🧩 Chapter 9: Qualitative & Quantitative Research — Mock Questions
Q1. Quantitative research primarily deals with:
A. Numerical data and statistical analysis
B. Management interviews
C. Customer attitudes
D. Industry structure
Answer: A
✔ Quantitative = numbers, measurable data, statistics.
Q2. Which of the following is a qualitative method?
A. Regression analysis
B. Ratio analysis
C. Management discussion
D. Trend analysis
Answer: C
✔ Qualitative = opinions, insights, management quality, governance.
Q3. A limitation of quantitative analysis is that it:
A. Ignores numerical data
B. Cannot measure subjective factors like management integrity
C. Requires no calculations
D. Is always inaccurate
Answer: B
✔ Management quality, culture, and brand strength are qualitative.
Q4. A company with declining market share indicates:
A. Improving competitive position
B. Strong pricing power
C. Weak business moat
D. Exceptional growth
Answer: C
✔ Shrinking market share usually signals weakening competitive strength.
Q5. SWOT analysis includes:
A. Strengths, Weaknesses, Operations, Targets
B. Strengths, Weaknesses, Opportunities, Threats
C. Skills, Workflows, Objectives, Timelines
D. Structure, Workforce, Outlook, Trends
Answer: B
✔ The standard SWOT framework.
Q6. Which is NOT a qualitative factor?
A. Corporate governance
B. Management track record
C. Industry prospects
D. Debt-to-equity ratio
Answer: D
✔ Debt-to-equity = numerical = quantitative.
Q7. Primary research involves:
A. Using annual reports
B. Reading newspaper articles
C. Collecting first-hand data (surveys, interviews)
D. Analyzing financial statements
Answer: C
✔ Primary = original data collected by the analyst.
Q8. Secondary research includes:
A. Analyst interviews
B. Conducting customer surveys
C. Publicly available information
D. Factory visits
Answer: C
✔ Secondary = data already published (websites, filings, databases).
Q9. Which tool is widely used for quantitative forecasting?
A. Management opinion
B. Ratio analysis
C. Regression analysis
D. SWOT analysis
Answer: C
✔ Regression predicts trends using historical numerical data.
Q10. Corporate governance is best evaluated by:
A. Balance sheet items
B. Board structure, independence, disclosures
C. Working capital turnover
D. Earnings yield
Answer: B
✔ Governance = board quality, transparency, shareholder protection.
Q11. Channel checks are part of:
A. Fundamental quantitative analysis
B. Technical analysis
C. Primary qualitative research
D. Algorithmic trading
Answer: C
✔ Channel checks = speaking to suppliers/distributors/competitors.
Q12. Which is an example of financial quantitative data?
A. Customer perception
B. Management’s vision
C. Return on Equity (ROE)
D. Employee morale
Answer: C
✔ ROE is a numeric performance metric.
Q13. A company with high promoter pledging may indicate:
A. Strong balance sheet
B. High liquidity
C. Governance risk
D. High dividend potential
Answer: C
✔ Pledging signals financial stress or poor governance.
Q14. A top-down approach begins with:
A. Company fundamentals
B. Industry analysis first
C. Broad economy → industry → company
D. Competitor analysis only
Answer: C
✔ Top-down starts from macro to micro.
Q15. Quantitative screens are typically used to:
A. Evaluate product quality
B. Filter stocks based on numerical criteria
C. Assess HR policies
D. Understand customer behaviour
Answer: B
✔ Screens use numeric criteria like P/E, ROE, debt ratios.
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