Shared Flashcard Set

Details

ASCI 342
poultry business management
84
Science
Undergraduate 3
03/15/2014

Additional Science Flashcards

 


 

Cards

Term
what is disadvantage of a sole proprietorship?
Definition
the bank can come after personal assets
Term
what is the disadvantage of a general partnership?
Definition
each partner is responsible for the debt
Term
what will your bank do to eliminate your limited liability if its an S corp?
Definition
make you sign a personal gaurentee
Term
What causes feed disappearance?
Definition
spilling out of the pipes or theft
Term
What has Tyson grown faster than Fosters?
Definition
its publicly owned
Term
the_______was created in an attempt to provide simplicity as well as the corporate veil to S corps and sole prop.
Definition
limited liability ocmpany
Term
____is an example of a designer egg
Definition
vitamin enriched or omega 3
Term
_____is an example of a broiler industry product available to consumers
Definition
boneless skinless breast
Term
What are potential industry jobs for you to consider after graduation?
Definition
1. plant manager
2. genetics
Term
How to reduce feed conversion you look at:
Definition
average weight per bird
nutrient density
Term
Appeal to animal welfare:
Definition
offer organic eggs
offer free range eggs
Term
why would fosters commodities buy more corn than was consumed?
Definition
train loads are cheaper
Term
what are factors that affect feed conversion that you cant control
Definition
ingredient quality
time of the year
Term
what incentives can you include in the 'fee for service contract'
Definition
pay for extra pound over the average
pay for good cobb score
Term
what does the contract grower provide:
Definition
facilities
electricity
Term
T/F Limited Partners:are only at risk for their initial investment. They are not responsible for the entire indebtedness of the company
Definition
True
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
Definition
True
Term
T/F Approximately one third of all eggs produced in the US are cage free, free range or pastured
Definition
False
Term
T/F Because of the combination of simplicity and limited liability, the LLC has become a very popular method of structuring small businesses
Definition
False
Term
General partnerships are only at risk for their initial investment. not responsible for the entire debt
Definition
false
Term
T/F C corps can sell stock to public to bring in cas for expansion
Definition
true
Term
T/F if your spouse is involved your business can not be stuctured as a sole proprieotrship
Definition
false
Term
T/F Recent expansion in per capita consumption of turkey has been due to further processing, positive health perception and lower prices
Definition
true
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
Definition
false
Term
T/F 77% of all the turkeys produced in the US are sold as whole body
Definition
false
Term
Turkey and broilers will yield more whole body carcass weight than cattle and sheep
Definition
true
Term
T/F if you are looking for simplicity choose the sole proprietorship
Definition
true
Term
Define Corporate Veil
Definition
limited liability: the principle that stockholders or employees of a corporation are not personally liable for the debts of the corporation
Term
Define IPO (relates to C corp)
Definition
Initial Public Offering of stocks to get shareholders and more money into the company
Term
when is the best time to go to the bank to get a loan
Definition
when you dont need the money
Term
___ is an example of a cost to your business that is defined as variable, but in real life becomes fixed
Definition
Management
Term
Best/worst cash flow times of
broilers
turkeys
eggs
Definition
Best/worst time
borilers summer/winter
turkeys thanksgiving/spring and summer
table egg december/ post easter
Term
Why is the change in price paid to the birld owner less in the broiler industry than in the egg industry
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
Term
what factor could cause a significant change in the price that you as the farmer pay for your corn
Definition
1. rain/drought
2. disease
Term
The cash flow projection that you take to the bank should demonstrate the following:
Definition
1. need
2. ability to pay back
Term
Why is it important to prepare a cash flow projection before the beginning of each year?
Definition
1. no surprises
2. line up for financial shorts
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_____
Definition
the machines
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.
Definition
1.
2.
3.
Term
motivation for cash accounting.
Definition
you dont have to do a depreciation schedule for your live poultry
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
Definition
Principle
Interest
Term
Which accounting method will most accurately show your company profit?
Definition
accrual
Term
Receivables/aging of accounts
Definition
legally enforceable claim for payment to a business by its customer in a certain amount of time
Term
section 179
Definition
is the limit on the amount you can write off as an expense before you have to depreciate it
Term
recapture of depreciation
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.
Term
points (as related to obtaining a new loan)
Definition
form of prepaid interest, is a percentage of the loan amount
Term
What does a title company do? What is title insurance?
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
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
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
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
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
90
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
Term
the loan used for consumables must have a zero balance for ___days once a year
Definition
60
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
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
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
Term
what can you do with the extra money made from profits?
Definition
give to partners
invest in stock
buy new equipment
Term
Potential reasons for having job description
Definition
helps with hiring/firing
helps weed out applicants
gives expectation for job
Term
salaried employees must be paid overtime unless they supervise__ or more employees
Definition
4
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
Term
T/F A new ventilation system would be classified as an intermediate loan and a good candidate for a production credit assn loan
Definition
False- considered long term
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
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
True
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
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
False
Term
T/F Unemployment insurance was not intended for employees that quit or who are fired for good cause
Definition
True
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
True
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
True
Term
What are current assets
Definition
1. cash
2.broilers
3. eggs
Term
fixed assests
Definition
1. land
2. buildings
3. equipment
Term
Example of profit centers
Definition
1. hatchery
2. feed mill
3. breeders
Term
Example of cost centers
Definition
1. admin
2. accounting
Term
____+____=total assets
Definition
Liabilities+capital
Term
Over the last 70 years the average annual gain for the stock market is approximately ___ per year
Definition
10%
Term
What does a profit center have that a cost center does not have
Definition
income
Term
reserve for bad debt
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
Term
book value
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
Term
fair market value
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.
Term
Defined benefits retirement program
Definition
preferred by employees. Calculated by
1.years of service
2. salary
3. multiplier factor
Term
defined contribution retirement program
Definition
less friendly to employees
employers will match contribution
Term
401K
Definition
employee contribution
not taxed going in
cant withdraw until age 59.5
must start drawing out age 70.5
Term
403B
Definition
governmental agencies
no required minimum participation
no employer contribution
not taxed going in, taxed coming out
same withdraw rules as 401K
Term
Standard IRA
Definition
small minimum deposit
maximum deposit
59.5/70.5 rule
not taxed going in, taxed coming out
Term
Roth IRA
Definition
TAXED GOING IN, not taxed coming out
NO AGE LIMIT
no minimum distributions
Term
SEP IRA
Definition
simplified employee pension
small employers
same rules as standard IRA
Supporting users have an ad free experience!