Unleash Your Inner Tycoon with the 2025 FBLA Entrepreneurship Practice Test!

Question: 1 / 400

Which of the following is a typical example of a KPI?

Annual revenue growth

Annual revenue growth is a typical example of a Key Performance Indicator (KPI) because it directly measures the financial performance and health of a business over a specific period. KPIs are quantifiable metrics that help organizations assess their success in achieving key business objectives and strategies. In this case, analyzing annual revenue growth allows a company to determine how effectively it is increasing its sales and expanding its market share, providing insights into operational efficiency and overall progress.

On the other hand, elements like company history, employee count, and office location do not inherently measure performance or success. While they may provide context about the organization, they lack the quantifiable nature that defines KPIs. Company history informs about past experiences, employee count indicates size but not productivity, and office location is relevant for logistical purposes but does not measure performance outcomes. Thus, annual revenue growth stands out as the only option that clearly aligns with the purpose and definition of a KPI in a business context.

Get further explanation with Examzify DeepDiveBeta

Company history

Employee count

Office location

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy