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How can farmers make decisions before they know the selling price?

Planting decisions arrive before the crop is ready to sell. A forward contract can establish a price earlier, but it also creates a commitment to deliver. That changes which uncertainties the grower faces rather than making farming risk-free. Corn marketing offers a concrete example of the timing problem.

3–7 min

Questions you could explore

  • Which risks remain after a selling price is agreed?

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Business

How a profitable business runs short of cash

A business can record a profitable sale before its customer pays. Bills may come due in the meantime, making the timing of cash a different question from whether trading earned a profit.

8–10 min

How a profitable business runs short of cash

Business8–10 minA business can record a profitable sale before its customer pays. Bills may come due in the meantime, making the timing of cash a different question from whether trading earned a profit.

Business

Why doesn’t a factory always reach its rated output?

A machine's maximum running speed does not tell you how many usable products leave a factory. Stoppages, changeovers, and rejected output can create a gap between a capacity claim and an actual day's production.

4–5 min

Why doesn’t a factory always reach its rated output?

Business4–5 minA machine's maximum running speed does not tell you how many usable products leave a factory. Stoppages, changeovers, and rejected output can create a gap between a capacity claim and an actual day's production.

Why does one transaction change two sides of the accounts?

Business3–5 minBuying equipment changes more than what a business owns. Paying cash or borrowing the money affects the rest of the accounts differently, while assets must still balance against liabilities and equity.

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