Consulting Case Interview Practice Questions - Question List

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111. Why might a company want to increase inventory turns? Select all that apply:
  1. Reduce inventory risk
  2. Reduce holding cost
  3. Increase stockouts
  4. Improve cash flows
  5. Factor accounts receivable
112. Liquidity risk is financial risk due to uncertain liquidity. What can cause this to happen?
  1. A firm’s credit rating falls
  2. A firm experiences sudden unexpected cash outflows
  3. A firm’s market experiences a loss in liquidity
  4. All of the above
113. What does the Place mean in the 4Ps framework for marketing?
  1. Inventory and Storage
  2. Distribution Channels
  3. Manufacturing Location
  4. Location of Advertising
  5. Home Office
114. True or false: A stock-out is when demand for a good cannot be fulfilled from inventory.
  1. True
  2. False
115. A cream-skinning pricing strategy can erode long-term customer loyalty.
  1. True
  2. False

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