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1.
Which of the following questions will not likely help you analyze a business?
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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.
Which of these companies best exemplifies the use of the network effect?
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EBay. eBay is the quintessential example of a company with a strong network effect.
3.
Why are economic moats advantageous?
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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.
4.
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.
5.
Which of these is not a type of economic moat?
Choose wisely. There is only one correct answer.
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.