ARM 402: MULTIPLE CHOICE SECTION 3 QUESTIONS
WITH VERIFIED ANSWERS
Correct 55
Incorrect 00
1 of 55
Term
One advantage associated with contingent capital arrangements is that
the
Give this one a try later!
Capital commitment fee is higher than Cost of funds is less than with
an insurance premium. insurance.
Cost of capital infusion will vary as
Cost of risk retention is higher.
conditions change.
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2 of 55
,Term
Which one of the following commonly used categories of operational
risk includes risks associated with technology and equipment?
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Systems External events
People Process
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3 of 55
Term
A major benefit of involving a special purpose vehicle (SPV) in a
securitization transaction is that investors can decide whether to invest
in the securities based on the
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Risk presented by the income-
producing assets held as Overall credit risk of the organization.
collateral by the SPV.
Organization's balance sheets.
, Number of borrowers involved and
their individual risk.
Don't know?
4 of 55
Term
When conducting a SWOT analysis, one method has three activities:
Brainstorming, Refining, and Prioritizing. When brainstorming,
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Factors are listed under each of Strengths are order by quality and
the SWOT headings. relative importance.
Similar items are cluster together an Factors are evaluated and accepted
alphabetized. or rejected.
Don't know?
5 of 55
Term
In reviewing its business results, Metal Shop, a fabricator of metal tools,
discovered that the development costs of new tools far exceed
expectations and budget. The root cause of the excess costs is the
competition for skilled workers. Skilled tool makers are in demand, and
Metal Shop has lost several during the year to competitors, replacing
, them with new inexperience tool makers at higher salaries. In a SWOT
analysis, how would Metal Shop categorize its inability to maintain
skilled tool makers?
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Threat Weakness
Strength Opportunity
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6 of 55
Term
Which one of the following statements is true regarding the strategic
management process?
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Strategic management is a linear The strategic management process is
process that ends once the strategic only relevant for large, publicly
plan is published. traded corporations.
The strategic management
process can be applied to any
The strategic management process
type of organization, including
focuses exclusively on short-term
business, not-for-profit
WITH VERIFIED ANSWERS
Correct 55
Incorrect 00
1 of 55
Term
One advantage associated with contingent capital arrangements is that
the
Give this one a try later!
Capital commitment fee is higher than Cost of funds is less than with
an insurance premium. insurance.
Cost of capital infusion will vary as
Cost of risk retention is higher.
conditions change.
Don't know?
2 of 55
,Term
Which one of the following commonly used categories of operational
risk includes risks associated with technology and equipment?
Give this one a try later!
Systems External events
People Process
Don't know?
3 of 55
Term
A major benefit of involving a special purpose vehicle (SPV) in a
securitization transaction is that investors can decide whether to invest
in the securities based on the
Give this one a try later!
Risk presented by the income-
producing assets held as Overall credit risk of the organization.
collateral by the SPV.
Organization's balance sheets.
, Number of borrowers involved and
their individual risk.
Don't know?
4 of 55
Term
When conducting a SWOT analysis, one method has three activities:
Brainstorming, Refining, and Prioritizing. When brainstorming,
Give this one a try later!
Factors are listed under each of Strengths are order by quality and
the SWOT headings. relative importance.
Similar items are cluster together an Factors are evaluated and accepted
alphabetized. or rejected.
Don't know?
5 of 55
Term
In reviewing its business results, Metal Shop, a fabricator of metal tools,
discovered that the development costs of new tools far exceed
expectations and budget. The root cause of the excess costs is the
competition for skilled workers. Skilled tool makers are in demand, and
Metal Shop has lost several during the year to competitors, replacing
, them with new inexperience tool makers at higher salaries. In a SWOT
analysis, how would Metal Shop categorize its inability to maintain
skilled tool makers?
Give this one a try later!
Threat Weakness
Strength Opportunity
Don't know?
6 of 55
Term
Which one of the following statements is true regarding the strategic
management process?
Give this one a try later!
Strategic management is a linear The strategic management process is
process that ends once the strategic only relevant for large, publicly
plan is published. traded corporations.
The strategic management
process can be applied to any
The strategic management process
type of organization, including
focuses exclusively on short-term
business, not-for-profit
