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NEW QUESTION: 1
Bryan Galloway is a strategist for JS Investments, a small money management firm. His goal is to analyze industries to determine whether there is justification for over- or under-weighting. His supervisor, Robyn Black, CFA, has asked that he document the process he uses to make his recommendations. However, just to be sure that Galloway understands industry analysis. Black asks him to provide examples of supply and demand analysis. Galloway makes the following two statements to prove that he understands the issue:
Statement 1: In analyzing supply in the tire and rubber industry, it is clear that the sale of each additional automobile will result in the sale of approximately two winter tires.
Statement 2: In analyzing demand for services in the healthcare industry, for every 100 new hospital beds required, 20 additional doctors are needed.
Black is not entirely confident in Galloway's abilities to analyze various industries, but decides to allow him to continue with his analysis.
Four of the largest holdings for JS Investments are a tobacco company, a soda drink company, an oil company, and a cable TV company. Black is worried that government intervention will have a serious impact on future growth for these companies and asks Galloway to further research each of the industries involved. However, just to make sure Galloway can handle this project. Black first asks him to review the basics of industry analysis.
In reviewing the factors affecting pricing considerations, Galloway concludes that all of the following are of direct importance:
Factor 1: Price changes in key supply inputs.
Factor 2: Product segmentation.
Factor 3: Ease of entry into the industry.
Factor 4: Degree of industry concentration.
Galloway also makes the following statements about the characteristics of the phases of the industrial life cycle:
Characteristic 1: Participants compete for market share in a stable industry.
Characteristic 2: Changing tastes have an important impact on the industry.
Characteristic 3: It is not clear that a product will be accepted in the industry.
Characteristic 4: Proper execution of strategy is critical.
Each of the phases is represented by one characteristic.
Did Galloway correctly identity the factors that directly affect pricing considerations?
A. Yes.
B. No, changing tastes do not have a direct impact on pricing.
C. No, competition for market share in a stable industry is not a pricing consideration.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The four factors that contribute to pricing as listed in the relevant topic review are: product segmentation, degree of industry concentration, ease of industry entry, and price changes in key supply inputs. Galloway has correctly identified all four. (Study Session U, LOS 38.0
NEW QUESTION: 2
Which of the following should be avoided when installing a laser printer?
A. UPS
B. Surge protector
C. RJ-45 connector
D. Toner
Answer: A
NEW QUESTION: 3
Adam works as an Incident Handler for Umbrella Inc. He has been sent to the California unit to train the members of the incident response team. As a demo project he asked members of the incident response team to perform the following actions:
Remove the network cable wires.
Isolate the system on a separate VLAN
Use a firewall or access lists to prevent communication into or out of the system.
Change DNS entries to direct traffic away from compromised system
Which of the following steps of the incident handling process includes the above actions?
A. Containment
B. Eradication
C. Recovery
D. Identification
Answer: A
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Feedbacks
Aalk - 2014-05-05 16:45:18
Plato - 2014-05-05 16:45:51
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