ESB EXAM STUDY GUIDE QUESTIONS WITH CORRECT ANSWERS |LATEST UPDATE 100%
SOLVED| GRADED A+
Which are three rewards of entrepreneurship? Helping the community
Doing work your way
Potential for greater wealth
A chef is considering opening a restaurant and wants to identify the benefits and drawbacks of
various business opportunities. Buy a franchise: Benefit: branding success Drawback: pays a
royalty
Start a new business: Benefit: build your own way Drawback: riskiness
Buy an existing business Benefit: has customers Drawback: expensive
Which are three reasons to buy a franchise instead of starting a business from scratch?
Proven System
Easier Financing
Exclusive Geographic Area
An experienced residential painter wants to move his family to a new town. Before he moves,
he needs to determine if there is sufficient demand for his painting business in the new
,community. Which two questions should the painter research? How many competitors are
in the area?
What are the spending patterns of potential customers in the area?
A travel agent wants to own her own business. She is researching the business opportunities
that exist if she specializes in booking cruise ship vacations. Which cruise add-on should be
promoted from revenue perspective? Shore excursions
The owner of a house cleaning business is seeking new customers for his low-priced services.
Which method of segmentation is the owner using? Behavioral
The owner of a housekeeping business wants to target customers for its services. Psycho-
graphic- Home owners with busy lifestyles that don't have time to clean themselves
Behavioral- Home owners who are looking for promotions and discounts on cleaning services
Demographic- Home owners with higher incomes
Geographic- Home owners who live in neighborhoods near the business
, An entrepreneur wants to purchase a fleet of food trucks to start a mobile restaurant business.
The entrepreneur is writing business plans for the new business. Match each primary target
audience with its type of business plan Investors: Executive summary
Investors: oral presentation
Investors: Investor's business plan
Business owner: operational business plan
What is the primary drawback of a Sole Proprietorship? Unlimited Liability
An entrepreneur wants to become the sole proprietor of a sandwich shop. Based on the
estimates provided by the entrepreneur, will the bank approve her loan? No, because her
debt ratio is too high
The owner of a pet supply store wants to expand her business and by boarding animals. She has
designed plans to add a 30' x 60' kennel onto the back of her retail building. Permit
A welding shop owner rents space in a building and needs a $5,000 in supplies to complete a
large project for a new customer. The bank has turned down a personal loan request. What is
the most practical source of funding for the materials needed to complete this customer job?
Asking for an advance payment from the customer whose large order is the reason the
materials are needed
SOLVED| GRADED A+
Which are three rewards of entrepreneurship? Helping the community
Doing work your way
Potential for greater wealth
A chef is considering opening a restaurant and wants to identify the benefits and drawbacks of
various business opportunities. Buy a franchise: Benefit: branding success Drawback: pays a
royalty
Start a new business: Benefit: build your own way Drawback: riskiness
Buy an existing business Benefit: has customers Drawback: expensive
Which are three reasons to buy a franchise instead of starting a business from scratch?
Proven System
Easier Financing
Exclusive Geographic Area
An experienced residential painter wants to move his family to a new town. Before he moves,
he needs to determine if there is sufficient demand for his painting business in the new
,community. Which two questions should the painter research? How many competitors are
in the area?
What are the spending patterns of potential customers in the area?
A travel agent wants to own her own business. She is researching the business opportunities
that exist if she specializes in booking cruise ship vacations. Which cruise add-on should be
promoted from revenue perspective? Shore excursions
The owner of a house cleaning business is seeking new customers for his low-priced services.
Which method of segmentation is the owner using? Behavioral
The owner of a housekeeping business wants to target customers for its services. Psycho-
graphic- Home owners with busy lifestyles that don't have time to clean themselves
Behavioral- Home owners who are looking for promotions and discounts on cleaning services
Demographic- Home owners with higher incomes
Geographic- Home owners who live in neighborhoods near the business
, An entrepreneur wants to purchase a fleet of food trucks to start a mobile restaurant business.
The entrepreneur is writing business plans for the new business. Match each primary target
audience with its type of business plan Investors: Executive summary
Investors: oral presentation
Investors: Investor's business plan
Business owner: operational business plan
What is the primary drawback of a Sole Proprietorship? Unlimited Liability
An entrepreneur wants to become the sole proprietor of a sandwich shop. Based on the
estimates provided by the entrepreneur, will the bank approve her loan? No, because her
debt ratio is too high
The owner of a pet supply store wants to expand her business and by boarding animals. She has
designed plans to add a 30' x 60' kennel onto the back of her retail building. Permit
A welding shop owner rents space in a building and needs a $5,000 in supplies to complete a
large project for a new customer. The bank has turned down a personal loan request. What is
the most practical source of funding for the materials needed to complete this customer job?
Asking for an advance payment from the customer whose large order is the reason the
materials are needed
