Chapter 4: Amazon; An Empire streWhich of
the following is true of Amazon?tching from
cardboard box to kindle to cloud
Which of the following is true of Amazon?
-Amazon has limited its product categories to only books.
-Amazon has centered its focus on quarterly results.
-Amazon initially adopted the domain of a non-profit organization.
-Amazon's profitability has remained constant over the years and analysts continue to
predict profits in the firm's future.
-Amazon went seven whole years without turning a profit. - answer-Amazon went seven
whole years without turning a profit.
Bezos is regarded as such a successful CEO in part based on his relentless focus on his firm's
quarterly performance.
True/False - answer-False
While Amazon took several years to turn a profit, the firm has been known for consistent and
growing profits ever since.
True/False - answer-False
Amazon's CEO has invested in many firms, including a commercial rocketry and aviation firm
that intends to send humans into space and which has already launched a suborbital
capsule test.
True/False - answer-True
Which of the following is not a firm that has received an investment from Jeff Bezos?
BlueOrigin
Uber
The Washington Post
Bezos has invested in all of the above businesses
Twitter - answer-Bezos has invested in all of the above businesses
Identify the true statement about Amazon.
-Amazon made profits from the first year of its operation.
-Amazon takes a relatively long-term view with respect to investing in initiatives and its
commitment to grow profitable businesses.
-Amazon is the second largest online retailer in the world.
-Amazon's profitability has remained constant over the years and analysts continue to
predict profits for the firm's future.
-Amazon focuses on the immediate harvesting of profits to gain a strategic advantage in the
market. - answer-Amazon takes relatively long-term view with respect to investing in
initiatives and its commitment to grow profitable businesses
Which of the following is true?
-The three pillars of Amazon's business are large selection, convenience, and lower prices.
, -Amazon is no longer the world's largest online retailer.
-Amazon's profitability has remained constant over the years and analysts continue to
predict profits for the firm's future.
-Amazon got its start selling games online.
-Amazon's strength lies in being always able to sell well directly to its customers. - answer-
The three pillars of Amazon's business are large selection, convenience, and lower prices
Computers help make sure shelvers stack similar items next to each other. The goal? Make
sure that if an order picker seeks something like Legos, they'll find all of the firm's offerings
in one spot.
True/False - answer-False
Which of the following is a benefit derived from Amazon's use of Kiva robots in its fulfillment
centers?
-Cuts average order fulfillment time
-All of the above
-Reduces unload time for inbound inventory
-Allows warehouses to store more product - answer-All of the above
The use of Kiva robots has also allowed Amazon to radically reduce headcount, saving the
firm additional money by cutting its workforce.
True/False - answer-False
Amazon reports a negative cash conversion cycle, which means it:
-focuses on advancing profit harvesting.
-sells goods after it pays the suppliers.
does not allow third-party sellers to use its website.
-sells goods before it has to pay its suppliers.
-defers profits in order to invest in long-term opportunities. - answer-Sells goods before it
has to pay its suppliers
In order to achieve a negative cash conversion cycle a firm would want to:
Decrease its account payable period and its inventory turns.
Decrease its account payable terms and increase its inventory turns.
Increase its account payable period and its inventory turns.
Increase its account payable terms and decrease its inventory turns. - answer-Increase its
account payable period and its inventory turns
While Amazon is the largest online retailer, the firm has struggled with customer
satisfaction, largely because processes are automated and the firm offers little phone
support or human assistance. The firm allows this tradeoff because it helps cut costs.
True/False - answer-False
Identify the accurate statement about Amazon.
-Amazon does not allow third-party sellers to use its website.
-Amazon employees are given the freedom to challenge even the most senior managers to
all the way up to the founder.
-Amazon looks to make money directly from Kindle hardware sales.
the following is true of Amazon?tching from
cardboard box to kindle to cloud
Which of the following is true of Amazon?
-Amazon has limited its product categories to only books.
-Amazon has centered its focus on quarterly results.
-Amazon initially adopted the domain of a non-profit organization.
-Amazon's profitability has remained constant over the years and analysts continue to
predict profits in the firm's future.
-Amazon went seven whole years without turning a profit. - answer-Amazon went seven
whole years without turning a profit.
Bezos is regarded as such a successful CEO in part based on his relentless focus on his firm's
quarterly performance.
True/False - answer-False
While Amazon took several years to turn a profit, the firm has been known for consistent and
growing profits ever since.
True/False - answer-False
Amazon's CEO has invested in many firms, including a commercial rocketry and aviation firm
that intends to send humans into space and which has already launched a suborbital
capsule test.
True/False - answer-True
Which of the following is not a firm that has received an investment from Jeff Bezos?
BlueOrigin
Uber
The Washington Post
Bezos has invested in all of the above businesses
Twitter - answer-Bezos has invested in all of the above businesses
Identify the true statement about Amazon.
-Amazon made profits from the first year of its operation.
-Amazon takes a relatively long-term view with respect to investing in initiatives and its
commitment to grow profitable businesses.
-Amazon is the second largest online retailer in the world.
-Amazon's profitability has remained constant over the years and analysts continue to
predict profits for the firm's future.
-Amazon focuses on the immediate harvesting of profits to gain a strategic advantage in the
market. - answer-Amazon takes relatively long-term view with respect to investing in
initiatives and its commitment to grow profitable businesses
Which of the following is true?
-The three pillars of Amazon's business are large selection, convenience, and lower prices.
, -Amazon is no longer the world's largest online retailer.
-Amazon's profitability has remained constant over the years and analysts continue to
predict profits for the firm's future.
-Amazon got its start selling games online.
-Amazon's strength lies in being always able to sell well directly to its customers. - answer-
The three pillars of Amazon's business are large selection, convenience, and lower prices
Computers help make sure shelvers stack similar items next to each other. The goal? Make
sure that if an order picker seeks something like Legos, they'll find all of the firm's offerings
in one spot.
True/False - answer-False
Which of the following is a benefit derived from Amazon's use of Kiva robots in its fulfillment
centers?
-Cuts average order fulfillment time
-All of the above
-Reduces unload time for inbound inventory
-Allows warehouses to store more product - answer-All of the above
The use of Kiva robots has also allowed Amazon to radically reduce headcount, saving the
firm additional money by cutting its workforce.
True/False - answer-False
Amazon reports a negative cash conversion cycle, which means it:
-focuses on advancing profit harvesting.
-sells goods after it pays the suppliers.
does not allow third-party sellers to use its website.
-sells goods before it has to pay its suppliers.
-defers profits in order to invest in long-term opportunities. - answer-Sells goods before it
has to pay its suppliers
In order to achieve a negative cash conversion cycle a firm would want to:
Decrease its account payable period and its inventory turns.
Decrease its account payable terms and increase its inventory turns.
Increase its account payable period and its inventory turns.
Increase its account payable terms and decrease its inventory turns. - answer-Increase its
account payable period and its inventory turns
While Amazon is the largest online retailer, the firm has struggled with customer
satisfaction, largely because processes are automated and the firm offers little phone
support or human assistance. The firm allows this tradeoff because it helps cut costs.
True/False - answer-False
Identify the accurate statement about Amazon.
-Amazon does not allow third-party sellers to use its website.
-Amazon employees are given the freedom to challenge even the most senior managers to
all the way up to the founder.
-Amazon looks to make money directly from Kindle hardware sales.
