Free Practice Quiz Question List

2 Market Changes and Project Value Online Quiz Questions

Use this free practice quiz with 20 questions to review 2 Market Changes and Project Value, test your knowledge, and prepare for your next test or exam.

20 questions

True or false

1 point

True or false: An upside or downside scenario predicts what will happen.

A
True
B
False

Fill in the blank

1 point

The amount actually received per unit after discounts, rebates, refunds, and similar adjustments is the .

Choose one

1 point

A project begins serving a larger share of lower-value customers. Which forecast effect should it consider?

A
It changes only the number of units sold and cannot affect costs.
B
It can change average sales and may also affect service or selling costs.
C
It guarantees that the project can raise its prices.
D
It affects project value only if total market size changes.

Written response

1 point

What term describes customers leaving or not renewing, which can reduce recurring revenue?

True or false

1 point

True or false: A competitor’s exit can support higher prices or sales for a project.

A
True
B
False

Choose all

1 point

Which sources of evidence can help assess likely customer demand? Select all that apply.

A
Customer interviews
B
Observed purchase and renewal behavior
C
Sales pipelines
D
Market data
E
Carefully designed tests
F
Extending past sales trends without reassessing assumptions

Fill in the blank

1 point

When a price change alters quantity demanded while other factors are held constant, this is a .

Written response

1 point

What term measures the percentage change in quantity demanded associated with a percentage change in price?

Choose one

1 point

A project faces elastic demand. If it raises its price, which outcome is possible according to the relationship between elasticity and revenue?

A
Quantity demanded falls by a smaller percentage, so total revenue always falls.
B
Quantity demanded does not respond to price, so total revenue stays constant.
C
Quantity demanded can fall by a larger percentage, lowering total revenue.
D
Quantity demanded rises by a larger percentage, raising total revenue.

Choose all

1 point

Which items, beyond revenue, can a market change affect and thereby change a project’s operating cash flows? Select all that apply.

A
Variable costs
B
Customer-acquisition expenses
C
Staffing
D
Capacity needs
E
Working capital
F
Investment needed to sustain growth

Written response

1 point

A project expects to sell $2{,}000$ units at a net price of $\$30$ per unit. A market change cuts the net price by $5\%$ and expected unit sales by $10\%$ . What is the projected revenue? Enter a number of dollars without commas or a currency symbol.

Choose one

1 point

A market change is expected to increase revenue by $10\%$ . What can be concluded about its effect on project value?

A
Project value must change by exactly the same percentage as revenue.
B
The value effect depends on factors such as margins, costs, investment, timing, and risk.
C
Project value is unaffected unless unit sales change.
D
A revenue increase always increases value by the same amount.

Choose one

1 point

What does discounted-cash-flow analysis account for when valuing expected future cash flows?

A
It values current revenue while ignoring future cash flows.
B
It assumes market changes affect sales but never costs or investment.
C
It values expected future cash flows while accounting for timing and risk.
D
It converts every revenue change into an equal percentage change in value.

Open ended

1 point

A project expects stronger competition and slower customer adoption. Describe a practical way to assess how these changes could affect project value. Include how to revise the forecast and how to represent uncertainty.

True or false

1 point

True or false: A downside scenario should be treated as a prediction of what will happen.

A
True
B
False

Written response

1 point

What term means the amount actually received per unit after discounts, rebates, refunds, and similar adjustments?

Choose one

1 point

A product becomes more popular, so customers would want to buy more at a range of prices. Which market change does this illustrate?

A
A price decrease leads customers to buy more, with other factors unchanged.
B
Customer preferences change so customers want more at a range of prices.
C
A temporary discount prompts some customers to purchase earlier.
D
A change in price alters the quantity demanded, with other factors unchanged.

Choose one

1 point

A project expects its customer mix to shift toward higher-value customers, but those customers may require more service. What should the forecast reflect?

A
Forecast higher sales only; customer mix cannot affect costs.
B
Forecast lower sales because a customer mix shift always reduces volume.
C
Reassess average sales and the costs of serving the new customer mix.
D
Leave the forecast unchanged unless the total number of customers changes.

Choose one

1 point

A project faces elastic demand. If it raises its price, which outcome is possible according to the relationship between price and quantity demanded?

A
A price increase can lower revenue because quantity demanded falls by a larger percentage.
B
A price increase must raise revenue because each unit sells for more.
C
A price increase leaves revenue unchanged whenever demand is elastic.
D
Elastic demand means quantity demanded changes less than price.

Choose one

1 point

A well-resourced competitor enters the market. Which forecast adjustment best reflects the possible effects on the project?

A
A new competitor can affect price but not unit sales.
B
A new competitor can affect unit sales but not marketing or service costs.
C
A new competitor changes customer preferences but cannot affect project costs.
D
A new competitor may reduce sales or sustainable prices and increase marketing or service costs.

2 Market Changes and Project Value Online Quiz Questions

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