ESB EXAM Study Guide Exam Questions
With Answers
Flexibility - Answer Ability to adapt, willingness to change
Courage - Answer Takes risks in spite of possible losses
Empathy - Answer Sensitive to thoughts and feelings of others
What are three characteristics of entrepreneurs? - Answer 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? - Answer 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?
- Answer 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? - Answer Lower
Prices
Which is one of the greatest benefits of entrepreneurship? - Answer Being your own boss
Which are three risks of entrepreneurship? - Answer 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? - Answer Autonomy
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 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? - Answer 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? - Answer
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? - Answer 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? - Answer
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? - Answer
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? - Answer Providing extended
hours to pickup and drop off pets before and after work
Which two groups benefit most from a well-written business plan? - Answer Business
owner
Investors
Which of the following should be addressed in the description section of a business
plan? - Answer Target Markets
Easy to setup, but has unlimited liability. - Answer Sole Proprietorship
Terminates upon death of a partner - Answer General or Limited Partnership
, Double-taxed, but best for international businesses - Answer C Corporation
Similar to a C Corporation, but taxed at a lower rate - Answer S Corporation
Owned by no one; pays no U.S federal tax - Answer Nonprofit Corporation
Best for a single member seeking low risk - Answer 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? - Answer $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? - Answer 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. - Answer $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? - Answer SBA
A software development consultant works with several clients. Some of the clients are
competitors. What is a consequence if the consultant violates confidentiality by
discussing a client's project with another client? - Answer Loss of clients and possible
lawsuit
With Answers
Flexibility - Answer Ability to adapt, willingness to change
Courage - Answer Takes risks in spite of possible losses
Empathy - Answer Sensitive to thoughts and feelings of others
What are three characteristics of entrepreneurs? - Answer 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? - Answer 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?
- Answer 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? - Answer Lower
Prices
Which is one of the greatest benefits of entrepreneurship? - Answer Being your own boss
Which are three risks of entrepreneurship? - Answer 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? - Answer Autonomy
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 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? - Answer 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? - Answer
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? - Answer 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? - Answer
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? - Answer
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? - Answer Providing extended
hours to pickup and drop off pets before and after work
Which two groups benefit most from a well-written business plan? - Answer Business
owner
Investors
Which of the following should be addressed in the description section of a business
plan? - Answer Target Markets
Easy to setup, but has unlimited liability. - Answer Sole Proprietorship
Terminates upon death of a partner - Answer General or Limited Partnership
, Double-taxed, but best for international businesses - Answer C Corporation
Similar to a C Corporation, but taxed at a lower rate - Answer S Corporation
Owned by no one; pays no U.S federal tax - Answer Nonprofit Corporation
Best for a single member seeking low risk - Answer 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? - Answer $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? - Answer 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. - Answer $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? - Answer SBA
A software development consultant works with several clients. Some of the clients are
competitors. What is a consequence if the consultant violates confidentiality by
discussing a client's project with another client? - Answer Loss of clients and possible
lawsuit
