Business Plan Math - Reading Quiz

What is the term used for a 3-5 year forecast of your income and expenses?

• Financial model

• Profits and losses

• Spreadsheet

What is an example of a monthly, recurring expense?

• Signage

• Utilities

• Lease down payment

• Furniture

What is the type of pricing determined largely by what other companies in your industry are charging?

• Competitors' pricing

• Value-based pricing

• Simple pricing

• Cost-plus pricing

What is the rate at which the business grows or increases revenue from sales?

• Profit margin

• Monthly profit

• Growth percentage

• Net profit

Examples of direct costs are:

• Utilities and rent

• Labor and material costs

• Interest

Pricing your product based how a customer perceives the product is called:

• Cost-plus pricing

• Competitors' pricing

• Value-based pricing

Sales revenue is calculated by:

• Number of sales multiplied by average customer sale dollar amount

• Sales price multiplied by cost of goods sold

• Number of sales multiplied by cost of goods sold

True or False: Net profit is greater than gross profit.

• True

• False

Starting a company in which you only spend money that is absolutely necessary at each point in time is called a:

• Lean startup

• Sole proprietor

• Growth startup

What is the description of each axis on a breakeven chart?

• Profit and volume

• Sales and expenses

• Direct costs and indirect costs