Question 1

To adjust for general inflation in the United States,what index does the text suggest?

Accepted Answer

A)  Dow-Jones Industrial Average 
B)  New York Stock Exchange Index 
C)  Wilshire 5000 Equity Index 
D)  Consumer Price Index 
E)  NASDAQ Series 
A)  Dow-Jones Industrial Average 
B)  New York Stock Exchange Index 
C)  Wilshire 5000 Equity Index 
D)  Consumer Price Index 
E)  NASDAQ Series

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

"Days of inventory" 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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

In case analysis,it is best to make an exhibit that includes all the financial ratios.

Accepted Answer

A) True 
 B)False

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

"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

Which of the following is not one of the categories of important financial ratios that are mentioned in the text to help assess an organization's overall financial situation?

Accepted Answer

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

Question 13

Fixed asset turnover is what type of financial ratio?

Accepted Answer

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

Question 14

Which financial indicator measures the number of one day's worth of inventory that a company has on hand at any given time?

Accepted Answer

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

Question 15

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 16

The formula that predicts the likelihood of a corporation going bankrupt 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 17

"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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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.

To adjust for general inflation in the United States,what index does the text suggest?

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

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

"Days of inventory" is an example of a(n)

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

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

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

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

In case analysis,it is best to make an exhibit that includes all the financial ratios.

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

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

Which of the following is not one of the categories of important financial ratios that are mentioned in the text to help assess an organization's overall financial situation?

Fixed asset turnover is what type of financial ratio?

Which financial indicator measures the number of one day's worth of inventory that a company has on hand at any given time?

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

The formula that predicts the likelihood of a corporation going bankrupt is called

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

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

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

All of the following represent liquidity ratios EXCEPT

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

To adjust for general inflation in the United States,what index does the text suggest?

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

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

"Days of inventory" is an example of a(n)

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

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

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

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

In case analysis,it is best to make an exhibit that includes all the financial ratios.

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

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

Which of the following is not one of the categories of important financial ratios that are mentioned in the text to help assess an organization's overall financial situation?

Fixed asset turnover is what type of financial ratio?

Which financial indicator measures the number of one day's worth of inventory that a company has on hand at any given time?

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

The formula that predicts the likelihood of a corporation going bankrupt is called

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

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

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

All of the following represent liquidity ratios EXCEPT

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