MCQs- CHAPTER 10: VALUATION PRINCIPLES

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NISM Series-XV: Research Analyst Certification

CHAPTER 10: VALUATION PRINCIPLES

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1. What are the three areas in which a company can have a competitive advantage over its competitors?

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2. What is PESTLE Analysis?

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3. What is the first step in the marketing research process?

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4. Why is it important for a business to know about political factors in a country where it is planning to do business?

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5. 3. Shareholding pattern and changes therein have to be informed by the companies to exchanges periodically. State whether True or False.

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6. 7. Which of the following is an example of migration across companies in the same industry?

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7. How can an analyst identify if a company has a competitive advantage in product differentiation?

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8. 1. What does the ESG framework in company analysis primarily focus on?

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9. 2. Which of the following is NOT a criterion evaluated under the ESG framework?

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10. Which of the following is considered as an economic factor in PESTLE analysis?

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11. What are examples of opportunities in SWOT analysis?

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12. Why is it important for analysts to possess in-depth knowledge of the sectors while researching companies?

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13. 4. According to SEBI’s regulation on corporate governance, what is the minimum requirement for independent directors on the board?

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14. What does Industry structure in Structure Conduct Performance (SCP) analysis refer to?

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15. Which of the following is included in the structure analysis of SCP analysis?

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16. How are weaknesses defined in SWOT analysis?

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17. 1. If financials are great, it is expected that the quality of business is also goo State whether True or False.

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18. Why is it important for analysts to pay attention to the regulatory aspects of businesses?

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19. What is pricing power?

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20. What is the full form of STEEPLED?

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21. How are threats defined in SWOT analysis?

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22. 10. What is the first step in the marketing research process?

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23. 5. Where can analysts find information on a company’s corporate governance practices?

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24. What is the full form of BCG in BCG Matrix?

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25. Which of the following is not included in PESTLE Analysis?

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26. Conduct analysis of SCP analysis focuses on which of the following aspects?

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27. What is the importance of studying a company’s execution capabilities?

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28. What is the purpose of cess in India?

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29. What are examples of strengths in SWOT analysis?

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30. What is SWOT Analysis used for?

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31. What determines the bargaining power of suppliers in an industry?

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32. 4. A good analyst must keep a track of disclosures, commitments, and deliveries of an organization periodically to adjudge a company. State whether True or False.

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33. 6. Which of the following is an example of migration across value chain?

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34. What is the reason for the introduction of the fat tax by the government of Kerala in 2017?

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35. 1. Which of the following statements best describes the agency risk in a company?

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36. What are stars in BCG Analysis?

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37. What are some examples of entry barriers for new entrants in a business?

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38. According to the text, what is Dr. Garry Hamel’s perspective on competition in the market place?

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39. An industry where rivalry is high, the end result will be pricing power and incomes for the industry participants.

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40. What is the role of company analysis in fundamental research?

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41. According to the text, what should an analyst do if they cannot address what a company does with preciseness and clarity?

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42. What are the factors that affect pricing power?

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43. Who can exert a lot of pressure and dictate prices, if there are a large number of sellers with similar products/services?

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44. 5. What is the importance of assessing the history of credit rating for equity investors?

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45. 2. When evaluating management competency, which of the following factors should be considered?

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46. Which of the following taxes is a tool used by governments to encourage or discourage certain businesses?

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47. What are the key constraining factors in SCP analysis?

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48. What is SCP Analysis?

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49. Which of the following is not an example of a direct tax?

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50. What does SWOT stand for?

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51. 3. What is one of the financial advantages cited for companies following the ESG framework?

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52. Which of the following is included in the performance analysis of SCP analysis?

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53. 3. What is the objective of good corporate governance standards?

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54. What kind of industry is considered attractive from shareholders’ perspective?

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55. What are cash cows in BCG Analysis?

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56. The tyre industry in a country comprised of three organised players and several unorganised players. A sample survey revealed that around 20% of total sales came from unorganised sector. The three major companies reported revenue of Rs 6,000 crore, Rs 8,000 crore and Rs 10,000 crore, respectively, for the year 2019. Which of the following is closest to the fair estimate of overall size of tyre market in that country for the year 2019?

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57. In which scenario would suppliers have high bargaining power

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58. 2. Corporate Governance takes into account which aspect of the Management?

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59. 4. Which of the following sources of information is NOT commonly used by analysts to analyze companies?

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60. What is the difference between a mission statement and a vision statement?

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61. Why is it important to understand a company’s business model before investing in it?