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FINC 4331 final Test Questions and 100% Correct Verified Answers
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FINC 4331 final Test Questions and 100%Correct Verified Answers
The Conference Board's Report of Economic Indicators recently published the following
report: The conference Board announced today that interest rates remain low. Reports
indicate that companies are holding lower inventories and capital expenditures have
decreased. The availability of credit continues to be tight. Based on the above report,
which of the following best describers the current stage in the general business cycle?
Early expansion
late expansion
early contraction
late contraction - ANSWER late contraction
The economy is entering the late contraction stage of the business cycle. Your Bank
has four customers requesting an increase to their lines of credit. Assuming their
overall creditworthiness is comparable, which of the following customers would exhibit
the least risk to the bank?
A beer and soda distributor
A wholesaler of floor coverings
A temporary staffing firm
A upscale children's clothing boutique - ANSWER A beer and soda distributor
,In which industry lifecycle stage would companies be most likely to focus on
cost discipline?
Mature
Introductory
Growth
Decline - ANSWER Decline
in which company lifecycle stages is a company most likely to be profitable?
introductory and growth
mature and declining
growth and mature
introductory and declining - ANSWER growth and mature
in which company lifecycle stage is a company most likely to invest in equipment that
adds efficiency?
declining
mature
growth
introductory - ANSWER mature
which of the following statements best describes the relationship between product and
industry lifecycle stages?
product lifecycle stages generally lag their industry by one stage
individual products can be variable in their lifecycle timing compared to the
overall industry stage
A product's lifecycle stage by definition coincides with its industry's lifecycle stage
, Product lifecycle stages generally lead their industry by one stage? - ANSWER
individual products can be variable in their lifecycle timing compared to the
overall industry stage
Clara's Costumes is a retailer of costumes, primarily purchased for Halloween. Which of
the following characteristics would most likely be present in Clara's financial
statements?
Receivables will increase after the increase in inventories
Fixed asset spending will be highest at the seasonal peak
The need for credit will be lowest during the high point in the operating
cycle Inventory will increase immediately following the seasonal peak -
ANSWER Receivables will increase after the increase in inventories
GCC, Inc is a local firm that provides general contracting services to commercial real
estate developers operating in your region. In assessing the sustainability of the
company's revenues, which of the following questions would be least relevant to ask?
what is your current backlog of contracts?
How many developers do you work with?
What is the outlook for the economy in the region?
How much did your sales grow last year? - ANSWER How much did your sales grow
last year?
Which of the following expenses is not included in an income statement?
Interest expense
Repairs and maintenance
Principal repayment
Depreciation - ANSWER Principal repayment
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