Glossary - Agribusiness Management - page 419

belongingness A component of Maslow's needs hierarchy; suggests that after people have
achieved a reasonable degree of confi dence in their safety, they become concerned with
their social acceptance and belonging.
b enchmarking A technique for internal assessment that involves identifying a non-compet-
itive fi rm known for excellence in a particular area, carefully studying that fi rm to see
how they deliver this excellence, and then comparing the fi ndings of this study against
the fi rm's current practices.
benefi ts Policies and programs offered to employees as a part of their compensation pack-
age. Examples range from health insurance, vacation, sick pay, life insurance, wellness
programs (benefi ts that encourage healthy living habits like nutritious diets and
exercise), and retirement savings.
benevolent autocrat A leadership style in which leaders convince followers to do what
they want by being so well liked that no one would consider being disloyal and giving
so much praise that employees are shamed into obedience.
blue-sky laws State laws which regulate the way in which corporation stock may be sold
and which protect the rights of investors.
board of directors The governing body of a corporation; elected by the stockholders to
supervise the affairs of the corporation; the number on the board may vary according to
the bylaws of the organization.
borrowing capacity The total amount of loan repayment ability possessed by a fi rm or

customer.
brand recognition The ability of customers and prospects to readily identify a fi rm's
brands in the market.
breakeven analysis See volume-cost analysis .
breakeven point (BE) The point at which income generated from sales just equals the
total costs incurred from those sales.
budget A forecast of sales, expenses, cash and / or other fi nancial information for a future
operating period; primarily used for control purposes.
buffer inventory Inventory (usually relatively small amounts) held in reserve to accom-
modate uncertainty in production and / or sales; also known as safety stock.
b uild-up forecast A sales forecast developed from data collected by the sales force or
other employees with considerable customer interaction.
bulk The size and weight conditions or circumstances associated with products; a chal-
lenge associated with packing and shipping agricultural products.
bureaucracy A highly specialized organizational structure in which work is divided
into specifi c categories, is carried out by special departments, and a strict set of
guidelines determines the course of activities to ensure predictability and eliminate
risk.
b ylaws In a corporation, the legal documents which set forth such rules of operation as
election of directors, duties of offi cers and directors, voting procedures, and
dissolution.
capacity In credit analysis, refers to the earnings and cash fl ow available to meet fi nancial
obligations; in production management, refers to the maximum amount of activity pos-
sible for a facility, piece of equipment, or process. See borrowing capacity .
capacity planning All activities that are undertaken to determine what the appropriate
size of a manufacturing plant or service location should be, so that a certain quantity can
be produced over a specifi c time period.
capital The fi nancial resources of a business, comprising in the broadest sense all the
assets of the business and representing both owned and borrowed funds.