Question

An agribusiness investor is weighing viable investment options. Which of the following opportunities would a financial adviser be LEAST likely to recommend based on market conditions?
1.Selling cattle to nomadic farmers in Eastern Africa
2.Selling drought-resistant seeds to farmers in Bangladesh
3.Investing in wine-producing grapes in southern Pakistan
4.Investing in animal waste treatment facilities near industrial feedlots
A.1&2
B.1&4
C.2&3
D.1&2&2
E.2&3&4

Answer 1

The correct answer is D. 1&2&3.
The reasons for this choices to not be high on the list are:
- Selling cattle to nomadic farmers in East Africa is bad option because they are very poor and do not have the finances for buying, also they do not have large herds, but only enough to help them survive.
- Selling drought resistant seeds in Bangladesh is a failed business because the country has more than enough rainfall.
-  Wine production grapes in Southern Pakistan is not a good idea because that part of the country has enormous amount of rain when the grapes are harvested and every year the region is flooded as well.