ESB EXAM STUDY GUIDE QUESTIONS
WITH CORRECT ANSWERS 2025
Flexibility - CORRECT ANSWER-Ability to adapt, willingness to change
Courage - CORRECT ANSWER-Takes risks in spite of possible losses
Empathy - CORRECT ANSWER-Sensitive to thoughts and feelings of others
What are three characteristics of entrepreneurs? - CORRECT ANSWER- Creativity,
Determination, Enthusiasm
After a self-
assessment, a potential entrepreneur has learned that she has a very low risk tolerance. Based u
pon this finding, which approach might be less stressful for the entrepreneur to have her own bu
siness? - CORRECT ANSWER-Buy an existing business that is already successful.
An entrepreneur moves into a small town and notices several stores selling guns and ammunitio
n. The entrepreneur loves to compete in competitive shooting events. Based on the scenario pro
vided, what should be emphasized in marketing to attract customers? - CORRECT ANSWER-
Location
An entrepreneur hasPbeen working for a flooring business in a neighboring town. He feels he is r
eady to open his own flooring business in his local community. Which should be emphasized in
marketing to attract customers to his new business? - CORRECT ANSWER-Lower Prices
Which is one of the greatest benefits of entrepreneurship? - CORRECT ANSWER- Being
your own boss
,Which are three risks of entrepreneurship? - CORRECT ANSWER- Long
hours, potential business failure, financial insecurity
Gabe has worked as a journeyman electrician for an employer for the past 16 years. He is paid a
good salary. His only dissatisfaction is the hours are long and often when he requests time off he
is denied because of customer workload.
Which benefit of entrepreneurship will Gabe most enjoy? - CORRECT ANSWER-Autonomy
What is a primary benefit of starting a new business without purchasing a franchise or buying an
existing business? - CORRECT ANSWER-Developing your own rules
A mechanic just graduated from motorcycle repair school and wants to start a business because
there is a lack of motorcycle repair shops in the local town. Given the facts provided, which oppo
rtunity would be the best choice for the motorcycle mechanic to open a business? -
CORRECT ANSWER-Start a new business and invest $50,000 in modern diagnostic tools.
An entrepreneur who has a hobby in leathercraft wants to turn it into a business. She wants to s
ell purses, belts, and other leathercrafts from her home. Which opportunity for starting a leathe
rcraft business would have the highest probability of success? - CORRECT ANSWER-
Build an online storefront
Based upon the education and skills gained from the years of vocational training as an auto mec
hanic, as well as having grown up in a family of entrepreneurs, a young adult decides to open an
auto mechanic shop. Which customer group will this new auto mechanic business support? -
CORRECT ANSWER-Businesses
The owner of a pizza delivery business is seeking new customers. The owner has identified a gro
up of potential customers that have moved into some new housing within reaches of his drivers.
Which method of segmentation is the owner using? - CORRECT ANSWERP-Geographic
, A child daycare center needs to identify a value of proposition that will help parents feel secure
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about using their services. Which two initiatives meets this objective? - CORRECT ANSWER-
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Providing live web cams parents can access from the Internet by using a secure logon. Offering a
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list of references from other parents
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The owner of a pet daycare is presenting a plan to investors to expand the facility and promises t he
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center will meet the needs of customers with a variety of schedules. What is a legitimate valu e
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proposition for potential customers? - CORRECT ANSWER-
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Providing extended hours to pickup and drop off pets before and after work
k k k k k k k k k k k k
Which two groups benefit most from a well-written business plan? - CORRECT ANSWER- Business
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owner
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Investors
Which of the following should be addressed in the description section of a business plan? -
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CORRECT ANSWER-Target Markets
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Easy to setup, but has unlimited liability. - CORRECT ANSWER-Sole Proprietorship
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Terminates upon death of a partner - CORRECT ANSWER-General or Limited Partnership
k k k k k k k k k k k
Double-taxed, but best for international businesses - CORRECT ANSWER-C Corporation
k k k k k k k k k
Similar to a C Corporation, but taxed at a lower rate - CORRECT ANSWER-S Corporation
k k k k k k k k k k k k k k
Owned by no one; pays no U.S federal tax - CORRECT ANSWER-Nonprofit Corporation
k k k k k k k k k k k k
Best for a single member seeking low risk -PCORRECT ANSWER-Limited Liability Company
k k k k k k k k k k k
WITH CORRECT ANSWERS 2025
Flexibility - CORRECT ANSWER-Ability to adapt, willingness to change
Courage - CORRECT ANSWER-Takes risks in spite of possible losses
Empathy - CORRECT ANSWER-Sensitive to thoughts and feelings of others
What are three characteristics of entrepreneurs? - CORRECT ANSWER- Creativity,
Determination, Enthusiasm
After a self-
assessment, a potential entrepreneur has learned that she has a very low risk tolerance. Based u
pon this finding, which approach might be less stressful for the entrepreneur to have her own bu
siness? - CORRECT ANSWER-Buy an existing business that is already successful.
An entrepreneur moves into a small town and notices several stores selling guns and ammunitio
n. The entrepreneur loves to compete in competitive shooting events. Based on the scenario pro
vided, what should be emphasized in marketing to attract customers? - CORRECT ANSWER-
Location
An entrepreneur hasPbeen working for a flooring business in a neighboring town. He feels he is r
eady to open his own flooring business in his local community. Which should be emphasized in
marketing to attract customers to his new business? - CORRECT ANSWER-Lower Prices
Which is one of the greatest benefits of entrepreneurship? - CORRECT ANSWER- Being
your own boss
,Which are three risks of entrepreneurship? - CORRECT ANSWER- Long
hours, potential business failure, financial insecurity
Gabe has worked as a journeyman electrician for an employer for the past 16 years. He is paid a
good salary. His only dissatisfaction is the hours are long and often when he requests time off he
is denied because of customer workload.
Which benefit of entrepreneurship will Gabe most enjoy? - CORRECT ANSWER-Autonomy
What is a primary benefit of starting a new business without purchasing a franchise or buying an
existing business? - CORRECT ANSWER-Developing your own rules
A mechanic just graduated from motorcycle repair school and wants to start a business because
there is a lack of motorcycle repair shops in the local town. Given the facts provided, which oppo
rtunity would be the best choice for the motorcycle mechanic to open a business? -
CORRECT ANSWER-Start a new business and invest $50,000 in modern diagnostic tools.
An entrepreneur who has a hobby in leathercraft wants to turn it into a business. She wants to s
ell purses, belts, and other leathercrafts from her home. Which opportunity for starting a leathe
rcraft business would have the highest probability of success? - CORRECT ANSWER-
Build an online storefront
Based upon the education and skills gained from the years of vocational training as an auto mec
hanic, as well as having grown up in a family of entrepreneurs, a young adult decides to open an
auto mechanic shop. Which customer group will this new auto mechanic business support? -
CORRECT ANSWER-Businesses
The owner of a pizza delivery business is seeking new customers. The owner has identified a gro
up of potential customers that have moved into some new housing within reaches of his drivers.
Which method of segmentation is the owner using? - CORRECT ANSWERP-Geographic
, A child daycare center needs to identify a value of proposition that will help parents feel secure
k k k k k k k k k k k k k k k k
about using their services. Which two initiatives meets this objective? - CORRECT ANSWER-
k k k k k k k k k k k k k
Providing live web cams parents can access from the Internet by using a secure logon. Offering a
k k k k k k k k k k k k k k k k
list of references from other parents
k k k k k k
The owner of a pet daycare is presenting a plan to investors to expand the facility and promises t he
k k k k k k k k k k k k k k k k k k k
center will meet the needs of customers with a variety of schedules. What is a legitimate valu e
k k k k k k k k k k k k k k k k k k
proposition for potential customers? - CORRECT ANSWER-
k k k k k k k
Providing extended hours to pickup and drop off pets before and after work
k k k k k k k k k k k k
Which two groups benefit most from a well-written business plan? - CORRECT ANSWER- Business
k k k k k k k k k k k k k
owner
k
Investors
Which of the following should be addressed in the description section of a business plan? -
k k k k k k k k k k k k k k k
CORRECT ANSWER-Target Markets
k k k
Easy to setup, but has unlimited liability. - CORRECT ANSWER-Sole Proprietorship
k k k k k k k k k k
Terminates upon death of a partner - CORRECT ANSWER-General or Limited Partnership
k k k k k k k k k k k
Double-taxed, but best for international businesses - CORRECT ANSWER-C Corporation
k k k k k k k k k
Similar to a C Corporation, but taxed at a lower rate - CORRECT ANSWER-S Corporation
k k k k k k k k k k k k k k
Owned by no one; pays no U.S federal tax - CORRECT ANSWER-Nonprofit Corporation
k k k k k k k k k k k k
Best for a single member seeking low risk -PCORRECT ANSWER-Limited Liability Company
k k k k k k k k k k k
