K190-ind-au - Why Industry Information Matters
Please take 10 minutes to complete the following self-assessment quiz on 'Why Industry Information Matters'
Questions and Answers
- 1.
Complete the following sentence: No industry operates in _________.
Correct Answer
isolationExplanation
The sentence is stating that no industry operates in isolation. This means that every industry is connected or influenced by other industries, organizations, or factors in some way. Operating in isolation would imply that an industry is completely independent and unaffected by external factors, which is not the case in reality. Industries are interdependent and rely on various factors such as supply chains, market demand, competition, and government regulations.Rate this question:
- 2.
Companies operate within industries, and industries are affected by their operating environments. Operating environments can be a source of revenue or a cost center. Changes in operating environments can have a direct impact on the industry, and in turn, the companies. Which of the following are classified as direct operating environments (not influential environments)? Mark all four that apply.
- A.
Marketplace
- B.
World
- C.
Labor market
- D.
Finance market
- E.
Government
Correct Answer(s)
A. Marketplace
C. Labor market
D. Finance market
E. GovernmentExplanation
The correct answer is Marketplace, Labor market, Finance market, and Government. These four options are classified as direct operating environments because they directly impact the industry and the companies operating within it. The marketplace refers to the specific market in which a company operates and where it sells its products or services. The labor market is the pool of available workers that a company can hire from. The finance market includes sources of funding and investment opportunities for companies. The government, through its policies and regulations, can directly affect the operations and profitability of companies.Rate this question:
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- 3.
Influential environments do not directly affect revenue, costs or profits, but impact on results via the operating environments. Which of the following are classified as influential (not operating) environments? Mark all three that apply.
- A.
Finance market
- B.
World
- C.
Community
- D.
Resources
Correct Answer(s)
B. World
C. Community
D. ResourcesExplanation
The influential environments that are classified as influential (not operating) environments are the world, community, and resources. These environments do not directly affect revenue, costs, or profits but have an impact on results through the operating environments. The finance market, although important, is considered part of the operating environment as it directly affects revenue, costs, and profits.Rate this question:
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- 4.
The most successful companies emulate or surpass world's best practice benchmarks to ensure a competitive edge in the marketplace. They do this by hedging against the factors they can control, and taking advantage of the factors that can't be controlled. True or False?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Companies that are successful often do not simply emulate or surpass world's best practice benchmarks to ensure a competitive edge in the marketplace. While benchmarking can be a useful tool, successful companies also innovate and create their own unique strategies to differentiate themselves from competitors. Additionally, they focus on both factors that can be controlled and factors that cannot be controlled, rather than solely hedging against controllable factors and taking advantage of uncontrollable factors. Therefore, the statement is false.Rate this question:
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- 5.
Which of the following factors generally has the greatest influence on the profitability of a company?
- A.
Government regulation
- B.
Macroeconomic factors
- C.
Demographic variables
- D.
Company-level factors
Correct Answer
D. Company-level factorsExplanation
Company-level factors generally have the greatest influence on the profitability of a company. These factors include the company's pricing strategy, cost structure, operational efficiency, product quality, marketing effectiveness, and overall management decisions. While government regulation, macroeconomic factors, and demographic variables can also impact profitability to some extent, it is the internal factors and actions taken by the company itself that have the most direct and significant influence on its profitability.Rate this question:
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- 6.
Industries in the same sector often behave very differently. True or False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Industries in the same sector often behave very differently because they can be influenced by various factors such as market conditions, competition, regulations, and consumer preferences. Each industry within a sector may have unique characteristics, business models, and growth prospects, leading to different performance and behavior. For example, technology companies within the same sector may have different levels of innovation, product offerings, and market share, resulting in diverse outcomes. Therefore, it is true that industries in the same sector often exhibit distinct behaviors.Rate this question:
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- 7.
Banks use IBISWorld to help understand and score the difficulty of current and forecast industry operating conditions. Globally, Commercial Banks comprise the largest segment of our client market in terms of revenue. True or False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The given answer is true because the statement mentions that commercial banks comprise the largest segment of IBISWorld's client market in terms of revenue. This implies that banks use IBISWorld, indicating that they are a significant part of the client base.Rate this question:
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- 8.
Which of the following is not a characteristic of a core client or ideal prospect?
- A.
Time poor
- B.
B2B - they are a business, not a consumer
- C.
They understand the power of information
- D.
Exposure to lots of industries or categories
- E.
High employee turnover
- F.
Our information is needed many times throughout the year
- G.
Strategic mindset
Correct Answer
E. High employee turnoverExplanation
High employee turnover is not a characteristic of a core client or ideal prospect. This means that the ideal client or prospect would not have a high rate of employees leaving the company. This is important because high employee turnover can indicate instability or dissatisfaction within the organization, which may affect their ability to make long-term commitments or investments. Therefore, it is not considered a desirable characteristic for a core client or ideal prospect.Rate this question:
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- 9.
What is the best description of how our Industry Reports benefit Commercial Banking clients?
- A.
Support of due diligence, monitoring risks for policies and portfolios.
- B.
Help banks create more loans, less riskier loans and more diversified loans.
- C.
Help to formulate policies and help with economic development initiatives.
- D.
Help save valuable time when researching projects and be better informed when buying, selling, raising capital or providing advice to clients.
Correct Answer
B. Help banks create more loans, less riskier loans and more diversified loans.Explanation
The best description of how our Industry Reports benefit Commercial Banking clients is by helping banks create more loans, less riskier loans, and more diversified loans. The reports provide valuable insights and data that assist banks in making informed decisions about lending, reducing risk, and expanding their loan portfolios. By utilizing these reports, banks can better understand market trends, identify potential risks, and develop strategies to mitigate them, ultimately leading to more profitable and diversified loan portfolios.Rate this question:
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- 10.
What is the best description of how our Industry Reports benefit Consulting clients?
- A.
Save hours of research time, helps measure 6 of the 14 factors in valuation model.
- B.
Cuts down research time, immediate understanding of client’s industry.
- C.
Help businesses create more loans, less riskier loans and more diversified loans.
- D.
Help to formulate policies and help with economic development initiatives.
Correct Answer
B. Cuts down research time, immediate understanding of client’s industry.Explanation
The correct answer is "Cuts down research time, immediate understanding of client’s industry." This option suggests that our Industry Reports can save consulting clients time by reducing the amount of research they need to do. Additionally, it implies that these reports provide an immediate understanding of the client's industry, which can be valuable for consultants who need to quickly familiarize themselves with a new sector.Rate this question:
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- 11.
Which of the following position types is not a key user group?
- A.
Librarians
- B.
Consultants
- C.
Marketing
- D.
Procurement
- E.
Human Resources
Correct Answer
E. Human ResourcesExplanation
Human Resources is not a key user group because it is not directly involved in the day-to-day operations or decision-making processes of the organization. Key user groups typically include individuals who have a direct impact on the product or service being offered, such as librarians who manage and organize information, consultants who provide expert advice, marketing professionals who promote the organization's offerings, and procurement professionals who handle purchasing and supply chain management.Rate this question:
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- 12.
What is the best description of how our Industry Reports benefit Accounting clients?
- A.
Save hours of research time, helps measure 6 of the 14 factors in valuation model.
- B.
Support of due diligence, monitoring risks for policies and portfolios.
- C.
Supports firms across all service lines by increasing revenue, reduce risk, improve focus and productivity.
- D.
Help to formulate policies and help with economic development initiatives.
Correct Answer
C. Supports firms across all service lines by increasing revenue, reduce risk, improve focus and productivity.Explanation
Our Industry Reports benefit Accounting clients by supporting firms across all service lines, helping them increase revenue, reduce risk, improve focus, and enhance productivity.Rate this question:
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- 13.
IBISWorld is recognized as the world's leading industry information provider, and enables clients to make better informed decisions to give them a strategic and competitive advantage in the marketplace. Which of the following is least likely to be a factor contributing to the success of our Industry Reports?
- A.
Reports are comprehensive
- B.
Reports provide independent information
- C.
Reports are cost effective and allow for productivity gains
- D.
Reports provide otherwise confidential information about key industry players
- E.
Reports contain consistent and comparable information
- F.
Reports contain credible information
- G.
Reports are regularly updated and contain current information
Correct Answer
D. Reports provide otherwise confidential information about key industry players -
- 14.
What is the key difference between financial statement analysis and the analysis in our Industry Reports?
- A.
Financial statement analysis tends to be based on data, while IBISWorld analysis is based on unquantifiable drivers.
- B.
Financial statement analysis tends to take external drivers into account, while IBISWorld analysis is dedicated to company-level factors.
- C.
Financial statement analysis tends to be "backward-looking" while IBISWorld analysis is dynamic and forward-looking.
Correct Answer
C. Financial statement analysis tends to be "backward-looking" while IBISWorld analysis is dynamic and forward-looking.Explanation
Financial statement analysis is focused on analyzing historical financial data to evaluate a company's past performance and financial health. It looks at factors such as profitability, liquidity, and solvency based on the available financial statements. On the other hand, IBISWorld analysis is forward-looking and dynamic, taking into account current market trends, industry forecasts, and qualitative factors that may impact a company's future performance. It goes beyond just analyzing financial data and considers external factors and industry-level dynamics to provide a comprehensive outlook for the future.Rate this question:
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- 15.
“…When an industry with a reputation for difficult economics meets a manager with a reputation for excellence, it is usually the industry that keeps its reputation intact...”Who can this quote be attributed to?
- A.
Michael E Porter
- B.
Warren Buffet
- C.
Phil Ruthven
- D.
Steve Jobs
Correct Answer
B. Warren BuffetExplanation
This quote can be attributed to Warren Buffet. It suggests that even when a skilled manager takes over a struggling industry, the industry's inherent challenges and difficulties tend to persist, highlighting the importance of understanding the industry dynamics before attributing success solely to the manager's abilities.Rate this question:
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Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Feb 03, 2023Quiz Edited by
ProProfs Editorial Team -
Jul 14, 2016Quiz Created by
Damian Mills
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