ESB Exam Study Guide (Verified Content)
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
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
