Amazon MBA Trivia 3 — Questions and Answers
Question 1: What does NPV stand for in capital budgeting?
- Net Present Value (Correct answer)
- New Project Valuation
- Nominal Par Value
- Net Profit Variance
Correct answer: Net Present Value
NPV is Net Present Value, the discounted value of future cash flows minus the initial investment.
Question 2: Economies of scale refer to cost advantages gained from what?
- Increased production volume (Correct answer)
- Higher product prices
- Reduced marketing spend
- Fewer competitors
Correct answer: Increased production volume
Economies of scale lower the per-unit cost as production volume rises.
Question 3: Which leadership style involves making decisions without input from team members?
- Autocratic (Correct answer)
- Democratic
- Laissez-faire
- Transformational
Correct answer: Autocratic
Autocratic leaders make decisions unilaterally without consulting the team.
Question 4: What is the break-even point?
- Where total revenue equals total cost (Correct answer)
- Where profit is maximized
- Where market share peaks
- Where debt equals equity
Correct answer: Where total revenue equals total cost
The break-even point is where total revenue equals total costs, yielding zero profit.
Question 5: In accounting, the equation 'Assets = Liabilities + Equity' is known as the what?
- Accounting equation (Correct answer)
- Profit equation
- Leverage equation
- Liquidity ratio
Correct answer: Accounting equation
The accounting equation states that assets equal liabilities plus owners' equity.
Question 6: What does B2B stand for in business strategy?
- Business to Business (Correct answer)
- Brand to Buyer
- Back to Basics
- Bid to Buy
Correct answer: Business to Business
B2B refers to commerce between businesses rather than to consumers.
Question 7: Which concept describes a market dominated by a single seller?
- Monopoly (Correct answer)
- Oligopoly
- Monopsony
- Perfect competition
Correct answer: Monopoly
A monopoly exists when one seller controls the entire market for a product.
Amazon MBA Trivia 3
What does NPV stand for in capital budgeting?