Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Which financial indicator measures the ratio of sales to fixed assets?

Accepted Answer

A)  days of inventory 
B)  asset turnover 
C)  average collection period 
D)  fixed asset turnover 
E)  inventory turnover 
A)  days of inventory 
B)  asset turnover 
C)  average collection period 
D)  fixed asset turnover 
E)  inventory turnover

Question 3

The formula that indicates if a company embarking on a growth strategy will need to take on debt to fund this growth is called

Accepted Answer

A)  the return on investment. 
B)  the CAPM. 
C)  the index of sustainable growth. 
D)  operating cash flow. 
E)  the Z-value. 
A)  the return on investment. 
B)  the CAPM. 
C)  the index of sustainable growth. 
D)  operating cash flow. 
E)  the Z-value.

Question 4

Which financial ratio indicates how much after-tax profit is generated by each dollar of sales?

Accepted Answer

A)  return on investment 
B)  return on equity 
C)  gross profit margin 
D)  net profit margin 
E)  inventory to net working capital 
A)  return on investment 
B)  return on equity 
C)  gross profit margin 
D)  net profit margin 
E)  inventory to net working capital

Question 5

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 6

What benefit does converting sales and profits to constant dollars in times of inflation offer when analyzing a case?

Accepted Answer

A)  It is helpful in predicting the future potential of the organization. 
B)  It contributes to determining the risk factors when computing the Z-value. 
C)  It shows the true performance of the corporation adjusted for inflation to make them comparable over years. 
D)  It is easier for the financial analyst to judge the effectiveness of management's decision-making. 
E)  It provides a method that is familiar and easy to understand. 
A)  It is helpful in predicting the future potential of the organization. 
B)  It contributes to determining the risk factors when computing the Z-value. 
C)  It shows the true performance of the corporation adjusted for inflation to make them comparable over years. 
D)  It is easier for the financial analyst to judge the effectiveness of management's decision-making. 
E)  It provides a method that is familiar and easy to understand.

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

Which financial ratio measures the extent to which borrowed funds have been used to finance the company's assets?

Accepted Answer

A)  debt to asset ratio 
B)  debt to equity ratio 
C)  long-term debt to capital structure 
D)  times interest earned 
E)  current liabilities to equity 
A)  debt to asset ratio 
B)  debt to equity ratio 
C)  long-term debt to capital structure 
D)  times interest earned 
E)  current liabilities to equity

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

"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 12

One way to adjust for inflation for global operations outside the United States is to use the U.S.Consumer Price Index (CPI).

Accepted Answer

A) True 
 B)False

Question 13

The case method provides the opportunity to move from a broader,less precise analysis of the overall corporation to a narrow,specialized view that emphasizes functional techniques.

Accepted Answer

A) True 
 B)False

Question 14

"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 15

Common-size statements are income statements and balance sheets in which the dollar figures have been converted into percentages.

Accepted Answer

A) True 
 B)False

Question 16

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 17

What are constant dollars and why are they important?

Accepted Answer

Constant dollars are dollars adjusted fo

Question 18

When preparing a case analysis,you should always undertake outside research and go beyond the decision date of the case.

Accepted Answer

A) True 
 B)False

Question 19

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 20

The calculation of ratios from financial data is referred to as

Accepted Answer

A)  SWOT analysis. 
B)  ratio analysis. 
C)  receivables analysis. 
D)  integration analysis. 
E)  diversification analysis. 
A)  SWOT analysis. 
B)  ratio analysis. 
C)  receivables analysis. 
D)  integration analysis. 
E)  diversification analysis.

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

Which financial indicator measures the ratio of sales to fixed assets?

The formula that indicates if a company embarking on a growth strategy will need to take on debt to fund this growth is called

Which financial ratio indicates how much after-tax profit is generated by each dollar of sales?

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

What benefit does converting sales and profits to constant dollars in times of inflation offer when analyzing a case?

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

Which financial ratio measures the extent to which borrowed funds have been used to finance the company's assets?

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

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

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

One way to adjust for inflation for global operations outside the United States is to use the U.S.Consumer Price Index (CPI).

The case method provides the opportunity to move from a broader,less precise analysis of the overall corporation to a narrow,specialized view that emphasizes functional techniques.

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

Common-size statements are income statements and balance sheets in which the dollar figures have been converted into percentages.

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

What are constant dollars and why are they important?

When preparing a case analysis,you should always undertake outside research and go beyond the decision date of the case.

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

The calculation of ratios from financial data is referred to as

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

Which financial indicator measures the ratio of sales to fixed assets?

The formula that indicates if a company embarking on a growth strategy will need to take on debt to fund this growth is called

Which financial ratio indicates how much after-tax profit is generated by each dollar of sales?

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

What benefit does converting sales and profits to constant dollars in times of inflation offer when analyzing a case?

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

Which financial ratio measures the extent to which borrowed funds have been used to finance the company's assets?

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

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

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

One way to adjust for inflation for global operations outside the United States is to use the U.S.Consumer Price Index (CPI).

The case method provides the opportunity to move from a broader,less precise analysis of the overall corporation to a narrow,specialized view that emphasizes functional techniques.

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

Common-size statements are income statements and balance sheets in which the dollar figures have been converted into percentages.

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

What are constant dollars and why are they important?

When preparing a case analysis,you should always undertake outside research and go beyond the decision date of the case.

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

The calculation of ratios from financial data is referred to as

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