ESB Exam Questions and Answers
100% Pass
Entrpreneurship - ✔✔Setting up a business with the aim to make a profit.
Entrepreneur - ✔✔An individual with an idea to offer an innovative product or service
about which they are passionate.
Characteristics of an Entrepreneur - ✔✔Responsible, Tenacious, Adaptable, Doesn't
give up easily, Risk tolerant, self-reliant, able to recognize opportunities, displays
initiative, resilient, possess a growth mindset, have a forward-thinking mentality, and
possess grit.
Benefits of being an Entrepreneur - ✔✔Schedule control, set your own hours, get to
work with like-minded people
Disadvantages of being an Entrepreneur - ✔✔Financial instability, risk of bankruptcy.
May not get paid or have enough to pay employees and there are no promised
paychecks.
Ethical Practices - ✔✔decision making based on morals and doing the right thing
Critical thinking - ✔✔Solving problems in the best way by considering a variety of
potential solutions to the problem
Problem-solving - ✔✔coming up with solutions to solve a problem
COPYRIGHT © 2025 BY KATELYN WHITMAN, ALL RIGHTS RESERVED 1
,Social responsibilities - ✔✔preventing and removing any corruption and unethical
behavior that could harm a business, the community, or the environment.
Creativity & Innovation - ✔✔bringing new and unconventional ideas to the table and
finding creative and new solutions to the way things are done
Personal Agency - ✔✔Working toward achieving a goal without someone directing and
ensuring it is being done
Collaboration - ✔✔working with others towards a common goal
Characteristics of recognizing business opportunities - ✔✔Price, Quality, & Service
If a seller offered to help the buyer find an ideal location for a business that would be an
example of a business opportunity.
Factors that aid in determining whether or not a business opportunity is viable include
Market size, relationships, management of cash flow, management skill sets, and
passion.
What should an entrepreneur do prior to opening a business? - ✔✔Ensure that there are
customers interested in the product & that there is high demand.
When considering the reliability of the management for a business opportunity, they
should also look at one's own skillset.
Characteristics of a Small Business - ✔✔Fewer than 1,500 employees & less than $35.5
million in revenue
Franchise - ✔✔A business where the owner licenses their operations, products or
services, branding, and knowledge for a royalty fee.
Disadvantage: Entrepreneur must abide by the rules of the franchisor. Typically have
higher startup costs
COPYRIGHT © 2025 BY KATELYN WHITMAN, ALL RIGHTS RESERVED 2
, Advantage: Provide ongoing support & training.
Small Business - ✔✔Owned and managed by one individual or sometimes a small
group of people with a focus on generating profits.
Network Marketing - ✔✔Another term for pyramid selling. Involves a sales structure in
which independent sales professionals sell products they purchase from a parent
company. Money is earned through commissions.
Non-profit Business - ✔✔Has no ownership and pays no US federal taxes (Tax Exempt)
What does it mean if a business is tax-exempt? - ✔✔If a business is tax-exempt they are
free from federal, state or local tax. Some do not pay property tax. Nonprofits put
profits towards paying expenses and putting money back into the business.
What is the difference between small businesses and entrepreneurs? - ✔✔Small
business owners are not always interested in taking on new business opportunities.
Design Thinking Stages - ✔✔1. Empathize: Research User Needs
2. Define the Problem: State your users Needs & Problems
3. Ideate: Challenge Assumptions and Create Ideas
4. Prototype: Create Solutions
5. Test: Try your solutions
Design Thinking - ✔✔Common for design team to revisit previous stages
Stage 1: Empathize - ✔✔Spending time gaining an understanding by observing,
engaging, and empathizing with customers to understand their experiences and their
needs better
COPYRIGHT © 2025 BY KATELYN WHITMAN, ALL RIGHTS RESERVED 3
100% Pass
Entrpreneurship - ✔✔Setting up a business with the aim to make a profit.
Entrepreneur - ✔✔An individual with an idea to offer an innovative product or service
about which they are passionate.
Characteristics of an Entrepreneur - ✔✔Responsible, Tenacious, Adaptable, Doesn't
give up easily, Risk tolerant, self-reliant, able to recognize opportunities, displays
initiative, resilient, possess a growth mindset, have a forward-thinking mentality, and
possess grit.
Benefits of being an Entrepreneur - ✔✔Schedule control, set your own hours, get to
work with like-minded people
Disadvantages of being an Entrepreneur - ✔✔Financial instability, risk of bankruptcy.
May not get paid or have enough to pay employees and there are no promised
paychecks.
Ethical Practices - ✔✔decision making based on morals and doing the right thing
Critical thinking - ✔✔Solving problems in the best way by considering a variety of
potential solutions to the problem
Problem-solving - ✔✔coming up with solutions to solve a problem
COPYRIGHT © 2025 BY KATELYN WHITMAN, ALL RIGHTS RESERVED 1
,Social responsibilities - ✔✔preventing and removing any corruption and unethical
behavior that could harm a business, the community, or the environment.
Creativity & Innovation - ✔✔bringing new and unconventional ideas to the table and
finding creative and new solutions to the way things are done
Personal Agency - ✔✔Working toward achieving a goal without someone directing and
ensuring it is being done
Collaboration - ✔✔working with others towards a common goal
Characteristics of recognizing business opportunities - ✔✔Price, Quality, & Service
If a seller offered to help the buyer find an ideal location for a business that would be an
example of a business opportunity.
Factors that aid in determining whether or not a business opportunity is viable include
Market size, relationships, management of cash flow, management skill sets, and
passion.
What should an entrepreneur do prior to opening a business? - ✔✔Ensure that there are
customers interested in the product & that there is high demand.
When considering the reliability of the management for a business opportunity, they
should also look at one's own skillset.
Characteristics of a Small Business - ✔✔Fewer than 1,500 employees & less than $35.5
million in revenue
Franchise - ✔✔A business where the owner licenses their operations, products or
services, branding, and knowledge for a royalty fee.
Disadvantage: Entrepreneur must abide by the rules of the franchisor. Typically have
higher startup costs
COPYRIGHT © 2025 BY KATELYN WHITMAN, ALL RIGHTS RESERVED 2
, Advantage: Provide ongoing support & training.
Small Business - ✔✔Owned and managed by one individual or sometimes a small
group of people with a focus on generating profits.
Network Marketing - ✔✔Another term for pyramid selling. Involves a sales structure in
which independent sales professionals sell products they purchase from a parent
company. Money is earned through commissions.
Non-profit Business - ✔✔Has no ownership and pays no US federal taxes (Tax Exempt)
What does it mean if a business is tax-exempt? - ✔✔If a business is tax-exempt they are
free from federal, state or local tax. Some do not pay property tax. Nonprofits put
profits towards paying expenses and putting money back into the business.
What is the difference between small businesses and entrepreneurs? - ✔✔Small
business owners are not always interested in taking on new business opportunities.
Design Thinking Stages - ✔✔1. Empathize: Research User Needs
2. Define the Problem: State your users Needs & Problems
3. Ideate: Challenge Assumptions and Create Ideas
4. Prototype: Create Solutions
5. Test: Try your solutions
Design Thinking - ✔✔Common for design team to revisit previous stages
Stage 1: Empathize - ✔✔Spending time gaining an understanding by observing,
engaging, and empathizing with customers to understand their experiences and their
needs better
COPYRIGHT © 2025 BY KATELYN WHITMAN, ALL RIGHTS RESERVED 3
