Practice Set - 2 | Practice Set | NISM Series XV: Research Analyst Certification Examination

Question 1

Which of the following best explains why utility companies are often considered defensive?

Question 2

If a business depends heavily on one supplier for a critical raw material, the major concern is:

Question 3

A monopoly business with heavy government control should be considered low risk without further analysis.

Question 4

Which statement is true regarding high entry barriers?

Question 5

A company shows strong profit growth, but operates in a declining industry with shrinking long-term demand. The analyst should primarily conclude that:

Question 6

Which statement is true regarding cyclical industries?

Question 7

An airline company faces rising fuel costs and intense ticket price competition. This mainly reflects:

Question 8

If an industry has strong demand growth but falling profit margins for all players, the most likely reason is:

Question 9

Industry leadership does not always guarantee superior investment returns because:

Question 10

Which of the following best explains why banking is highly sensitive to interest rate changes?

Question 11

A company with the strongest brand in a commodity industry may still face limited pricing power because:

Question 12

Government regulation is usually highest in industries where:

Question 13

If barriers to exit are high, companies may continue operating despite losses, which usually causes:

Question 14

A mature industry with high market share concentration and stable demand is most likely to prioritize:

Question 15

An industry with low switching costs, many competitors, and minimal product differentiation is most likely to experience:

Question 16

Which of the following most likely increases buyer bargaining power?

Question 17

A sunrise industry may still be risky because:

Question 18

Higher capacity utilization in an industry generally indicates:

Question 19

An industry with high fixed costs and low variable costs is more vulnerable when demand falls because:

Question 20

Practice Set - 2