Practice Set - 3 | Practice Set | NISM Series XV: Research Analyst Certification Examination

Question 1

Which statement is true regarding economies of scale?

Question 2

Which statement is true regarding barriers to exit?

Question 3

A company with dominant market share but weak cash flows should make analysts question:

Question 4

Industry leadership combined with very expensive valuation can still produce poor investor returns.

Question 5

If an industry has excess capacity for many years, companies usually face:

Question 6

Which of the following most likely indicates a sunset industry?

Question 7

A telecom company facing strict tariff controls by regulators is mainly exposed to:

Question 8

Industry growth without profit growth may indicate:

Question 9

Which of the following most likely increases the threat of substitutes?

Question 10

A regulated monopoly should always be considered superior to a competitive business.

Question 11

Which statement is correct regarding defensive industries?

Question 12

Which factor most likely weakens supplier bargaining power?

Question 13

Why can a low-cost producer survive longer during price wars?

Question 14

A company operates in a high-growth industry but consistently loses market share to competitors. Which conclusion is most appropriate?

Question 15

In a commodity business, strong brand value may have limited impact because:

Question 16

A pharmaceutical company losing patent protection may face:

Question 17

Which situation best supports sustainable high return on capital?

Question 18

A highly leveraged company in a cyclical industry is riskier mainly because:

Question 19

An industry with strong demand but frequent technological disruption requires analysts to focus heavily on:

Question 20

A company dependent on government contracts may appear profitable but still face high risk due to:

Question 21

A business with recurring subscription revenue is often valued higher because:

Question 22

Which statement is true regarding network effect businesses?

Question 23

Which statement is correct regarding industry concentration?

Question 24

If customers are highly price-sensitive and products are undifferentiated, the industry is likely to have:

Question 25

Practice Set - 3