Explain how credit budgets and credit are used to achieve the goals of an agribusiness.

Explanation should include

• characteristics of various types of credit instruments used in agribusiness
  • lines of credit
  • operating notes
  • alternative sources of capital
• terms and conditions associated with credit instruments
  • repayment terms
  • annual percentage rate (APR)
  • grace periods
  • personal liability
  • interest rates
• needs and appropriate uses of available credit to meet business goals.

Process/Skill Questions:

• What is an operating note?
• What are some sources of capital?
• Why is it important to evaluate the terms and conditions associated with credit instruments?