Business Quiz
Questions: 16 · 10 minutes
1. A retailer records $120,000 in sales revenue and $72,000 in cost of goods sold. What is its gross profit?
$48,000
$72,000
$36,000
$120,000
2. What does limited liability generally mean for an owner of a qualifying business entity?
The business is no longer responsible for paying its debts
The owner's potential loss is generally limited to the investment, subject to guarantees and legal exceptions
The owner is guaranteed to recover the original investment
The business does not have to pay tax on its profits
3. Which statement best describes a strong value proposition?
A broad mission statement about the company's ideals
A clear explanation of the customer, the problem, and the distinctive benefit offered
A promise to charge less than every competitor in every situation
A complete list of every feature the company offers
4. What is market segmentation?
Dividing a broad market into groups with shared needs or characteristics
Setting a separate budget for each department
Expanding a product into every available sales channel
Splitting ownership among several investors
5. A supplier offers a lower unit price only if a business buys far more inventory than usual. What is the soundest way to evaluate the offer?
Accept it because a lower unit price always improves profit
Reject it because volume discounts are inherently misleading
Compare expected demand and the discount with purchasing, storage, financing, and obsolescence costs
Compare only the discount with the cash currently in the bank
6. A cohort begins with 500 new customers. Three months later, 350 of those same customers are still active. What is the cohort's three-month retention rate?
30%
50%
85%
70%
7. A company owns an empty storefront that could earn $2,000 per month in rent. It uses the space as its own showroom instead. What is the clearest opportunity cost?
The original purchase price of the storefront
The showroom's monthly utility bill
The total revenue earned by the showroom
The $2,000 in monthly rent the company gives up
8. Which equation is the foundation of a balance sheet?
Assets = Liabilities + Owners' Equity
Revenue = Assets − Expenses
Cash = Profit + Liabilities
Owners' Equity = Revenue − Assets
9. A café raises a drink's price by 10%, and the number of drinks sold falls by 4%. Ignoring all other changes, what happens to revenue from that drink?
It remains unchanged
It falls by about 6%
It rises by about 5.6%
It falls by about 14%
10. A production line has three stations that can process 60, 40, and 55 units per hour. With steady demand and no other constraints, which action most directly increases maximum throughput?
Add capacity to the first station
Increase finished-goods storage
Add capacity to the third station
Add capacity to the second station
11. A consulting firm reports a profit but has too little cash to pay this month's bills. Which explanation is most likely?
The owner invested additional cash in the firm
The firm sold inventory faster than expected
Customers were invoiced on credit but have not paid yet
The firm recorded depreciation on its equipment
12. A product sells for $50 per unit, has a variable cost of $35 per unit, and carries $30,000 in fixed costs. How many units must be sold to break even?
600 units
2,000 units
857 units
3,000 units
13. Which setup gives an online store the cleanest A/B test of a new checkout button label?
Randomly split similar visitors between the two labels while keeping other elements constant
Ask employees which label they think customers will prefer
Show the new label to mobile users and the old label to desktop users
Compare this month's redesigned checkout with last month's original checkout
14. A campaign costs $12,000 in marketing expenses and $3,000 in directly related sales expenses. It brings in 300 new customers. What is the customer acquisition cost for the campaign?
$10 per customer
$40 per customer
$50 per customer
$45 per customer
15. In a SWOT analysis, how should an aging internal order system that regularly delays shipments be classified?
A threat
An opportunity
A strength
A weakness
16. Company A and Company B each earn $200,000 in sales. Company A has $120,000 in cost of goods sold, while Company B has $140,000. Which conclusion is correct?
Company B has the higher gross margin because its costs are higher
Company A has the higher gross margin
Both companies have the same gross margin because sales are equal
Net profit must be identical for both companies