Amazon MBA Trivia 3

Question 1

What does NPV stand for in capital budgeting?

Accepted Answer

Net Present Value

Answer

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?

Accepted Answer

Increased production volume

Answer

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?

Accepted Answer

Autocratic

Answer

Autocratic leaders make decisions unilaterally without consulting the team.

Question 4

What is the break-even point?

Accepted Answer

Where total revenue equals total cost

Answer

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?

Accepted Answer

Accounting equation

Answer

The accounting equation states that assets equal liabilities plus owners' equity.

Amazon Practice Test