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With over 25 years of frontline experience Tom Shay is America's leading small business management expert. He's a "Must Have" for your next event.

Small business knowledge test from Profits Plus

Answer each of the 20 multiple choice questions. At the bottom of the page, click on the submit button. Within a couple of seconds you will have your score as well as the answers to any questions you answered incorrectly.

1. Customers walking into a business, traditionally:
Look and walk to the left
Look and walk to the right
Turn around and walk out
Look for someone to wait on them


2. What percentage of shoplifters are reported to the authorities?
90%
25%
50%
75%


3. A new customer costs an average of $20. A current one costs:
$20
$15
$9
$4


4. Surveys show a merchant's greatest concern is:
Category killer stores
Staffing
Internet
Economy

5. By explaining the benefits of a unique product, your price can be higher than the competition by what percentage?:
0%
20%
5%
10%


6. The most frequent reason a business fails is:
Advertising
Employees
Location
Cashflow

7. The average price of an item taken by a non-professional shoplifter is :
$5
$20
$27
$55


8. "Keystone" means:
Pennsylvania
A beer
Selling price is twice the cost
No freight factor


9. The percentage of new businesses surviving 5 years is:
85%
5%
50%
63%


10. The percentage of new businesses surviving 10 years is:
2%
50%
25%
33%


11. As a percentage of sales, shoplifting is approximately:
3% - 4%
4% - 5%
1% - 2%
2% - 3%


12. How does most "shrinkage" occur?
Shoplifters
Employees
Poor paperwork
Vendor errors


13. Where does most employee theft occur?
Sales floor
Stock area
Point of sale
Receiving area


14. A "yes" or "no" answer is a response to what type of question?
Leading
Assumptive
Open ended
Close ended


15. 2/10 means:
1/5% discount
2 out of 10 people pay their bills
2% discount if paid within 10 days
it is an expression for use with CB radios


16. "Open to Buy" means:
I am in the mood to day to write a purchase order
Looking over the shelves to see if any additional inventory is needed
a method of calculating how much inventory should be in the business
it is the time of year when most trade shows are held


17. When standing before a customer, a sales person's arms and hands should be:
Arms at our side, hands with palms up
Folded in a cross arm configuration
It makes no difference
In your pocket


18. The best selling space in a business is:
2'-3' from the floor
stacked on the floor
hung from the ceiling
4' to 6 1/2' from the floor


19. Businesses frequently determine their advertising budget as:
No set pattern
Set dollar amount
Percentage of net profit
Percentage of sales

20. FOB: Destination means:
Beats me
Friend of Bill at the Destination Tavern
Freight paid by the customer
Freight paid by the shipper

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©1998-2026 Profits Plus Solutions, Inc.
Tom Shay
PO Box 128
Dardanelle, AR 72834
(727)823-7205

JUNE 2026
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Small Business

AdvisoriES


Marketing talks about finding your target customer. Unfortunately, those customers are not wearing a shirt with a bullseye on them to help you make that determination. The June Small Business Advisory offers an alternative method for understanding where your customer lives.

Small Business

NewS

Top Story

It is countdown to the start of the 24th Independent Retailer Month beginning July 1. We work to promote the celebration from a different prospective; that of telling the public of the benefits they receive because they shop at a locally owned independent retailer. We also share reseach that shows the many positive feelings that consumers have about locally owned independent retailers and why they prefer to shop with you.

Article of the Month

Remeber Struther Martin in Cool Hand Luke as he said, "What we have here is a failure to communicate"?

 

We are going to apply that expression to the software you use in your business. Are you getting what you need from that software?


Book of the Month

Think of how Harley Davidson, Apple, and Campbell's Soup are perceived. Each have a very devout following. We call that cult branding. This month's book we review is, "The Power of Cult Branding", by B.J. Bueno.

All this plus the Internet Tool for Your Business and a staff incentive idea for your business.
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BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Advisories

Marketing talks about finding your target customer. Unfortunately, those customers are not wearing a shirt with a bullseye on them to help you make that determination. The June Small Business Advisory offers an alternative method for understanding where your customer lives.

Small Business

News

 

Top Story

It is countdown to the start of the 24th Independent Retailer Month beginning July 1. We work to promote the celebration from a different prospective; that of telling the public of the benefits they receive because they shop at a locally owned independent retailer. We also share reseach that shows the many positive feelings that consumers have about locally owned independent retailers and why they prefer to shop with you.


Article of the Month

Remeber Struther Martin in Cool Hand Luke as he said, "What we have here is a failure to communicate"?

 

We are going to apply that expression to the software you use in your business. Are you getting what you need from that software?


Book of the Month

Think of how Harley Davidson, Apple, and Campbell's Soup are perceived. Each have a very devout following. We call that cult branding. This month's book we review is, "The Power of Cult Branding", by B.J. Bueno.

 

All this plus the Internet Tool for Your Business and a staff incentive idea for your business.