Glossary - Agribusiness Management - page 429

individual proprietorship See sole proprietorship .
inelastic In supply and demand analysis, a condition where a change in price brings a
proportionately smaller change in quantity supplied (demanded).
inferior good An inferior good for income elasticity is one in which the quantity demanded
varies inversely with real income; increases in real income reduce the quantity demanded
and decreases in real income increase the quantity demanded of inferior goods.
informal organization The fi rm's organization outside the organizational chart; primarily
concerned with interpersonal relationships among people, their emotions, feelings,
communications, and values; an important part of the organization's culture.
informal personal relationships The relationships that are within an agribusiness which
are not part of the structured system—see informal organization .
information technology Any electronic technology focused on processing, storing, trans-
mitting, and reporting data and information.
initial investment The initial equity an investor commits to an investment.
innovators The fi rst group of buyers (initial 2.5 percent) to try a new idea, product, or
service; tend to be venturesome people who like to try new ideas.
input distributors Organizations engaged in moving products from the input manufac-
turer to the farm and providing services that insure productive use of the inputs.
input manufacturers Organizations engaged in the manufacture and production of inputs
for use in production agriculture.
input supply sector The sector of the food and fi ber production and marketing system that
manufacturers and distributes supplies and services to farmers for use in the production
of agricultural products.
inputs Resources used to create outputs in a production process; includes human resources
(skilled workers and managers), capital (equipment), materials, information, and energy,
among other such resources.
institutional advertising See generic advertising .
institutional food services Firms and organizations providing reliable, convenient meals
and / or the components necessary to make the meals for outlets such as schools, hospi-
tals, and government facilities.
insurance companies A source of fi nancing for agribusiness; typically provide longer-
term fi nancing as these fi rms look for opportunities to invest funds they have collected
from policyholders.
interest The charges made by a lender for the use of money.
interest rate Interest expressed in percentage form; refl ects investors' time and risk pref-
erences and serves as the exchange price between borrower and lender.
intermediate farms A category of farms that includes operators reporting farming as the
major occupation and gross sales of under $250,000.
intermediate-term loan A temporary grant of money to be paid back to the lender, usu-
ally in one to fi ve years.
internal failure costs In total quality management, costs that are generated during the
production and / or rework of defective parts and services.
internal rate of return (IRR) A method of ranking and accepting or rejecting capital
investments; the discount rate that yields a zero net present value.
i ntroductory stage The stage in the product life cycle in which the new product fi rst appears
on the market.
inventory Items that are held for sale in the ordinary course of business, that have been
purchased for use in producing goods and services to be sold, and work in progress.