What is “market capitalization”?

Stock price × number of shares

A major risk of disruptive branding is:

Alienating traditional consumers

What is the income statement used for?

Showing profit and loss over time

What does a company’s P/E ratio indicate?

Investor confidence relative to earnings

What does a high beta value mean for a stock?

It's volatile and sensitive to the market

Disruptive branding often leads to:

Media attention and brand loyalty

What might investors believe if stock prices rise?

The company is performing well or expected to

What causes inflation?

Rapid increase in consumer demand

What does a decrease in gas prices lead to?

Increase in consumer savings or spending

studbud

Junior/Senior Final Questions

21 termsStudBud Administration

Test your knowledge on economic principles and business strategies with questions related to supply and demand, inflation, branding, financial statements, and stock market indicators.

Flashcards21 cardsFPractice quizPHost liveL

Questions 21

Answers

1
What is “market capitalization”?
Stock price × number of shares
Company assets minus liabilities
Debt divided by equity
Revenue per share
2
What is one effect of a trade embargo?
Restricted access to goods
More imports
Increased global trade
Increased choice for consumers
3
A major risk of disruptive branding is:
Alienating traditional consumers
Higher quality standards
Stronger investor confidence
Improved loyalty
4
Disruptive branding aims to:
Avoid public attention
Maintain the status quo
Redefine consumer expectations
Follow industry norms
5
What is the income statement used for?
Showing profit and loss over time
Predicting stock splits
Measuring debt
Showing ownership structure
6
What is a result of rising interest rates?
Cheaper loans
More consumer spending
Reduced borrowing
Lower credit costs
7
What does a company’s P/E ratio indicate?
Earnings before interest
Investor confidence relative to earnings
Employee turnover
Dividend history
8
True or false: Diversification reduces overall risk.
True
False
9
What occurs if supply decreases?
They fall
They rise
They stay the same
They disappear
10
What does a high beta value mean for a stock?
It's volatile and sensitive to the market
It's undervalued
It doesn’t pay dividends
It's less risky
11
Which company is known for disruptive branding?
Tesla
AT&T
Barnes & Noble
Ford
12
Disruptive branding often leads to:
Media attention and brand loyalty
Brand confusion
Higher operational efficiency
Market stagnation
13
What might investors believe if stock prices rise?
The company is performing well or expected to
There is no effect
The company is going bankrupt
The company has lower future growth
14
What can a high unemployment rate lead to?
Lower government spending
Rising housing prices
Decreased consumer confidence
Higher consumer spending
15
What happens if wages rise but productivity stays flat?
Cut taxes
Raise prices
Cut all wages
Lower product quality
16
What happens with a new substitute product?
Increase significantly
Decrease
Stay the same
Double
17
If a company has negative free cash flow, it indicates:
Strong dividend potential
Long-term stability
Poor financial health
Good investment
18
What causes inflation?
Rapid increase in consumer demand
Increased production efficiency
Higher unemployment
Lower energy prices
19
What does a decrease in gas prices lead to?
Higher shipping costs
Lower consumer spending
Decrease in transportation usage
Increase in consumer savings or spending
20
What type of company uses disruptive branding?
A gas utility
A food distributor
A traditional insurance firm
A tech startup
21
What happens with increased product demand?
Supply increases instantly
Prices rise
Prices fall
Unemployment rises

Junior/Senior Final Questions Flashcards | StudBud