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Advanced Wealth Management Course (IIBF) - Paper 3

Part III: Ch 5: Industry Analysis

Q1.

Which phase is one that is just beginning to develop in the industry life cycle model?

Growth phase

Embryonic phase

Maturity phase

Shake-out phase

Q2.

In the __________ phase, demand approaches saturation levels.

Embryonic phase

Growth phase

Shake-out phase

Maturity level

Q3.

The industry life cycle model is a tool for analyzing the effects of industry evolution on the competitive forces governing the industry.

True

False

Q4.

(I) In a embryonic business, first time demand expands rapidly as many new consumers enter the market. (II) In a saturated market, there are few potential first time buyers left and most of the demand is left to replacement demand.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q5.

In a Shake-out industry, the market is largely saturated and demand is limited to replacement demand.

True

False

Q6.

(I) During Mature stage, growth rates are low or zero. (II) Within a declining industry, the degree of rivalry among established companies usually decreases.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q7.

As an industry enters maturity, barriers to entry decrease and threat of entry from potential competitors’ increases.

True

False

Q8.

Demand analysis ought to focus on:

The number of units of consumption at a given price

The range of price likely to prevail in future

Both (a) & (b)

None of the above

Q9.

Which is not the correct factor that affects pricing practices in a business?

Intensity of competition

Price elasticity of demand

Stage in the life cycle of the business

Scope for product differentiation

None of the above

Q10.

(I) Macro-environmental analysis and competitive analysis of a business help to provide an idea of the relevant aspects for scenario-building for the business. (II) Short-term demand forecast is meaningful for real-time marketing.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q11.

Globalization has become relevant and important due to:

Increasing trend towards globalization of ownership of firms

Increasing importance of service component

Both (a) & (b)

Increasing role of distribution arrangements

All of the above

Q12.