Question

In: Operations Management

When determining the risk-bearing ability of an agricultural business, financial reserves play an important role. True...

When determining the risk-bearing ability of an agricultural business, financial reserves play an important role. True False

Solutions

Expert Solution

Here Correct Answer is TRUE,

Explanation:

As to determine the risk-bearing ability of an agricultural business, financial Reserves take important role, again, with the help of Financial reserves, Agriculture business can manage and handle risk in more effective way, thus, the statement is TRUE,


Related Solutions

Why does the ‘valuation’ of a company play such an important role when determining the potential...
Why does the ‘valuation’ of a company play such an important role when determining the potential return of an investment opportunity? Please provide an example to illustrate your reasoning.
Determining the financial health of a business involves looking at indicators of the business’ ability to...
Determining the financial health of a business involves looking at indicators of the business’ ability to meet its maturing financial obligations i.e. any bills that have to be paid when they become due. (a) What are these indicators? (b) Define the two Liquidity Ratios that are commonly used by financial analysts, properly describing all terms in the definition equation. Why are these ratios important to assess the financial health of a business? (c) Give examples of healthy values for these...
Budgets play an important role in a business but are just as important to us, as...
Budgets play an important role in a business but are just as important to us, as individuals. Discuss the use of budgeting, both in a business and in your personal life. Do you currently use a budget? Discuss the objectives of a budget as well as types of budgets used in the business world.
(a) Funders use some financial analysis ratios for determining the financial health of a business’ ability...
(a) Funders use some financial analysis ratios for determining the financial health of a business’ ability to meet its financial obligations; both short-term and long term. What are these indicators for short-term financial health called, and how are they defined ? (b) What is this indicator for long term financial health called and how is this defined?
How important a role does perception play in determining whether an employee is receiving equitable treatment?
How important a role does perception play in determining whether an employee is receiving equitable treatment? What kinds of things might a manager do to influence those perceptions?
** When analyzing the collateral and analyzing the business risk and ability to pay for corporate...
** When analyzing the collateral and analyzing the business risk and ability to pay for corporate bonds, market participants often separate issuers into these four sectors: (1) Utilities, (2) Transportation, (3) Industrials and (4) Banks/Financial Institutions. Why are transportation companies considered separately from industrial companies? In other words, what is different about these types of companies? Why are utilities considered separately from industrials? In other words, what is different about these types of companies?
How internal IT and network risk policies can play an important role in combating staff lack...
How internal IT and network risk policies can play an important role in combating staff lack of organisational compliance?
Expectations play an important role in macroeconomic analysis. Consumer and business confidence are major drivers of...
Expectations play an important role in macroeconomic analysis. Consumer and business confidence are major drivers of the economy in the short run. Describe how your expectations about the future of the economy have changed as a result of Covid-19. How are you changing your spending patterns during this crisis? How has the Coronavirus pandemic affected your plans for the future? Have you reevaluated your educational and/or transfer plans? Your career choices? Investment strategies? Are you concerned by the large deficits...
What role does a business plan play when a venture is developed effectually?
What role does a business plan play when a venture is developed effectually?Describe the role of a business model (2.5 points). How does it relate to a business plan? 
1. What role does a corporation's audited financial statements play in determining its taxable income? 2....
1. What role does a corporation's audited financial statements play in determining its taxable income? 2. What is the difference between favorable and unfavorable book–tax differences?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT