Entrepreneurship & Small Business: Checkpoint 2

Covers pricing and margins, cash flow, marketing on a budget, and why small businesses fail.

Five questions on pricing, cash flow, budget marketing, and the honest realities of business failure.

Question 1 of 5 Gross margin is calculated as:

Total revenue minus all business expenses The percentage of revenue left after subtracting the direct cost of what was sold The founder's personal salary Total sales volume for the year

Question 2 of 5 A business can be profitable on paper and still fail because:

Profit and cash flow always move together Cash flow tracks the actual timing of money in and out, and a gap between them can cause a shortfall Taxes are always paid before profit is calculated Profitable businesses are legally protected from failure

Question 3 of 5 Customer acquisition cost should be evaluated against:

Total company revenue The margin generated per customer, not just revenue per customer The number of social media followers Competitor pricing alone

Question 4 of 5 The most commonly cited single cause of small business failure is:

Poor product-market fit Too much word-of-mouth marketing Choosing an LLC structure Excessive customer loyalty

Question 5 of 5 A 'pivot' is best described as:

Giving up on the business entirely A deliberate change in product, market, or model made in response to real evidence A type of business loan An annual review with no resulting changes

← Back to Why Small Businesses Fail - and How to Adapt → All modules

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