10-Question Business IQ Test for Entrepreneurs: Measure Your Success Potential
Measure your success potential with our 10-question business IQ test for entrepreneurs. Find out if you have the strategic thinking skills needed for success.
LD Web Desk 1. If a company's accounts receivable turnover ratio is 8 and its net credit sales are $1,200,000, what is its average accounts receivable?
$100,000
$120,000
$140,000
$150,000
Correct Answer
Wrong Answer
2. A business has a variable cost per unit of $30 and fixed costs of $150,000. If it sells the product for $60 per unit, how many units need to be sold to achieve a profit of $90,000?
5,000
6,000
7,000
8,000
Correct Answer
Wrong Answer
3. If a company's earnings per share (EPS) is $5 and it has 1,000,000 shares outstanding, what is the company's net income?
$4,000,000
$4,500,000
$5,000,000
$5,500,000
Correct Answer
Wrong Answer
4. An investor buys 200 shares of stock at $50 per share and sells them at $65 per share. What is the total profit?
$2,500
$3,000
$3,500
$4,000
Correct Answer
Wrong Answer
5. A business's total assets are $500,000, and its total liabilities are $350,000. What is the debt-to-asset ratio?
60%
65%
70%
75%
Correct Answer
Wrong Answer
6. If a product sells for $120 and has a markup of 25%, what is the cost price?
$90
$95
$96
$100
Correct Answer
Wrong Answer
7. A company's net income is $400,000, and it has preferred dividends of $50,000. If there are 100,000 common shares outstanding, what is the earnings per share (EPS) for common stock?
$3.50
$3.75
$4.00
$4.50
Correct Answer
Wrong Answer
8. A business's return on equity (ROE) is 12%, and its total equity is $800,000. What is its net income?
$90,000
$92,000
$94,000
$96,000
Correct Answer
Wrong Answer
9. If a company has total revenue of $2,000,000 and a net profit of $300,000, what is the net profit margin?
10%
12%
13%
15%
Correct Answer
Wrong Answer
10. A company’s annual sales are $3,600,000, and its average inventory is $400,000. What is its inventory turnover ratio?
7
8
9
10
