Question 1

What is the main purpose of conducting outside research into the environmental setting of the case?

Accepted Answer

A)  It allows students to identify how the company addressed the problem. 
B)  It provides a learning experience on library usage, which is helpful in all courses. 
C)  It gives a realistic background of the industry during a specified period. 
D)  It gives you clues as to what the organization should be doing in the future. 
E)  It furnishes large amounts of data-both pertinent and extraneous. 
A)  It allows students to identify how the company addressed the problem. 
B)  It provides a learning experience on library usage, which is helpful in all courses. 
C)  It gives a realistic background of the industry during a specified period. 
D)  It gives you clues as to what the organization should be doing in the future. 
E)  It furnishes large amounts of data-both pertinent and extraneous. C

Question 2

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  False

Question 3

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 E

Question 4

Which financial ratio measures the rate of return on the book value of shareholders' total investment in the company?

Accepted Answer

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

Question 5

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 6

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 7

Dollars adjusted for inflation to make them comparable over various years are known as

Accepted Answer

A)  consumer dollars. 
B)  constant dollars. 
C)  consumer inflation. 
D)  constant inflation. 
E)  earning dollars. 
A)  consumer dollars. 
B)  constant dollars. 
C)  consumer inflation. 
D)  constant inflation. 
E)  earning dollars.

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

What is the Z-value?

Accepted Answer

If the corporation being studied appears

Question 10

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 11

Ratio analysis is a valuable part of SWOT analysis,helping to assess the company's overall situation and pinpoint some problem areas.

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 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.

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

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 16

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 17

If the corporation being studied appears to be in poor financial condition,use Altman's Bankruptcy Formula to calculate its Z-value.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Which financial ratio indicates the percentage of profit that is paid out as dividends?

Accepted Answer

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

Question 20

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

What is the main purpose of conducting outside research into the environmental setting of the case?

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

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 rate of return on the book value of shareholders' total investment in the company?

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.

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

Dollars adjusted for inflation to make them comparable over various years are known as

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

What is the Z-value?

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

Ratio analysis is a valuable part of SWOT analysis,helping to assess the company's overall situation and pinpoint some problem areas.

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

The calculation of ratios from financial data is referred to as

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

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

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

If the corporation being studied appears to be in poor financial condition,use Altman's Bankruptcy Formula to calculate its Z-value.

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

Which financial ratio indicates the percentage of profit that is paid out as dividends?

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

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

What is the main purpose of conducting outside research into the environmental setting of the case?

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

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 rate of return on the book value of shareholders' total investment in the company?

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.

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

Dollars adjusted for inflation to make them comparable over various years are known as

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

What is the Z-value?

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

Ratio analysis is a valuable part of SWOT analysis,helping to assess the company's overall situation and pinpoint some problem areas.

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

The calculation of ratios from financial data is referred to as

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

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

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

If the corporation being studied appears to be in poor financial condition,use Altman's Bankruptcy Formula to calculate its Z-value.

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

Which financial ratio indicates the percentage of profit that is paid out as dividends?

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

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