Think You’re An Expert In Business? Take This Quiz Now To Find Out.
Let’s see if you’re a Visionary CEO or if you need to go back to Business School.
The Business IQ Challenge
1. Strategy: The Blue Ocean. What is the primary goal of a “Blue Ocean Strategy”?
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A) To aggressively outmaneuver competitors in a saturated market.
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B) To create an uncontested market space, making the competition irrelevant.
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C) To maximize short-term dividends for shareholders.
2. Finance: The Burn Rate. If a startup has $500,000 in the bank and its monthly operating expenses are $50,000 while generating $10,000 in revenue, what is its “runway”?
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A) 10 months
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B) 12.5 months
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C) 8 months
3. Marketing: The Rule of 7 In marketing psychology, what does the “Rule of 7” generally suggest?
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A) A customer needs to see an ad 7 times before they take action.
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B) You should never have more than 7 words in a headline.
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C) 7% of customers provide 70% of the revenue.
4. Operations: The Lean Method In Six Sigma or Lean manufacturing, what does the term “Muda” refer to?
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A) Continuous improvement.
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B) Waste within a process.
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C) The final stage of quality control.
5. Management: The Peter Principle. According to the Peter Principle, what happens to employees in a hierarchy?
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A) They eventually leave for better-paying competitors.
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B) They rise to their level of incompetence.
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C) They become more productive as they gain more authority.
How to Score Yourself
Post your answers (e.g., 1B, 2A…), and I will give you your Executive Grade and explain the logic behind the ones you might have missed.
Would you like me to reveal the answers now, or do you want to lock in your guesses first?
The Answer Key
1. Strategy: The Blue Ocean
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Correct Answer: B
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The Logic: Coined by Kim and Mauborgne, a Blue Ocean represents a market that doesn’t exist yet. Instead of fighting over a shrinking “red ocean” (bloody with competition), you create new demand. Think of Netflix shifting from DVDs to streaming—they created a new space where they were the only player for years.
2. Finance: The Burn Rate
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Correct Answer: B (12.5 months)
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The Logic: To find the “Net Burn,” subtract revenue from expenses: $\$50,000 – \$10,000 = \$40,000$.
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Then, divide the total cash by that net burn: $\frac{\$500,000}{\$40,000} = 12.5$.
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Managing this “runway” is the #1 job of a startup founder.
3. Marketing: The Rule of 7
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Correct Answer: A
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The Logic: This is an old-school marketing adage that still holds true. In a world of digital distractions, a prospect usually needs to “hear” an advertiser’s message at least 7 times before they trust the brand enough to buy.
4. Operations: The Lean Method
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Correct Answer: B
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The Logic: Muda is the Japanese word for “futility” or “waste.” Lean manufacturing focuses on eliminating 7 specific types of waste (like overproduction and waiting) to streamline value to the customer.
5. Management: The Peter Principle
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Correct Answer: B
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The Logic: It’s a cynical but famous management observation: people are promoted based on their performance in their current role, until they reach a role they are not good at (their level of incompetence), where they then remain stuck.
Your Executive Grade
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5/5: Visionary CEO. You’re ready to ring the bell at the NYSE.
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3/4: Middle Management. You know the ropes, but keep an eye on your margins.
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1/2: The Intern. Time to hit the textbooks and grab a coffee.
