Consulting Case Interview Practice Questions - Question List

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91. Which of the following could be an example of hedging? Select all that apply:
  1. Buying futures on oil
  2. Hiring a strategy consultant
  3. Protecting against fluctuating exchange rates
  4. Changing back-office processors
92. Low-on-Cash Inc. decides to use factoring to improve cash flow. This strategy would involve which of the following?
  1. Selling accounts receivable to a collection agency or a bank
  2. Selling goods on credit but with a specified date for payment
  3. Selling the factors of production for cost, plus a small mark-up
  4. Selling unused factory equipment to make up for the short-fall in cash flow
93. Ted is negotiating a 10-year contract with the U.S. government to provide educational services. The government wants a fixed price project. However, Ted is extremely concerned about the possibility of inflation given the increase in government spending. Ted should suggest what time of contract?
  1. Inflatable
  2. Floater
  3. Bonded adjustment
  4. Fixed price with economic adjustment
  5. Treasury
94. True or false: The Internet decreased search costs.
  1. True
  2. False
95. A number of highly trained workers from a large domestic airline have been reclassified owing to major technological changes in the operations of the airline. These employees have been told that the work they performed in the past is no longer required.Which of the concepts below best describes this situation?
  1. De-skilling
  2. Globalization
  3. Inertia of managers
  4. Resistance to change
  5. Planned obsolesce

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