1. Business Objectives
Profit And Growth — Quiz
Test your understanding of profit and growth with 5 practice questions.
Practice Questions
Question 1
Which primary business objective involves sacrificing short-term profit to achieve higher market share and long-term expansion?
Question 2
A company invests £200 000 in new technology and reports an additional annual profit of £30 000. What is its return on investment (ROI)?
Question 3
A firm has a return on equity (ROE) of 18 % and retains 50 % of its earnings. What is its sustainable growth rate (SGR)?
Question 4
A business has revenue of £500 000 with a profit margin of 8 % in Year 1 and revenue of £600 000 with a profit margin of 6 % in Year 2. What is the change in profit amount and profit margin percentage points?
Question 5
A smartphone manufacturer acquires one of its key component suppliers to secure production inputs. Which growth strategy does this exemplify?