Podcast
Questions and Answers
Which of the following is the most important consideration when evaluating a client's industry?
Which of the following is the most important consideration when evaluating a client's industry?
- The overall growth and profitability of the industry
- The client's financial performance relative to industry averages
- The client's market share within the industry
- The level of competition and barriers to entry in the industry (correct)
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?
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 (correct)
- The level of government regulation and oversight in the construction industry
- The availability and cost of key raw materials used in construction projects
- The degree of cyclicality in the construction industry
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?
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 level of government subsidies and tax incentives for the technology industry
- The client's patent portfolio and intellectual property protections
- The client's ability to attract and retain skilled technical talent (correct)
- The client's market share within its specific product or service segment
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?
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?
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?
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?
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?
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?
What is an important question to ask a customer when evaluating risks that are not conveniently categorized?
What is an important question to ask a customer when evaluating risks that are not conveniently categorized?
Which of the following is a risk factor that small businesses with limited management teams are particularly vulnerable to?
Which of the following is a risk factor that small businesses with limited management teams are particularly vulnerable to?
What are some of the 'five D's of credit' that could pose financial risks to a business?
What are some of the 'five D's of credit' that could pose financial risks to a business?
Why are small businesses with limited management teams vulnerable to personnel issues?
Why are small businesses with limited management teams vulnerable to personnel issues?
Which industry sector is mentioned as having special problems and credit needs in the text?
Which industry sector is mentioned as having special problems and credit needs in the text?
What is one key characteristic of evaluating industry sectors according to the text?
What is one key characteristic of evaluating industry sectors according to the text?
Which of the following is NOT a characteristic of the leisure/tourism industry according to the text?
Which of the following is NOT a characteristic of the leisure/tourism industry according to the text?
Which of these is a key consideration when evaluating the client's market according to the text?
Which of these is a key consideration when evaluating the client's market according to the text?
What does the text suggest is a characteristic of government entities?
What does the text suggest is a characteristic of government entities?
Which of the following is NOT a characteristic of nonprofit companies?
Which of the following is NOT a characteristic of nonprofit companies?
Which of the following is considered when evaluating competition in the client's market, according to the text?
Which of the following is considered when evaluating competition in the client's market, according to the text?
What does the text suggest is a key characteristic of the construction industry?
What does the text suggest is a key characteristic of the construction industry?
