2
ESB EXAM Study Guide questions with verified detailed answers
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Flexibility - ✔✔Ability to adapt, willingness to change
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Courage - ✔✔Takes risks in spite of possible losses
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Empathy - ✔✔Sensitive to thoughts and feelings of others
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What are three characteristics of entrepreneurs? - ✔✔Creativity, Determination, Enthusiasm
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After a self-assessment, a potential entrepreneur has learned that she has a very low risk
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tolerance. Based upon this finding, which approach might be less stressful for the
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entrepreneur to have her own business? - ✔✔Buy an existing business that is already
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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? -
|| || || || || || || || || || || || ||
✔✔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? - ✔✔Lower Prices
|| || || || || || || || || || || ||
Which is one of the greatest benefits of entrepreneurship? - ✔✔Being your own boss
|| || || || || || || || || || || || ||
Which are three risks of entrepreneurship? - ✔✔Long hours, potential business failure,
|| || || || || || || || || || || ||
financial insecurity ||
,2
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? - ✔✔Autonomy
|| || || || || || || || ||
What is a primary benefit of starting a new business without purchasing a franchise or
|| || || || || || || || || || || || || || ||
buying an existing business? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔Providing
|| || || || || || || || || || || ||
live web cams parents can access from the Internet by using a secure logon. Offering a list
|| || || || || || || || || || || || || || || || || ||
of references from other parents
|| || || ||
, 2
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? - ✔✔Providing extended hours to
|| || || || || || || || || || || ||
pickup and drop off pets before and after work
|| || || || || || || ||
Which two groups benefit most from a well-written business plan? - ✔✔Business owner
|| || || || || || || || || || || ||
Investors
Which of the following should be addressed in the description section of a business plan? -
|| || || || || || || || || || || || || || || ||
✔✔Target Markets ||
Easy to setup, but has unlimited liability. - ✔✔Sole Proprietorship
|| || || || || || || || ||
Terminates upon death of a partner - ✔✔General or Limited Partnership
|| || || || || || || || || ||
Double-taxed, but best for international businesses - ✔✔C Corporation || || || || || || || ||
Similar to a C Corporation, but taxed at a lower rate - ✔✔S Corporation
|| || || || || || || || || || || || ||
Owned by no one; pays no U.S federal tax - ✔✔Nonprofit Corporation
|| || || || || || || || || || ||
Best for a single member seeking low risk - ✔✔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? - ✔✔$84,920
|| || ||
ESB EXAM Study Guide questions with verified detailed answers
|| || || || || || || ||
Flexibility - ✔✔Ability to adapt, willingness to change
|| || || || || || ||
Courage - ✔✔Takes risks in spite of possible losses
|| || || || || || || ||
Empathy - ✔✔Sensitive to thoughts and feelings of others
|| || || || || || || ||
What are three characteristics of entrepreneurs? - ✔✔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? - ✔✔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? -
|| || || || || || || || || || || || ||
✔✔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? - ✔✔Lower Prices
|| || || || || || || || || || || ||
Which is one of the greatest benefits of entrepreneurship? - ✔✔Being your own boss
|| || || || || || || || || || || || ||
Which are three risks of entrepreneurship? - ✔✔Long hours, potential business failure,
|| || || || || || || || || || || ||
financial insecurity ||
,2
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? - ✔✔Autonomy
|| || || || || || || || ||
What is a primary benefit of starting a new business without purchasing a franchise or
|| || || || || || || || || || || || || || ||
buying an existing business? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔Providing
|| || || || || || || || || || || ||
live web cams parents can access from the Internet by using a secure logon. Offering a list
|| || || || || || || || || || || || || || || || || ||
of references from other parents
|| || || ||
, 2
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? - ✔✔Providing extended hours to
|| || || || || || || || || || || ||
pickup and drop off pets before and after work
|| || || || || || || ||
Which two groups benefit most from a well-written business plan? - ✔✔Business owner
|| || || || || || || || || || || ||
Investors
Which of the following should be addressed in the description section of a business plan? -
|| || || || || || || || || || || || || || || ||
✔✔Target Markets ||
Easy to setup, but has unlimited liability. - ✔✔Sole Proprietorship
|| || || || || || || || ||
Terminates upon death of a partner - ✔✔General or Limited Partnership
|| || || || || || || || || ||
Double-taxed, but best for international businesses - ✔✔C Corporation || || || || || || || ||
Similar to a C Corporation, but taxed at a lower rate - ✔✔S Corporation
|| || || || || || || || || || || || ||
Owned by no one; pays no U.S federal tax - ✔✔Nonprofit Corporation
|| || || || || || || || || || ||
Best for a single member seeking low risk - ✔✔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? - ✔✔$84,920
|| || ||
