if i dont pass this.......... idk but i wont be happy

Question 1

What should be the central theme of marketing your Horticulture Business?

Answer 1

Differentiating yourself; How do you stand out? Good service& quality, unique products, different sizes, etc.

Question 2

What is SWOT?

Answer 2

Strength
Weakness
Opportunity
Threat

Question 3

What are Direct Costs?

Answer 3

Labor, Media, Pots, Fertilizer, etc

Question 4

What are Overhead costs?

Answer 4

Taxes, Heat, Insurance, Utilities

Question 5

How do you calculate Profit Margin?

Answer 5

Revenue-Sales * 100 = Profit Margin

Question 6

What is the gross margin on sales?

Answer 6

Revenue from direct costs, ~50% is good

Question 7

What is the current ratio on a business balance sheet?

Answer 7

Current Ratio= Assets/Liabilities. Calculates if you are paying bills on time

Question 8

What is the minimum current ratio a business should have?

Answer 8

1.5. 2 is good as well

Question 9

What is a depreciation write-off on fixed assets?

Answer 9

Decrease in value over time

Question 10

What are prepaid expenses on a balance sheet?

Answer 10

Rent, Mortgage, Insurance Premiums, etc. NOT inventory. These expenses carry over to the following year.

Question 11

What is a current liability?

Answer 11

Debts that are paid within the year.

Question 12

What is long-term liability?

Answer 12

Debts that are not paid within a year

Question 13

What is a variable cost?

Answer 13

Changes on volume

Question 14

What is a fixed cost?

Answer 14

A cost that stays the same

Question 15

What is the only fixed business asset you can’t depreciate?

Answer 15

Land

Question 16

What is vertical integration?

Answer 16

Covering all services such as production to selling

Question 17

What is horizontal integration?

Answer 17

Also selling home-goods such as patios and furniture

Question 18

What is a balance sheet?

Answer 18

Snapshot of business cycles
Breakdown of Assets & Liabilities

Question 19

What is an income sheet?

Answer 19

Sources of revenue & expenses that result in profit & loss

Question 20

What is an accurate way to allocate overhead costs to crops in a greenhouse business?

Answer 20

Calculate the space in your greenhouse & the duration of growing (Limiting Factor)

Question 21

Why might you consider growing a non-spring crop instead of closing for the fall?

Answer 21

Keep business coming, keep labor busy

Question 22

What are business risks you want to have contingency plans for?

Answer 22

Bad temperatures, crop insurance, employee loss, drought

Question 23

What might you consider doing if your business equity is less than 5% and you safely make 10% if you invested your capital in the stock market?

Answer 23

Selling the business. It’s not worth it if it’s expensive

Question 24

What is the normal cost of labor as a percentage of total sales in a horticulture business?

Answer 24

30-33%; 3:1

Question 25

Explain what filling a niche means in the horticulture industry?

Answer 25

Differentiate yourself do something different compared to other businesses

Question 26

What is likely more important to consumers than perceptions of price only?

Answer 26

Value

Question 27

What are two factors taken into account when quantifying overhead allocation costs to a crop in the greenhouse?

Answer 27

Space & Time (Limited Factor)

Question 28

What metropolitan characteristics indicate good potential to start a successful greenhouse growing business?

Answer 28

No competition Growing Population Construction of neighborhoods

Question 29

Gantt Charts

Answer 29

Planning & Scheduling for labor

Question 30

What is leverage?

Answer 30

Debt incurred to financial assets; can increase profits or losses

Question 31

How to calculate leverage ratio?

Answer 31

Total debt/Total equity

Question 32

What is Amortization?

Answer 32

Paying amounts owed over time by incremental payments such as a car

Question 33

What is EBITDA?

Answer 33

Earnings Before Interest Taxes Depreciation & Amortization

Question 34

How to calculate current assets?

Answer 34

Cash + assets that are able to be converted into cash within the year