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Applied Agribusiness End Of Semester Ii Question Paper

Applied Agribusiness End Of Semester Ii

Course:Bachelor Of Science In Agriculture

Institution: Pwani University question papers

Exam Year:2011

UNIVERSITY EXAMINATIONS 2010/2011
ACADEMIC YEAR 3RD YEAR 2ND SEMESTER
EXAMINATION FOR THE DEGREE OF …………………………agricultre…………………………………………………
COURSE CODE/TITLE : ABT 300: APPLIED AGRIBUSINESS END OF SEMESTER II
INSTRUCTIONS
1. Answer FOUR questions. Question ONE is Compulsory
2. Marks indicated in brackets ( )
SECTION A Question One Easy Co. Ltd, an agro processing company has just completed a venture opportunity screening (VOS) exercise of a business idea (Borne meal – for the feds industry). This exercise has revealed high commercial potential and high attractiveness.
a) Outline and explain a business plant. (8marks)
b) Prepare a schedule of payment receipts and draft cash budget for six months ended 30th June 2011 from the following information.
i) Opening cash balance at 1st January 2011 is £3,200
ii) Sales; at £12 per unit. Cash received three months after sale.
Units 2010 2011 OCT NOV. DEC. JAN FEB MAR APR. MAY JUN JUL AUG SEP 80 90 70 100 60 120 150 140 130 110 100 160
Page 2 of 3
iii) Production in units
2010 2011 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP 70 80 90 100 110 130 140 150 120 160 170 180
iv) Raw material used in production costs £4 per unit of production. They are to be paid two months before being used in production.
v) Direct labour £3 per unit paid for in the same month as the unit produced
vi) Other variable expenses, £2 per unit, ¾ of the cost being paid for in the same month as production, the other ¼ paid in the month after production.
vii) Fixed expenses of £100 per month are paid monthly.
viii) A motor van is to be bought and paid for in April for £800. (18marks)
c) A machine for this project will have a life of 1 -5 years and will require cash out lay of £ 2500. At a cost of capital of 10|% p.a. Inflow expected are
Yr 1 900 Yr 2 800 Yr 3 700 Yr 4 600 Yr 5 500 Net present value table at £1 are Yr 0 –1.0 1 – 0.909 2 – 0.826 3 – 0.751 4 – 0.683 5- 0.624 Evaluate the investment using
i) Pay back method
ii) Net present value method
iii) Advise whether project should be undertaken. (4marks)
Question Two
i) Discuss management and explain how it differs with administration. (2marks)
ii) Discuss the variety of activities that describe management. (7marks)
Page 3 of 3
iii) Combined code on corporate governance establishes basic principles of governance and set out a code of best practice. Outline important examples of areas of a governance covered by the code. (11marks)
Question Three
i) Discuss three types or category of production or production systems. (10marks)
ii) Discuss the three methods of stock valuations FIFO, LIFO and AVCO.
(10marks) Question Four
i) Discuss marketing ( ½ mark)
ii) Discuss notable options developed by organization of the regard their customs and explain how marketing concept differs from them. (6 ½ marks)
iii) Discuss marketing rux and explain the product life cycle. (13marks)

Applied Agribusiness End Of Semester Ii Question Paper

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