Sourcing inputs internationally may significantly increase costs of production for agribusinesses.

Agribusinesses can reduce their overall risk exposure by broadening the number of markets from which they purchase inputs and sell products.

One reason for agribusinesses to pursue international markets is to expand sales by capitalizing on growth opportunities in other countries.

Forming a corporation requires strict adherence to the laws of the state in which the business is being formed.

According to our textbook, all partnerships are required by law to have at least one general partner who is responsible for the operation and activities of the business, but it is possible for other partners to be involved in the business on a limited basis.

A nominal partner means “in name only.” Nominal partners are not active in the business and have no investment. If Jake Smith owned a horse ranch and named it Jake Smith and Sons, assuming they had no investment in the business, Jake’s sons would be nominal partners.   

Cooperatives also exist to help members find markets, and/or improve the negotiating position of members.

According to our textbook, in addition to these five forms, strategic alliances are also used by agribusinesses as a form of business organization. Strategic alliances can take a variety of forms and represent an important way that food and agribusiness firms can work together.

A limited liability company (LLC) is a type of business organization form that closely resembles a partnership but provides its members with limited liability.

According to our textbook, since a proprietor cannot pay him/herself a salary, the amount left over at the end of the year is treated as personal income or salary.