ESB Practice Exam 2 Answered 100%
Correct 2024
A rancher is preparing to retire. He is considering selling half of his land and giving the
other half to his children. He hears that development for a ski resort was just approved
on land adjacent to his property.
Which viable business opportunity does the retiring rancher foresee? - ANSWER--An
increase in land value
Your company is manufacturing a new product. You need to establish a Product Quality
Control Process.
What are three things you must do to create establish your Product Quality Control
Process? (Choose three) - ANSWER--Determine what standards have to be met based
on the product and industry.
-Establish the method to use for testing product quality.
-Review the results of internal qualitv assurance testing.
Which is one of the greatest risks of being an entrepreneur? - ANSWER--Financial
Instability
You create a new strategy for lawncare services that involves assessing lawn health,
applying the correct herbicides and pesticides and other
necessary solutions to quickly bring a lawn back to health.,
What are three things you will need to consider regarding the mass delivery of your
service? (Choose three) - ANSWER--Finding a source of materials to support your
service.
-Training employees with the knowledge to consistently deliver the service.
-Creating an effective demonstration of your service for potential customers.
Classify each of the following businesses as either Physical or Digital. - ANSWER-
Physical
-Bakery in your community
-Hair salon that makes
appointments online
Digital
-Online store that dropships
camping gear
-Bookstore on Amazon that sells
eBooks
For each statement about the Selection of Distribution Channels, select True or False. -
ANSWER-True
-Product price has no affect on
the length of a distribution
, channel.
-The geographic location of
customers does not require
different distribution channels.
False
-Products that are bulky or large
in size are usually sold directly
by the company to their
consumers
-Technical and complex
products are best sold through
direct distribution.
Which two types of Sales Channels sell primarily to other businesses? (Choose two) -
ANSWER--B2B
-Wholesale
You have a handyman services business. You have the following financial information
for the month.
• Initial cash balance: $1,500
• Projected revenue based on existing clients: $2,500
• Gas: $100
• Equipment maintenance fees: $300
• Truck payment: $400
• Payroll: $3,000
• Insurance: $120
What is your projected ending cash balance for the month? - ANSWER-$80
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
Which two are segments in a Marketing Plan? (Choose two) - ANSWER--
Psychographic
-Demographic
You own a mobile Taco Truck. You have a short list of competitors.
Classify the following competition as either Direct Competition or Indirect Competition.
Classify each business as either Direct Competition or Indirect Competition. -
ANSWER-Direct Competition
-Walk-up Mexican Food stand
-A local Taco Bell franchise
Indirect Competition
-Mobile Fish and Chips Truck
Correct 2024
A rancher is preparing to retire. He is considering selling half of his land and giving the
other half to his children. He hears that development for a ski resort was just approved
on land adjacent to his property.
Which viable business opportunity does the retiring rancher foresee? - ANSWER--An
increase in land value
Your company is manufacturing a new product. You need to establish a Product Quality
Control Process.
What are three things you must do to create establish your Product Quality Control
Process? (Choose three) - ANSWER--Determine what standards have to be met based
on the product and industry.
-Establish the method to use for testing product quality.
-Review the results of internal qualitv assurance testing.
Which is one of the greatest risks of being an entrepreneur? - ANSWER--Financial
Instability
You create a new strategy for lawncare services that involves assessing lawn health,
applying the correct herbicides and pesticides and other
necessary solutions to quickly bring a lawn back to health.,
What are three things you will need to consider regarding the mass delivery of your
service? (Choose three) - ANSWER--Finding a source of materials to support your
service.
-Training employees with the knowledge to consistently deliver the service.
-Creating an effective demonstration of your service for potential customers.
Classify each of the following businesses as either Physical or Digital. - ANSWER-
Physical
-Bakery in your community
-Hair salon that makes
appointments online
Digital
-Online store that dropships
camping gear
-Bookstore on Amazon that sells
eBooks
For each statement about the Selection of Distribution Channels, select True or False. -
ANSWER-True
-Product price has no affect on
the length of a distribution
, channel.
-The geographic location of
customers does not require
different distribution channels.
False
-Products that are bulky or large
in size are usually sold directly
by the company to their
consumers
-Technical and complex
products are best sold through
direct distribution.
Which two types of Sales Channels sell primarily to other businesses? (Choose two) -
ANSWER--B2B
-Wholesale
You have a handyman services business. You have the following financial information
for the month.
• Initial cash balance: $1,500
• Projected revenue based on existing clients: $2,500
• Gas: $100
• Equipment maintenance fees: $300
• Truck payment: $400
• Payroll: $3,000
• Insurance: $120
What is your projected ending cash balance for the month? - ANSWER-$80
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
Which two are segments in a Marketing Plan? (Choose two) - ANSWER--
Psychographic
-Demographic
You own a mobile Taco Truck. You have a short list of competitors.
Classify the following competition as either Direct Competition or Indirect Competition.
Classify each business as either Direct Competition or Indirect Competition. -
ANSWER-Direct Competition
-Walk-up Mexican Food stand
-A local Taco Bell franchise
Indirect Competition
-Mobile Fish and Chips Truck
