Scribd Logo
Upload

Welcome to Scribd!

  • 11 views

    Are 351 Farm Management

    Uploaded by

    margaret kurgat
    This document contains instructions for a university exam on farm business management. It provides 5 questions for students to answer that cover topics such as defining farm management, distinguishing risk from uncertainty, preparing a farm balance sheet, discussing farm decision making and the functions of management, comparing subsistence and commercial farming, and explaining the scope of farm management operations. The exam is for a third year agricultural economics course and contains both short answer and longer discussion questions requiring students to apply their knowledge of farm business and economic concepts.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    Are 351 Farm Management

    Uploaded by

    margaret kurgat
    11 views4 pages
    This document contains instructions for a university exam on farm business management. It provides 5 questions for students to answer that cover topics such as defining farm management, distinguishing risk from uncertainty, preparing a farm balance sheet, discussing farm decision making and the functions of management, comparing subsistence and commercial farming, and explaining the scope of farm management operations. The exam is for a third year agricultural economics course and contains both short answer and longer discussion questions requiring students to apply their knowledge of farm business and economic concepts.

    Original Title

    ARE 351 FARM MANAGEMENT

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains instructions for a university exam on farm business management. It provides 5 questions for students to answer that cover topics such as defining farm management, distinguishing risk from uncertainty, preparing a farm balance sheet, discussing farm decision making and the functions of management, comparing subsistence and commercial farming, and explaining the scope of farm management operations. The exam is for a third year agricultural economics course and contains both short answer and longer discussion questions requiring students to apply their knowledge of farm business and economic concepts.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    11 views4 pages

    Are 351 Farm Management

    Uploaded by

    margaret kurgat
    This document contains instructions for a university exam on farm business management. It provides 5 questions for students to answer that cover topics such as defining farm management, distinguishing risk from uncertainty, preparing a farm balance sheet, discussing farm decision making and the functions of management, comparing subsistence and commercial farming, and explaining the scope of farm management operations. The exam is for a third year agricultural economics course and contains both short answer and longer discussion questions requiring students to apply their knowledge of farm business and economic concepts.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 4

    MAASAI MARA

    UNIVERSITY
    REGULAR UNIVERSITY EXAMINATIONS
    2014/2015 ACADEMIC YEAR
    THIRD YEAR SECOND SEMESTER

    SCHOOL OF BUSINESS AND ECONOMICS


    BACHELOR OF SCIENCE (AGRICULTURAL
    ECONOMICS)

    COURSE CODE: ARE 351


    COURSE TITLE: FARM BUSINESS
    MANAGEMENT I

    DATE: 28TH AUGUST 2015 TIME: 8.30AM – 10.30AM

    INSTRUCTIONS TO CANDIDATES
    Answer question ONE and any other THREE questions
    This paper consists of 4 printed pages. Please turn over

    SECTION A 25 MARKS
    QUESTION ONE

    a) Define the term farm management (2mks)


    b) List any five characteristics of a good manager (5mks)
    c) What do you understand by the following term; subsistence farming? What
    are its limitations? (4mks)
    d) Distinguish risk from uncertainty (4mks)
    e) Given the information below advise Mr. Ole Kamwaro, if he should change
    to maize production or continue producing wheat (10mks)

    Enterprise A: Wheat (150 acres, 1800 KGS/Acre yield)

    Variable costs KES

    Seed 900

    Fertilizer 2500

    Pesticides 1600

    Tractor hire 1500

    Casual labour 2000

    Harvesting 2440

    Fixed costs specific to wheat production

    Depreciation of machinery 2,680

    Warehouse rent 17,500

    Sales of Wheat 42 KES/KG

    Enterprise B: Maize (98 acres, 1400kgs/acre yield)

    ARE 351:Farm business management I Page 2


    Variable costs KES

    Seed 600

    Fertilizer 1750

    Pesticides 1260

    Tractor hire 1500

    Casual labour 1600

    Harvesting 800

    Fixed costs specific to maize production in KES

    Depreciation of machinery 680

    Warehouse rent 7,500

    Sales of Maize 23 KES/KG

    QUESTION TWO

    a) Discuss any five functions of management. (7mks)


    b) Discuss the farm decision making process. (8mks)

    QUESTION THREE

    a) Prepare the Balance Sheet for Otieno’s Farm given the information
    below as at 31/03/2015:
    (10mks)
    Particulars KES
    Cash in hand 120,000
    Crops ready for sale (Maize) 30,000
    Eggs (80 trays) 280 per tray
    Accounts receivable (Kondele Cooperative) 40,000
    10 sheep 4000 per head

    ARE 351:Farm business management I Page 3


    Bullocks 2 25,000 per head
    Maize for family use 8,500
    Machinery 1,250,000
    Land 2,550,000
    Short term debt 140,000
    Buildings 95,000
    Accounts payable (John) 20,000
    Long term loan (AFC Bank) 850,000
    Short term loan (KCB) 200,000
    Capital 50,000

    Note buildings and machinery depreciate at 7.5% and 12% respectively.

    b) Discuss the methods that a wheat farmer can use to overcome risk and
    uncertainty. (5 mks)

    QUESTION FOUR

    Explain in detail the management of land in Kenya citing relevant examples.

    (15mks)

    QUESTION FIVE

    a) Compare and contrast subsistence farming and commercial farming citing


    the different types of each. (6mks)
    b) Discuss the effects of price fluctuations using examples on Kenyan farmers
    (5mks)
    c) Explain the scope of farm management operations in Kenya. (4mks)

    ……………………………………………………….END…………………………………………………

    ARE 351:Farm business management I Page 4

    You might also like