FIN 351

CHAPTER 6 QUIZ 73 Which of the following economic structures of industries was not specifically mentioned in the chapter? A) Monopoly B) Pure competition C) Semi-strong competition D) Oligopolies

FIN 351 CHAPTER 6 QUIZ 72 Which of the following competitive forces is not one of the five mentioned in the chapter? A) Threat of market entry by new competitors B) Threat of substitute goods C) Bargaining power of customers D) Intensity of rivalry among competitors

FIN 351 CHAPTER 6 QUIZ 71 Which one of the following combinations of ratios would indicate the lowest risk? A) High long-term debt-to-equity and low return on equity B) Low long-term debt-to-equity and high return on equity C) Low long-term debt-to-equity and low return on equity D) High long-term debt-to-equity and high return on equity

FIN 351 CHAPTER 6 QUIZ 70 Which of the following is the proper order of the industry life cycle? A) Development, growth, expansion, maturity, decline B) Expansion, growth, development, maturity, decline C) Development, expansion, growth, maturity, decline D) Expansion, development, growth, maturity, decline

FIN 351 CHAPTER 6 QUIZ 69 Which of the following stages does not belong in the industry life cycle? A) Growth B) Stagnation C) Decline D) Development

FIN 351 CHAPTER 6 QUIZ 67 Which of the following four industry sectors would benefit the most from rising inflation? A) Consumer cyclical B) Basic materials C) Household durable goods D) Consumer non-cyclical

FIN 351 CHAPTER 6 QUIZ 66 A rotational investor will rotate through stocks that perform well in different stages of the economy in which order (from trough to peak)? A) Basic materials; consumer cyclical; consumer noncyclical; household durable goods B) Consumer cyclical; basic materials; consumer noncyclical; household durable goods C) Basic materials; household durable goods; consumer cyclical; consumer non-cyclical D) Household durabl

FIN 351 CHAPTER 6 QUIZ 65 When analyzing the structure of an industry, which of the following factors is particular to the company only? A) Government regulations B) Barriers to entry C) Product quality D) All of the above affect industry structure

FIN 351 CHAPTER 6 QUIZ 61 TO 64 61. A Stage II industry is one that is growing and thus provides opportunities without much risk. 62. Growth firms generally pay higher cash dividends than mature firms. 63. It is almost always unwise to invest in an industry which is entering stage III of the industry life cycle 64. A technically innovative firm in a mature industry may provide better growth opportunities than a high-growth industry.

FIN 351 CHAPTER 6 QUIZ 56 TO 60 56. Different industries react similarly to changes in the business cycle 57. Investors should buy consumer non-cyclical stocks in the early stages of recovery 58. Investors usually anticipate movements in the economy before they actually happen 59. In the final stages of the business cycle, rotational investors will purchase basic materials and energy stocks 60. Mature industries are not likely to