Agri-Business Opportunity Assessment

Question 1

What is an agricultural business opportunity?

Accepted Answer

A favorable economic chance or opening in the agricultural sector that can be exploited to start a profitable enterprise.

Question 2

Which of the following is NOT explicitly mentioned as a value chain opportunity in crop production and horticulture?

Accepted Answer

Livestock breeding

Question 3

A good agricultural business opportunity must have an existing, growing, or underserved market for its product. This describes which essential quality?

Accepted Answer

High Market Demand

Question 4

The quality of a good business opportunity that focuses on generating returns significantly higher than the cost of production is called:

Accepted Answer

Profitability

Question 5

Ensuring a crop is suitable for local climatic conditions, soil types, and that technical knowledge is accessible to the entrepreneur, relates to which quality of a good business opportunity?

Accepted Answer

Feasibility and Technical Viability

Question 6

Which quality emphasizes the ready availability and affordability of essential inputs such as fertile land, quality seeds, fertilizers, water, labor, and capital?

Accepted Answer

Resource Availability

Question 7

A good agricultural business opportunity has risks that can be anticipated, mitigated, or managed through insurance, good agronomic practices, or diversification. This refers to which quality?

Accepted Answer

Manageable Risk

Question 8

The capacity for a business to grow and expand its output and revenue over time without a disproportionate increase in production costs is known as:

Accepted Answer

Scalability

Question 9

Which quality ensures that an agricultural enterprise is environmentally friendly, socially acceptable, and does not deplete natural resources or degrade the soil?

Accepted Answer

Sustainability

Question 10

Investigating target customers, competitors, pricing trends, and distribution channels falls under which key criterion for assessing agricultural business opportunities?

Accepted Answer

Market Analysis

Question 11

Evaluating soil quality, topography, climate, water source, and the specific agronomic requirements of a crop is part of which assessment criterion?

Accepted Answer

Technical Assessment

Question 12

Estimating start-up capital, operational costs, projected revenue, and cash flow is crucial for which type of assessment?

Accepted Answer

Financial Assessment

Question 13

Identifying potential threats such as pest outbreaks, drought, post-harvest losses, and market price drops, and outlining strategies to handle them, is the focus of which assessment criterion?

Accepted Answer

Risk Assessment

Question 14

What is the primary purpose of ranking agricultural business opportunities?

Accepted Answer

To prioritize assessed opportunities and select the most viable option for investment.

Question 15

What tool is typically used to rank business opportunities by scoring each against key criteria on a scale?

Accepted Answer

A decision matrix or scoring table

Question 16

In a scoring matrix where opportunities are scored on a scale of 1 to 5, what does a score of 5 typically represent?

Accepted Answer

Excellent

Question 17

Based on the lesson's example scoring matrix, which horticultural business opportunity ranked first?

Accepted Answer

Fluted Pumpkin (Ugu) Production

Question 18

What was the primary limiting factor that caused Tomato Cultivation to rank second in the example matrix, rather than first?

Accepted Answer

High perishability and pest risks

Question 19

What is the initial step in the practical procedure for assessing and ranking agricultural business opportunities?

Accepted Answer

Identify Potential Ideas

Question 20

When assigning scores for the 'Risk Level' criterion in the assessment table, what does a higher score (e.g., 5) indicate?

Accepted Answer

Lower, more manageable risk

Strong work.

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