 Irregular supply of agricultural products
2. Write four importance of planning in an agribusiness

 Increases efficiency

 Helps in achieving goals

 Planning provides focus and aids coordination

 It aids decision making

 It reduces risks and oversight

 Planning encourages innovation and creativity

3. What are the five steps in organizing a process

 Review plans and objectives

 Determining activities
 Classifying and Grouping Activities
 Assigning work and resources
 Evaluating results
4. What are the scopes of an agribusiness

The agricultural input sector

The production sector, and
 The processing-manufacturing sector
Agribusiness is concerned with the financing, marketing, and management of food production. It
is a growing industry that provides wide range of career options.

5. What are the characteristics of agricultural products?

Product differentiation is not possible

It is difficult to control both quality and quantity of output

Nature plays a crucial role in production

Agricultural products have inelastic demand