1. Agribusiness includes:
A. Only crop production
B. Only agricultural marketing
C. All activities from input supply to final consumer
D. Only food processing
Answer: C
Rationale: Agribusiness covers the entire value chain from inputs to consumers.
2. The concept of agribusiness was first introduced by:
A. Peter Drucker
B. Davis and Goldberg
C. Philip Kotler
D. Michael Porter
Answer: B
Rationale: Davis and Goldberg introduced the agribusiness concept in 1957.
3. Input supply sector in agribusiness includes:
A. Wholesalers only
B. Farmers only
C. Seeds, fertilizers, pesticides, machinery
D. Food retailers
Answer: C
Rationale: Inputs are essential resources used in farm production.
4. The core objective of agribusiness management is to:
A. Maximize production only
B. Maximize profit through efficient management
C. Reduce farmer income
D. Eliminate middlemen completely
Answer: B
Rationale: Efficient management aims at profitability and sustainability.
5. Which of the following is NOT a component of agribusiness?
A. Input industry
B. Farm production
C. Processing and marketing
D. Urban housing
Answer: D
Rationale: Urban housing is unrelated to agribusiness.
6. Value addition in agribusiness means:
A. Increasing crop area
B. Increasing price artificially
C. Enhancing utility through processing and packaging
D. Reducing quality
Answer: C
Rationale: Value addition improves form, place, and time utility.
7. Agribusiness firms mainly operate in:
A. Perfect competition
B. Monopoly
C. Imperfectly competitive markets
D. Pure socialism
Answer: C
Rationale: Most agribusiness markets are imperfectly competitive.
8. Which function is concerned with demand creation?
A. Production
B. Finance
C. Marketing
D. Procurement
Answer: C
Rationale: Marketing focuses on demand creation and satisfaction.
9. The agribusiness environment includes:
A. Only internal factors
B. Only external factors
C. Both internal and external factors
D. Only government policies
Answer: C
Rationale: Environment includes controllable and uncontrollable factors.
10. SWOT analysis is used to analyze:
A. Only profits
B. Only competitors
C. Internal strengths and weaknesses, external opportunities and threats
D. Market price only
Answer: C
Rationale: SWOT evaluates internal and external business conditions.
11. Which of the following is an agribusiness input firm?
A. Rice mill
B. Seed company
C. Supermarket
D. Export agency
Answer: B
Rationale: Seed companies supply inputs to farmers.
12. Contract farming is an example of:
A. Spot market transaction
B. Vertical coordination
C. Cooperative farming
D. Subsistence farming
Answer: B
Rationale: Contract farming links producers and buyers vertically.
13. Agribusiness management primarily deals with:
A. Technical farming practices only
B. Managerial decision-making in agriculture
C. Soil fertility only
D. Crop breeding only
Answer: B
Rationale: It applies management principles to agriculture.
14. Which management function involves forecasting and goal setting?
A. Organizing
B. Staffing
C. Planning
D. Controlling
Answer: C
Rationale: Planning involves setting objectives and strategies.
15. The role of agribusiness in the economy includes:
A. Reducing employment
B. Increasing rural income
C. Discouraging exports
D. Limiting processing
Answer: B
Rationale: Agribusiness generates income and employment.
16. Supply chain management in agribusiness focuses on:
A. Only farm production
B. Efficient flow of goods from farm to consumer
C. Price fixation only
D. Government control
Answer: B
Rationale: SCM ensures smooth product flow and reduced costs.
17. Which is a major challenge in agribusiness?
A. Unlimited raw material
B. Perishability of products
C. Excess storage
D. Stable prices
Answer: B
Rationale: Agricultural products are highly perishable.
18. The primary role of agribusiness finance is to:
A. Increase taxes
B. Provide capital for operations
C. Control prices
D. Reduce production
Answer: B
Rationale: Finance supports investment and working capital needs.
19. Market intelligence in agribusiness refers to:
A. Farmer intuition
B. Information on prices, demand, and competitors
C. Weather forecasting only
D. Soil testing
Answer: B
Rationale: Market intelligence supports informed decisions.
20. Which of the following is an agribusiness output industry?
A. Fertilizer plant
B. Tractor manufacturing
C. Food processing unit
D. Seed testing lab
Answer: C
Rationale: Output industries process agricultural produce.
21. Agribusiness risk arises mainly due to:
A. Stable climate
B. Fixed prices
C. Price, production, and market uncertainties
D. Guaranteed demand
Answer: C
Rationale: Agriculture faces multiple uncertainties.
22. Vertical integration in agribusiness means:
A. Horizontal expansion
B. Combining stages of production and marketing
C. Increasing farm size
D. Cooperative farming
Answer: B
Rationale: Vertical integration controls multiple value-chain stages.
23. The role of cooperatives in agribusiness is to:
A. Eliminate farmers
B. Strengthen farmers’ bargaining power
C. Reduce productivity
D. Promote imports
Answer: B
Rationale: Cooperatives help farmers access markets and inputs.
24. Which of the following is a processed agricultural product?
A. Wheat grain
B. Raw milk
C. Wheat flour
D. Fresh vegetables
Answer: C
Rationale: Processing converts raw wheat into flour.
25. Agribusiness entrepreneurship refers to:
A. Government employment
B. Risk-taking and innovation in agri ventures
C. Traditional farming
D. Subsistence agriculture
Answer: B
Rationale: Entrepreneurship involves innovation and risk.
26. Market segmentation in agribusiness means:
A. Dividing land
B. Dividing consumers into homogeneous groups
C. Dividing crops
D. Dividing seasons
Answer: B
Rationale: Segmentation targets specific consumer groups.
27. Branding in agribusiness helps in:
A. Increasing cost only
B. Product identification and loyalty
C. Reducing quality
D. Eliminating competition
Answer: B
Rationale: Branding differentiates products in the market.
28. Which pricing strategy is common for new agri-products?
A. Penetration pricing
B. Skimming pricing
C. Cost-plus pricing only
D. Government pricing
Answer: A
Rationale: Penetration pricing helps capture market share.
29. Which factor strongly influences agribusiness location?
A. Fashion trends
B. Availability of raw material
C. Political ideology
D. Literacy rate
Answer: B
Rationale: Proximity to raw material reduces costs.
30. Agribusiness marketing differs from industrial marketing because:
A. Products are durable
B. Demand is derived and seasonal
C. Prices are fixed
D. Products are uniform always
Answer: B
Rationale: Agricultural demand is derived and seasonal.
31. Which is an example of agri-input marketing?
A. Selling rice to consumers
B. Selling fertilizers to farmers
C. Exporting fruits
D. Retailing bread
Answer: B
Rationale: Inputs are sold to producers.
32. The term “farm-to-fork” refers to:
A. Export process
B. Complete agri value chain
C. Cooking method
D. Farm mechanization
Answer: B
Rationale: It describes the entire food supply chain.
33. Agribusiness policy mainly aims at:
A. Farmer exploitation
B. Market stability and growth
C. Reducing production
D. Eliminating private sector
Answer: B
Rationale: Policies support growth and stability.
34. Which is a key characteristic of agricultural markets?
A. Perfect information
B. Seasonal arrivals
C. Monopoly power of farmers
D. No price fluctuations
Answer: B
Rationale: Production and arrivals are seasonal.
35. Logistics in agribusiness includes:
A. Crop production
B. Transportation and storage
C. Seed breeding
D. Soil management
Answer: B
Rationale: Logistics manages movement and storage of goods.
36. Agribusiness firms use forecasting mainly to:
A. Predict rainfall only
B. Plan production and marketing
C. Control labor
D. Fix government prices
Answer: B
Rationale: Forecasting aids planning decisions.
37. Which organization supports agribusiness exports in India?
A. RBI
B. APEDA
C. SEBI
D. NABARD
Answer: B
Rationale: APEDA promotes agri exports.
38. Working capital in agribusiness is required for:
A. Long-term investment
B. Daily operations
C. Land purchase
D. Building factories only
Answer: B
Rationale: Working capital meets short-term needs.
39. Which is a major constraint in agribusiness marketing?
A. Excess infrastructure
B. Poor storage facilities
C. High demand
D. Stable prices
Answer: B
Rationale: Inadequate storage leads to losses.
40. Agribusiness ethics relates to:
A. Profit maximization only
B. Fair practices and sustainability
C. Avoiding innovation
D. Ignoring consumers
Answer: B
Rationale: Ethical practices ensure long-term sustainability.
41. The role of ICT in agribusiness is to:
A. Replace farmers
B. Improve information flow and efficiency
C. Increase risk
D. Reduce transparency
Answer: B
Rationale: ICT enhances decision-making and connectivity.
42. Which is an example of agribusiness service sector?
A. Crop farming
B. Fertilizer manufacturing
C. Cold storage services
D. Food processing
Answer: C
Rationale: Services support production and marketing.
43. Economies of scale in agribusiness refer to:
A. Increase in cost per unit
B. Decrease in cost per unit with scale
C. Increase in risk
D. Reduction in output
Answer: B
Rationale: Larger scale reduces average cost.
44. Which factor most affects agribusiness profitability?
A. Weather variability
B. Brand logo
C. Office location
D. Employee uniforms
Answer: A
Rationale: Agriculture is highly climate-dependent.
45. Agri-startups mainly focus on:
A. Traditional practices only
B. Innovation and technology solutions
C. Eliminating farmers
D. Import substitution only
Answer: B
Rationale: Agri-startups bring tech-driven innovations.
46. Which of the following improves farmers’ share in consumer price?
A. Longer supply chain
B. Efficient marketing channels
C. More intermediaries
D. Price controls only
Answer: B
Rationale: Efficient channels reduce marketing costs.
47. The agribusiness system is:
A. Closed system
B. Static system
C. Dynamic system
D. Isolated system
Answer: C
Rationale: It changes with technology, policy, and markets.
48. Which indicator reflects agribusiness growth?
A. Crop area only
B. Value of agri-exports
C. Number of farmers
D. Rainfall amount
Answer: B
Rationale: Exports indicate value addition and competitiveness.
49. Agribusiness management integrates:
A. Agriculture and management principles
B. Engineering and medicine
C. Law and politics
D. Literature and history
Answer: A
Rationale: It combines agriculture with management science.
50. The ultimate goal of agribusiness management is:
A. Maximum exploitation of resources
B. Sustainable and profitable agri value chains
C. Elimination of small farmers
D. Government monopoly
Answer: B
Rationale: Sustainability and profitability are core goals.
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