My friend Mike Schaffner is running a series on how well IT folks understand the business in which they work. I think the questions are good ones for anyone trying to lead all or part of a business. Here are Mike's first ten questions, dealing with general business understanding. See how well you do on these. And see Mike's blog for further instalments in the series.
The first ten questions
- Can you read and understand financial statements?
- Can you calculate a discounted cash flow or internal rate of return?
- What are liquidated damages?
- Do you know what the following terms mean and do you understand them? - DSO, EBITDA, ROI
- Do you know the difference between cross-selling and up-selling and value-selling?
- What does it mean when we say the dollar is "weak" or "strong" ?
- What is a matrix organization?
- What is the basic difference between Chapter 7 and 13?
- What is a Proxy statement?
- What is the difference between a Put and a Call?