Question 1

The Z-value formula combines five ratios by weighting them according to their importance to a corporation's financial strength.

Accepted Answer

A) True 
 B)False

Question 2

Case analysis is the most popular method of teaching strategy.

Accepted Answer

A) True 
 B)False

Question 3

Net profit margin is what type of financial ratio?

Accepted Answer

A)  liquidity ratio 
B)  profitability ratio 
C)  activity ratio 
D)  leverage ratio 
E)  revenue ratio 
A)  liquidity ratio 
B)  profitability ratio 
C)  activity ratio 
D)  leverage ratio 
E)  revenue ratio

Question 4

SEC 10-K forms include detailed information not usually available in an annual report.

Accepted Answer

A) True 
 B)False

Question 5

All of the following represent liquidity ratios EXCEPT

Accepted Answer

A)  cash ratio. 
B)  inventory to net working capital. 
C)  quick ratio. 
D)  gross profit margin. 
E)  current ratio. 
A)  cash ratio. 
B)  inventory to net working capital. 
C)  quick ratio. 
D)  gross profit margin. 
E)  current ratio.

Question 6

________ is used worldwide and measures the total output of goods and services within a country's borders.

Accepted Answer

A)  CPI 
B)  Prime interest rate 
C)  GDP 
D)  Z-Value 
E)  The Index of sustainable growth 
A)  CPI 
B)  Prime interest rate 
C)  GDP 
D)  Z-Value 
E)  The Index of sustainable growth

Question 7

Which financial indicator is calculated by the ratio of annual dividends per share to current market price per share?

Accepted Answer

A)  return on equity 
B)  dividend payout ratio 
C)  dividend yield on common stock 
D)  price/earnings ratio 
E)  debt to equity ratio 
A)  return on equity 
B)  dividend payout ratio 
C)  dividend yield on common stock 
D)  price/earnings ratio 
E)  debt to equity ratio

Question 8

When conducting a financial analysis, select and discuss those financial ratios that have an impact on the company's problems.

Accepted Answer

A) True 
 B)False

Question 9

Which financial indicator is calculated as the ratio of annual credit sales to accounts receivable?

Accepted Answer

A)  days of cash 
B)  average collection period 
C)  accounts receivable turnover 
D)  inventory turnover 
E)  net working capital turnover 
A)  days of cash 
B)  average collection period 
C)  accounts receivable turnover 
D)  inventory turnover 
E)  net working capital turnover

Question 10

A company's annual report from the year of the case can be helpful, but the SEC 10-K form is not beneficial for those conducting a case analysis.

Accepted Answer

A) True 
 B)False

Question 11

Between 1997 and 1999, what percent of the mergers used the pooling approach to account for the value of the companies' stocks?

Accepted Answer

A)  95% 
B)  80% 
C)  55% 
D)  40% 
E)  20% 
A)  95% 
B)  80% 
C)  55% 
D)  40% 
E)  20%

Question 12

Ratios are only useful for large firms where their ratios may be compared with industry averages.

Accepted Answer

A) True 
 B)False

Question 13

Ratio analysis is helpful in assessing the company's overall situation and pinpointing some problem areas.

Accepted Answer

A) True 
 B)False

Question 14

Cases present actual business situations and enable you to examine only successful corporations.

Accepted Answer

A) True 
 B)False

Question 15

It is recommended that a financial analysis include a comparison of trends in one category with trends in related categories.

Accepted Answer

A) True 
 B)False

Question 16

What ratios are recommended for financial ratio analysis?

Accepted Answer

Some of the most important financial rat

Question 17

Which financial ratio indicates the dividend rate of return to common shareholders at the current market price?

Accepted Answer

A)  return on equity 
B)  dividend yield on common stock 
C)  price/earnings ratio 
D)  dividend payout ratio 
E)  earnings per share 
A)  return on equity 
B)  dividend yield on common stock 
C)  price/earnings ratio 
D)  dividend payout ratio 
E)  earnings per share

Question 18

Inventory turnover and asset turnover are both examples of which type of financial ratio?

Accepted Answer

A)  liquidity ratio 
B)  profitability ratio 
C)  activity ratio 
D)  leverage ratio 
E)  revenue ratio 
A)  liquidity ratio 
B)  profitability ratio 
C)  activity ratio 
D)  leverage ratio 
E)  revenue ratio

Question 19

The debt-to-asset ratio measures the funds provided by creditors versus the funds provided by owners.

Accepted Answer

A) True 
 B)False

Question 20

An important liquidity ratio is Earnings per Share (EPS).

Accepted Answer

A) True 
 B)False

The Z-value formula combines five ratios by weighting them according to their importance to a corporation's financial strength.

Case analysis is the most popular method of teaching strategy.

Net profit margin is what type of financial ratio?

SEC 10-K forms include detailed information not usually available in an annual report.

All of the following represent liquidity ratios EXCEPT

________ is used worldwide and measures the total output of goods and services within a country's borders.

Which financial indicator is calculated by the ratio of annual dividends per share to current market price per share?

When conducting a financial analysis, select and discuss those financial ratios that have an impact on the company's problems.

Which financial indicator is calculated as the ratio of annual credit sales to accounts receivable?

A company's annual report from the year of the case can be helpful, but the SEC 10-K form is not beneficial for those conducting a case analysis.

Between 1997 and 1999, what percent of the mergers used the pooling approach to account for the value of the companies' stocks?

Ratios are only useful for large firms where their ratios may be compared with industry averages.

Ratio analysis is helpful in assessing the company's overall situation and pinpointing some problem areas.

Cases present actual business situations and enable you to examine only successful corporations.

It is recommended that a financial analysis include a comparison of trends in one category with trends in related categories.

What ratios are recommended for financial ratio analysis?

Which financial ratio indicates the dividend rate of return to common shareholders at the current market price?

Inventory turnover and asset turnover are both examples of which type of financial ratio?

The debt-to-asset ratio measures the funds provided by creditors versus the funds provided by owners.

An important liquidity ratio is Earnings per Share (EPS).

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Filters

Exam 13: Suggestions for Case Analysis

The Z-value formula combines five ratios by weighting them according to their importance to a corporation's financial strength.

Case analysis is the most popular method of teaching strategy.

Net profit margin is what type of financial ratio?

SEC 10-K forms include detailed information not usually available in an annual report.

All of the following represent liquidity ratios EXCEPT

________ is used worldwide and measures the total output of goods and services within a country's borders.

Which financial indicator is calculated by the ratio of annual dividends per share to current market price per share?

When conducting a financial analysis, select and discuss those financial ratios that have an impact on the company's problems.

Which financial indicator is calculated as the ratio of annual credit sales to accounts receivable?

A company's annual report from the year of the case can be helpful, but the SEC 10-K form is not beneficial for those conducting a case analysis.

Between 1997 and 1999, what percent of the mergers used the pooling approach to account for the value of the companies' stocks?

Ratios are only useful for large firms where their ratios may be compared with industry averages.

Ratio analysis is helpful in assessing the company's overall situation and pinpointing some problem areas.

Cases present actual business situations and enable you to examine only successful corporations.

It is recommended that a financial analysis include a comparison of trends in one category with trends in related categories.

What ratios are recommended for financial ratio analysis?

Which financial ratio indicates the dividend rate of return to common shareholders at the current market price?

Inventory turnover and asset turnover are both examples of which type of financial ratio?

The debt-to-asset ratio measures the funds provided by creditors versus the funds provided by owners.

An important liquidity ratio is Earnings per Share (EPS).

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Filters