trắc nghiệm tiếng anh thi vào ngân hàng có đáp án

trắc nghiệm tiếng anh thi vào ngân hàng có đáp án

1 Shareholders in the company (corporation) form of business are personally responsible for none of the liabilities of the company (corporation) unless they have provided a personal guarantee

C. Accounts payable (trade creditors)

D. Cost of goods sold

E Notes payable

3 A major difference between the company (corporation) and partnership forms of business organisation is that none of the shareholders in a company (corporation) are personally responsible for business liabilities, as general partners are in a partnership

B. New fixed assets until they are used up in producing products

C. Inventory (stock) until it is converted to sales and cash

D. General operations until the business returns to a more positive financial position

E A change in company ownership

6 The financial accounts of a sole trader present withdrawals taken during the year in the operating expenses of the business

A. True

B. False

7 If assets are defined as everything that supports the production process or results from it, then the shorter the

asset conversion cycle, the greater the level of financing a business normally requires

A. False

B. True

8 Which of the following is typically NOT considered an acceptable borrowing cause?

A Finance the range of assets required to support rapid growth

B. Finance survival until the company can be turned around

C. Finance inventory (stock) until it is converted to sales and cash

D. Pay down subordinated debt

9 The short-term financing gap can be expressed mathematically as…

A trade debtors in days plus inventory (stock) in days less trade creditors in days.

B. trade debtors in days plus trade creditors in days less inventory (stock) in days.

C. inventory (stock) in days less trade creditors in days.

D. trade creditors in days plus inventory (stock) in days less trade debtors in days.

10 In a period of rapid economic growth, a manufacturer would likely have the greatest borrowing need to finance which of the following? (select all that apply)

A Trade debtors until they are collected in cash

B. Inventory, stock, until it is converted to sales and cash

C. A change in company ownership

D. Finance fixed assets until they are used up in producing product

E Survival until the company can be turned around

11 Other things being equal, the…

A shorter a firm's trading cycle, the greater the amount of suppliers' credit or bank financing it will need.

B. longer a firm's trading cycle, the smaller the amount of suppliers' credit or bank financing it will need.

C. longer a firm's trading cycle, the greater the amount of suppliers' credit or bank financing it will need.

D. shorter a firm's trading cycle, the greater the amount of term debt it will need.

12 Long-term debt repayment depends primarily upon…

A rapid turnover of inventory (stock).

B. timely collection of accounts receivable (trade debtors).

C. ongoing profitability.

D. holding back payment of trade creditors as long as they'll allow.

13 Which of the following accounts would typically be proportionally larger on a manufacturer's financial statements than on those of a retailer? (select all that apply)

A Accounts payable (trade creditors)

B. Income tax provision

C. Work in process inventory (stock)

D. Cost of goods sold

E Accounts receivable (trade debtors)

14 The trading cycle can be defined as the time it takes to convert the purchase of inventory (stock) into a sale and convert the sale to cash

A business usually has a strong need for financing but represents too much risk to the

bank as it progresses through which stage of its life cycle.

 Start-up

 Adolescence

 Maturity

 Decline

A business that generally sells a major portion of its product to one buyer has leverage in

that it can then dictate the terms of the relationship with the purchaser

 True

 False

A profitable business requires a considerable level of financing to entirely support

increasing levels of operating expenses when in a growth phase

 True

 False

A business that generally sells a major portion of its product to one buyer has leverage in

that it can then dictate the terms of the relationship with the purchaser

 True

 False

A business usually has the smallest need for financing as it progresses through which

stage of its life cycle

 Adolescence

 Growth

 Maturity

 Transformation

A profitable business requires a considerable level of financing to entirely support

increasing levels of operating expenses when in a growth phase

As a stage in the life cycle of an industry or business, "maturity" refers to…

 when market demand has exceeded the available supply and sales and profits grow veryrapidly

 a fundamental change in the operations of a business intended to try and stave offdemise

 products remaining widely accepted and in high demand, and the capacity of the marketgrowing as new competitors enter the marketplace

 the set of activities that accompany sales shifts from expansion to contraction

 the life cycle stage in which a business is successfully dissolved

As a stage in the life cycle of an industry or business, "adolescence" refers to…

 the set of activities that accompany sales shifts from expansion to contraction

 when the product being sold has achieved a degree of acceptance and sales levels begin

 the life cycle stage in which a business is successfully dissolved

As a stage in the life cycle of an industry or business, "transition" refers to…

 any movement from one life cycle stage to the next

 the life cycle stage in which a business is successfully dissolved

 when the product being sold has achieved a degree of acceptance and sales levels begin

to increase

 a fundamental change in the operations of a mature business intended to try and stave off demise.

 the set of activities that accompany sales shifts from expansion to contraction

Credit risk varies depending on the stage of an industry's life cycle Emerging and declining industries generally carry more risk, while growing and mature industries are less risky

 True

 False

Credit risk varies depending on the stage of an industry's life cycle Emerging and declining industries generally carry less risk, while growing and mature industries are more risky

 True

 False

During a period of economic contraction as sales begin to decline, receivables (trade

debtors) and inventory (stock) levels tend to decrease and capital spending slows or stops

During a growth phase, a profitable business requires a greater level of financing solely

to support increasing levels of receivables (trade debtors) and inventory (stock)

Integrity is a critical management characteristic because… (24 Points)

 the lender's relationship is with management, not with the business

 it is the single most important indicator of a company's repayment ability

 most of the information needed to properly assess credit risk is provided by management

 it is the best single indicator of business success

In assessing the likelihood of loan repayment, it is equally important to focus analysis on management skill and management integrity, since both are fundamental to successful business operations

 True

 False

In assessing the risk associated with loan repayment, it is equally important to focus analysis on management skill and management integrity, because…

 low integrity may be offset by successful application of business practices in highly

competitive situations

 weakness in one must be offset by strength in the other if debt is to be serviced

properly

 skill can rarely be supplemented readily from external sources (0 Points)

 both skill and integrity are fundamental to successful business operations.

In general, a firm that sells a minority of its output to any one buyer is said to have "power" or leverage, in that it can normally dictate the terms of the relationship to the purchaser (24 Points)

 True

 False

If barriers to entry are considered to be low in a given industry, you could expect to

see…

 a concerted effort on the part of firms in the industry to increase switching costs

 little effort on the part of firms in the industry to differentiate their product

 sustained attempts on the part of firms in the industry to minimise value-added product

features

 sustained attempts on the part of firms in the industry to minimise advertising costs

If the bargaining power of buyers is weak in a given industry, the suppliers to that sector

may well experience…

 movement by individual buyers to grow their volume of purchases

 efforts by buyers to increase switching costs

 pressure from buyers to drive up supply prices by threat of forward integration

 demands from buyers to stretch trade payment terms

If products are well differentiated in a given market, a potential entrant may face heavy

development and advertising costs to establish itself and its product, thus reducing the

aspect of credit risk primarily because…

 corporate governance efforts suffer without smooth transition in management

 it provides a head start on future lending relationships and opportunities

 loans made now depend on cash flow in the future to be repaid as scheduled

 it is important to know exactly who the bank will be working with should the currentCEO depart

Market overcapacity decreases credit risk because it suggests customers are demanding more of a given product than the borrower can produce

 True

 False

Management succession is a critical issue to consider when analysing the management aspect of credit risk primarily because…

 corporate governance efforts suffer without smooth transition in management

 it provides a head start on future lending relationships and opportunities

 loans made now depend on cash flow in the future to be repaid as scheduled

 it is important to know exactly who the bank will be working with should the current

the majority of firms that ultimately fail have inexperienced management

in the end, management is responsible for all the decisions and policies adopted andimplemented by the company

experience in one business sector is easily transferable to other business sectors.management integrity is a function of job experience

The degree of experience present in the upper management of a business plays a key role

in assessing management risk because

 most firms that go out of business do so because of inexperienced management

 management integrity is a function of job experience

 the time spent in a specific business or industry is the best overall indicator ofcompetence

 management is ultimately responsible for decisions and policies adopted and

implemented by the business.

The generation of future cash flow is typically as dependent on management integrity as

 the time spent in a business or industry is the best indicator of competence

 management is ultimately responsible for all the decisions and policies adopted andimplemented by the business

 experience in one industry is usually easily transferred into success in other industries

 most businesses that fail are characterised by inexperienced management

Which of the following factors does NOT place the supplier in a position of power, or leverage, in the supplier/buyer relationship? (select all that apply)

 Importance of the suppliers’ product as an input to industry's products

 A few suppliers dominate the market

 Minimal switching costs

 There is an abundance of substitute products

 There are many suppliers producing the product

 Importance of the suppliers’ product as an input to industry's products

 A few suppliers dominate the market

 Minimal switching costs

 There is an abundance of substitute products

 There are many suppliers producing the product

When extending credit to firms in very mature industries, it is critical not only to identify which stage of the cycle an individual business and its industry are in, but also…

 how a firm seeks to maintain existing basic technologies (

 what the industry is doing to retain experienced management teams

 what marketing efforts the industry is making to maintain existing customers

 what a firm is doing to make the transition to stay in business

Which of the following is least adversely affected by market overcapacity

 Importance of the suppliers’ product as an input to industry's products

 A few suppliers dominate the market

 Minimal switching costs

 There is an abundance of substitute products

 There are many suppliers producing the product



Which one of the following elements places the supplier in a position of power, or

leverage, in the supplier/buyer relationship?

 There are many suppliers producing the product

 Considerable switching costs

 The supplier's product is relatively a unimportant component of the industry's

products

 There are a number of substitute products

With respect to integrity related matters, credit agency reports…

 that fail to reflect payment defaults indicate management integrity is sound

 that show slow trade payments always point to integrity issues

 that reflect payment defaults almost always point to integrity issues

 are not helpful in assessing integrity because management provides most of the

information contained in the reports

With respect to the role integrity plays in evaluating credit risk, credit agency reports

reflecting payment defaults almost always point to integrity issues

 True

 False

With respect to integrity related matters, credit agency reports…

that reflect payment defaults almost always point to integrity issues.

that show slow trade payments always point to integrity issues

are not helpful in assessing integrity because management provides most of the information contained inthe reports

that fail to reflect payment defaults indicate management integrity is sound

Of the following factors, which ones place the supplier in a position of power, or leverage, in the supplier/buyer relationship? (select all that apply)

 There are few suppliers producing the product

 Suppliers’ ability to integrate backward

 There are many suppliers producing the product

 Switching costs are minimal

 There are a lack of substitute products

For the purpose of analysing the management aspect of credit risk, management succession is a critical issue to consider principally because… \

 loans made today will depend on future cash flow to be repaid as scheduled

 it is important to know exactly who the lender will be working with should the current CEO depart

 it provides a head start on future lending relationships and opportunities

 corporate governance efforts suffer without smooth transition in management

For a business with numerous small buyers, the pressure from those buyers would likely…

 be more severe than the pressure from suppliers, thereby causing the relative level of inventory (stock) tostretch over time

 be less severe than the pressure from suppliers, thereby causing the relative level of inventory (stock) tolessen over time

 put little pressure on prices by virtue of significant individual purchases, thereby leaving prices largely unaffected by buyer pressure

 put great pressure on prices by virtue of significant individual purchases, thereby tending to drive pricesdown over time

Receivables (trade debtors) and inventory (stock) levels tend to increase, while capital spending slows or stops, during a period of economic contraction as sales begin to decline

 True

 False

Since a borrower's willingness to repay debts is an integrity related issue, credit agency reports…