Question 1

The two key external factors that impact the firm's cash flows are:

Accepted Answer

A) the overall economy and future financing needs. 
B) the overall economy and the nature and structure of the industry. 
C) the level of interest rates and working capital requirements. 
D) working capital requirements and growth projections. 
A) the overall economy and future financing needs. 
B) the overall economy and the nature and structure of the industry. 
C) the level of interest rates and working capital requirements. 
D) working capital requirements and growth projections.

Question 2

Initial public offerings are more frequently issued during which stage of the industry life cycle?

Accepted Answer

A) Stage 1 - start-up stage 
B) Stage 2 - rapid growth and little competition stage 
C) Stage 3 - intense competition stage 
D) Stage 4 - stabilization and maturity stage 
A) Stage 1 - start-up stage 
B) Stage 2 - rapid growth and little competition stage 
C) Stage 3 - intense competition stage 
D) Stage 4 - stabilization and maturity stage

Question 3

The financial management framework:

Accepted Answer

A) examines the factors in the external environment and its impact on the firm's operating decisions. 
B) elaborates on the three main cash-related activities of the firm. 
C) examines how value is created and measured. 
D) All of the above. 
A) examines the factors in the external environment and its impact on the firm's operating decisions. 
B) elaborates on the three main cash-related activities of the firm. 
C) examines how value is created and measured. 
D) All of the above.

Question 4

Which of the following is TRUE about the threat of substitutes?

Accepted Answer

A) When threatened by substitutes,existing competitors will increase their prices. 
B) innovation makes an existing product or service more attractive to its customers. 
C) If there are numerous substitutes,the firm's profit margins and revenues will decline. 
D) If the competitors are strong,existing competitors will not react strongly to the threat of substitutes. 
A) When threatened by substitutes,existing competitors will increase their prices. 
B) innovation makes an existing product or service more attractive to its customers. 
C) If there are numerous substitutes,the firm's profit margins and revenues will decline. 
D) If the competitors are strong,existing competitors will not react strongly to the threat of substitutes.

Question 5

Which of the following is NOT a question related to human resources management and strategy analysis?

Accepted Answer

A) What ownership position do the managers have? 
B) Is the current management team a good fit for the current life cycle stage? 
C) How much management depth does the firm have? 
D) Has the firm successfully targeted its customers? 
A) What ownership position do the managers have? 
B) Is the current management team a good fit for the current life cycle stage? 
C) How much management depth does the firm have? 
D) Has the firm successfully targeted its customers?

Question 6

The economic size-up involves:

Accepted Answer

A) the relationship between overall economic activity and the industry's performance assessment of the economy. 
B) identifying the current business cycle stage. 
C) anticipation of the interest rate change. 
D) All of the above. 
A) the relationship between overall economic activity and the industry's performance assessment of the economy. 
B) identifying the current business cycle stage. 
C) anticipation of the interest rate change. 
D) All of the above.

Question 7

Sizing up operation management involves:

Accepted Answer

A) identifying the firm's strengths and weaknesses related to operations. 
B) an external assessment of the industry. 
C) an internal assessment of the firm's strengths and weaknesses. 
D) All of the above. 
A) identifying the firm's strengths and weaknesses related to operations. 
B) an external assessment of the industry. 
C) an internal assessment of the firm's strengths and weaknesses. 
D) All of the above.

Question 8

The bargaining power of suppliers and customers will impact the profitability of the industry because:

Accepted Answer

A) powerful suppliers can exert pressure to raise prices. 
B) powerful customers can exert pressure by forcing down prices. 
C) powerful customers can exert pressure by demanding higher quality. 
D) All of the above. 
A) powerful suppliers can exert pressure to raise prices. 
B) powerful customers can exert pressure by forcing down prices. 
C) powerful customers can exert pressure by demanding higher quality. 
D) All of the above.

Question 9

The Fed's primary goals are:

Accepted Answer

A) maintaining stable prices. 
B) maintaining low or steady inflation. 
C) maximizing employment. 
D) All of the above. 
A) maintaining stable prices. 
B) maintaining low or steady inflation. 
C) maximizing employment. 
D) All of the above.

Question 10

Demand risk refers to the probability that actual supply for the products or services will exceed anticipated supply.

Accepted Answer

A) True 
 B)False

Question 11

Describe the four stages of the business cycle.What are the characteristics of each stage and how would a financial manager adjust their strategic and tactical planning for changes in the business cycle?

Accepted Answer

Peaks in the business cycle tend to occu

Question 12

All of the political factors can give managers further insights into the opportunities and risks facing a particular industry EXCEPT:

Accepted Answer

A) favorable tax changes or incentives in the industry. 
B) pending and new government relations. 
C) nature and intensity of competition. 
D) demographic changes in the population. 
A) favorable tax changes or incentives in the industry. 
B) pending and new government relations. 
C) nature and intensity of competition. 
D) demographic changes in the population.

Question 13

Different sectors or industries grow or shrink at various stages in the business cycle.Which statement is true?

Accepted Answer

A) Utilities tend to do relatively better in the early stages of an expansion. 
B) Basic materials tend to do well in the early stages of a recession. 
C) Healthcare tends to do well at the peak of an expansion. 
D) The financial sector tends to do relatively better in the early stages of an expansion. 
A) Utilities tend to do relatively better in the early stages of an expansion. 
B) Basic materials tend to do well in the early stages of a recession. 
C) Healthcare tends to do well at the peak of an expansion. 
D) The financial sector tends to do relatively better in the early stages of an expansion.

Question 14

When sizing up the operations of the firm,it is important to examine:

Accepted Answer

A) the quality of the firm's products or services. 
B) how effective the processes are that the firm employs to operate the business. 
C) the capacity of the firm's plant or facilities. 
D) All of the above. 
A) the quality of the firm's products or services. 
B) how effective the processes are that the firm employs to operate the business. 
C) the capacity of the firm's plant or facilities. 
D) All of the above.

Question 15

Stage 3 of the industry life cycle is characterized by all of the following EXCEPT:

Accepted Answer

A) competition intensifies as more and more firms enter the industry. 
B) there is little demand for the company's products and services. 
C) revenues continue to grow,but at a slower pace. 
D) firms become more efficient at maintaining costs. 
A) competition intensifies as more and more firms enter the industry. 
B) there is little demand for the company's products and services. 
C) revenues continue to grow,but at a slower pace. 
D) firms become more efficient at maintaining costs.

Question 16

A comprehensive nonfinancial size-up should be done:

Accepted Answer

A) monthly. 
B) quarterly. 
C) annually. 
D) as needed. 
E) All of the above. 
A) monthly. 
B) quarterly. 
C) annually. 
D) as needed. 
E) All of the above.

Question 17

Managers must manage the supply network for efficient,responsive procurement and distribution to meet their customers' needs.

Accepted Answer

A) True 
 B)False

Question 18

The firm's demand risk can best be analyzed by examining:

Accepted Answer

A) the components of the firm's marketing plan. 
B) the components of the firm's marketing management compared with the key industry success factors. 
C) the key industry success factors and their impact on profitability. 
D) the behavior of the firm's major competitors. 
A) the components of the firm's marketing plan. 
B) the components of the firm's marketing management compared with the key industry success factors. 
C) the key industry success factors and their impact on profitability. 
D) the behavior of the firm's major competitors.

Question 19

Value proposition refers to a statement that describes the unique features of the firm's products and services.

Accepted Answer

A) True 
 B)False

Question 20

Sizing up a business is relevant for managers because:

Accepted Answer

A) it helps managers better understand customer needs. 
B) understanding overall economic performance helps explain a firm's past financial performance. 
C) it helps highlight key supply and demand risks and internal capabilities. 
D) All of the above. 
A) it helps managers better understand customer needs. 
B) understanding overall economic performance helps explain a firm's past financial performance. 
C) it helps highlight key supply and demand risks and internal capabilities. 
D) All of the above.

The two key external factors that impact the firm's cash flows are:

Initial public offerings are more frequently issued during which stage of the industry life cycle?

The financial management framework:

Which of the following is TRUE about the threat of substitutes?

Which of the following is NOT a question related to human resources management and strategy analysis?

The economic size-up involves:

Sizing up operation management involves:

The bargaining power of suppliers and customers will impact the profitability of the industry because:

The Fed's primary goals are:

Demand risk refers to the probability that actual supply for the products or services will exceed anticipated supply.

Describe the four stages of the business cycle.What are the characteristics of each stage and how would a financial manager adjust their strategic and tactical planning for changes in the business cycle?

All of the political factors can give managers further insights into the opportunities and risks facing a particular industry EXCEPT:

Different sectors or industries grow or shrink at various stages in the business cycle.Which statement is true?

When sizing up the operations of the firm,it is important to examine:

Stage 3 of the industry life cycle is characterized by all of the following EXCEPT:

A comprehensive nonfinancial size-up should be done:

Managers must manage the supply network for efficient,responsive procurement and distribution to meet their customers' needs.

The firm's demand risk can best be analyzed by examining:

Value proposition refers to a statement that describes the unique features of the firm's products and services.

Sizing up a business is relevant for managers because:

Overview of Financial Management

Understanding Financial Statements

Measuring Financial Performance

Managing Day-To-Day Cash Flow

Projecting Financial Requirements and Managing Growth

Time Value of Money Basics and Applications

Making Investment Decisions

Overview of Capital Markets: Long-Term Financing Instruments

Assessing the Cost of Capital: What Return Investors Require

Understanding Financing and Payout Decisions

Designing an Optimal Capital Structure

Measuring and Creating Value

Comprehensive Case Study: Wal-Mart Stores,inc

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Exam 2: Sizing up a Business: a Non-Financial Perspective

The two key external factors that impact the firm's cash flows are:

Initial public offerings are more frequently issued during which stage of the industry life cycle?

The financial management framework:

Which of the following is TRUE about the threat of substitutes?

Which of the following is NOT a question related to human resources management and strategy analysis?

The economic size-up involves:

Sizing up operation management involves:

The bargaining power of suppliers and customers will impact the profitability of the industry because:

The Fed's primary goals are:

Demand risk refers to the probability that actual supply for the products or services will exceed anticipated supply.

Describe the four stages of the business cycle.What are the characteristics of each stage and how would a financial manager adjust their strategic and tactical planning for changes in the business cycle?

All of the political factors can give managers further insights into the opportunities and risks facing a particular industry EXCEPT:

Different sectors or industries grow or shrink at various stages in the business cycle.Which statement is true?

When sizing up the operations of the firm,it is important to examine:

Stage 3 of the industry life cycle is characterized by all of the following EXCEPT:

A comprehensive nonfinancial size-up should be done:

Managers must manage the supply network for efficient,responsive procurement and distribution to meet their customers' needs.

The firm's demand risk can best be analyzed by examining:

Value proposition refers to a statement that describes the unique features of the firm's products and services.

Sizing up a business is relevant for managers because:

Overview of Financial Management

Understanding Financial Statements

Measuring Financial Performance

Managing Day-To-Day Cash Flow

Projecting Financial Requirements and Managing Growth

Time Value of Money Basics and Applications

Making Investment Decisions

Overview of Capital Markets: Long-Term Financing Instruments

Assessing the Cost of Capital: What Return Investors Require

Understanding Financing and Payout Decisions

Designing an Optimal Capital Structure

Measuring and Creating Value

Comprehensive Case Study: Wal-Mart Stores,inc

Filters