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Stocks 204: Start Thinking Like an Analyst

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1.
Which of the following questions will not likely help you analyze a business?
Choose wisely. There is only one correct answer.
None of the above. All of the above are good questions to ask in business analysis. There are hundreds more, of course. But these are a good start.
2.
Determining the goal of a business is normally easy.
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False. Sometimes it is not easy, because a business might combine different objectives.
3.
What is an economic moat?
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A long-term competitive advantage that allows a company to earn oversized profits over time. A moat protects the business and does not let other businesses in.
4.
Which of these is not a type of economic moat?
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Technological expertise. Technological expertise can form the foundation for an economic moat, but it is rare that the expertise provides a sustainable, long-term competitive advantage, because improvements in technology are often easily imitated.
5.
Why are economic moats advantageous?
Choose wisely. There is only one correct answer.
They allow a company to generate profits and keep competitors at bay. Companies that reward investors over the long haul are those that have a durable competitive advantage.