Why Unprofitable Companies Are Winning in 2020

Why Unprofitable Companies Are Winning in 2020

Assessment

Interactive Video

Business

7th - 12th Grade

Hard

Created by

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The video explores the concept of profit in business, highlighting the rise of 'zombie companies' that operate without turning a profit. It examines why investors continue to fund these businesses, focusing on the growth-at-all-costs mindset and the role of venture capital. The process of funding rounds and IPOs is detailed, showing how companies attract different types of investors. The video concludes by analyzing the economic impact of profitless companies, questioning their sustainability and potential market distortions.

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4 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways can profitless companies be more resilient during economic downturns?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential consequences of misallocated resources in the economy?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the text describe the relationship between investors and profitless companies?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the author's perspective on the future of profitless companies?

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