ESB Exam Mini Review Questions and
Answers 100% Correct
Which two documents summarize the business plan of a company? - ANSWER-Pitch
Deck, Lean Canvas
Which three elements are required to have a Trade Secret? - ANSWER-Others cannot
legitimately obtain the information, information has economic value not generally known,
subject to reasonable efforts to maintain its secrecy
Your company manufactures 72 hour emergency kits and sells them for a low profit
margin. You want to expand your customer base to increase your sales volume, but you
have a limited budget. What marketing method would be the best choice? - ANSWER-
Social Media
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
You operate a small insurance office with a partner. Which expense is a fixed cost? -
ANSWER-Property lease for the office
You recently started a small affiliate marketing service. Last month, you spend $1,000
on a Pay-Per-Click online advertising campaign that resulted in $1,200 in sales. What
was last month's Return on Investment for your affiliate marketing service? - ANSWER-
20%
You need to create a legal structure for your small business. You have plans for it to
grow and hope in the future to sell shares to the public. Your startup partners are
citizens of Mexico and Japan. You do not want to be personally responsible for
business liabilities. Which legal structure should you set up for your business? -
ANSWER-C-Corporation
You own a lawn care business. You have employees who work long hours laboring in
good weather, often exceeding 40 hours per week. They also work short hours when
the weather is bad, sometimes they can't work at all. You do all of the sales your
business. Which two types of compensation would be appropriate for these landscape
employees? - ANSWER-Salary and hourly
An executive summary should briefly explain everything in a business plan in ______
pages. - ANSWER-2
Answers 100% Correct
Which two documents summarize the business plan of a company? - ANSWER-Pitch
Deck, Lean Canvas
Which three elements are required to have a Trade Secret? - ANSWER-Others cannot
legitimately obtain the information, information has economic value not generally known,
subject to reasonable efforts to maintain its secrecy
Your company manufactures 72 hour emergency kits and sells them for a low profit
margin. You want to expand your customer base to increase your sales volume, but you
have a limited budget. What marketing method would be the best choice? - ANSWER-
Social Media
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
You operate a small insurance office with a partner. Which expense is a fixed cost? -
ANSWER-Property lease for the office
You recently started a small affiliate marketing service. Last month, you spend $1,000
on a Pay-Per-Click online advertising campaign that resulted in $1,200 in sales. What
was last month's Return on Investment for your affiliate marketing service? - ANSWER-
20%
You need to create a legal structure for your small business. You have plans for it to
grow and hope in the future to sell shares to the public. Your startup partners are
citizens of Mexico and Japan. You do not want to be personally responsible for
business liabilities. Which legal structure should you set up for your business? -
ANSWER-C-Corporation
You own a lawn care business. You have employees who work long hours laboring in
good weather, often exceeding 40 hours per week. They also work short hours when
the weather is bad, sometimes they can't work at all. You do all of the sales your
business. Which two types of compensation would be appropriate for these landscape
employees? - ANSWER-Salary and hourly
An executive summary should briefly explain everything in a business plan in ______
pages. - ANSWER-2
