Arrange the steps followed in farm planning and budgeting from beginning to end:
(A). Identification of risks
(B). Identification of enterprises to be included
(C). Assessment of resource endowments on the farm
(D). Statement of objective
Choose the correct answer from the options given below:
Arrange the steps followed in farm planning and budgeting from beginning to end:
(A). Identification of risks
(B). Identification of enterprises to be included
(C). Assessment of resource endowments on the farm
(D). Statement of objective
Choose the correct answer from the options given below:
Show Hint
- (D), (A), (B), (C).
- (D), (B), (A), (C).
- (D), (C), (B), (A).
- (D), (B), (C), (A).
The Correct Option is C
Solution and Explanation
1. Statement of Objective (D): Define the farm’s goals, such as maximizing profit, ensuring sustainability, or diversifying production. This sets the direction for planning.
2. Assessment of Resource Endowments (C): Evaluate available resources, including land, labor, capital, water, and equipment, to understand the farm’s capacity and constraints.
3. Identification of Enterprises (B): Select suitable crops, livestock, or other enterprises based on objectives and resource availability, considering market demand and profitability.
4. Identification of Risks (A): Assess potential risks (e.g., weather, market fluctuations, pests) and develop mitigation strategies to ensure the plan’s viability.
This sequence ensures a structured approach, starting with goals and ending with risk management. Thus, option (3) is correct.
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