Test Your Fiscal Fitness: Take this quiz to determine the health of your construction company.
Fitness relates to running numbers instead of miles for construction company owners. Do you have a financially fit construction company? Take this quiz, and then read on for an evaluation of each question to find the right answers.
Fiscal Fitness Quiz
1. You often review construction financial ratios for your construction company because:
a. Although you do not know what they mean, the terminology sounds good when discussing business with other contractors.
b. Your CFO produces them monthly, and your typical response to the data is “very interesting.”
c. You recognize that ratios can quickly determine your company’s health and overall direction.
2. You are confident that fraud could never happen at your company because:
a. Your CFO is the most trusted employee.
b. You have a great CPA.
c. You conducted a fraud audit two years ago.
3. You are not worried about succession planning because:
a. You will sell the business when you retire in five years.
b. You are not middle-aged, and your parents both lived into their 80s.
c. You devised a succession plan when you started your company eight years ago and not much has changed.
4. Do you regularly evaluate your individual job profitability and compare it to original estimates?
a. Of course. Everyone needs a good laugh now and then.
b. Yes, but only the ones that have changed dramatically from the original estimates, which seems to be most jobs.
c. No. It is too disturbing, and you would rather focus on positive numbers.
5. What construction laws and regulations do you expect to impact your construction company in the next 18 months?
a. Healthcare reform
b. Immigration reform
c. Who knows? Today’s laws will change soon anyway.
Click here to see the results with explanations from the experts.
