Question 1

What are four basic aspects of qualitative assessment of industries?

Accepted Answer

Historical performan

Question 2

What industries do you think will be the future growth industries?

Accepted Answer

This one is certainly open-ended and ope

Question 3

A well-known and widely used system that classified industries for more than 60 years was the:

Accepted Answer

A)  Commercial Industrial Classification system. 
B)  National Industrial Classification system. 
C)  Standard Industrial Classification system. 
D)  American Industrial Classification system. 
A)  Commercial Industrial Classification system. 
B)  National Industrial Classification system. 
C)  Standard Industrial Classification system. 
D)  American Industrial Classification system.

Question 4

Regarding the qualitative aspects of industry analysis, passage of the Dodd-Frank Act in 2008 would be considered a:

Accepted Answer

A)  structural change. 
B)  government effect. 
C)  competitive effect. 
D)  cyclical effect. 
A)  structural change. 
B)  government effect. 
C)  competitive effect. 
D)  cyclical effect.

Question 5

Which of the following would support high profit margins in an industry?

Accepted Answer

A)  The industry has significant barriers to entry. 
B)  The industry produces a product that is commodity like. 
C)  The industry's sales are to a relatively few large customers. 
D)  The industry is supplied by a relatively few large suppliers. 
A)  The industry has significant barriers to entry. 
B)  The industry produces a product that is commodity like. 
C)  The industry's sales are to a relatively few large customers. 
D)  The industry is supplied by a relatively few large suppliers.

Question 6

The food industry is a good example of a countercyclical industry.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not among the qualitative factors that should be analyzed to assess an industry's future?

Accepted Answer

A)  Historical performance 
B)  Competition 
C)  Growth rate of sales 
D)  Structural changes 
A)  Historical performance 
B)  Competition 
C)  Growth rate of sales 
D)  Structural changes

Question 8

The second step in the fundamental analysis of common stock is:

Accepted Answer

A)  company analysis. 
B)  economy analysis. 
C)  industry analysis. 
D)  business cycle analysis. 
A)  company analysis. 
B)  economy analysis. 
C)  industry analysis. 
D)  business cycle analysis.

Question 9

Give several examples of government effects on industries.

Accepted Answer

For example, deregulation in the financi

Question 10

In which stage of the industry life cycle is it easiest for the analyst to assess industry prospects and identify the leading companies?

Accepted Answer

The stabilization or maturity stage is t

Question 11

It is a relatively simple matter of finding industries that will perform well in the short run.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a component examined in industry analysis?

Accepted Answer

A)  Sales growth 
B)  Earnings growth 
C)  Interest rates 
D)  Price performance 
A)  Sales growth 
B)  Earnings growth 
C)  Interest rates 
D)  Price performance

Question 13

Which decade is commonly referred to as the "lost decade" due to the poor performance of U.S. stocks?

Accepted Answer

A)  The 1970s 
B)  The 1980s 
C)  The 1990s 
D)  The 2000s 
A)  The 1970s 
B)  The 1980s 
C)  The 1990s 
D)  The 2000s

Question 14

Which of the following industries would you have most liked to have been invested in over the past 25 years?

Accepted Answer

A)  Steelworks 
B)  Consumer durables 
C)  Mining and minerals 
D)  Food 
A)  Steelworks 
B)  Consumer durables 
C)  Mining and minerals 
D)  Food

Question 15

How can historical performance help an analyst assess the future prospects for an industry?

Accepted Answer

Historical performance tells the analyst

Question 16

Which industry was devastated by changes in EPA regulations since 2010?

Accepted Answer

A)  Telecom 
B)  Coal 
C)  Chemicals 
D)  Oil 
A)  Telecom 
B)  Coal 
C)  Chemicals 
D)  Oil

Question 17

Which of the following has 11 economic sectors, 24 industry groupings, 68 industries and 157 sub-industries?

Accepted Answer

A)  SIC 
B)  NAICS 
C)  GICS 
D)  Value Line Investment Survey 
A)  SIC 
B)  NAICS 
C)  GICS 
D)  Value Line Investment Survey

Question 18

Which life cycle stage generally sees industries improving their products, lowering prices, and starting to attract considerable investment funds?

Accepted Answer

A)  Pioneering stage 
B)  Expansion stage 
C)  Stabilization stage 
D)  Declining stage 
A)  Pioneering stage 
B)  Expansion stage 
C)  Stabilization stage 
D)  Declining stage

Question 19

Which of the following industries/sectors has produced the worst performance for investors in the long term?

Accepted Answer

A)  Consumer durables 
B)  Retail stores 
C)  Transportation 
D)  Utilities 
A)  Consumer durables 
B)  Retail stores 
C)  Transportation 
D)  Utilities

Question 20

Which of the following industry categories is said to be "bought to be sold?"

Accepted Answer

A)  Cyclical 
B)  Defensive 
C)  Growth 
D)  Countercyclical 
A)  Cyclical 
B)  Defensive 
C)  Growth 
D)  Countercyclical

Exam 14: Sectorindustry Analysis

What are four basic aspects of qualitative assessment of industries?

What industries do you think will be the future growth industries?

A well-known and widely used system that classified industries for more than 60 years was the:

Regarding the qualitative aspects of industry analysis, passage of the Dodd-Frank Act in 2008 would be considered a:

Which of the following would support high profit margins in an industry?

The food industry is a good example of a countercyclical industry.

Which of the following is not among the qualitative factors that should be analyzed to assess an industry's future?

The second step in the fundamental analysis of common stock is:

Give several examples of government effects on industries.

In which stage of the industry life cycle is it easiest for the analyst to assess industry prospects and identify the leading companies?

It is a relatively simple matter of finding industries that will perform well in the short run.

Which of the following is not a component examined in industry analysis?

Which decade is commonly referred to as the "lost decade" due to the poor performance of U.S. stocks?

Which of the following industries would you have most liked to have been invested in over the past 25 years?

How can historical performance help an analyst assess the future prospects for an industry?

Which industry was devastated by changes in EPA regulations since 2010?

Which of the following has 11 economic sectors, 24 industry groupings, 68 industries and 157 sub-industries?

Which life cycle stage generally sees industries improving their products, lowering prices, and starting to attract considerable investment funds?

Which of the following industries/sectors has produced the worst performance for investors in the long term?

Which of the following industry categories is said to be "bought to be sold?"

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