Instant Access HBX.CORe.v2022-05-03.q93 Actual Practice Test Engine for Free (Page 6)

Question 21

In calculating cash flows, which of the following scenarios would lead to a decrease in net working capital?

A.A decrease in net operating fixed assets
B.A decrease in current liabilities greater than a decrease in current assets
C.An increase in current liabilities greater than an increase in current assets
D.An increase in current assets greater than an increase in current liabilities

Question 22

The electric car market is expected to grow significantly over the next few years due to new technologies making electric cars more affordable. Which of the following types of companies would MOST likely benefit from the substitution of electric cars for traditional vehicles?

A.Airlines
B.Auto mechanics
C.Public transportation
D.Oil suppliers

Question 23

What is the first item that is usually forecasted when projecting financial statements?

A.Operating expenses
B.Capital expenditures
C.Revenue/Sales
D.Net income

Question 24

Which of the following figures does an analyst need to calculate from the income statement in order to calculate free cash flows?

A.Gross profit
B.Net revenue
C.Earnings before interest and taxes
D.Capital expenditures

Question 25

A computer software company with market power is about to release two new products. The company knows that there is high variability in consumers' willingness to pay (WTP) for each individual product, but a customer with a low WTP for one good is likely to have a high WTPfor the other. If the marginal cost of software is $0, what pricing structure is MOST likely to maximize profits for the computer software firm?

A.Sell each product at consumers' average willingness to pay
B.Sell the products together as a bundle
C.Sell the products at a high price but offer a discount to students
D.Sell each product for a minimal price, since the marginal costs of software are extremely low

Question 21

Question 22

Question 23

Question 24

Question 25

Download PDF File