MegaMaester

Business · Module 4

Business Numbers and Decisions

The first three modules covered what a business is, how to build and grow one, and how to adapt to change. This module adds the numbers: the financial and analytical literacy that turns instinct into informed decisions.

You will learn to read financial statements, understand unit economics and margins, use core economics, see how businesses raise capital, judge investments and valuations, negotiate deals, and pull it all together to think like an owner.

Lessons
7 lessons
Estimated time
~6-8 hours
Assessment
Module quiz included

Not started yet

Lessons

Lesson 1 · 16 min

Reading Financial Statements

Lesson 2 · 16 min

Unit Economics and Margins

Lesson 3 · 16 min

Economics for Business

Lesson 4 · 16 min

Cash, Capital, and Funding

Lesson 5 · 16 min

Investment and Valuation Basics

Lesson 6 · 16 min

Negotiation and Deal-Making

Lesson 7 · 16 min

Thinking Like an Owner

Check your understanding

Finish the lessons, then test yourself. Your best score is saved on this device. You can also open this quiz on its own page.

Business Numbers and Decisions — Module Assessment

14 questions · pass mark 75%

  1. 1.Which statement shows a company's financial position on a single specific day?
  2. 2.Why can a business report a healthy profit yet still be short of cash?
  3. 3.A product sells for 10 and has a variable cost of 6. What is its contribution margin per unit?
  4. 4.If each sale has a negative contribution margin, what happens as the company grows its sales?
  5. 5.A bakery finds that when it raises bread prices by 10 percent, sales barely change. This tells us that demand for its bread is:
  6. 6.Which statement best captures Adam Smith's "invisible hand" as economists understand it today?
  7. 7.A founder raises $500,000 from a venture-capital firm in exchange for 20 percent of the company. Compared with taking a bank loan for the same amount, the key difference is that the equity investment:
  8. 8.A profitable, stable manufacturer with steady, predictable orders needs funds to expand. Why might debt be the wiser choice than selling equity?
  9. 9.A delivery bike costs 3,000 and is expected to add 1,000 in profit each year. What is its payback period?
  10. 10.Which statement best describes what a company valuation is?
  11. 11.In a negotiation, what is a party's BATNA?
  12. 12.A supplier insists on a higher price but really needs steadier orders. Focusing on this underlying need rather than the price illustrates which idea?
  13. 13.A manager can hit this quarter's margin target by cutting the customer support team. Which response best reflects thinking like an owner?
  14. 14.In the 2005 survey by Graham, Harvey and Rajgopal, what did a large share of executives say they would do?
Answer every question to submit.