9/4/23, 7:48 PM Advanced Finance & Investment - Assignment Two - 4G

Advanced Finance & Investment -

Assignment Two - 4G
9/11 ‫إجمالي النقاط‬

* ‫عنوان بريد إلكتروني‬

[email protected]

‫ نقطة‬0 ‫ من إجمالي‬0

* Mobile Number

01006934697

* Student Full Name

Yassin Fathy Hassan

* Student ID

21121636

‫ نقطة‬11 ‫ من إجمالي‬9 Choose The Right Answer

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9/4/23, 7:48 PM Advanced Finance & Investment - Assignment Two - 4G

1/1* Technological changes are most likely to result in which of the following
:effects? Evolving technology is likely to result in changes in

educational curriculum and the relative demand for various products.

the relative demand for various products only.

educational curriculum only.

‫التعليقات‬

If technological changes result in changes in the set of skills required of workers, this is
likely to lead to changes in educational curriculum (and possibly delivery). Such changes
often result in the production and
.demand for new or different products

1/1 * :A firm that pursues a differentiation strategy is most likely to emphasize

market research.

gains in market share.

operating efficiency.

‫التعليقات‬

A firm that follows a product or service differentiation strategy needs to emphasize market
research to identify needs for which customers are willing to pay a premium. Market share
.and operating efficiency are more of a focus for firms that pursue a low-cost strategy

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9/4/23, 7:48 PM Advanced Finance & Investment - Assignment Two - 4G

0/1 * :Pricing power for the firms in an industry is most likely to result from low

barriers to entry.

levels of capacity.

industry concentration.

‫اإلجابة الصحيحة‬

industry concentration.

‫التعليقات‬

Low capacity is associated with pricing power because it increases the likelihood that
supply in the short run will be less than demand at current prices. Low barriers to entry
and low industry concentration (a
.fragmented market) typically suggest firms have little pricing power

1/1 * :Food, beverage, and utility companies are examples of

cyclical industries.

defensive industries.

declining industries.

‫التعليقات‬

Food, beverage, and utility companies provide basic necessities of life and are considered
to be defensive industries. In a recession, the demand for their products will not fall as
much as for some of the other
.industry groups

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9/4/23, 7:48 PM Advanced Finance & Investment - Assignment Two - 4G

1/1* Economic profits are most likely to be earned by firms in an industry that
:is characterized by

high barriers to entry and low power of buyers.

low threat of substitutes and high rivalry among existing competitors.

high power of suppliers and low threat of entry.

‫التعليقات‬

High barriers to entry (low threat of entry) and low power of suppliers both increase the
potential for economic profits within an industry. The five forces that shape industry
competition are rivalry among existing competitors, threat of entry, threat of substitutes,
power of buyers, and power of suppliers. The stronger any of these forces are within an
industry, the less potential that industry has to generate (or continue to earn) economic
.profits

1/1 * :Commercial index providers typically classify companies by

sensitivity to business cycles.

statistical grouping.

principal business activity.

‫التعليقات‬

Commercial providers such as Standard and Poor's and MSCI Barra classify companies
.according to their principal business activity and the products and services they provide

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9/4/23, 7:48 PM Advanced Finance & Investment - Assignment Two - 4G

1/1 * :A firm is most likely to have pricing power if

its market share is high.

costs to exit the industry are high.

its product is differentiated.

‫التعليقات‬

Firms offering products that are differentiated in terms of quality and features are more
likely to have pricing power than firms that produce undifferentiated (commodity-like)
products. High market share does
not necessarily imply pricing power; for example, if four firms each have 25% market
share, none of them are likely to have significant pricing power. High exit costs can create
overcapacity in an industry and
result in a high degree of price competition as firms try to maintain production volume
.during a period of reduced demand

1/1* Market share stability within an industry is least likely to result from a high
:level of

barriers to entry.

product innovation.

switching costs.

‫التعليقات‬

Frequent introductions of new products and innovations tend to make firms' market
shares within an industry less stable. High barriers to entry into the industry and high
switching costs for customers to change to a competing product both contribute to
.market share stability

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9/4/23, 7:48 PM Advanced Finance & Investment - Assignment Two - 4G

1/1* Which of the following industries is likely to be most sensitive to the

?business cycle

Pharmaceutical.

Confectionery.

Automobile.

‫التعليقات‬

The automobile industry is cyclical because demand for new autos fluctuates with the
business cycle. The confectionery industry tends to be non-cyclical and defensive because
demand for candy tends to be
stable through the business cycle. The pharmaceutical industry is non-cyclical because
.demand for medicines is independent of the business cycle

1/···* Factors affecting industry growth that are related to the composition and
:age distribution of the population are best described as

macroeconomic factors.

demographic factors.

social influences.

‫ليس هناك أي إجابات صحيحة‬

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9/4/23, 7:48 PM Advanced Finance & Investment - Assignment Two - 4G

1/1* Which of the following types of industries is typically characterized by

stable performance during both expansions and contractions of the
?business cycle

Cyclical.

Defensive.

Growth.

‫التعليقات‬

A defensive industry is typically characterized by stable performance during both

.expansions and contractions of the business cycle

‫ سياسة الخصوصية‬- ‫ شروط الخدمة‬- .‫تم إنشاء هذا النموذج خارج نطاقك‬

 ‫نماذج‬

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