Reading 37: Introduction to Industry and Company Analysis

Which of the following is a primary use of industry analysis in the context of active management strategies?

When grouping companies by products and services, which metric is typically used to classify a firm's principal business activity?

Which of the following is a limitation of using statistical methods like cluster analysis to group companies?

Which characteristic best describes a cyclical firm?

Which of the following sectors is most likely to be classified as non-cyclical?

A growth industry is characterized by demand that is:

What does the term 'growth cyclical' refer to?

Which of the following is a commercial industry classification system?

A key difference between commercial and government industry classification systems is that commercial systems:

When forming a peer group for equity valuation, an analyst should primarily look for companies with similar:

Which step is part of the process to form a peer group?

According to Michael Porter, which of the following is one of the five forces that determine industry competition?

High fixed costs in an industry generally lead to:

How do high barriers to entry affect existing firms in an industry?

Pricing power is generally reduced when an industry is characterized by:

In the context of industry capacity, overcapacity typically results in:

Which factor contributes most to market share stability?

Which stage of the industry life cycle is characterized by slow growth and high prices due to lack of economies of scale?

In which stage of the industry life cycle do prices typically fall as economies of scale are reached?

The shakeout stage of the industry life cycle is characterized by:

During the mature stage of the industry life cycle, firms are most likely to:

In the decline stage of the industry life cycle, negative growth is often caused by:

A limitation of using life-cycle analysis is that:

The experience curve typically shows that cost per unit:

Which of the following is considered a macroeconomic influence on industry growth?

The aging of the Baby Boomer generation is an example of which type of external influence?

Which competitive strategy involves generating volume to make a superior return despite having the lowest prices?

In a differentiation strategy, a firm succeeds by:

Predatory pricing refers to:

Which of the following is an element of thorough company analysis?

What is a potential risk of using spreadsheet modeling for company analysis?

Based on the text's example of the candy/confections industry, which factor keeps competition low?

Industry rotation involves:

Which of the following is considered a defensive industry?

Consumer staples firms are typically:

A 'strategic group' within an industry consists of:

Switching costs contribute to market share stability by:

Which factor makes the 'threat of entry' high in an industry?

When an industry has underutilized capacity, pricing power is generally:

Which of the following is a characteristic of the embryonic stage of an industry?

In the decline stage, industry consolidation occurs because:

Mature firms that focus on cost efficiency are 'acting their age' because:

Social influences on industries relate primarily to:

What is a major implication of the dividend displacement of earnings?

Which valuation model determines the intrinsic value of a firm's equity as total asset value minus liabilities?

A 'sector' is best defined as:

Which of the following is an example of a defensive industry?

The threat of substitutes limits an industry's profit potential by:

Regarding industry concentration, a fragmented market usually results in:

Environmental influences are increasingly important for industries like agriculture because of: