ESB EXAM Study Guide questions with
correct answers
Flexibility - Answer Ability to adapt, willingness to change
Courage - Answer Takes risks in spite of possible losses
Empathy - Answer Sensitive to thoughts and feelings of others
What are three characteristics of entrepreneurs? - 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? - 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? - 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? - Answer Lower Prices
Which is one of the greatest benefits of entrepreneurship? - Answer Being your
own boss
,Which are three risks of entrepreneurship? - 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? - Answer Autonomy
What is a primary benefit of starting a new business without purchasing a franchise
or buying an existing business? - 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? - 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? - 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? - 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? -
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? - 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? -
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? - Answer
Business owner
Investors
Which of the following should be addressed in the description section of a business
plan? - Answer Target Markets
Easy to setup, but has unlimited liability. - Answer Sole Proprietorship
Terminates upon death of a partner - Answer General or Limited Partnership
Double-taxed, but best for international businesses - Answer C Corporation
Similar to a C Corporation, but taxed at a lower rate - Answer S Corporation
correct answers
Flexibility - Answer Ability to adapt, willingness to change
Courage - Answer Takes risks in spite of possible losses
Empathy - Answer Sensitive to thoughts and feelings of others
What are three characteristics of entrepreneurs? - 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? - 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? - 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? - Answer Lower Prices
Which is one of the greatest benefits of entrepreneurship? - Answer Being your
own boss
,Which are three risks of entrepreneurship? - 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? - Answer Autonomy
What is a primary benefit of starting a new business without purchasing a franchise
or buying an existing business? - 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? - 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? - 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? - 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? -
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? - 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? -
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? - Answer
Business owner
Investors
Which of the following should be addressed in the description section of a business
plan? - Answer Target Markets
Easy to setup, but has unlimited liability. - Answer Sole Proprietorship
Terminates upon death of a partner - Answer General or Limited Partnership
Double-taxed, but best for international businesses - Answer C Corporation
Similar to a C Corporation, but taxed at a lower rate - Answer S Corporation
