K120-ind-ny - Industry Product Knowledge
Please complete the following self-assessment quiz - This is a closed book quiz so do not refer back to the training materials, manuals and/or other relevant resources to complete the questions.
Questions and Answers
- 1.
Which chapter of an IBISWorld Industry Report can a client view an executive summary and see a visual representation of selected key statistics that are discussed in greater detail throughout the report?
- A.
About this Industry
- B.
Competitive Landscape
- C.
Industry at a Glance
- D.
Industry Performance
Correct Answer
C. Industry at a GlanceExplanation
In the "Industry at a Glance" chapter of an IBISWorld Industry Report, a client can view an executive summary and see a visual representation of selected key statistics that are discussed in greater detail throughout the report. This chapter provides a concise overview of the industry, highlighting important data and trends in a visually appealing format. It serves as a quick reference point for clients to get a snapshot of the industry's performance and key insights before delving into the detailed analysis provided in the rest of the report.Rate this question:
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- 2.
What section in the "About This Industry" chapter offers a visual representation of the buying and selling linkages, a list of industries producing similar products and the key economic drivers of the industry?
- A.
Industry Definition
- B.
The Supply Chain
- C.
Main Activities
- D.
Similar Industries
Correct Answer
B. The Supply ChainExplanation
The correct answer is "The Supply Chain." In the "About This Industry" chapter, the section on the supply chain provides a visual representation of the buying and selling linkages, a list of industries producing similar products, and the key economic drivers of the industry. This section helps to understand the flow of goods and services within the industry, identify related industries, and analyze the factors that influence the industry's performance.Rate this question:
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- 3.
How are Key External Drivers assigned their weighted figures?
- A.
Key External Drivers with a greater influence on the industry receive a higher weight
- B.
Key External Drivers with less of an influence on the industry receive a higher weight
Correct Answer
A. Key External Drivers with a greater influence on the industry receive a higher weightExplanation
Key External Drivers are assigned their weighted figures based on their influence on the industry. The greater the influence of a Key External Driver on the industry, the higher weight it receives. This means that the more significant factors that have a major impact on the industry are given more importance in determining the weighted figures.Rate this question:
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- 4.
Auditors can use the Key External Drivers to determine risks that business managers cannot control and ask their clients how they plan to mitigate such risks. True or False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Auditors can utilize the Key External Drivers to identify risks that are beyond the control of business managers. By doing so, auditors can inquire about the strategies and measures that the clients have in place to mitigate these risks. This allows auditors to assess the effectiveness of risk management practices and provide recommendations for improvement if necessary. Therefore, the statement is true.Rate this question:
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- 5.
Which of the following are examples of a Key External Driver? Check all that apply.
- A.
Exchange Rates
- B.
Rent and Utilities Costs
- C.
Wages
- D.
Government Policies
Correct Answer(s)
A. Exchange Rates
D. Government PoliciesExplanation
Exchange rates and government policies are examples of key external drivers because they are external factors that can significantly impact a business's operations and performance. Exchange rates determine the value of currency in relation to other currencies, which can affect a company's international trade, import/export costs, and profitability. Government policies, such as tax regulations, trade policies, and labor laws, can also have a significant impact on a company's operations, costs, and overall business environment. Rent and utilities costs and wages, on the other hand, are internal factors that are influenced by the business itself and not external drivers.Rate this question:
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- 6.
The "Current Performance" section of our reports tends to be geared more towards specific client groups and may not be of interest to a wide range of prospects. True or False?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The "Current Performance" section of our reports is not geared towards specific client groups, but rather provides information that is relevant and of interest to a wide range of prospects. Therefore, the statement that it tends to be geared more towards specific client groups and may not be of interest to a wide range of prospects is false.Rate this question:
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- 7.
The "Industry Outlook" section of our Industry Reports provides a discussion of anticipated key trends within the industry over how many years into the future?
- A.
1 year
- B.
3 years
- C.
5 years
- D.
10 years
Correct Answer
C. 5 yearsExplanation
The "Industry Outlook" section of our Industry Reports provides a discussion of anticipated key trends within the industry over a period of 5 years into the future. This section aims to provide readers with insights into the expected changes and developments that may impact the industry within this timeframe. By focusing on a 5-year horizon, it allows businesses and individuals to make informed decisions and strategies based on the projected trends and potential opportunities or challenges that lie ahead.Rate this question:
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- 8.
Which is a typical question that a client might have that can be answered in the "Industry Outlook" section? Check all that apply. (Tip: There are three correct answers)
- A.
Why has the industry performed the way it has over the past 5 years?
- B.
What will be the key trends affecting performance and why?
- C.
What opportunities or threats will affect operators?
- D.
How is the industry expected to perform over the next 5 years?
Correct Answer(s)
B. What will be the key trends affecting performance and why?
C. What opportunities or threats will affect operators?
D. How is the industry expected to perform over the next 5 years?Explanation
The "Industry Outlook" section typically provides information on how the industry is expected to perform over the next 5 years, the key trends that will affect performance and why, and the opportunities or threats that will affect operators. These are all questions that a client might have in order to understand the future prospects and potential risks in the industry.Rate this question:
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- 9.
Which section of our Industry Reports can a client read to understand the size of each product/service within the industry?
- A.
Major Markets
- B.
Supply Chain
- C.
Demand Determinants
- D.
Products and Services
Correct Answer
D. Products and ServicesExplanation
The client can read the "Products and Services" section of our Industry Reports to understand the size of each product/service within the industry. This section provides information about the different products and services offered by companies in the industry, their market share, and their contribution to the overall industry revenue. It helps the client to gain insights into the specific products/services that are driving the industry's growth and profitability.Rate this question:
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- 10.
The International Trade section of IBISWorld’s Industry Reports assists clients in determining which countries have a comparative advantage in producing a good or service and how that affects the domestic market. True or False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The International Trade section of IBISWorld's Industry Reports helps clients identify countries that have a comparative advantage in producing a good or service and analyzes how this impacts the domestic market. This implies that the statement is true.Rate this question:
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- 11.
Where can a client look in a report to answer the following questions they might have?
- “Who buys this industry’s products?”
- “How have these markets changed over the past five years?”
- “How have these changes affected industry performance?”
- A.
Major Markets
- B.
Products and Services
- C.
Business Locations
- D.
Supply Chain
Correct Answer
A. Major MarketsExplanation
The client can look in the "Major Markets" section of the report to answer the questions they might have. This section would provide information on who buys the industry's products and how these markets have changed over the past five years. It would also provide insights on how these changes have affected industry performance.Rate this question:
- 12.
The higher the level of globalisation and trade in an industry, the more power an individual local firm might have. True or False?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
False. The higher the level of globalization and trade in an industry, the more power multinational corporations tend to have, rather than individual local firms. This is because multinational corporations have greater resources, global networks, and economies of scale, which allow them to dominate the market and exert more influence. Local firms, on the other hand, may struggle to compete and maintain their market share in the face of intense global competition.Rate this question:
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- 13.
The Competitive Landscape chapter of our Industry Reports analyzes the external environment in which the industry is operating. True or False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Competitive Landscape chapter in Industry Reports examines the external factors that impact the industry's operations. This section provides an analysis of the industry's competition, market trends, and other external forces that can influence the industry's performance. By understanding the competitive landscape, businesses can make informed decisions and develop effective strategies to thrive in the industry. Therefore, the statement is true.Rate this question:
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- 14.
Which section of an Industry Report can answer the following questions a client might have about a particular industry?· What factors prevent new companies from entering the industry?· How difficult will it be to establish a business?
- A.
Key Success Factors
- B.
Barriers to Entry
- C.
Market Share Concentration
- D.
Cost Structure Benchmarks
Correct Answer
B. Barriers to EntryExplanation
The section of an Industry Report that can answer the client's questions about a particular industry is "Barriers to Entry". This section provides information on the factors that prevent new companies from entering the industry, which directly addresses the first question. It also gives insights into how difficult it will be to establish a business, as the barriers to entry indicate the level of competition and the challenges faced by new entrants. Therefore, the "Barriers to Entry" section is the most relevant in addressing the client's concerns.Rate this question:
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- 15.
Which section of a report can BDMs direct a prospect to if their client wishes to gain insight into which factors give companies a competitive advantage in the industry and what strategies they can pursue to increase their sales?
- A.
Barriers to Entry
- B.
Key Success Factors
- C.
Market Share Concentration
- D.
Basis of Competition
Correct Answer
D. Basis of CompetitionExplanation
BDMs can direct a prospect to the "Basis of Competition" section of a report if their client wishes to gain insight into which factors give companies a competitive advantage in the industry and what strategies they can pursue to increase their sales. This section would provide information on the fundamental aspects of competition within the industry, including the key factors that differentiate successful companies from their competitors and the strategies they employ to stay ahead in the market.Rate this question:
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- 16.
Which of the following are examples of a typical barrier to entry? Mark all that apply. (Tip: there are four correct answers)
- A.
Entry Costs
- B.
Skills Shortage
- C.
Plentiful Inputs
- D.
Intellectual Property
- E.
Economies of Scale
- F.
Strict Regulations
Correct Answer(s)
A. Entry Costs
B. Skills Shortage
D. Intellectual Property
F. Strict RegulationsExplanation
Entry costs, skills shortage, intellectual property, and strict regulations are all examples of typical barriers to entry. Entry costs refer to the financial investment required to enter a market, which can deter new entrants. Skills shortage means that there is a lack of qualified individuals with the necessary expertise to compete in a specific industry. Intellectual property refers to legally protected creations or inventions, which can prevent others from entering the market. Strict regulations can create barriers by imposing costly compliance requirements or limiting market access. These barriers can make it difficult for new competitors to enter the market and compete effectively.Rate this question:
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- 17.
In the "Cost Structure Benchmarks" section of our reports, profit is calculated using EBIT, in which taxes and interest are excluded from the analysis. True or False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
In the "Cost Structure Benchmarks" section of the reports, profit is calculated using EBIT (Earnings Before Interest and Taxes), which means that taxes and interest are excluded from the analysis. Therefore, the statement "profit is calculated using EBIT, in which taxes and interest are excluded from the analysis" is true.Rate this question:
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- 18.
Typically, the greater the level of competition, the harder it is for new firms to enter the industry. True or False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because when there is a high level of competition in an industry, existing firms have already established their market presence and have likely built strong customer relationships, brand recognition, and economies of scale. This makes it difficult for new firms to enter and compete effectively. Existing firms may also have the advantage of established distribution channels and access to resources, making it harder for new entrants to gain market share. Therefore, the greater the level of competition, the more challenging it becomes for new firms to enter the industry.Rate this question:
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- 19.
The classic definition that we use to define a major player is a business that operates primarily in an industry and generates over 5% of the industry revenue. True or False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The classic definition of a major player in an industry is a business that operates primarily in that industry and generates over 5% of the industry revenue. This means that a major player is not just any business in the industry, but one that has a significant impact and influence due to its size and revenue generation. Therefore, the statement "True" accurately reflects this definition.Rate this question:
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- 20.
When a company grows faster than an industry, its market share decreases. True or False?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
False. When a company grows faster than an industry, its market share actually increases. This is because the company is outperforming its competitors and capturing a larger portion of the market. As the company expands and gains more customers, its market share naturally grows.Rate this question:
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- 21.
Typically, which of the following questions can a client have answered by using the “Major Companies” chapter of the report? (Tip: There are three questions)
- A.
Which companies have the most substantial influence on this industry?
- B.
What is the number of enterprises in the industry?
- C.
How have the operations of leading players in the industry fared in the past few years?
- D.
Which strategies allow the top companies in the industry to be more successful?
Correct Answer(s)
A. Which companies have the most substantial influence on this industry?
C. How have the operations of leading players in the industry fared in the past few years?
D. Which strategies allow the top companies in the industry to be more successful?Explanation
The "Major Companies" chapter of the report can answer the following questions: Which companies have the most substantial influence on this industry? This chapter provides information on the top companies in the industry and their impact. How have the operations of leading players in the industry fared in the past few years? This chapter includes data and analysis on the performance of the industry's key players over a specific period. Which strategies allow the top companies in the industry to be more successful? The chapter may provide insights into the strategies employed by successful companies in the industry.Rate this question:
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- 22.
Typically, industries with a low level of capital intensity are more likely to seek bank capital and upfront investment capital to begin production. True or False?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Industries with a high level of capital intensity, not a low level, are more likely to seek bank capital and upfront investment capital to begin production. This is because capital-intensive industries require significant upfront investment in machinery, equipment, and infrastructure. They rely on external funding sources such as banks to finance these capital expenditures. Therefore, the given statement is false.Rate this question:
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- 23.
Industries with low capital intensity rely more on labor. True or False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Industries with low capital intensity rely more on labor because they require less investment in machinery, equipment, and technology. Instead, they prioritize human labor to carry out tasks and operations. This can be seen in industries such as agriculture, hospitality, and retail, where manual labor is crucial for production and service delivery. In contrast, industries with high capital intensity heavily rely on capital investments to automate processes and reduce the need for human labor.Rate this question:
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- 24.
Volatility refers to the year-on-year fluctuations in an industry's revenue, and not the total change in revenue over a given period of time. True or False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Volatility refers to the year-on-year fluctuations in an industry's revenue, meaning that it measures the amount of variation or instability in the revenue of an industry from one year to the next. It does not take into account the total change in revenue over a given period of time, only the fluctuations within each year. Therefore, the statement is true.Rate this question:
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- 25.
Which level of revenue volatility indicates a higher level of industry risk?
- A.
Low
- B.
Medium
- C.
High
Correct Answer
C. HighExplanation
A higher level of industry risk is indicated by a high level of revenue volatility. This means that the industry experiences significant fluctuations in its revenue, which can be attributed to various factors such as changes in market demand, competition, or economic conditions. High revenue volatility implies a greater level of uncertainty and potential financial instability for companies operating in the industry, making it riskier compared to industries with lower revenue volatility.Rate this question:
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- 26.
In the Key Statistics section of our Industry Reports, how many historical years do we provide data for, including the current year?
- A.
3 years
- B.
5 years
- C.
10 years
- D.
20 years
Correct Answer
C. 10 yearsExplanation
In the Key Statistics section of our Industry Reports, we provide data for a total of 10 historical years, including the current year. This allows users to analyze and compare industry trends and performance over a significant period of time. Providing data for 10 years ensures that users have access to a substantial amount of historical information to make informed decisions and gain insights into the industry's past performance.Rate this question:
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- 27.
In the Key Statistics section of our Industry Reports, how many years of forecast data (not including the current year) is provided?
- A.
1 year
- B.
3 years
- C.
5 years
- D.
6 years
Correct Answer
C. 5 yearsExplanation
In the Key Statistics section of our Industry Reports, we provide five years of forecast data, excluding the current year. This means that users can access projections and predictions for the industry's performance for the next five years. This information can be valuable for businesses and individuals to make informed decisions and plan for the future.Rate this question:
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- 28.
An industry is considered to have a high level of industry globalization when the level of foreign ownership is greater than 35%. True or False?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
False. An industry is considered to have a high level of industry globalization when the level of foreign ownership is greater than 35%.Rate this question:
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- 29.
The "Cost Structure Benchmark" section of our Industry Reports includes a chart that benchmarks the average industry costs against the average industry costs for all industries. True or False?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The "Cost Structure Benchmark" section of our Industry Reports includes a chart that benchmarks the average industry costs against the average industry costs for all industries. However, the correct answer is False.Rate this question:
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Mar 18, 2023Quiz Edited by
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Nov 13, 2015Quiz Created by
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