Finance Unbox-ED (INR) - Grade 6-8 - Session 055 - Quiz 1

In business evaluation investors and entrepreneurs focus only on the future growth rate as the past growth rate is completely irrelevant

• True
• False

CAGR stands for Compound Annual Growth Rate

• True
• False

Select the statement that is true about CAGR

• CAGR helps understand growth of a product or service over a period of time
• CAGR helps compare the growth rate of two different products or services over a period of time
• Both of the above
• None of the above

Select the statement that is true about competitive intensity

• Competitive intensity refers to how many suppliers are there for the product or service
• Lesser the competitors better it is for the customers

• Both of the above
• None of the above

Select the statement that is true about monopolies

• Monopoly means that there is only one company that sells a product or a service
• Monopolies can charge higher prices, offer limited choices and provide poor quality
• Both of the above
• None of the above

Governments don’t like monopolies and hence there are antitrust laws in place to prevent monopolies and protect consumers such as you and me

• True
• False

Select the statement that is true

• Duopoly means that two companies control the entire or almost the entire market
• Oligopoly means that there are several companies offering the same product or service in the market
• Both of the above
• None of the above

Governments like markets that are duopolies or oligopolies since there is more than one choice for customers and hence there is no need for the government to keep a watch on them

• True
• False

Barriers to entry are the obstacles or challenges that make it difficult for new companies to enter an industry or market

• True
• False

Economies of scale refers to companies staying small so that they can adapt to changes and keep their costs low

• True
• False