Reading 42: Industry Analysis - LOS e ～ Q1-3 following, class, industry, performing, factors

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1.Which of the following factors would NOT be considered while an analyst is performing an industry demand and supply analysis?

A)   Short-term imbalances between demand and supply.

B)   Availability of property and casualty insurance coverage in the event plant capacity in the industry is affected by natural disasters such as earthquakes and floods.

C)   Aggregate data on potential supply from a given industry.

D)   Extent of foreign imports.

2.In an industry analysis, the analyst must assess future demand for the industry’s output. Which of the following would NOT be an appropriate method for assessing future demand?

A)   Study the customers of the firm and break them down into market segments. From this the analyst could forecast anticipated changes in demand for each segment.

B)   Incorporate external forces such as government action into demand forecasts. For example, changes in fiscal policy might increase or decrease demand in a certain industry.

C)   Assuming that gross domestic product (GDP) growth for the country will approximately equal sales growth for the industry.

D)   Study the inputs and outputs of a given industry. Often the output of one industry is the input for another.

3.Which of the following factors would NOT be considered while an analyst is performing an industry demand and supply analysis?

A)   Impact of changes in the national taxation policy.

B)   Historical relationship between gross domestic product (GDP) growth and the growth in company revenues.

C)   Prospect for governmental action regarding the industry.

D)   Prospect of a foreign competitor entering the industry.

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答案和详解如下：

1.Which of the following factors would NOT be considered while an analyst is performing an industry demand and supply analysis?

A)   Short-term imbalances between demand and supply.

B)   Availability of property and casualty insurance coverage in the event plant capacity in the industry is affected by natural disasters such as earthquakes and floods.

C)   Aggregate data on potential supply from a given industry.

D)   Extent of foreign imports.

The correct answer was B)

All other factors except availability of disaster insurance would be a part of the industry demand and supply analysis.

2.In an industry analysis, the analyst must assess future demand for the industry’s output. Which of the following would NOT be an appropriate method for assessing future demand?

A)   Study the customers of the firm and break them down into market segments. From this the analyst could forecast anticipated changes in demand for each segment.

B)   Incorporate external forces such as government action into demand forecasts. For example, changes in fiscal policy might increase or decrease demand in a certain industry.

C)   Assuming that gross domestic product (GDP) growth for the country will approximately equal sales growth for the industry.

D)   Study the inputs and outputs of a given industry. Often the output of one industry is the input for another.

The correct answer was C)

An analyst could use an estimate of GDP growth as a variable in generating an estimate of revenue growth for an industry, but would not assume that the growth in GDP will automatically equal the sales growth of the industry.

3.Which of the following factors would NOT be considered while an analyst is performing an industry demand and supply analysis?

A)   Impact of changes in the national taxation policy.

B)   Historical relationship between gross domestic product (GDP) growth and the growth in company revenues.

C)   Prospect for governmental action regarding the industry.

D)   Prospect of a foreign competitor entering the industry.

The correct answer was A)

All other factors except the tax policy would be a part of industry demand and supply analysis.