ESB Exam 2023 Questions with correct Answers

What is entrepreneurship? - Answer- Setting up a business with the aim to make a profit. For each business, select B2B or B2C. - Answer- B2B Purchases requiring a tax exemption certificate. Wholesale flooring distributor. B2C Motorcycle repair shop. Chain of local grocery stores. Which legal structure should you set up for your business? - Answer- S-Corporation For each statement about owners of equity in a business, select true or false. - Answer- True Founders own equity. partner owns equity. False All stakeholder owns equity. Contractors own equity. Complete the sentence about company roles and responsibilities by selecting the correct option from each drop-down list. - Answer- 1. Piece work 2. Salary 3. Hourly 4. Commission Place the stages of the business life cycle in the correct order. - Answer- Stage 1. Existence Stage 2. Survival of the fittest Stage 3. Success Stage 4. Take-off Stage 5. Maturity Match each element of the Design Thinking Process to its corresponding description. - Answer- 1. Empathize 2. Define 3. Ideate 4. Prototype 5. Test Successful entrepreneurs have mindsets that typically possess which three characteristics? - Answer- Responsible Adaptable Tenacious Which is one of the greatest benefits of being an entrepreneur? - Answer- Schedule control Which three characteristics help identify a business opportunity? - Answer- Service Price Quality What should this entrepreneur do FIRST before offering to design and build water features as part of his landscaping business? - Answer- Ask the customers in the area if they are interested in adding a water feature to their gardens. Which two documents summarize business plans of a company? - Answer- Lean Canvas Pitch Deck For each statement about the components of Business Plans and Pitch Decks, select true or false. - Answer- True A Pitch Deck is a visual slide presentation. Business Plans are text-based documents. The goal of a Business Plan is to get investor buy-in. The goal of a Pitch Deck is to get investor's attention. False A typical Pitch Deck has between 20-100 slides. Business Plans are highly visual. Which three elements are required to have a Trade Secret? - Answer- Subject to reasonable efforts to maintain its secrecy Others cannot legitimately obtain the information Information has economic value not generally known Match each Creative Commons license type to its usage guideline. - Answer- 1. CC 2. BY 3. SA 4. NC 5. ND What is a target market? - Answer- Customers to whom a company wants to sell its products and services. Classify the following data as Primary or Secondary. - Answer- Primary Information collected from your company focus group. A marketing survey you posted on Facebook. Secondary Demographic data you obtained from the government. Facts you collected from professional journal articles. For each statement about Direct Competition and Indirect Competition, select true or false. - Answer- True When your target audience buys products from a competitor instead of from you, that is Indirect Competition. Indirect Competition is a business whose services are different from yours but satisfy the same need. Direct Competition is a company that offers the same thing you offer. False All companies that sell goods and services are Indirect Competition Setup a SWOT Analysis with the characteristics provided about this business by matching the company characteristics with the appropriate SWOT element. - Answer- Strengths: Large gallery of stock photos Weaknesses: Working alone, no skilled help Opportunities: Increase in weddings expected as COVID restrictions ease Threats (T): COVID pandemic restrictions disallow large family gatherings Which two are offline marketing platforms? - Answer- TV ads Flyers and Pamphlets What marketing method would be the best choice? - Answer- Social media Which would be the most effective way to gather reactions from those who attended the dance? - Answer- Surveys What was the customer acquisition cost? - Answer- $10 Which three are segments in a Marketing Plan? - Answer- Demographic Behavioral Geographic For each statement about the Sales Process, select true or false. - Answer- True Handling Objections involves listening to the potential customer's concerns and addressing them. Determining if the potential customer can afford your product is part of Prospecting. Prospecting is usually the first step in the Sales Process. False Presentation is best done with a PowerPoint slide deck. Closing the deal is the last and final element in the Sales Process. Which Sales Channel has been opened to manufacturers because of digital tools? - Answer- Direct-to-Consumer Match each type of Sales Channel to its corresponding description. - Answer- 1. Retail 2. Wholesale 3. Direct-to-Consumer 4. B2B Which two ways can Consumer Service and Support affect sales? - Answer- More Sales through Customer Evangelists Increased Sales through Responsiveness and Personalization Which three statements help define a Market/Fit Hypothesis? - Answer- A fit exists when people need your product rather than just seeing a potential benefit of using it. Product/market fit exists when you have the right solution to a problem worth solving. When users love your product so much they tell other people to use it. What is an effective way to measure your teaching performance during an online course? - Answer- Conduct onscreen pop-up quizzes. What is one of the first steps you must do before creating a product prototype? - Answer- Identify materials What are three things you will need to consider regarding the mass production of your electric shaver? - Answer- Creating your prototype to demonstrate the product's function to potential customers. Finding a manufacturer. Sourcing materials needed for the components of the products. For each statement about Product Quality Control Testing, select true or false. - Answer- True Determine what standards have to be met based on the product and industry. Establish the method to use for testing product quality. Refine quality measures as needed to increase the level of satisfaction with your product. False Don't spend money on Product Quality Control Testing unless more than 10% of customers complain. Review the results of a competitors quality assurance testing. For each statement about the Selection of Distribution Channels, select true or false. - Answer- True Perishable products require more direct distribution Product price affects the length of a distribution channel False Products that are bulky, large in size, and technically complicated are usually sold through multiple handlers before reaching the end customer. Which are two characteristics of direct distribution that differ from fulfillment centers? - Answer- The manufacturer controls all aspects of distribution Direct distribution is also known as a zero level channel. What is the minimum amount the owner must now charge customers for labor to balance her increased operational expenses? - Answer- 30% According to the information in the Balance Sheet, what is your equity in the business? - Answer- $11,000 Which expense is a fixed cost? - Answer- Property lease for the office What was last month's Return on Investment (ROI) for your affiliate marketing service. - Answer- 20% Which two should be included when calculating start-up costs for a business? - Answer- Permits, licenses, and incorporation fees. Business cards. Which two are benefits of equity funding? - Answer- Can be used to raise working capital Investors do not get paid if the business does not make a profit. For each statement about requirements for Equity vs Debt Financing, select true or false. - Answer- True Debt financing requires borrowing money whereas equity financing requires selling a portion of the company. Creditors look favorably upon a relatively low debt-to-equity ratio, which benefits the company if it needs to access additional debt financing in the future. The main advantage of equity financing is that there is no obligation to repay the money acquired through it. False Equity financing places a large financing