SUB-STRAND AS 10.2.

2 FINANCIAL CAPITAL
AS 10.2.2.1 Manage An Agricultural Enterprise.

LESSON 1 MARKET SURVEY

Vocabulary
Questionnaire - is a research instrument consisting of a series of questions and other prompts for
the purpose of gathering information from respondents.

Notes
Factors to consider before producing agricultural commodities
 What to produce
 How much to produce
 When to produce
 The quality to produce
 For whom to produce

 Market survey is done using questionnaire to decide on the type, quantity, and quality of
commodity to produce and when to produce it.

Student Activity
Below is a list of steps you would take when determining the agricultural enterprise for your
farm. Re-write the steps in their correct order

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LESSON 2 RAW MATERIALS/ INPUTS FOR A FARMING ENTERPRISE.

Vocabulary
Inputs - things used in an enterprise to produce a good.

Notes
Raw materials or inputs that a farming enterprise would need

Student Activity
1. Choose one livestock and one horticulture enterprise. Prepare a list of raw materials for
each of the two enterprises that you have chosen.
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2. Why do farmers make a list of all the raw materials that an agricultural enterprise needs
before beginning the enterprise?
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LESSON 3 SOURCE OF RAW MATERIALS FOR AN AGRICULTURAL ENTERPRISE

Vocabulary
Quotation - A formal statement of promise by potential suppliers to supply the goods or services
required by a buyer, at specified prices, and within a specified period

Notes
 list of all the raw materials that an agricultural enterprise will require.
 a farmer will carry out research to determine where to purchase the resources from using
quotation.
 farmer must compare various sources based on price, quantity, quality, distance,
transport and the reputation of the source.

LESSON 4 BUDGET PREPARATION

Vocabulary
Budget - An estimate of costs, revenues, and resources over a specified period, reflecting a
reading of future financial conditions and goals.

Notes
1. When is a budget prepared?
Farmers prepare budgets before the enterprise begins.

2. Why do farmers prepare budgets?

 to help them manage the financial capital.
 ensures that the farmer has capital when it is needed.
 helps the farmer estimate the profit or loss that the enterprise may make

Student Activity
1. Prepare a budget for one of the enterprises
LESSON 5 SCHEDULE OF WORK

Vocabulary
Schedule of Work - timetable for a program or project showing how activities and events are
sequenced.

Notes
The diagram below includes some of the details that are included in a schedule of work.
 Time – year, month, week, day
 Enterprise name – Radish Crop 1
 Planned – plan of work to be done
 Actual – what was done

Schedule of work for the first crop of radish on a vegetable farm for 2015

Importance of schedule of work

 guide for other plans that the farmer needs to prepare
 reminds the farmer what he should be doing for the enterprise on a weekly basis

NB: The schedule of work can be amended to suit what is actually done each day.

Student Activity
1. How many weeks did the farmer use in the cultivation of the crop? _______________
2. How long did the crop take to grow? ________________

3. What is the difference between a budget and a farm account?

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LESSON 6 PROFIT AND LOSS/ FARM ACCOUNT

Vocabulary
Farm Account - Financial records of an organization that register all financial transactions.

Notes

1. When is a Profit and Loss Account / Basic Farm Account prepared?

Farmers prepare it after the enterprise ends.

2. Why do farmers prepare Profit and Loss Account / Basic Farm Account?
 Whether the enterprise has made profit or loss.

Student Activity
1. Prepare a Profit and Loss Account / Basic Farm Account for one of the enterprises