ESB EXAM Study Guide 2024 Top Rated Questions and Answers Graded A

Flexibility - Ability to adapt, willingness to change Courage - Takes risks in spite of possible losses Empathy - Sensitive to thoughts and feelings of others What are three characteristics of entrepreneurs? - Creativity, Determination, Enthusiasm After a self-assessment, a potential entrepreneur has learned that she has a very low risk tolerance. Based upon this finding, which approach might be less stressful for the entrepreneur to have her own business? - Buy an existing business that is already successful. An entrepreneur moves into a small town and notices several stores selling guns and ammunition. The entrepreneur loves to compete in competitive shooting events. Based on the scenario provided, what should be emphasized in marketing to attract customers? - Location An entrepreneur has been working for a flooring business in a neighboring town. He feels he is ready to open his own flooring business in his local community. Which should be emphasized in marketing to attract customers to his new business? - Lower Prices Which is one of the greatest benefits of entrepreneurship? - Being your own boss Which are three risks of entrepreneurship? - 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? - Autonomy What is a primary benefit of starting a new business without purchasing a franchise or buying an existing business? - 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 opportunity would be the best choice for the motorcycle mechanic to open a business? - 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 sell purses, belts, and other leathercrafts from her home. Which opportunity for starting a leathercraft business would have the highest probability of success? - Build an online storefront Based upon the education and skills gained from the years of vocational training as an auto mechanic, 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? - Businesses The owner of a pizza delivery business is seeking new customers. The owner has identified a group of potential customers that have moved into some new housing within reaches of his drivers. Which method of segmentation is the owner using? - Geographic A child daycare center needs to identify a value of proposition that will help parents feel secure about using their services. Which two initiatives meets this objective? - Providing live web cams parents can access from the Internet by using a secure logon. Offering a list of references from other parents The owner of a pet daycare is presenting a plan to investors to expand the facility and promises the center will meet the needs of customers with a variety of schedules. What is a legitimate value proposition for potential customers? - Providing extended hours to pickup and drop off pets before and after work Which two groups benefit most from a well-written business plan? - Business owner Investors Which of the following should be addressed in the description section of a business plan? - Target Markets Easy to setup, but has unlimited liability. - Sole Proprietorship Terminates upon death of a partner - General or Limited Partnership Double-taxed, but best for international businesses - C Corporation Similar to a C Corporation, but taxed at a lower rate - S Corporation Owned by no one; pays no U.S federal tax - Nonprofit Corporation Best for a single member seeking low risk - Limited Liability Company The partners of an awning repair shop are assessing the amount of money needed to start a business at a new location. The partners have calculating that the business will generate more than enough revenue to cover monthly expenses after its second month in operation. What is the amount of start-up capital the partners will need to open the new awning repair business? - $84,920