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Sharpening Your Business Acumen

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Question 1 of 7

You’re great at your job and know how to hash out ideas and accomplish goals with your team. But in
larger meetings you don’t always understand what your colleagues in other divisions are discussing, or
why they think it’s important. Which of the following will best help you boost your overall business
savvy?

Make a short list of concepts or concerns you’ve heard discussed. Reach out to coworkers on other teams and ask
them to give you a quick explanation of an issue and how it impacts their job.

Good choice! You can learn a lot by reaching out to colleagues who perform different functions in your organization. This
can help you build your understanding of your organization as a whole—an important element of business acumen.

Question 2 of 7

You understand your customers and how your organization provides what they want. What is another
key building block of business success?

Whether the organization generates a healthy cash flow, allowing it to pay its bills and invest for future growth.

Good choice! One building block of business success is the ability to generate a healthy cash flow. This means that the
organization can pay its bills and can potentially have money available to pay off debt or invest in new ideas and projects,
supporting profitable growth.

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Question 3 of 7

You hire and supervise vendors who help create one of your organization’s products. Some of them want
to be paid weekly, but your organization will only pay monthly. How does this policy help your
organization, even when it means you have to work harder to maintain a positive relationship with
vendors?

It contributes to the organization’s gross profit margin, which is the metric everyone in your organization should
focus on most.

Not the best choice. Gross profit margin is definitely important, but it’s not affected by when you pay vendors. It’s also not
the only thing those with business acumen focus on. Understanding how cash flow affects your organization as a whole is
part of business savvy.

Correct Response
To learn more, see: Learn What Makes Organizations Thrive

Question 4 of 7

You lead the graphic design team at your organization. Based on your role, why would it make sense for
you to dig into financial reports?

With a better understanding of the organization’s financial health, you can propose new ideas that align with the
company’s goals and spending capacity.

Good choice! Financial reports provide data that help you understand your organization’s current finances and longer-term
plans and priorities. When you align your work with the organization’s financial health, you support the organization and
your own career success.

Question 5 of 7

You’re preparing a presentation about your organization’s business model to help train new employees.
You have described who your customers are. What is another key aspect of the business model you
should explain?

What customer needs your organization satisfies and how your products or services solve a problem for your
customers.

Good choice! A business model is like a story. It includes a customer value proposition that describes what the “main
characters” (customers) want or need, and how the organization responds with a solution that satisfies customer desires
or solves a problem for them.

Question 6 of 7

A home appliance manufacturer known for superior quality is thinking about introducing changes in a
bid to boost revenue. One proposal is to start offering their products in a broad range of colors. Which
question will best help the company make a decision about the proposal?

Will customers’ willingness to pay be affected by having a broad range of colors to choose from?

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Good choice! Customers’ willingness to pay is a key issue that can guide organizations in their decision making. If a
change increases customers’ willingness to pay, it is likely to have a positive impact on revenue and profits.

Question 7 of 7

An engineering firm offers robust professional development opportunities to employees and develops an
effective framework for helping them advance in their careers. How does this strategy help the company
meet its business goals?

It affects employees’ willingness to sell their labor to the organization.

Good choice! By offering training and opportunities for career advancement, an organization can impact employees’
willingness to sell—their willingness to work for the organization. This is a form of value for an organization, which
supports its overall success.

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