ESB Test 1 Questions with Completed
and Verified Solutions
A horse owner loves training animals. She would like to turn her hobby of training horses into a
business. To fulfill her dream, she has decided to purchase a larger property with more acreage,
a big barn, and a training arenaShe hopes to board and train as many as 12 horses at a time .
She will sell her existing home to make the down payment on the property and have a family
member co-sign for the mortgage . She has a small inheritance that can cover her operational
expenses for the first 2 months . She plans to put in long hours to do all of the horse feeding ,
grooming , training , stall cleaning , and property maintenance herself to save money . Which
are the two greatest entrepreneurial risks being taken to start this business ? (Choose two ) -
ANSWERS -financial uncertainty
loss of free time
Which are considered risks of being an entrepreneur? Choose three answers - ANSWERS -
possible business failure
long hours
financial instability
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 Research into the situation
reveals that there are only a few contractors in the area and they all charge a premium price for
their work. The entrepreneur decides to begin advertising his services in this community .
Which should be emphasized in marketing to attract customers to his new business? - ANSWERS
-lower prices
Ophelia runs a local seamstress business. Ophelia is losing customers to a competing business.
Upon sending an employee over to check out the competition, Ophelia discovers the
competitor's turnaround time is double her turnaround time. What should Ophelia's new
marketing strategy be to woo back her customers? - ANSWERS -service
, 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. Recently, two new electricians were hired that do
sloppy work and don't get along well with Gabe. As a resultGabe decides go into business for
himself. Which benefit of entrepreneurship will Gabe most enjoy? - ANSWERS -autonomy
A photographer enjoys traveling and having freedom over her own schedule. She would like to
turn her photography hobby into a business. Which are the two greatest benefits she might
experience by turning her hobby into a successful business ? (Choose two ) - ANSWERS -making
her own rules
satisfaction
Which two characteristics best describe entrepreneurs? - ANSWERS -creative
adaptable
Successful entrepreneurs typically possess which three characteristics? - ANSWERS -tenacious
adaptable
responsible
Rey has worked as a transportation coordinator for the past 10 years. Rey often is dissatisfied
with the stagnation of the job and wants to open her own transportation service. Which benefit
of entrepreneurship will be the biggest one for Rey? - ANSWERS -autonomy
After a self-assessment, a potential entrepreneur has learned that he knows nothing about
accounting and keeping records for a business. Based upon this finding, what should this
entrepreneur do? - ANSWERS -enroll in a beginning level business accounting course at a local
community college
Which are three risks of entrepreneurship? (Choose three) - ANSWERS -financial insecurity
and Verified Solutions
A horse owner loves training animals. She would like to turn her hobby of training horses into a
business. To fulfill her dream, she has decided to purchase a larger property with more acreage,
a big barn, and a training arenaShe hopes to board and train as many as 12 horses at a time .
She will sell her existing home to make the down payment on the property and have a family
member co-sign for the mortgage . She has a small inheritance that can cover her operational
expenses for the first 2 months . She plans to put in long hours to do all of the horse feeding ,
grooming , training , stall cleaning , and property maintenance herself to save money . Which
are the two greatest entrepreneurial risks being taken to start this business ? (Choose two ) -
ANSWERS -financial uncertainty
loss of free time
Which are considered risks of being an entrepreneur? Choose three answers - ANSWERS -
possible business failure
long hours
financial instability
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 Research into the situation
reveals that there are only a few contractors in the area and they all charge a premium price for
their work. The entrepreneur decides to begin advertising his services in this community .
Which should be emphasized in marketing to attract customers to his new business? - ANSWERS
-lower prices
Ophelia runs a local seamstress business. Ophelia is losing customers to a competing business.
Upon sending an employee over to check out the competition, Ophelia discovers the
competitor's turnaround time is double her turnaround time. What should Ophelia's new
marketing strategy be to woo back her customers? - ANSWERS -service
, 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. Recently, two new electricians were hired that do
sloppy work and don't get along well with Gabe. As a resultGabe decides go into business for
himself. Which benefit of entrepreneurship will Gabe most enjoy? - ANSWERS -autonomy
A photographer enjoys traveling and having freedom over her own schedule. She would like to
turn her photography hobby into a business. Which are the two greatest benefits she might
experience by turning her hobby into a successful business ? (Choose two ) - ANSWERS -making
her own rules
satisfaction
Which two characteristics best describe entrepreneurs? - ANSWERS -creative
adaptable
Successful entrepreneurs typically possess which three characteristics? - ANSWERS -tenacious
adaptable
responsible
Rey has worked as a transportation coordinator for the past 10 years. Rey often is dissatisfied
with the stagnation of the job and wants to open her own transportation service. Which benefit
of entrepreneurship will be the biggest one for Rey? - ANSWERS -autonomy
After a self-assessment, a potential entrepreneur has learned that he knows nothing about
accounting and keeping records for a business. Based upon this finding, what should this
entrepreneur do? - ANSWERS -enroll in a beginning level business accounting course at a local
community college
Which are three risks of entrepreneurship? (Choose three) - ANSWERS -financial insecurity
