ESB Practice Test 2- Questions and
Answers 100% Correct
In general, which characteristics define a "small" business? - ANSWER-- fewer than
1,500 employees
- less than $35.5 million revenue
classify each of the following 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
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
match each business management role to its corresponding description
1. the highest ranking employee in the company; reports to the board of directors
2. creates budgets, analyzes financial data, and forecasts company profits
3. develops policies and structures to protect company data
4. oversees the day-to-day administrative functions of a business; second in command.
- ANSWER-1. CEO
2. CFO
3. CIO
4. COO
You own a lawn care business. You have employees who work long hours laboring in
good weather, often exceeding 40 hours per week. They also work short hours when
the weather is bad, sometimes they can't work at all. You do all of the sales for your
business.
Which two types of compensation would be appropriate for these landscape
employees? - ANSWER-salary
hourly
match something idk. The stages in a business life cycle i guess
, 1. existence
2. survival of the fittest
3. success
4. take-off
5. maturity - ANSWER-1. the business introduces itself to the market and attempts to
catch the attention of potential customers.
2. focus shifts to revenue, expenses, and growth. cashflow is the major issue.
3. company is stable and profitable.
4. expansion strategies are implemented, and investment is balanced with potential.
5. the business is separate from the owner with responsibilities delegated to staff. a
business in this stage usually commands a considerable share of the market and may
even be a household name.
design thinking process
true/false - ANSWER-TRUE
- problem statements are written in the Define phase
- assumptions are challenged and ideas are created in the Ideate phase
FALSE
- Building Prototypes is the final phase of the design thinking process
- the Empathize phase tests solutions to users' problems
which of these is a characteristic of a successful entrepreneur mindset? - ANSWER-
doesn't give up easily
which is one of the greatest risks of being an entrepreneur? - ANSWER-financial
instability
what is a primary benefit of starting a new business without purchasing a franchise or
buying an existing business? - ANSWER-developing your own rules
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
1. a _______ is a multi-page document describing and detailing a business
2. a slide presentation for potential investors that summarizes the key items of a
business is called a _______
3. a _______ is a single-page business summary template that was created by Ash
Maurya - ANSWER-business plan
pitch deck
lean canvas
Answers 100% Correct
In general, which characteristics define a "small" business? - ANSWER-- fewer than
1,500 employees
- less than $35.5 million revenue
classify each of the following 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
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
match each business management role to its corresponding description
1. the highest ranking employee in the company; reports to the board of directors
2. creates budgets, analyzes financial data, and forecasts company profits
3. develops policies and structures to protect company data
4. oversees the day-to-day administrative functions of a business; second in command.
- ANSWER-1. CEO
2. CFO
3. CIO
4. COO
You own a lawn care business. You have employees who work long hours laboring in
good weather, often exceeding 40 hours per week. They also work short hours when
the weather is bad, sometimes they can't work at all. You do all of the sales for your
business.
Which two types of compensation would be appropriate for these landscape
employees? - ANSWER-salary
hourly
match something idk. The stages in a business life cycle i guess
, 1. existence
2. survival of the fittest
3. success
4. take-off
5. maturity - ANSWER-1. the business introduces itself to the market and attempts to
catch the attention of potential customers.
2. focus shifts to revenue, expenses, and growth. cashflow is the major issue.
3. company is stable and profitable.
4. expansion strategies are implemented, and investment is balanced with potential.
5. the business is separate from the owner with responsibilities delegated to staff. a
business in this stage usually commands a considerable share of the market and may
even be a household name.
design thinking process
true/false - ANSWER-TRUE
- problem statements are written in the Define phase
- assumptions are challenged and ideas are created in the Ideate phase
FALSE
- Building Prototypes is the final phase of the design thinking process
- the Empathize phase tests solutions to users' problems
which of these is a characteristic of a successful entrepreneur mindset? - ANSWER-
doesn't give up easily
which is one of the greatest risks of being an entrepreneur? - ANSWER-financial
instability
what is a primary benefit of starting a new business without purchasing a franchise or
buying an existing business? - ANSWER-developing your own rules
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
1. a _______ is a multi-page document describing and detailing a business
2. a slide presentation for potential investors that summarizes the key items of a
business is called a _______
3. a _______ is a single-page business summary template that was created by Ash
Maurya - ANSWER-business plan
pitch deck
lean canvas
