Glossary - Agribusiness Management - page 418

agribusiness Any business organization that supplies farm inputs or services, or that proc-
esses, distributes, or wholesales agricultural products, or retails them to consumers.
agribusiness management The management of any fi rm involved in the food and fi ber
production and marketing system.
agricultural services and fi nancing A segment of the input supply sector that focuses on
providing services, information, and fi nancing to production agriculture; includes farm
management services, veterinary clinics, consulting businesses, and farm lenders.
analyzing facts A step in the planning process requiring answers to such questions as
“Where are we?” and “How did we get here?”; helps pinpoint existing problems and
opportunities, and provides insights upon which to base successful decisions.
annual percentage rate of interest (APR) The true annual rate of interest which is
charged on a loan:

⎛
⎜

⎞

2P × F

×

APR 100

⎛
⎝

× =

) (

BT × ( 1

+

where P = payments per year, F = dollars paid in interest, B = amount of capital borrowed,
and T = total number of payments.
annuities A stream of incomes and / or costs that are equal amounts for each of the number
of periods evaluated.
anticipation inventories Inventories held for products where demand is not constant so
that adequate supplies are available during peak seasons.
appraisal costs Costs incurred in monitoring the quality level of products and services
during the course of production.
apprenticeship A form of training where a new employee works with a more experienced
person, and learns under that person's direction.
articles of incorporation Legal documents fi led with the state government where the
organization is incorporated and which set forth the basic purpose of the corporation
and the means of fi nancing it.
assemble to order A process for producing products that have many options after the
customer's order has been placed.
a sset turnover ratio A fi nancial ratio measuring effi ciency; net sales / total assets.
assets Items of value, including physical and fi nancial property, that are owned by the
business.
authoritarian leadership A leader-centered style of leadership (also called autocratic), in
which the thoughts, ideas, and wishes of the leader are expected to be obeyed com-
pletely, without question.
authority In organizational structure, the right to command or force an action by
another.
autocratic leadership See authoritarian leadership .
bad debts as a percentage of credit sales A fi nancial measure used to monitor the effec-
tiveness of a fi rm's credit policy; amount of bad debts divided by total accounts receiv-
able multiplied by 100.
balance sheet A fi nancial statement that shows the fi nancial makeup and condition of a
business at a specifi c point in time by listing what the business owns, what it owes, and
what the owners have invested in the business.
behavioral segmentation In marketing, a means of classifying or categorizing customers
or potential customers by their behavioral tendencies.