Question

decision trees and expected monetary value are used when risks are unknown

True

False

Regret is synonymy’s to the opportunity cost

True

False

Absolute Competitive Advantage limits firms from succeeding

True

False

Morning Star approach to investing is based on the assessment of the width of a “moat” built around a business. The wider the moat the more attractive the business is

True

false

The trajectory of the path that ends at the point on the timeline called “Today” depicts:

A historical performance of a firm

A desired path

A feared path

All of these

None of these

Answer 1

1. True.

The decision trees are used to make decisions in a riskier or complex market, it helps in determining values of the outcomes in the terms of probability.

2. True.

Opportunity cost is basically defined as the loss of one alternative when other option is chosen, it is same as that of regreting.

3. False

Absolute advantage is an ability of a firm to produce a good at a lower price as compared to others, thus it help the firm in succedding.

4. True

Morning star approach uses the concept of competitive advantage that one firm has then the others, this advantage help the business to attract more investors and grow faster than the others.

5. None of these.

The trajectory of the path at the end points shows tthe current level of performance of a firm or a business.