Question 1

A Z-value above 3.0 indicates significant credit problems for a firm.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Unless instructed otherwise,you should not restrict yourself only to the information and timing of when the case was written and undertake outside research about the environmental setting.

Accepted Answer

A) True 
 B)False

Question 4

The Z-value uses ________ ratios and weights them according to their importance to a corporation's financial strength.

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
E)  6 
A)  2 
B)  3 
C)  4 
D)  5 
E)  6

Question 5

Case analysis is the most popular method of teaching strategy.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Which financial ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time?

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 8

Which financial ratio measures the utilization of all of the company's assets?

Accepted Answer

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

Question 9

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 10

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 11

________ 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 12

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 13

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 14

A typical financial analysis of a firm would include a study of the operating statements for five or so years.

Accepted Answer

A) True 
 B)False

Question 15

Which financial ratio indicates the ability of the company to meet its annual interest costs?

Accepted Answer

A)  debt to asset ratio 
B)  debt to equity ratio 
C)  times interest earned 
D)  long-term debt to capital structure 
E)  coverage of fixed charges 
A)  debt to asset ratio 
B)  debt to equity ratio 
C)  times interest earned 
D)  long-term debt to capital structure 
E)  coverage of fixed charges

Question 16

Which two basic statements provide most of the financial data needed for analysis?

Accepted Answer

A)  statement of retained earnings and income statement 
B)  sources and uses of working capital and the balance sheet 
C)  non-operating gains and losses and statement of financial position 
D)  historical income statement and balance sheet 
E)  statement of financial position and statement of owner's equity 
A)  statement of retained earnings and income statement 
B)  sources and uses of working capital and the balance sheet 
C)  non-operating gains and losses and statement of financial position 
D)  historical income statement and balance sheet 
E)  statement of financial position and statement of owner's equity

Question 17

To get a proper picture of the position of the organization,common-size statements and ratios should be compared to

Accepted Answer

A)  the organization's future historical performance. 
B)  the leading competitor in the industry. 
C)  the financial performance of the overall U.S. gross domestic product (GDP). 
D)  the direct competitor least like the organization. 
E)  industry-wide average trends. 
A)  the organization's future historical performance. 
B)  the leading competitor in the industry. 
C)  the financial performance of the overall U.S. gross domestic product (GDP). 
D)  the direct competitor least like the organization. 
E)  industry-wide average trends.

Question 18

All of the following ratios represent activity ratios EXCEPT

Accepted Answer

A)  accounts payable period. 
B)  days of inventory. 
C)  net working capital turnover. 
D)  earnings per share. 
E)  days of cash. 
A)  accounts payable period. 
B)  days of inventory. 
C)  net working capital turnover. 
D)  earnings per share. 
E)  days of cash.

Question 19

What has been the most popular method of teaching strategy and policy for years?

Accepted Answer

A)  lecture 
B)  case analysis 
C)  team teaching 
D)  group presentations 
E)  student teaching 
A)  lecture 
B)  case analysis 
C)  team teaching 
D)  group presentations 
E)  student teaching

Question 20

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.

A Z-value above 3.0 indicates significant credit problems for a firm.

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

Unless instructed otherwise,you should not restrict yourself only to the information and timing of when the case was written and undertake outside research about the environmental setting.

The Z-value uses ________ ratios and weights them according to their importance to a corporation's financial strength.

Case analysis is the most popular method of teaching strategy.

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

Which financial ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time?

Which financial ratio measures the utilization of all of the company's assets?

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

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

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

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

All of the following represent liquidity ratios EXCEPT

A typical financial analysis of a firm would include a study of the operating statements for five or so years.

Which financial ratio indicates the ability of the company to meet its annual interest costs?

Which two basic statements provide most of the financial data needed for analysis?

To get a proper picture of the position of the organization,common-size statements and ratios should be compared to

All of the following ratios represent activity ratios EXCEPT

What has been the most popular method of teaching strategy and policy for years?

Which of the following is not true of case analysis?

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

A Z-value above 3.0 indicates significant credit problems for a firm.

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

Unless instructed otherwise,you should not restrict yourself only to the information and timing of when the case was written and undertake outside research about the environmental setting.

The Z-value uses ________ ratios and weights them according to their importance to a corporation's financial strength.

Case analysis is the most popular method of teaching strategy.

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

Which financial ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time?

Which financial ratio measures the utilization of all of the company's assets?

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

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

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

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

All of the following represent liquidity ratios EXCEPT

A typical financial analysis of a firm would include a study of the operating statements for five or so years.

Which financial ratio indicates the ability of the company to meet its annual interest costs?

Which two basic statements provide most of the financial data needed for analysis?

To get a proper picture of the position of the organization,common-size statements and ratios should be compared to

All of the following ratios represent activity ratios EXCEPT

What has been the most popular method of teaching strategy and policy for years?

Which of the following is not true of case analysis?

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