What's Your Small Business IQ?
 

Test your small business IQ with this short quiz. It will give you a quick glance at what you already know or, even more important, what might be missing from your small business knowledge base. These and many other topics, answers, smart tips, and solutions are found in my new book, Propel Your Small Business to Success: Accelerated Actions to Maximize Profit.

(1)  You receive an invoice from a vendor with terms of 2/10 net 30. What does this mean?
 I'm allowed to take a 2% discount if I pay the bill within 10 days, but the entire amount is still due in 30 days. 
 I'm allowed to take a 10% discount if I pay the bill within 2 days, but the entire amount is still due in 30 days. 
 I'm allowed to take a discount of $2 for each $10 owed if I pay the bill within 30 days. 
 I'm allowed to take a 10% discount if I pay immediately, or a 2% discount if I pay within in 30 days. 
(2)  You're asked by a shark investor, "What's the best way to analyze revenue?" Your answer is:
 By gross sales 
 By product line  
 By gross profit 
 Quarterly 
 Both A and D
(3)  Your accountant or bookkeeper gives you a statement of cash flows. What distinct activity is NOT part of this statement?
 Operating activities 
 Investing activities 
 Forecasting activities 
 Financing activities 
 All of the above activities are part of the statement of cash flows.
(4)  You're learning about ratio analysis. How can this help you in your small business?
 Identify major customers 
 Highlight trends 
 Quantify a competitor's weaknesses 
 Predict industry growth patterns 
 Both B and D
(5)  A useful management tool to prepare after an accounting period has closed and actual financial figures reported is:
 An accrual variance report 
 A budget variance report 
 A financial plan versus actual report 
 An accumulated variance report 
 None of the above
(6)  What is an expression that is commonly used in describing how quickly cash will be consumed in a business before the business either starts making a profit or is forced to close its doors?
 Fire rate 
 Depletion rate 
 Spent rate 
 Burn rate 
 None of the above
(7)  You've heard the expression "supply chain management." What does this include?
 Suppliers and customers on one end of the chainand the company on the other end of the chain 
 The flow of goods, but not the flow of information 
 Suppliers at one end of the chain and ultimate customers at the other end of the chain 
 The purchase of inventory, but not the purchase of raw materials 
 Both B and C
(8)  When branding is on target and successful,
 Buyers eventually relate a product or service to the company. 
 Quality and value become associated with the branded products and services. 
 Buyer gains credibility with the seller. 
 All of the above. 
(9)  You're presenting a business plan to your local banker. The financial information section of the typical business plan would include all of the following EXCEPT:
 Breakeven analysis 
 Projected income statements 
 Personal financial statements of the owner or owners 
 Insurance 
 Debt servicing schedule
(10)  You've been learning about SWOT analysis. When preparing this analysis, it is important to realize that:
 Some companies will have no threats. 
 Numerous threats will always exist for any company. 
 External threats can always be eliminated with advance strategic planning. 
 Competition should not be considered a threat, as all companies have competition. 
 B and C

100%

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Wow! You're a small biz wiz!

90%

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You know more than most.

80%

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Great! But you can do even better.

70%

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It's a learning curve—keep at it.

60% or below

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You would benefit from the targeted reviews in Propel Your Small Business to Success.