ICAR AIEEA Livestock Entrepreneurship: practice questions

1 · Business plans · medium

How does a feasibility study differ from a business plan for a proposed goat or dairy enterprise?

1. The feasibility study asks whether to proceed; the plan sets out how to run and fund it
2. The feasibility study covers finance alone; the plan covers technical and market questions
3. The feasibility study is prepared after the loan is sanctioned to monitor the unit
4. The feasibility study is written for the lender only; the plan is kept private by the promoter

2 · Bankable poultry projects · medium

A broiler shed runs 42-day batches followed by 14 days of cleaning and rest. How many complete batches fit in a year?

1. 6
2. 5
3. 7
4. 8

3 · Bankable goat projects · hard

In a goat flock projection, why must home-bred replacement females be subtracted before calculating income from kid sales?

1. They are given free to the lender as security against the outstanding loan
2. They stay in the flock to replace culled does and earn no sale income that year
3. They are sold at a premium price as breeding stock and counted twice otherwise
4. They are always slaughtered for home use before reaching the sale weight

4 · Government subsidy schemes · medium

How does a front-ended subsidy differ from a back-ended subsidy?

1. It is paid only after the lock-in period, while back-ended support is paid at once
2. It is a loan to be repaid, while back-ended support is a grant never repaid
3. It is given only to cooperatives, while back-ended support goes to individuals
4. It cuts the loan or project cost at the start rather than at the end

5 · Government subsidy schemes · easy

What is a matching grant in livestock development programmes?

1. A grant given only when two farmers apply jointly for the same animals
2. A grant paid to the lender to match the loss on defaulted loans
3. A grant that matches the interest rate charged by commercial lenders on livestock loans
4. A grant paid only if the entrepreneur funds a set share of the investment

6 · Livestock value chains · easy

What does the term 'livestock value chain' describe?

1. Only the retail price that consumers pay for meat and milk in a city at a given time
2. Only the cooperative society that collects milk in a village each morning and evening
3. All activities and actors from inputs to final consumer, with flows of product, money and information
4. Only the transport of live animals from the farm to the nearest weekly market by road

7 · Livestock value chains · medium

A dairy cooperative deducts loan instalments from members' fortnightly milk payments on behalf of a bank. This is an example of:

1. Value-chain finance
2. A matching grant
3. Venture capital
4. Crowdfunding

8 · Start-ups · easy

In Danhof's classification, a dairy farmer who adopts a new practice only when continuing the old one would clearly cause losses is a:

1. Fabian entrepreneur
2. Drone entrepreneur
3. Innovative entrepreneur
4. Imitative entrepreneur

9 · Start-ups · easy

In the lean start-up method, what is a minimum viable product?

1. The minimum number of units an investor requires the start-up to sell before funding
2. The cheapest product the start-up will sell once it has scaled up its operations fully
3. The smallest legal company form that the founders must register before trading
4. The simplest version of the offer that tests key assumptions with real customers

10 · Start-ups · easy

Which is NOT one of the nine building blocks of the business model canvas?

1. Key partnerships
2. Revenue streams
3. Customer segments
4. Competitor profiles