Business & Finance
Money, markets, and the numbers that run the world.
51 answers explained
Why did Starbucks' evening alcohol programme fail between 2010-2017?
B. Starbucks customers visit for coffee not alcohol; it cannibalised existing sales2 min
Why did Blockbuster decline after refusing to buy Netflix for $50M in 2000?
B. Blockbuster refused the deal then added late fees that drove customers away2 min
Why did the Arch Deluxe fail despite a $150M ad spend in 1996?
B. Marketed at adults but McDonald's customers want comfort food2 min
Why did Juicero fail in 2016 despite $120M investment?
B. Bloomberg revealed users could squeeze the packs by hand just as well2 min
Why did Toys R Us partly blame an Amazon deal for its bankruptcy?
B. It signed an exclusive deal with Amazon which Amazon later broke to compete directly2 min
Why did Sears decline despite its iconic American brands?
B. It missed e-commerce and sold Craftsman and Kenmore brands to raise cash2 min
Why did WeWork's IPO collapse in 2019 from a $47B valuation?
B. Investors saw the prospectus revealing the company was losing $219,000 per hour2 min
Why did the Ford Edsel fail between 1957-1960?
B. Poor timing, ugly design and over-hype losing $350M2 min
Why did Kodak go bankrupt in 2012 despite inventing the digital camera?
B. It suppressed the digital camera to protect its film sales2 min
Why did Theranos collapse as a blood-testing company?
B. Elizabeth Holmes fabricated the technology and was convicted of fraud in 20222 min
Why did Motorola Iridium satellite phone go bankrupt after its 1998 launch?
B. It cost $3,000 plus $7 per minute and lost its $5B investment within a year of launch2 min
Why did the Post Office's iPost email service fail in the 1990s?
B. Private email services were faster and completely free; it could not compete2 min
Why did BlackBerry lose its 50% smartphone market share?
B. It refused to build a touchscreen and kept its ecosystem closed2 min
Which U.S. state is the ONLY one with a state-owned bank?
A. North Dakota2 min
True or False: The stock market always goes up over any 10 year period.
False. While the stock market has historically trended upward over long periods, there are examples of 10-year periods with negative or flat returns, such as th2 min
Which would you choose: a raise every year for 10 years, or a lump sum of $200,000 today?
This is a opinion/preference question with no single correct answer. It depends on the size of the raise, current salary, and personal financial circumstances.2 min
Harland and Wolff built the Titanic in Belfast largely because of what rivalry?
A. White Star Line racing Cunard's faster liners2 min
Who invented the first waterproof disposable diaper cover, back in 1946?
A. Marion Donovan2 min
If your salary is $60,000 and you follow the 50/30/20 rule, how much goes to savings?
B. $12,0002 min
Which of these is NOT a type of bond?
C. Equity bond2 min
If you save $200 a month for 30 years at 7% average return, roughly how much do you end up with?
C. $245,0002 min
What is the average credit score considered 'good' in the US?
B. 670-7392 min
Index funds usually charge higher fees than actively managed funds.
B. False2 min
A house costs $300,000 with a 20% down payment. How much is the down payment?
B. $60,0003 min
If inflation is 3% a year, how much will $100 be worth in real terms after 10 years?
A. $742 min
What does 'ROI' stand for in finance?
B. Return on Investment2 min
What does it mean to dollar-cost average?
A. Invest a fixed amount at regular intervals2 min
What percentage of Americans live paycheck to paycheck?
C. About 60%2 min
What is diversification in investing?
A. Spreading investments across different types of assets2 min
What does 'blue chip' stock refer to?
B. A large, stable, well-established company stock2 min
Which company is the largest retailer in the world by revenue?
B. Walmart2 min
Which stock market crash triggered the Great Depression?
A. 1929 crash2 min
An index fund charges a 0.03% expense ratio. On a $10,000 investment, what's the annual fee?
A. $32 min
Why did energy giant Enron collapse in 2001?
B. Accounting fraud that hid massive debt2 min
Which country has the highest minimum wage in the world (nominal, as of recent data)?
C. Luxembourg2 min
What is a 'unicorn' company in startup terminology?
B. A privately held startup valued over $1 billion2 min
You invest $5,000 at 6% compound interest. Roughly how much after 15 years?
B. $11,9832 min
Which economic indicator measures the unemployment rate monthly in the US?
B. Jobs report (Nonfarm Payrolls)2 min
A higher credit score always means a lower interest rate on loans.
A. True2 min
Diversification guarantees you won't lose money.
B. False2 min
What is a bear market?
A. A market where prices are falling and investors are pessimistic2 min
Which US agency insures bank deposits up to $250,000?
B. FDIC2 min
Why did Netflix cancel its Qwikster DVD spinoff within weeks in 2011?
B. Customer backlash over splitting the service and raising prices2 min
What is the world's largest sovereign wealth fund by assets?
B. Norway's Government Pension Fund2 min
A credit card charges 20% APR. Roughly how long to double a balance if only paying interest?
B. 3.5 years2 min
How many months of expenses is an emergency fund commonly recommended to cover?
B. Three to six months2 min
Why did HP discontinue the TouchPad just weeks after its 2011 launch?
B. Weak sales and webOS could not compete with the iPad2 min
Why did the Tata Nano struggle after its 2009 launch as the world's cheapest car?
B. The cheapest-car image put buyers off, plus early safety worries2 min
What is the Rule of 72 used to estimate?
B. Years for an investment to double2 min
Which central bank sets interest rates for the United States?
B. Federal Reserve2 min
What term describes a sustained rise in the general price level of goods and services?
C. Inflation2 min