Business Finance Basics | FinTrex

Question 1 of 10

How does profit margin differ from markup?

Margin compares profit with revenue; markup compares profit with costThey are always identical percentagesMargin is only for taxMarkup is only for debt

Question 2 of 10

In a simple unit model, what is contribution per unit?

Selling price minus variable cost per unitFixed cost divided by revenueRevenue plus variable costCash divided by months

Question 3 of 10

What happens to simple break-even volume when contribution per unit is zero or negative?

There is no finite positive break-even volume under those assumptionsBreak-even becomes one unitFixed costs disappearRevenue is guaranteed

Question 4 of 10

What does ROAS measure?

Attributed revenue divided by advertising spendNet profit divided by taxCash balance divided by payrollMarket value divided by debt

Question 5 of 10

What is CAC intended to estimate?

Customer acquisition cost under a defined acquisition-cost and customer-count basisAnnual company taxCustomer lifetime revenue automaticallyCash runway

Question 6 of 10

Why must LTV and CAC use compatible definitions in a CAC:LTV ratio?

Mixing revenue-based LTV with a profit-based comparison can distort the ratioThe units never matterCAC must always equal LTVThe ratio guarantees profitability

Question 7 of 10

What does cash runway primarily measure?

How long current cash can last at the modeled net burn rateHow long accounting revenue lastsA guaranteed funding dateCustomer retention

Question 8 of 10

What is burn rate in a simple runway model?

The net cash outflow per period under the stated assumptionsGross revenue onlyThe tax rateThe product price

Question 9 of 10

What is a required-selling-price model solving for?

The price needed to cover specified costs and a target margin or contribution assumptionA guaranteed market-clearing priceA tax refundThe company valuation

Question 10 of 10

How should a business valuation scenario be presented?

As assumption-based scenario modelling, not an audited valuationAs a guaranteed sale priceAs a tax assessmentAs a lender approval