Practice Test Geeks(GMC) Growth Marketing Certification Practice Test
← All GMC Flashcard Decks

Financial Management & Budgeting Flashcards

7 cards from real GMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Management & Budgeting flashcards as text

  1. What does a 'burn rate' tell a growth marketer about a campaign or business?

    Answer: How quickly available cash or budget is being spent over a period

    Burn rate measures how fast cash or allocated budget is consumed, helping teams forecast when funds will run out.

  2. A growth team's Q3 campaign generated $500,000 in revenue on a $100,000 budget. What is the ROAS?

    Answer: 5x

    $500,000 ÷ $100,000 = 5x ROAS (Return on Ad Spend).

  3. Which scenario best represents an 'above-the-line' (ATL) budget expenditure in growth marketing?

    Answer: Running a national TV commercial for broad brand awareness

    ATL spending refers to mass-market, non-targeted media like TV, radio, and print aimed at broad awareness.

  4. A company's monthly marketing budget is $30,000 and it wants to maintain an LTV:CAC ratio of at least 3:1, with average LTV of $900. What is the maximum acceptable CAC?

    Answer: $300

    With LTV of $900 and a minimum 3:1 ratio, max CAC = $900 ÷ 3 = $300.

  5. In growth marketing budgeting, what is the primary purpose of a 'holdout group' in spend experiments?

    Answer: To establish a control baseline for measuring the true incremental impact of spend

    A holdout group (unexposed control) allows marketers to measure the incremental lift attributable to the campaign rather than organic behavior.

  6. Which budgeting model starts from a blank slate each period, requiring every expense to be justified regardless of prior spend?

    Answer: Zero-based budgeting

    Zero-based budgeting (ZBB) requires justifying every line item from zero each cycle, eliminating automatic rollovers of past spend.

  7. A B2B SaaS company has a 6-month average sales cycle. How does this most directly impact marketing budget planning?

    Answer: It requires longer attribution windows and delayed ROI measurement periods

    A long sales cycle means revenue from today's marketing spend won't materialize for months, requiring extended attribution windows and patient ROI evaluation.