Glossary - Agribusiness Management - page 436

organizing One of the four tasks of management; the systematic classifi cation and group-
ing of human and other resources in a manner that effectively accomplishes the fi rm's
goals.
other current assets Any of a variety of assets that are likely to be converted to cash, or
can be converted into cash, within a year; normally does not include cash, accounts
receivable, inventory, or marketable securities.
o utput - input ratio An effi ciency ratio that relates the output of a process to the inputs
employed in the process.
outputs Any product that is the result of a production process.
owner equity The value of the owners' investment in the business; the total assets of the
business less all obligations to non-owners; also called net worth.
parity of responsibility and authority principle In organizational structure, the idea that
a person should have enough authority to carry out their assigned responsibilities.
participative leadership See democratic leadership.
partnership A form of business organization in which two or more people jointly own the
assets and / or manage the business.
patronage refunds A return of net margin to members or patrons of a cooperative.
payback period The length of time it will take an investment to generate suffi cient addi-
tional cash fl ows to pay for itself.
penetration pricing A pricing strategy that consists of offering a product at a low price,
perhaps even at a loss, in order to gain wide market acceptance quickly.
percentage change in credit sales A fi nancial measure used to assist in monitoring
changes in accounts receivable; credit sales for the current period divided by the credit
sales for a previous period.
performance evaluation An appraisal of an employee's performance; makes the employee
aware of their contributions and their strengths and weaknesses; normally includes goals
for the next evaluation period.
performance objectives Measurable, defi nable goals that are set for specifi c units and / or
individuals; provide shorter-term performance targets at the unit and / or individual level
that are consistent with broader, longer-range strategic goals.
periodic inventory An actual physical count of inventory on hand conducted at regular

intervals.
perishability The characteristic of rapid deterioration in the quality of some agricultural
or food products after harvest or processing.
perpetual inventory See continuous inventory .
p ersonal interviews A market research technique that involves direct dialogue with a
customer, prospect, infl uencer, or other individual of interest.
personnel The people employed in an organization; also can be a department of a fi rm that
deals with employee issues such as hiring, benefi ts, and records.
physical distribution systems (PDS) The series of channels through which parts, prod-
ucts, and fi nished inventory are stored and moved from suppliers, between outlets and,
ultimately, to consumers.
p hysical risks The uncertainty and potential damage or losses that can result from such
phenomena as wind, fi re, hail, fl ood, theft, and spoilage.
pipeline inventory The minimum amount of inventory needed to cover the period of time
between the warehouse's reordering and its receipt of the additional stock.
planning Forward thinking directed at specifi c objectives about courses of action based
upon a full understanding of all factors involved.