Should these farms diversify further or stick to milk and ice cream? What are the arguments for and against each option?
What will be an ideal response?
Once diversification has been accepted as a principle and proved to work, should other options be
considered in future? Enterprise capabilities and resources need to be carefully considered. Given the
family nature of many independent farms, the younger generation (or generations) may welcome the
opportunity to remain a part of the business, but take it in new directions. Do they have the training,
commitment and personal drive to succeed, or is would a new activity be just a passing hobby? Are there
synergies between existing and new activities? What conflicts of priority and personality may arise? In
respect of both questions, family vision and values have to be considered, recognising that in small
enterprises personal preferences and judgements almost always outweigh dispassionate, externally-
derived strategic logic.
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Which of the following formulas gives the inventory turnover ratio?
a. Net credit sales/Average inventory b. Average inventory/Net credit sales c. Cost of goods sold/Average inventory d. Average inventory/Cost of goods sold
Describe the methods of performance management with examples.
What will be an ideal response?
You should use italics for words or phrases used as examples of ___________________
a. language b. sales c. direct quotations d. headings
If net income is $40,000, and other income is $5,000, then the income from operations total must be $35,000
Indicate whether the statement is true or false