ESB Certification Exam Study Guide with 100%
correct answers
Bill just started a new graphic design business. He is advertising online and trying to gain
customers. He just finished working with his first client. In which business life cycle stage is Bill?
- ✔️✔️Existence
Stephanie started a new flower shop last year. She has a good customer base and money
coming in. In which business life cycle stage is Stephanie? - ✔️✔️Survival
List the correct order of the design thinking process - ✔️✔️Empathize, Define, Ideate, Prototype,
Test
During which stage of the design thinking process will the design team create multiple
inexpensive product versions? - ✔️✔️Prototype
During which stage of the design thinking process is a problem statement formed? - ✔️✔️Define
Which stage of the design thinking process involves learning about customers' challenges? -
✔️✔️Empathize
Domain 1 Lesson 2 - ✔️✔️
____ is the amount of loss one is willing to take when making an investment decision - ✔️✔️Risk
tolerance
Having a ____ mindset means believing that one can accomplish anything through hard work -
✔️✔️growth
,An example of an ____ risk is a natural disaster - ✔️✔️environmental
A business opportunity is an ____ that lets a buyer start a business - ✔️✔️investment
A ____ needs to be obtained to use a brand name on products - ✔️✔️license
The five factors that determine the viability of a business opportunity are ____, relationships,
cash flow management, management skillsets, and passion - ✔️✔️market size
A business plan helps a business achieve short-term and long-term ____ - ✔️✔️goals
A lean canvas should only be ____ long - ✔️✔️one page
The ____ summary creates the first impression of a business plan - ✔️✔️executive
The ____ plan should specifically be directed to investors and lenders - ✔️✔️financial
A pitch deck is most commonly presented in the form of a ____ presentation - ✔️✔️slide
A ____ provides a brief overview of a business where one talks about the company's mission
and the value provided to customers - ✔️✔️vision and value proposition
A patent protects an ____ from being copied - ✔️✔️invention
Trade secrets protect a company's formulas from being shared with ____ - ✔️✔️competitors
To license a product, one must obtain ____ from the author or creator - ✔️✔️authorization
, Confidentiality or ____ agreements are signed by employees, agreeing not to share trade
secrets - ✔️✔️non-disclosure
Name a characteristic of a successful entrepreneur and explain why that skill would be helpful
when starting a business - ✔️✔️a large variety of characteristics because entrepreneurs
recognize opportunities and tolerate risks so they have growth mindsets and use critical
thinking to overcome obstacles, they also collaborate with others to solve problems; these
characteristics help entrepreneurs be successful
Name one example of a political risk that an entrepreneur might face - ✔️✔️increased tax rates
or large tariffs
Name one example of an environmental risk that an entrepreneur might face - ✔️✔️natural
disasters, poor food supplies, or inflation
Name one example of a financial risk that an entrepreneur might face - ✔️✔️bankruptcy or no
promise of income
Which business opportunity involves recruiting marketers to join a team? - ✔️✔️Network
marketing
Which business opportunity involves higher start-up costs? - ✔️✔️Franchise
Which business opportunity obtains licenses to use a brand name? - ✔️✔️Licensing
Which viability factor involves the potential funding of a business opportunity? - ✔️✔️Managing
cash flow
correct answers
Bill just started a new graphic design business. He is advertising online and trying to gain
customers. He just finished working with his first client. In which business life cycle stage is Bill?
- ✔️✔️Existence
Stephanie started a new flower shop last year. She has a good customer base and money
coming in. In which business life cycle stage is Stephanie? - ✔️✔️Survival
List the correct order of the design thinking process - ✔️✔️Empathize, Define, Ideate, Prototype,
Test
During which stage of the design thinking process will the design team create multiple
inexpensive product versions? - ✔️✔️Prototype
During which stage of the design thinking process is a problem statement formed? - ✔️✔️Define
Which stage of the design thinking process involves learning about customers' challenges? -
✔️✔️Empathize
Domain 1 Lesson 2 - ✔️✔️
____ is the amount of loss one is willing to take when making an investment decision - ✔️✔️Risk
tolerance
Having a ____ mindset means believing that one can accomplish anything through hard work -
✔️✔️growth
,An example of an ____ risk is a natural disaster - ✔️✔️environmental
A business opportunity is an ____ that lets a buyer start a business - ✔️✔️investment
A ____ needs to be obtained to use a brand name on products - ✔️✔️license
The five factors that determine the viability of a business opportunity are ____, relationships,
cash flow management, management skillsets, and passion - ✔️✔️market size
A business plan helps a business achieve short-term and long-term ____ - ✔️✔️goals
A lean canvas should only be ____ long - ✔️✔️one page
The ____ summary creates the first impression of a business plan - ✔️✔️executive
The ____ plan should specifically be directed to investors and lenders - ✔️✔️financial
A pitch deck is most commonly presented in the form of a ____ presentation - ✔️✔️slide
A ____ provides a brief overview of a business where one talks about the company's mission
and the value provided to customers - ✔️✔️vision and value proposition
A patent protects an ____ from being copied - ✔️✔️invention
Trade secrets protect a company's formulas from being shared with ____ - ✔️✔️competitors
To license a product, one must obtain ____ from the author or creator - ✔️✔️authorization
, Confidentiality or ____ agreements are signed by employees, agreeing not to share trade
secrets - ✔️✔️non-disclosure
Name a characteristic of a successful entrepreneur and explain why that skill would be helpful
when starting a business - ✔️✔️a large variety of characteristics because entrepreneurs
recognize opportunities and tolerate risks so they have growth mindsets and use critical
thinking to overcome obstacles, they also collaborate with others to solve problems; these
characteristics help entrepreneurs be successful
Name one example of a political risk that an entrepreneur might face - ✔️✔️increased tax rates
or large tariffs
Name one example of an environmental risk that an entrepreneur might face - ✔️✔️natural
disasters, poor food supplies, or inflation
Name one example of a financial risk that an entrepreneur might face - ✔️✔️bankruptcy or no
promise of income
Which business opportunity involves recruiting marketers to join a team? - ✔️✔️Network
marketing
Which business opportunity involves higher start-up costs? - ✔️✔️Franchise
Which business opportunity obtains licenses to use a brand name? - ✔️✔️Licensing
Which viability factor involves the potential funding of a business opportunity? - ✔️✔️Managing
cash flow
