Entrepreneurial IQ Assessment: 10 Questions to Gauge Your Business Acumen
Assess your business acumen with our 10-question IQ test for entrepreneurs. Identify your strengths and areas for improvement in business strategy.
LD Web Desk 1. A company’s revenue increased from $500,000 to $600,000 over a year. What is the percentage increase?
10%
15%
20%
25%
Correct Answer
Wrong Answer
2. If an entrepreneur has a budget of $150,000 and spends 40% on marketing, 30% on development, and the rest on operations, how much is spent on operations?
$30,000
$40,000
$45,000
$50,000
Correct Answer
Wrong Answer
3. A business’s annual revenue is $1,200,000, and it has operating expenses of $720,000. What is the operating profit margin?
35%
40%
45%
50%
Correct Answer
Wrong Answer
4. If a company’s stock price is $80 per share and its earnings per share (EPS) is $8, what is the price-to-earnings (P/E) ratio?
8
9
10
11
Correct Answer
Wrong Answer
5. A project requires an initial investment of $100,000 and is expected to generate cash flows of $30,000 per year for 5 years. What is the payback period?
2 years
3 years
3.33 years
4 years
Correct Answer
Wrong Answer
6. A business has a debt-to-equity ratio of 1.5. If its total equity is $400,000, what is its total debt?
$200,000
$300,000
$600,000
$800,000
Correct Answer
Wrong Answer
7. If a company's sales increase by 12% from $750,000, what will be the new sales figure?
$810,000
$825,000
$840,000
$870,000
Correct Answer
Wrong Answer
8. An entrepreneur receives a $50,000 loan at an annual interest rate of 5%, compounded annually. What will be the total amount owed after 3 years?
$57,500
$57,881
$58,150
$58,812
Correct Answer
Wrong Answer
9. A company’s gross profit is $250,000, and its operating expenses are $150,000. What is its operating income?
$50,000
$75,000
$100,000
$125,000
Correct Answer
Wrong Answer
10. If a business has 500 units of a product in inventory and sells 80% of them, how many units are left?
50
75
100
125
