Entrepreneur IQ Challenge: 10 Questions to Test Your Business Prowess

Challenge yourself with our 10-question IQ test for entrepreneurs. Evaluate your business knowledge and discover your entrepreneurial strengths.

LD Web Desk LD Web Desk
Jul 12, 2024 - 16:49 Updated: Jul 12, 2024 - 16:50

1. A company has a gross profit of $500,000 and net profit of $200,000. If the total revenue is $1,000,000, what is the operating expense?

$300,000
$400,000
$500,000
$600,000

2. If a business’s fixed costs are $100,000 and the variable cost per unit is $20, how many units must be sold at $50 each to break even?

2,000 units
3,000 units
4,000 units
5,000 units

3. A project has a probability of 0.6 of generating a profit of $200,000 and a probability of 0.4 of generating a loss of $50,000. What is the expected profit?

$70,000
$80,000
$90,000
$100,000

4. An entrepreneur sells a product at $150 per unit. If the cost to produce the product is $90 per unit, what is the profit margin?

40%
50%
60%
75%

5. If the net worth of a business increases by 12% annually, what will be its net worth after 2 years if the current net worth is $500,000?

$620,000
$625,600
$640,000
$650,000

6. A business has annual sales of $600,000 and a return rate of 5%. What is the value of the returned goods?

$25,000
$30,000
$35,000
$40,000

7. If an entrepreneur invests $50,000 in a venture that yields an annual return of 10%, compounded annually, what will be the value of the investment after 2 years?

$55,000
$60,500
$61,000
$62,050

8. A startup’s revenue grows by 8% each quarter. If the revenue in the first quarter is $100,000, what will the revenue be at the end of the fourth quarter?

$124,860
$126,214
$129,000
$135,000

9. If a product’s production cost is reduced by 15% and the original cost was $80, what is the new production cost?

$65
$68
$70
$75

10. An entrepreneur wants to achieve a profit of $150,000. If the profit margin is 20%, what should be the target revenue?

$600,000
$650,000
$700,000
$750,000