Business Fundamentals and Analysis Quiz

Test your finance knowledge with questions on financial accounting, SWOT analysis, ROI, competition, and more!

Practice Learn Test

What is the primary goal of financial accounting?

To forecast future business performance

To measure and report financial information to external parties

To manage day-to-day business operations

To analyze market trends

Which financial statement provides information about a company's profitability?

Balance sheet

Income statement

Cash flow statement

Statement of retained earnings

Which financial ratio measures a company's ability to meet short-term obligations?

Debt-to-Equity ratio

Current ratio

Return on Investment (ROI)

Price-to-Earnings (P/E) ratio

What is the purpose of a cash flow statement?

To show a company's financial position at a specific point in time

To measure a company's profitability over a period of time

To report a company's cash inflows and outflows during a period

To provide information about a company's long-term investments

Which of the following is NOT considered an economic resource?

Labor

Money

Land

Capital

Which financial statement reports changes in a company's retained earnings?

Income statement

Statement of retained earnings

Balance sheet

Cash flow statement

What does SWOT analysis stand for in business?

Strengths, Weaknesses, Opportunities, Threats

Sales, Workforce, Operations, Technology

Strategies, Wins, Objectives, Tactics

Success, Wealth, Ownership, Teamwork

What is the formula for calculating Return on Investment (ROI)?

Net Profit / Total Revenue

(Ending Value - Beginning Value) / Beginning Value

Net Income / Average Total Assets

(Current Assets - Current Liabilities) / Total Assets

What is the purpose of a SWOT analysis in business?

To identify strengths and weaknesses only

To assess internal and external factors affecting a company

To measure financial performance

To determine marketing strategies

#10

Which of the following is a characteristic of perfect competition?

Many buyers and few sellers

Homogeneous products

High barriers to entry

Price setting power for individual firms

#11

What is the purpose of a break-even analysis?

To determine the optimal pricing strategy

To identify the point at which total revenue equals total costs

To forecast future sales growth

To evaluate market share

#12

What does PESTLE analysis assess?

Market demand

Competitive rivalry

External macro-environmental factors

Internal strengths and weaknesses

#13

Which of the following is NOT a characteristic of a sole proprietorship?

Limited liability for the owner

Simple to establish

Owner retains all profits

Owner has full control over decision-making

#14

What does EBITDA stand for?

Earnings Before Interest, Taxes, Depreciation, and Amortization

Earnings Before Income and Taxes, Depreciation, and Amortization

Earnings Before Interest and Taxes, Depreciation, and Amortization

Earnings Before Interest, Taxes, Depreciation, and Assets

#15

Which of the following is a characteristic of a monopoly?

Many sellers offering similar products

Low barriers to entry

Single seller dominating the market

Price determined by market forces

#16

What is the formula for calculating gross profit margin?

(Net Sales - Cost of Goods Sold) / Net Sales

Net Income / Total Revenue

(Operating Income - Interest Expense) / Total Revenue

Operating Income / Total Assets

#17

Which of the following is NOT a characteristic of a corporation?

Limited liability for shareholders

Double taxation

Ownership transferability through stock

Managed by a single owner