Use of Technology in WV Career Development Events

The use of all electronic devices; including but not limited to cell phones, BlackBerries, PDAs, MP3 players, programmable calculators; are prohibited during all West Virginia Career Development Events.  If an event requires the use of calculators, the event coordinator will provide exact specifications on the type(s) of devices (including functions) that will be permitted.

 Failure to comply with this regulation will result in the elimination of the entire team from competition.  A letter will be sent to the school principal and superintendent by the state staff detailing the reasons for the dismissal.

 Use of Reference Materials in WV Career Development Events

Students participating in West Virginia Career Development Events are prohibited from bringing reference materials, paper, and/or other aids into the contest area unless the materials/aids are specified by the event coordinators in the official rules and regulations.  The exception, all students are permitted to use a standard clipboard.  Cover sheets will be provided for all contestants in all contests.  Contestants participating in contests with oral reasons will be provided two sheets of unlined white paper to take notes. 

 Failure to comply with this regulation will result in the elimination of the entire team from competition.  A letter will be sent to the school principal and superintendent by the state staff detailing the reasons for the dismissal.

Teams of Less than Three Members

Students may compete in a Career Development Event even if their school does not have a full team (3 or 4 members).  If a school has less than 3 team members, the students are only eligible for individual awards. A school may enter only one team (maximum 4 students) per event. (Passed 11/6/2006)

Agribusiness Management

RULES:  The contest will be conducted in three parts: (Scantron Sheets will be used)

This contest will be conducted in three parts: 1. Economic Principles and General Knowledge; 2. Financial Principles; and 3. Accounting/Computer Use. Find attached multiple choice questions for each of the Economic Principles and Financial Principles sections. These questions are a combination of the questions submitted by WV Vo-Ag teachers and questions drawn from the 1997, 1998 and 1999 National contests. Twenty-five questions will be selected from each section for the contest. A question asking for the construction of a balance sheet and an income statement using Microsoft Excel is also included. The numbers in the example question will be changed for the contest.

 Part I.  Economic Principles and General Knowledge (30 minutes; 30% of total score).  Will consist of a multiple choice examination to test contestants’ understanding of basic economic concepts and the ability to apply them.  Reference materials include any introductory economic principles textbook.  In addition, there will be a few questions to test the contestants’ general knowledge of agriculture (including key statistics), economic policies and current events of national and global significance.  The presumption behind this portion of the test is that good decision-making can only result from a decision-maker who is well informed.  Perhaps the best strategy to answer such question is by remaining current with the news and to review highlights of U.S. and WV agriculture from WV Agricultural Statistics publications.

 Part II.  Financial Principles (30 minutes; 40% of total score).

Will consist of multiple choice questions to test contestants’ understanding of basic financial concepts and the ability to apply them.  The focus will primarily be on two areas:

1. interpretation on the three commonly-used financial statements (balance sheet or net worth statement, income statement and statement of cash flows) as well as calculation and interpretation of the commonly-used financial ratios thereof; and

2. interest rate calculations.

Both conceptual knowledge as well as numerical or computational ability will be tested.  Any basic financial principles or accounting textbook can serve as a reference.

 Hand Calculators will be allowed on Parts I and II ONLY.

 Part III.  Computer Use (30 minutes; 30% of total score).

Will consist of using microcomputers and spreadsheet software (e.g. Microsoft Excel XP) to perform calculations and to develop financial statements. This will be an individual exercise and hand calculators are not acceptable in this portion of the contest.

 In general, the contest is designed to test understanding, analytical, application, and quantitative or manipulative skills in the agribusiness/economics/computer areas, and not memorization. Further, without duplicating it, an attempt is made to pattern the contest so as to better prepare the contestants who also participate in the national career development event.  Each student is given a disk containing some financial information. They are then given 30 minutes to use this information to complete the balance sheet and income statement (both of which are also included on the disk). Thus, they should know two things: (a) how to complete each of the two financial statements given sales and other financial information; and (b) how to use spreadsheet software.

 Additional information regarding each part of the contest, and examples of questions and/or exercises, follow:

 EXAMPLES

    AGRIBUSINESS MANAGEMENT CONTEST QUESTIONS/EXERCISES

 PART I:  Economic Principles and General Knowledge

        The following questions are designed to test a contestant’s understanding and use of economic concepts in making decisions important to the agribusiness industry, as well as the general context in which such decisions are made.  This portion of the test accounts for 40% of the total score.

 Directions:

• You have 30 minutes to complete this part of the contest.

• Read the questions closely and mark your answer only on the computer graded answer sheet provided by the Proctor (and not on these sheets!).

• Each question has only one correct answer.

• All questions have the same point value.

• Calculators are allowed on this portion of the contest.

 Introductory information:

 YOU ARE THE OWNER/OPERATOR OF A MEDIUM SIZED LIVESTOCK OPERATION.  YOU PRODUCE BEEF CATTLE AND HOGS, AND HAVE RECENTLY STARTED A BROILER OPERATION.  YOU GROW CORN TO USE AS FEED FOR FINISHING THE BEEF CATTLE, AND MIX PURCHASED SOYBEAN MEAL WITH THE CORN FOR FEEDING THE HOGS AND BROILERS.

 SUPPLY, DEMAND AND PRICES

 1.    The demand for beef is:

1. the amount of beef consumed annually by a family.

2. the number of dollars a typical farm family spends annually for beef.

3. the number of beef buyers in the market place.

4. the quantity of beef that will be purchased at different prices in a specific time period.

2.    The demand for beef is determined by:

1. the price of beef.

2. price of substitutes for beef such as pork and chicken.

3. consumer income.

4. All of the above.

 COSTS AND RETURNS

 3.    Which of the following expenditures is a fixed cost?

1. Interest on debt

2. Gasoline

3. Feed

4. Harvesting

 4.    Which of the following expenditures is a variable cost?

1. Purchase of machinery

2. Hired labor

3. Real Property Taxes

4. nterest on debt

 SUBSTITUTE AND COMPLEMENTARY PRODUCTS

 5.    Consumers buy more fish when their incomes go up, and less when their incomes go down.  Fish is therefore a

1. complementary product

2. substitute product

3. inferior product

4. normal product

 6.    Butter and margarine are substitute food items.  Therefore, if the price of margarine rises, consumption of butter:

1. falls

2. rises

3. stays the same

 INTERNATIONAL TRADE

 7.    The United Stated Federal Government severely limits sugar imports by setting import quotas.  Such a policy makes the domestic price of sugar _____________ than the world market price.

1. lower

2. the same as

3. higher

8.    When the U.S. Department of Agriculture World Outlook Board announces that the Soviet wheat harvest will be lower than anticipated, the price of wheat in the United States:

1. goes up

2. goes down

3. stays the same

 SPECIALIZATION AND COMPARATIVE ADVANTAGE

 9.    The United States is half as efficient as Russia in the production of caviar but four times as efficient as Russia in the production of trout.  From this statement you can conclude that:

1. the United States has a comparative advantage in the production of caviar

2. the United States has a comparative advantage in the production of both caviar and trout.

3. Russia has a comparative advantage in the production of trout

4. Russia has a comparative advantage in the production of both trout and caviar

5. Russia should specialize in caviar production, and the U.S. should specialize in trout production.

 WV, U.S., AND WORLD AGRICULTURE: Statistics, Trends, & General Knowledge

 10.  Which product generates the most total cash receipts to farmers in West Virginia?

1. Cattle and calves

2. Dairy products

3. Apples and peaches

4. Sheep and lambs

 11.  For which one of the following commodities does the U.S. have to rely almost completely on other countries to supply?

1. coffee

2. corn

3. cotton

4. apples

 Part II: Financial Principles

       The following questions are designed to test a contestant’s conceptual understanding and computational ability with regard to basic financial concepts.  This portion of the test accounts for 30% of the total score.

 l.     On April 1, Linda borrowed $6,000 for her aquaculture operation.  On December 1 of that same year she repaid the $6,000 along with $450 interest.  What annual interest rate did she pay?

1. 4.5%

2. 6.125%

3. 7.5%

4. 0.25%

 2.    A highly leveraged farm or ranch business:

1. is financially sound.

2. can borrow money easier.

3. uses very little credit.

4. has more income variability.

 3.    Borrowing additional operating capital without acquiring additional assets will cause your debt/equity ratio to:

1. increase.

2. remain unchanged.

3. decrease.

 Answer questions below with regard to the information presented in the following financial statements:

 Foods ‘R Us Company: Balance Sheet, December 31, 1996 

 Foods ‘R Us Company:  Income Statement, Year Ending December 31, 1994 

 4.    The current ratio for the above company is:

1. 1.00

2. 1.50

3. 1.75

4. 1.98

 5.    The leverage (debt-to-asset) ratio is approximately:

1. 62%

2. 35%

3. 27%

4. 2%

 6.    The gross profit is:

1. $155,000

2. $215,000

3. $255,000

4. $305,000

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