Amazon MBA Trivia 2 — Questions and Answers
Question 1: In finance, what does WACC stand for?
- Weighted Average Cost of Capital (Correct answer)
- Working Asset Capital Charge
- Weighted Annual Capital Cost
- Whole Asset Cash Coverage
Correct answer: Weighted Average Cost of Capital
WACC is the Weighted Average Cost of Capital, the blended rate a firm pays to finance its assets.
Question 2: The Four P's of the marketing mix are Product, Price, Place, and what?
- Promotion (Correct answer)
- People
- Process
- Profit
Correct answer: Promotion
The classic marketing mix consists of Product, Price, Place, and Promotion.
Question 3: What does ROI measure?
- Return on Investment (Correct answer)
- Rate of Inflation
- Revenue over Income
- Risk of Insolvency
Correct answer: Return on Investment
ROI measures the gain or loss generated relative to the amount invested.
Question 4: In a SWOT analysis, what does the 'T' represent?
- Threats (Correct answer)
- Targets
- Trends
- Trade-offs
Correct answer: Threats
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
Question 5: Which financial statement shows a company's revenues and expenses over a period?
- Income statement (Correct answer)
- Balance sheet
- Statement of equity
- Cap table
Correct answer: Income statement
The income statement reports revenues, expenses, and net profit over a period.
Question 6: What is the term for the difference between selling price and variable cost per unit?
- Contribution margin (Correct answer)
- Gross revenue
- Net margin
- Markup ratio
Correct answer: Contribution margin
Contribution margin is the unit selling price minus the variable cost per unit.
Question 7: In Porter's Five Forces, which force concerns the power buyers have to drive down prices?
- Bargaining power of buyers (Correct answer)
- Threat of substitutes
- Industry rivalry
- Threat of new entrants
Correct answer: Bargaining power of buyers
The bargaining power of buyers reflects how much pressure customers can exert on prices.
Amazon MBA Trivia 2
In finance, what does WACC stand for?