ESB EXAM (Answers for ESB Practice Test
Entrepreneurship & Small Business v.2 - U.S.
Practice Exam 1 Training) Verified 100% Correct!!
1). What is entrepreneurship?
Ans: Setting up a business with the aim to make a profit.
2). For each business, select b2b or b2c.
Ans: B2B
Purchases requiring a tax exemption certificate.
Wholesale flooring distributor.
B2C
Motorcycle repair shop.
Chain of local grocery stores.
3). Which legal structure should you set up for your business?
Ans: S-Corporation
4). For each statement about owners of equity in a business, select true or false.
Ans: True
Founders own equity.
partner owns equity.
False
All stakeholder owns equity.
Contractors own equity.
5). Complete the sentence about company roles and responsibilities by selecting the correct
option from each drop-down list.
Ans: 1. Piece work
2. Salary
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, 3. Hourly
4. Commission
6). Place the stages of the business life cycle in the correct order.
Ans: Stage 1. Existence
Stage 2. Survival of the fittest
Stage 3. Success
Stage 4. Take-off
Stage 5. Maturity
7). Match each element of the design thinking process to its corresponding description.
Ans: 1. Empathize
2. Define
3. Ideate
4. Prototype
5. Test
8). Successful entrepreneurs have mindsets that typically possess which three characteristics?
Ans: Responsible
Adaptable
Tenacious
9). Which is one of the greatest benefits of being an entrepreneur?
Ans: Schedule control
10). Which three characteristics help identify a business opportunity?
Ans: Service
Price
Quality
11). What should this entrepreneur do first before offering to design and build water features as
part of his landscaping business?
Ans: Ask the customers in the area if they are interested in adding a water feature to
their gardens.
Which two documents summarize business plans of a company?
PaperStoc.com Page 2 of 7
Entrepreneurship & Small Business v.2 - U.S.
Practice Exam 1 Training) Verified 100% Correct!!
1). What is entrepreneurship?
Ans: Setting up a business with the aim to make a profit.
2). For each business, select b2b or b2c.
Ans: B2B
Purchases requiring a tax exemption certificate.
Wholesale flooring distributor.
B2C
Motorcycle repair shop.
Chain of local grocery stores.
3). Which legal structure should you set up for your business?
Ans: S-Corporation
4). For each statement about owners of equity in a business, select true or false.
Ans: True
Founders own equity.
partner owns equity.
False
All stakeholder owns equity.
Contractors own equity.
5). Complete the sentence about company roles and responsibilities by selecting the correct
option from each drop-down list.
Ans: 1. Piece work
2. Salary
PaperStoc.com Page 1 of 7
, 3. Hourly
4. Commission
6). Place the stages of the business life cycle in the correct order.
Ans: Stage 1. Existence
Stage 2. Survival of the fittest
Stage 3. Success
Stage 4. Take-off
Stage 5. Maturity
7). Match each element of the design thinking process to its corresponding description.
Ans: 1. Empathize
2. Define
3. Ideate
4. Prototype
5. Test
8). Successful entrepreneurs have mindsets that typically possess which three characteristics?
Ans: Responsible
Adaptable
Tenacious
9). Which is one of the greatest benefits of being an entrepreneur?
Ans: Schedule control
10). Which three characteristics help identify a business opportunity?
Ans: Service
Price
Quality
11). What should this entrepreneur do first before offering to design and build water features as
part of his landscaping business?
Ans: Ask the customers in the area if they are interested in adding a water feature to
their gardens.
Which two documents summarize business plans of a company?
PaperStoc.com Page 2 of 7
