Agricultural Finance Test 1 Study Guide

Agricultural Finance Test 1 Study Guide - Agricultural...

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Agricultural Finance: The study of acquisitions & use of financial resources & the production of equity capital from various sources of risk. Profitability: Total Revenues minus your total expenses Liquidity: The firms’ ability to meet financial obligations, transactions, or investment opportunities. Liquidity is defined as how much flow is going through the organization. o Ability to generate cash when cash is demanded Cash is needed to Pay for operating expenses Pay for capital items Meet scheduled debt payments Satisfy family needs Solvency: Where net worth is positive & the business is expected to meet its financial obligations as they come due. Assets: Productions takes place by use of this. Strategic Management Process: o Defining & developing a firm’s mission o Formulating objectives o o Building strategy o Implementing strategy o Information Flows: o 2 nd Tool of Financial Management o Detects the past, present & expected business performance o Information Flows Can Evaluate: o Financial Control o Credit Worthiness o Risk Management o Meeting Legal Requirements o Financial Planning Types of Agricultural Risks: o Productions Risks o Human/Personal Risks o Personal Risks o Technological Risks
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This note was uploaded on 05/25/2011 for the course ACG 2021 taught by Professor Montgomery during the Summer '08 term at FSU.

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Agricultural Finance Test 1 Study Guide - Agricultural...

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