ESB Practice Test Study Questions &
Answers10
Which lean canvas component describes how a business idea solves customers problems in a
better way than existing solutions? - ANSWERS -Value proposition
Know the following words and definitions:
a.Demographic - this segment describes statistical information about customers
b.Geographic - this segment describes where customers are located and how they can be
reached
c.Psychographic - this segment describes what customers think about and value, and how they
live their lives
d.Behavioral - this segment describes the benefits to customers based on their wants and needs
and how they use the product - ANSWERS -ANSWERS ON FRONT
True or False
a.Start-up companies use business plans to attract investors
b.Business plans are written documents outlining a company's objectives and goals
c.A pitch deck is a short presentation, for clients or investors, that provides an overview of your
business plan - ANSWERS --True
-True
-True
Which two types of information does an income statement provide? - ANSWERS --A
classification of revenues & expenses
-A classification of assets and liabilities
, The __________ creates budgets and financial strategies - ANSWERS -chief financial officer
(CFO)
A _______ finds and invests resources to form the company and help it succeed - ANSWERS -
founder
The ______ reports to the board of directors and is the highest-ranking employee in the
company - ANSWERS -CEO
You need to create a legal structure for your small business. You work alone, do not plan to sell
stock, and need to protect your personal property. Which legal structure should you set up for
your business? - ANSWERS -Wholesale is B2B while retail is B2C
Your company's acquisition cost is too high. Which two actions should you take to lower the
customer acquisition cost choose? (2) - ANSWERS --Decrease direct mail and prints ads
-Increase advertising targeted at new customers
What are the qualities of an entrepreneurial mindset? - ANSWERS -Flexible and resilient
You manufacture racecars. How should you determine performance criteria for your product? -
ANSWERS -Test an interactive prototype
Which three roles have equity in a business? (Choose 3) - ANSWERS --Partner
-Owner
-Stockholder
You decide to create a new type of energy bar. You take some samples to a focus group to get
their reactions to your product. Which stage of the development process are you in? - ANSWERS
-Market strategy creation
Answers10
Which lean canvas component describes how a business idea solves customers problems in a
better way than existing solutions? - ANSWERS -Value proposition
Know the following words and definitions:
a.Demographic - this segment describes statistical information about customers
b.Geographic - this segment describes where customers are located and how they can be
reached
c.Psychographic - this segment describes what customers think about and value, and how they
live their lives
d.Behavioral - this segment describes the benefits to customers based on their wants and needs
and how they use the product - ANSWERS -ANSWERS ON FRONT
True or False
a.Start-up companies use business plans to attract investors
b.Business plans are written documents outlining a company's objectives and goals
c.A pitch deck is a short presentation, for clients or investors, that provides an overview of your
business plan - ANSWERS --True
-True
-True
Which two types of information does an income statement provide? - ANSWERS --A
classification of revenues & expenses
-A classification of assets and liabilities
, The __________ creates budgets and financial strategies - ANSWERS -chief financial officer
(CFO)
A _______ finds and invests resources to form the company and help it succeed - ANSWERS -
founder
The ______ reports to the board of directors and is the highest-ranking employee in the
company - ANSWERS -CEO
You need to create a legal structure for your small business. You work alone, do not plan to sell
stock, and need to protect your personal property. Which legal structure should you set up for
your business? - ANSWERS -Wholesale is B2B while retail is B2C
Your company's acquisition cost is too high. Which two actions should you take to lower the
customer acquisition cost choose? (2) - ANSWERS --Decrease direct mail and prints ads
-Increase advertising targeted at new customers
What are the qualities of an entrepreneurial mindset? - ANSWERS -Flexible and resilient
You manufacture racecars. How should you determine performance criteria for your product? -
ANSWERS -Test an interactive prototype
Which three roles have equity in a business? (Choose 3) - ANSWERS --Partner
-Owner
-Stockholder
You decide to create a new type of energy bar. You take some samples to a focus group to get
their reactions to your product. Which stage of the development process are you in? - ANSWERS
-Market strategy creation
