ESB Test QUESTIONS AND ANSWERS
A well-conceived business plan benefits which 2 groups the most. - Answer- Investors
and Owner
A landscape architect wishes to start his own business constructing custom water
features. This is his first venture and requires assistance drafting a business plan,
securing capital, and receiving overall general guidance. What agency should he go to
first. - Answer- SBA- Small business administration
All good business plans should address which Cs (three) - Answer- Customers, capital,
concept
In writing a business plan, which part makes the most sense to put in the description
section? - Answer- Target Markets
Jane owns a food truck and wants to purchase two more food trucks to expand and
reach more clients. Of the business plan types, which three are best suited for investors
- Answer- Investors business plan executive summary, oral presentation
Identify the characteristics of entrepreneurs - Answer- Creative, Determined,
Enthusiastic
type of management that involves the group and facilitates teamwork - Answer-
participating
Identify the risk - Answer- The process of determining which risks may affect the project
and documenting their characteristics.
A corporation and its shareholders all pay taxes. What corporate structure do these tax
implications define? - Answer- Corporation
Paul must pay self-employment tax due to the legal structure of his business. This
means that Paul's business has a(n) _______ structure - Answer- Sole Proprietorship
A yoga instructor with no partners or employees wishes to protect himself from lawsuits.
Which legal structures would best fit his needs? - Answer- Limited Liability Company
LLC
an individual owns a dog grooming business and must pay employment tax on
individual earnings. Which tax structure would be applicable - Answer- Corporation
Which are two benefits of using angel investors to help start a business? - Answer- A.
Angels often accept a lower return on investment.
B. Angel investors typically do not expect to be paid until the business begins making
money.
A well-conceived business plan benefits which 2 groups the most. - Answer- Investors
and Owner
A landscape architect wishes to start his own business constructing custom water
features. This is his first venture and requires assistance drafting a business plan,
securing capital, and receiving overall general guidance. What agency should he go to
first. - Answer- SBA- Small business administration
All good business plans should address which Cs (three) - Answer- Customers, capital,
concept
In writing a business plan, which part makes the most sense to put in the description
section? - Answer- Target Markets
Jane owns a food truck and wants to purchase two more food trucks to expand and
reach more clients. Of the business plan types, which three are best suited for investors
- Answer- Investors business plan executive summary, oral presentation
Identify the characteristics of entrepreneurs - Answer- Creative, Determined,
Enthusiastic
type of management that involves the group and facilitates teamwork - Answer-
participating
Identify the risk - Answer- The process of determining which risks may affect the project
and documenting their characteristics.
A corporation and its shareholders all pay taxes. What corporate structure do these tax
implications define? - Answer- Corporation
Paul must pay self-employment tax due to the legal structure of his business. This
means that Paul's business has a(n) _______ structure - Answer- Sole Proprietorship
A yoga instructor with no partners or employees wishes to protect himself from lawsuits.
Which legal structures would best fit his needs? - Answer- Limited Liability Company
LLC
an individual owns a dog grooming business and must pay employment tax on
individual earnings. Which tax structure would be applicable - Answer- Corporation
Which are two benefits of using angel investors to help start a business? - Answer- A.
Angels often accept a lower return on investment.
B. Angel investors typically do not expect to be paid until the business begins making
money.
