The Business Strategy Game Quiz 2 is MUCH more challenging than the first quiz. I commonly see kids get 40% on the second quiz. The simulation uses non standard definitions for financial formulas so googling the equation often won’t work. Below are the most commonly used equations for the Business Strategy Game Quiz 2. If ANY equations aren’t on there, please comment below. I will research the correct equation and then append this post. : ) I’ve uploaded a YouTube video again for your convenience. The SlideShare is linked to below as well. There is a lot more to Quiz 2 than the equations, make sure to check out my other blog posts listed below to ensure your success.
PLEASE COMMENT ANY QUIZ 2 EQUATIONS NOT COVERED TO HELP THE NEXT TEAM : )
Business Strategy Game Quiz 2 Equations:
- Return On Average Equity = Net Profit / Average Shareholders Equity (Year 11 total Share Holder Equity + Year 12 Shareholder Equity / 2)
- Interest Coverage Ratio= Operating Profit / Annual Interest Expense
- Deprecation Expense: Number *.05 (because the deprecation expense is 5%)
- Default Risk Ratio = Free Cash Flow ((Net Profit + Depreciation – Dividends) ) / Combined Annual Principal Payments on Outstanding Loans (Overdraft Loans, Current Portions of Long Term Loans, 1 Year Bank Loans)
- Average Annual Compensation Of Workers = Base Salary of a Worker + Incentive Pay (Productivity excluding rejects * Incentive)
- Operating Profit Margin = Operating Profit / Net Revenues From Footwear Sales
- Earnings Per Share (EPS) = Net Profit / Shares Of Stock Outstanding
- Cash Receipts From Footwear Sales = 25 Percent of Previous Year from Receivables and 75% of current year
- Debt-Asset Ratio = (Total Debts (Long Term Bank Notes, Current Portion of Long Term Notes, 1 Year Loans, 5 Year Loans, Overdraft Loans) / Total Assets
- Cost Allocation Principles
- Internet shoes / (internet Shoes + region Shoes) = percent of shoes in internet
- Percent of Shoes in internet* total spent on advertising / number of shoes sold in that region
Just like the first quiz, Quiz 2 is timed. I recommend having this and the other Business Strategy Game Quiz 2 tabs open already and using control F to find the necessary equations.
There is a lot more to Business Strategy Game Quiz 2 than just equations. You will also have to understand exchange rates and tariffs intimately and how the game works. There are quite a few game concept questions that go pretty deep. I cover all of these topics in different YouTube videos and posts. Please check them out to ensure you’re success.
If there are any topics not covered in my blog posts, the answers are not just located in the Business Strategy Game Player’s Guide, but also in the decision entry help screens (the help button on the upper right hand side of the decision entry screen.)
If you still really need help on BSG Quiz 2, send me a message.