Question 1

Which financial ratio measures the company's ability to pay off its short-term obligations from current assets, excluding inventories?

Accepted Answer

A)  quick ratio 
B)  current ratio 
C)  cash ratio 
D)  strategic ratio 
E)  inventory ratio 
A)  quick ratio 
B)  current ratio 
C)  cash ratio 
D)  strategic ratio 
E)  inventory ratio

Question 2

Which financial indicator shows the current market's evaluation of a stock, based on its earnings?

Accepted Answer

A)  debt to asset ratio 
B)  price/earnings ratio 
C)  coverage of fixed charges 
D)  debt to equity ratio 
E)  times interest earned 
A)  debt to asset ratio 
B)  price/earnings ratio 
C)  coverage of fixed charges 
D)  debt to equity ratio 
E)  times interest earned

Question 3

Which financial ratio measures the extent to which the company's capital is in cash or cash equivalents?

Accepted Answer

A)  quick ratio 
B)  current ratio 
C)  cash ratio 
D)  strategic ratio 
E)  inventory ratio 
A)  quick ratio 
B)  current ratio 
C)  cash ratio 
D)  strategic ratio 
E)  inventory ratio

Question 4

Which financial ratio shows the return on all of the assets under management's control regardless of source of financing?

Accepted Answer

A)  return on investment 
B)  return on equity 
C)  earnings per share 
D)  gross profit margin 
E)  net profit margin 
A)  return on investment 
B)  return on equity 
C)  earnings per share 
D)  gross profit margin 
E)  net profit margin

Question 5

According to the text, what information can be obtained by accessing the SEC website?

Accepted Answer

A)  corporate annual reports and 10-K forms 
B)  press releases 
C)  product specifications 
D)  research and development trends 
E)  information about graduate school 
A)  corporate annual reports and 10-K forms 
B)  press releases 
C)  product specifications 
D)  research and development trends 
E)  information about graduate school

Question 6

"Times interest earned" is an example of a(n)

Accepted Answer

A)  leverage ratio. 
B)  liquidity ratio. 
C)  activity ratio. 
D)  asset management ratio. 
E)  profitability ratio. 
A)  leverage ratio. 
B)  liquidity ratio. 
C)  activity ratio. 
D)  asset management ratio. 
E)  profitability ratio.

Question 7

At what Z-value level is a firm considered in serious trouble?

Accepted Answer

A)  below 1.81 
B)  above 1.81 
C)  greater than 5.0 
D)  between 2.2 and 3.1 
E)  between 3.2 and 4.1 
A)  below 1.81 
B)  above 1.81 
C)  greater than 5.0 
D)  between 2.2 and 3.1 
E)  between 3.2 and 4.1

Question 8

Among the most useful and important documents that can be used to understand why actions were taken are

Accepted Answer

A)  news releases. 
B)  product specification reports. 
C)  its corporate history. 
D)  annual reports. 
E)  10-K forms. 
A)  news releases. 
B)  product specification reports. 
C)  its corporate history. 
D)  annual reports. 
E)  10-K forms.

Question 9

"Inventory to net working capital" is an example of a(n)

Accepted Answer

A)  leverage ratio. 
B)  liquidity ratio. 
C)  activity ratio. 
D)  asset management ratio. 
E)  profitability ratio. 
A)  leverage ratio. 
B)  liquidity ratio. 
C)  activity ratio. 
D)  asset management ratio. 
E)  profitability ratio.

Question 10

The public interest rate is the rate of interest banks charge on their lowest risk loans.

Accepted Answer

A) True 
 B)False

Question 11

In case analysis, how the company actually dealt with the case problem is the most important part of the solution.

Accepted Answer

A) True 
 B)False

Question 12

The case analysis approach provides students with what it is like to make and implement strategic decisions.

Accepted Answer

A) True 
 B)False

Question 13

The gross domestic product (GDP) is used only in the United States to measure the total output of goods and services within the country's borders.

Accepted Answer

A) True 
 B)False

Question 14

At what Z-value level is a firm considered healthy?

Accepted Answer

A)  below 1.81 
B)  above 3.0 
C)  above 5.0 
D)  between 6.0 and 10.0 
E)  above 100 
A)  below 1.81 
B)  above 3.0 
C)  above 5.0 
D)  between 6.0 and 10.0 
E)  above 100

Question 15

If a firm's trends in common-size statements are generally in line with those of the rest of the industry, problems are less likely than if the firm's trends are worse than the industry average.

Accepted Answer

A) True 
 B)False

Question 16

The amount of change from one year to the next in GDP indicates how much that country's economy is growing.

Accepted Answer

A) True 
 B)False

Question 17

Which financial indicator is calculated by the ratio of annual dividends per share to annual earnings per share?

Accepted Answer

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

Question 18

What financial ratio serves as a short-term indicator of the company's ability to pay its short-term liabilities from its short-term assets?

Accepted Answer

A)  quick ratio 
B)  current ratio 
C)  cash ratio 
D)  strategic ratio 
E)  inventory ratio 
A)  quick ratio 
B)  current ratio 
C)  cash ratio 
D)  strategic ratio 
E)  inventory ratio

Question 19

Which of the following is not true of case analysis?

Accepted Answer

A)  Case discussion focuses on critical analysis. 
B)  A solution is satisfactory if it resolves important problems and if it is likely to be implemented successfully. 
C)  Case analysis helps build analytic and decision-making skills. 
D)  A solution is satisfactory if it reflects what the company actually did. 
E)  Case discussion focuses on logical development of thought. 
A)  Case discussion focuses on critical analysis. 
B)  A solution is satisfactory if it resolves important problems and if it is likely to be implemented successfully. 
C)  Case analysis helps build analytic and decision-making skills. 
D)  A solution is satisfactory if it reflects what the company actually did. 
E)  Case discussion focuses on logical development of thought.

Question 20

Inventory turnover and days of inventory are profitability ratios.

Accepted Answer

A) True 
 B)False

Which financial ratio measures the company's ability to pay off its short-term obligations from current assets, excluding inventories?

Which financial indicator shows the current market's evaluation of a stock, based on its earnings?

Which financial ratio measures the extent to which the company's capital is in cash or cash equivalents?

Which financial ratio shows the return on all of the assets under management's control regardless of source of financing?

According to the text, what information can be obtained by accessing the SEC website?

"Times interest earned" is an example of a(n)

At what Z-value level is a firm considered in serious trouble?

Among the most useful and important documents that can be used to understand why actions were taken are

"Inventory to net working capital" is an example of a(n)

The public interest rate is the rate of interest banks charge on their lowest risk loans.

In case analysis, how the company actually dealt with the case problem is the most important part of the solution.

The case analysis approach provides students with what it is like to make and implement strategic decisions.

The gross domestic product (GDP) is used only in the United States to measure the total output of goods and services within the country's borders.

At what Z-value level is a firm considered healthy?

If a firm's trends in common-size statements are generally in line with those of the rest of the industry, problems are less likely than if the firm's trends are worse than the industry average.

The amount of change from one year to the next in GDP indicates how much that country's economy is growing.

Which financial indicator is calculated by the ratio of annual dividends per share to annual earnings per share?

What financial ratio serves as a short-term indicator of the company's ability to pay its short-term liabilities from its short-term assets?

Which of the following is not true of case analysis?

Inventory turnover and days of inventory are profitability ratios.

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

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Exam 13: Suggestions for Case Analysis

Which financial ratio measures the company's ability to pay off its short-term obligations from current assets, excluding inventories?

Which financial indicator shows the current market's evaluation of a stock, based on its earnings?

Which financial ratio measures the extent to which the company's capital is in cash or cash equivalents?

Which financial ratio shows the return on all of the assets under management's control regardless of source of financing?

According to the text, what information can be obtained by accessing the SEC website?

"Times interest earned" is an example of a(n)

At what Z-value level is a firm considered in serious trouble?

Among the most useful and important documents that can be used to understand why actions were taken are

"Inventory to net working capital" is an example of a(n)

The public interest rate is the rate of interest banks charge on their lowest risk loans.

In case analysis, how the company actually dealt with the case problem is the most important part of the solution.

The case analysis approach provides students with what it is like to make and implement strategic decisions.

The gross domestic product (GDP) is used only in the United States to measure the total output of goods and services within the country's borders.

At what Z-value level is a firm considered healthy?

If a firm's trends in common-size statements are generally in line with those of the rest of the industry, problems are less likely than if the firm's trends are worse than the industry average.

The amount of change from one year to the next in GDP indicates how much that country's economy is growing.

Which financial indicator is calculated by the ratio of annual dividends per share to annual earnings per share?

What financial ratio serves as a short-term indicator of the company's ability to pay its short-term liabilities from its short-term assets?

Which of the following is not true of case analysis?

Inventory turnover and days of inventory are profitability ratios.

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