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 500 Equity Index 
D)  Consumer Price Index 
E)  NASDAQ Series 
A)  Dow-Jones Industrial Average 
B)  New York Stock Exchange Index 
C)  Wilshire 500 Equity Index 
D)  Consumer Price Index 
E)  NASDAQ Series

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

According to Schilit, the search for hidden weaknesses in a company's performance is known as

Accepted Answer

A)  a strategic audit. 
B)  a SWOT analysis. 
C)  forensic accounting. 
D)  activity based accounting. 
E)  competitive analysis. 
A)  a strategic audit. 
B)  a SWOT analysis. 
C)  forensic accounting. 
D)  activity based accounting. 
E)  competitive analysis.

Question 4

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 5

A company's annual report from the year of the case can be helpful, but the 10-K form is not beneficial for those conducting a case analysis.

Accepted Answer

A) True 
 B)False

Question 6

According to Yankelovich Partners survey firm, eight out of 10 portfolio managers and 75 percent of security analysts use annual reports when making decisions.

Accepted Answer

A) True 
 B)False

Question 7

Which financial ratio shows the after-tax earnings generated for each share of common stock?

Accepted Answer

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

Question 8

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 production (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 production (GDP). 
D)  the direct competitor least like the organization. 
E)  industry-wide average trends.

Question 9

Inventory turnover and asset turnover are both examples of which type of financial ratio?

Accepted Answer

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

Question 10

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 11

What is the Z-value?

Accepted Answer

If the corporation being studied appears

Question 12

According to Schilit, a change of more than 2% in gross margins from year to year is worth a closer look.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

Which of the following financial ratios is NOT a profitability ratio?

Accepted Answer

A)  net profit margin 
B)  gross profit margin 
C)  asset turnover 
D)  ROE 
E)  ROI 
A)  net profit margin 
B)  gross profit margin 
C)  asset turnover 
D)  ROE 
E)  ROI

Question 16

Key liquidity ratios include the current ratio, quick ratio, and cash ratio.

Accepted Answer

A) True 
 B)False

Question 17

"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 18

The debt to asset ratio measures the extent to which borrowed funds have been used to finance the company's assets.

Accepted Answer

A) True 
 B)False

Question 19

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 20

The formula which 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.

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

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

According to Schilit, the search for hidden weaknesses in a company's performance is known as

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.

A company's annual report from the year of the case can be helpful, but the 10-K form is not beneficial for those conducting a case analysis.

According to Yankelovich Partners survey firm, eight out of 10 portfolio managers and 75 percent of security analysts use annual reports when making decisions.

Which financial ratio shows the after-tax earnings generated for each share of common stock?

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

Inventory turnover and asset turnover are both examples of which type of financial ratio?

All of the following represent liquidity ratios EXCEPT

What is the Z-value?

According to Schilit, a change of more than 2% in gross margins from year to year is worth a closer look.

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

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

Which of the following financial ratios is NOT a profitability ratio?

Key liquidity ratios include the current ratio, quick ratio, and cash ratio.

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

The debt to asset ratio measures the extent to which borrowed funds have been used to finance the company's assets.

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

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

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Filters

Exam 12: Suggestions for Case Analysis

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

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

According to Schilit, the search for hidden weaknesses in a company's performance is known as

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.

A company's annual report from the year of the case can be helpful, but the 10-K form is not beneficial for those conducting a case analysis.

According to Yankelovich Partners survey firm, eight out of 10 portfolio managers and 75 percent of security analysts use annual reports when making decisions.

Which financial ratio shows the after-tax earnings generated for each share of common stock?

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

Inventory turnover and asset turnover are both examples of which type of financial ratio?

All of the following represent liquidity ratios EXCEPT

What is the Z-value?

According to Schilit, a change of more than 2% in gross margins from year to year is worth a closer look.

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

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

Which of the following financial ratios is NOT a profitability ratio?

Key liquidity ratios include the current ratio, quick ratio, and cash ratio.

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

The debt to asset ratio measures the extent to which borrowed funds have been used to finance the company's assets.

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

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

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Filters