Entrepreneur IQ Quiz: Test Your Business Acumen with 10 Questions

Test your business acumen with our 10-question IQ quiz for entrepreneurs. Discover your strengths and areas for growth in the business world.

LD Web Desk LD Web Desk
Jul 12, 2024 - 18:45 Updated: Jul 12, 2024 - 19:06

1. A company has a net profit of $250,000 and total sales of $1,000,000. What is its return on sales (ROS)?

20%
25%
30%
35%

2. If a company’s stock has a beta of 1.2, what can be inferred about its volatility compared to the market?

Less volatile than the market
Same volatility as the market
More volatile than the market
Cannot determine from beta alone

3. A product is sold for $75, and its cost is $50. What is the markup percentage?

40%
45%
50%
55%

4. If a company’s current assets are $400,000 and its current liabilities are $200,000, what is its working capital?

$150,000
$175,000
$200,000
$225,000

5. A business has a net income of $180,000 and shareholder's equity of $900,000. What is the return on equity (ROE)?

15%
18%
20%
22%

6. If a business's sales grow from $600,000 to $750,000, what is the percentage growth in sales?

20%
25%
30%
35%

7. A business owner invests $50,000 in a project that yields a 10% annual return. How much will the investment be worth in 3 years, assuming annual compounding?

$60,500
$66,550
$61,500
$62,050

8. If a company's quick ratio is 1.5, what can be inferred about its liquidity?

High liquidity
Low liquidity
Same liquidity as industry average
Cannot determine from quick ratio alone

9. A company's operating income is $400,000, and its net income is $300,000. What is the company's tax burden ratio?

70%
75%
80%
85%

10. If a company has an inventory worth $200,000 and the cost of goods sold (COGS) is $800,000, what is its days inventory outstanding (DIO)?

60 days
70 days
80 days
90 days