18 Questions
Which of the following is the most important consideration when evaluating a client's industry?
The level of competition and barriers to entry in the industry
A bank is considering extending credit to a client in the construction industry. Which of the following industry factors would be LEAST important for the bank to consider?
The client's market share within the local real estate development market
A bank is evaluating a client in the technology sector. Which of the following would be the MOST important industry factor for the bank to consider?
The client's ability to attract and retain skilled technical talent
A bank is considering extending credit to a client in the healthcare industry. Which of the following industry factors would be LEAST important for the bank to consider?
The client's market share within its local geographic service area
A bank is evaluating a client in the manufacturing sector. Which of the following industry factors would be MOST important for the bank to consider?
The client's cost structure and ability to control input costs
A bank is considering extending credit to a client in the retail industry. Which of the following industry factors would be LEAST important for the bank to consider?
The client's geographic footprint and distribution network
What is an important question to ask a customer when evaluating risks that are not conveniently categorized?
What are the company’s critical success factors?
Which of the following is a risk factor that small businesses with limited management teams are particularly vulnerable to?
Employee morale issues
What are some of the 'five D's of credit' that could pose financial risks to a business?
Death, Divorce, Drugs, Disagreements, Disabilities
Why are small businesses with limited management teams vulnerable to personnel issues?
Limited resources for hiring top talent
Which industry sector is mentioned as having special problems and credit needs in the text?
Manufacturing companies
What is one key characteristic of evaluating industry sectors according to the text?
Changes to compensation and benefit packages
Which of the following is NOT a characteristic of the leisure/tourism industry according to the text?
Emerging stage
Which of these is a key consideration when evaluating the client's market according to the text?
Buyer/supplier profiles
What does the text suggest is a characteristic of government entities?
Buyer concentration
Which of the following is NOT a characteristic of nonprofit companies?
Cyclicality
Which of the following is considered when evaluating competition in the client's market, according to the text?
Buyer/supplier concentrations
What does the text suggest is a key characteristic of the construction industry?
Seasonality
Test your knowledge on various dimensions and characteristics of different industries such as agribusinesses, educational institutions, leisure/tourism industry, and nonprofit companies.
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