Tony Hsieh, CEO of Zappos, Offers Up to $5,000 to Anyone

question 122

Multiple Choice

Tony Hsieh, CEO of Zappos, offers up to $5,000 to anyone who

• A) identifies a completely new market segment with a product to match it.
• B) finds a way of improving service to online customers.
• C) takes the customer-loyalty training class and decides to quit anyway.
• D) finds a shoe-related product that Zappos does not already carry.
• E) creates a humorous theme for one of the monthly company meetings.

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Definitions:

Monthly Interest Rate

The interest rate applied to a loan or investment for a one-month period, often used for calculating monthly payments.

Variable Cost

consists of costs that vary with the level of output, such as materials and labor costs, different from fixed costs.

NPV

Net Present Value; a financial metric used to assess the profitability of an investment by calculating the difference between the present value of cash inflows and outflows associated with the investment.

Default Chance

The probability that a borrower will fail to meet the obligations of a loan or debt.