Quiz on Business Concepts and Biases

What is the Recency effect?

• The tendency to only pay attention to supporting information

• The tendency to select the most obvious decision

• The tendency to select options that feel familiar

• The tendency to select the option presented most recently

Which of the following best describes Occam's Razor?

• The tendency to select the most recent option

• The tendency to assume the most obvious decision is the best

• The tendency to choose familiar options

• The tendency to ignore contrary information

What does Inertia Bias refer to?

• Selecting options that feel familiar and safe

• Assuming the obvious choice is the best

• Choosing options based on recent information

• Focusing only on supporting viewpoints

What is Confirmation Bias?

• The tendency to select the most recent option

• The tendency to assume the most obvious decision is the best

• The tendency to choose familiar options

• The tendency to only pay attention to information that supports your viewpoint

What is the vision statement for the coffee shop?

• To establish a profitable coffee shop

• To create a coffee shop that provides high quality coffee

• To hire a skilled barista

• To develop a distinctive menu

What is the business goal mentioned in the text?

• To establish a profitable and sustainable coffee shop

• To hire a trained barista

• To create a coffee shop

• To secure a prime location

What is one of the objectives for the coffee shop?

• To create a vision statement

• To calculate CPI and SPI

• To establish a business goal

• To develop a menu with pricing

What does CPI stand for?

• Calculated Performance Index

• Cost Performance Index

• Current Performance Index

• Cost Planning Index

What does SPI represent?

• Sustained Performance Index

• Scheduled Performance Index

• Standard Performance Index

• Strategic Performance Index

What is the formula for calculating CPI?

• EV / AC

• AC / EV

• PV / AC

• EV / PV