ESB EXAM Study Guide Questions With
Correct Answers
Flexibility |- |CORRECT |ANSWER✔✔-Ability |to |adapt, |willingness |to |change
Courage |- |CORRECT |ANSWER✔✔-Takes |risks |in |spite |of |possible |losses
Empathy |- |CORRECT |ANSWER✔✔-Sensitive |to |thoughts |and |feelings |of |others
What |are |three |characteristics |of |entrepreneurs? |- |CORRECT |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? |- |CORRECT |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? |- |
CORRECT |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? |- |CORRECT |ANSWER✔✔-
Lower |Prices
Which |is |one |of |the |greatest |benefits |of |entrepreneurship? |- |CORRECT |ANSWER✔✔-Being |
your |own |boss
,Which |are |three |risks |of |entrepreneurship? |- |CORRECT |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? |- |CORRECT |ANSWER✔✔-Autonomy
What |is |a |primary |benefit |of |starting |a |new |business |without |purchasing |a |franchise |or |buying
|an |existing |business? |- |CORRECT |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? |- |CORRECT |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? |- |CORRECT |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? |- |CORRECT |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? |- |CORRECT |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? |- |CORRECT |
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? |- |CORRECT |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? |- |CORRECT |ANSWER✔✔-
Business |owner
Investors
Which |of |the |following |should |be |addressed |in |the |description |section |of |a |business |plan? |- |
CORRECT |ANSWER✔✔-Target |Markets
Easy |to |setup, |but |has |unlimited |liability. |- |CORRECT |ANSWER✔✔-Sole |Proprietorship
Terminates |upon |death |of |a |partner |- |CORRECT |ANSWER✔✔-General |or |Limited |Partnership
Double-taxed, |but |best |for |international |businesses |- |CORRECT |ANSWER✔✔-C |Corporation
Similar |to |a |C |Corporation, |but |taxed |at |a |lower |rate |- |CORRECT |ANSWER✔✔-S |Corporation
Owned |by |no |one; |pays |no |U.S |federal |tax |- |CORRECT |ANSWER✔✔-Nonprofit |Corporation
Best |for |a |single |member |seeking |low |risk |- |CORRECT |ANSWER✔✔-Limited |Liability |Company
Correct Answers
Flexibility |- |CORRECT |ANSWER✔✔-Ability |to |adapt, |willingness |to |change
Courage |- |CORRECT |ANSWER✔✔-Takes |risks |in |spite |of |possible |losses
Empathy |- |CORRECT |ANSWER✔✔-Sensitive |to |thoughts |and |feelings |of |others
What |are |three |characteristics |of |entrepreneurs? |- |CORRECT |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? |- |CORRECT |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? |- |
CORRECT |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? |- |CORRECT |ANSWER✔✔-
Lower |Prices
Which |is |one |of |the |greatest |benefits |of |entrepreneurship? |- |CORRECT |ANSWER✔✔-Being |
your |own |boss
,Which |are |three |risks |of |entrepreneurship? |- |CORRECT |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? |- |CORRECT |ANSWER✔✔-Autonomy
What |is |a |primary |benefit |of |starting |a |new |business |without |purchasing |a |franchise |or |buying
|an |existing |business? |- |CORRECT |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? |- |CORRECT |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? |- |CORRECT |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? |- |CORRECT |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? |- |CORRECT |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? |- |CORRECT |
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? |- |CORRECT |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? |- |CORRECT |ANSWER✔✔-
Business |owner
Investors
Which |of |the |following |should |be |addressed |in |the |description |section |of |a |business |plan? |- |
CORRECT |ANSWER✔✔-Target |Markets
Easy |to |setup, |but |has |unlimited |liability. |- |CORRECT |ANSWER✔✔-Sole |Proprietorship
Terminates |upon |death |of |a |partner |- |CORRECT |ANSWER✔✔-General |or |Limited |Partnership
Double-taxed, |but |best |for |international |businesses |- |CORRECT |ANSWER✔✔-C |Corporation
Similar |to |a |C |Corporation, |but |taxed |at |a |lower |rate |- |CORRECT |ANSWER✔✔-S |Corporation
Owned |by |no |one; |pays |no |U.S |federal |tax |- |CORRECT |ANSWER✔✔-Nonprofit |Corporation
Best |for |a |single |member |seeking |low |risk |- |CORRECT |ANSWER✔✔-Limited |Liability |Company
