Future Business Leaders of America (FBLA) Agribusiness Practice Test

How does a business determine its resources?

1. By assessing revenue streams

2. By evaluating supplier contracts

3. By identifying sources of supply and support

4. By tracking expenditures

The correct answer is: By identifying sources of supply and support

A business determines its resources primarily by identifying sources of supply and support. This involves recognizing the various materials, labor, technology, and information that are necessary for its operations. Identifying these elements helps a business understand what resources are available to it, how they can be utilized effectively, and where there may be gaps that need to be filled. This comprehensive understanding is essential for planning, production, and overall business strategy. While assessing revenue streams, evaluating supplier contracts, and tracking expenditures play important roles in a business’s financial health and operational strategy, they do not directly provide insight into the resources needed for carrying out the business's activities. Revenue streams pertain more to how income is generated, supplier contracts relate to agreements that ensure supply continuity, and tracking expenditures involves monitoring costs. In contrast, identifying sources of supply and support is a foundational step in ensuring a business has the necessary resources for production and service delivery.