LOS a: Discuss the key components that should be included in an industry analysis model. fficeffice" />
Q1. All of the following factors should be included in an industry analysis EXCEPT:
A) international competition and markets review.
B) industry weaknesses.
C) industry classification.
Correct answer is B)
The factors that should be included in an industry analysis are: industry classification, external factor review, demand analysis, supply analysis, profitability analysis, and international competition and markets review. Industry weaknesses are implicitly considered in the analysis but are not a separate category.
Q2. Which of the following is NOT a factor that is typically considered in an industry analysis model?
A) Profitability analysis.
B) Demand analysis.
C) Yield curve analysis.
Correct answer is C)
Yield curve analysis is not a factor that is typically considered in an industry analysis model.
Q3. Which of the following elements least likely belongs in an industry analysis model?
A) An industry dividend payout ratio.
B) The Life Cycle Phase.
C) A macroeconomic forecast.
Correct answer is A)
Other elements listed are part of the six-factor industry analysis model. These six factors are: industry classification, external factor review, demand analysis, supply analysis, profitability analysis, and international competition and markets review. A dividend payout ratio does not belong to any of these six factors.
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