ESB EXAM Study Guide (Complete)
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
The owner of a mobile food truck plans to sell tacos, hamburgers, and other
foods to employees in a large office complex. Before opening his business, the
owner will most likely need to obtain which of the following documents from
each employee to verify they have completed a course in food handling safety?
- Certificate
An individual starts a babysitting business with a loan of $1000. The loan is
for 2 years at a 5% COMPOUND interest rate. How much will the individual
owe by the end of the loan assuming nothing is paid until the end of the 2
years term. - $1,102.50
A carpenter wants to start his own business building custom cabinets.
Unfortunately, he has no business training and needs assistance writing a
business plan, finding funding, and obtaining general advice. Which agency
should the carpenter utilize? - SBA
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
The owner of a mobile food truck plans to sell tacos, hamburgers, and other
foods to employees in a large office complex. Before opening his business, the
owner will most likely need to obtain which of the following documents from
each employee to verify they have completed a course in food handling safety?
- Certificate
An individual starts a babysitting business with a loan of $1000. The loan is
for 2 years at a 5% COMPOUND interest rate. How much will the individual
owe by the end of the loan assuming nothing is paid until the end of the 2
years term. - $1,102.50
A carpenter wants to start his own business building custom cabinets.
Unfortunately, he has no business training and needs assistance writing a
business plan, finding funding, and obtaining general advice. Which agency
should the carpenter utilize? - SBA
