ESB EXAM STUDY GUIDE Questions with 100% Correct Answers Verified Updated 2024., Exams of Nursing

Download ESB EXAM STUDY GUIDE Questions with 100% Correct Answers Verified Updated 2024. and more Exams Nursing in PDF only on Docsity! 1 ESB EXAM STUDY GUIDE Questions with 100% Correct Answers Verified Updated 2024 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 Gabe has worked as a journeyman electrician for an employer for the past 16 years. He is paid a good 2 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 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 5 A local bakery wants to develop close relationships with its customers to encourage return business. What is the best option for the bakery to accomplish this goal? ✔✔Provide a free baked good each quarter to customers who signup to receive a monthly newsletter The owner of a tire shop in a large city wants to reach the largest number of people with promotional efforts. Which method should be used? ✔✔TV advertising The owner of a computer training center wants to know the book value of all the equipment in the center at the end of the year. Which financial statement provides this information? ✔✔Balance sheet The owner of Reliable Appliance Repairs is analyzing financial parts of the income statement including Net Sales, Total Cost of Goods Sold, Gross Profit, Total Expenses, Pre-Tax Profit and Net Profit. Match each figure to correct location in the Income Statement worksheet. ✔✔A.$45,144 B.$18,500 C.$26,644 D.$9,325 A business owner is applying for a loan with a bank. The bank uses a standard credit application form that asks the business owner about her personal income, bank accounts, credit cards, current balances outstanding, whether she rents or owns her house and other personal information. Which three are factors that affect credit scores? ✔✔Payment history on existing loans Amounts owed on existing loans Types of credit already in use by the applicant The owner of an online retail business dropships merchandise from her wholesale suppliers directly to her retail customers. Which expense of her business is variable? ✔✔Cost of Shipping A law is passed increasing the minimum wage from $10 to $15 per hour. A gourmet pizza restaurant is popular for obtaining its ingredients locally. Which two factors are most responsible for the price increase? ✔✔Increased raw material costs Increased labor costs A welder has arranged for a loan from a family member in the amount of $10,000 with an annual simple interest rate of 6%. The loan is due in 12 months. What is the amount of simple interest due at the end of the 12 month loan period? ✔✔$600 The owner of a used car sales business is analyzing the cash flow for his business for the prior year. In 6 January, the opening inventory balance of automobiles was $208,000. What is the ending inventory value? ✔✔$100,000 The owner of a real estate office prepared a cash flow budget for the coming month. The beginning cash balance was $1,500 Match the dollar amount to the correct line item on a cash flow budget: ✔✔Available cash: $6,500 Cash outflow:$4,600 Cash inflow:$5,000 Ending cash balance:$1,900 A massage therapist wants to open her own spa. She researches the prices charged at the three local competitor spas and estimates she can average $80 per customer visit. Match the correct figure to the appropriate location in the break-even formula. ✔✔A. Fixed Costs = $245,400 B. Average Price = $80 C. Variable Cost = $3.00 D. Break Even Point in units = 3,187 A farmer providing custom farming and tractor services averages averages $1,000 per day in revenue with a gross profit margin of $40. How many prospects should the farmer have in their active clients listing at all times at a minimum? ✔✔20 The owner of a car detailing business wants to develop a reputation for customer service. The owner is developing policies and procedures to guide the staff in this effort. Which documented procedure covers the area of customer service? ✔✔Customer Complaints Successful entrepreneurs typically posses which three characteristics? ✔✔Tenacious, Adaptable, Responsible Kim went to school and studied to be a chef, he loves cooking and worked hard to master his craft so he could open his own restaurant after graduation, but Kim's family pressured him to take over the family horticulture business instead. Which characteristic might cause Kim's business to fail? ✔✔Kim lacks enthusiasm for the business After a self-assessment, potential entrepreneur has learned that he knows nothing about accounting and keeping records for a business. Based upon his finding, what should this entrepreneur do? ✔✔Enroll in a beginning level business accounting course at a local community college 7 Match each type of networking with its opportunity for information sharing. ✔✔Local community- attendance at a Chamber of Commerce event Your industry- participation in a specialized trade show Online communities- posting on twitter or Linkedin Face to Face acquaintances- having conversations including one- sentence elevator speech An entrepreneur would like to open a pizza restaurant. A survey of customers in the area reveals several complaints about existing pizza restaurants. The entrepreneur notices that most complaints are about deliver orders being delayed and pizza arriving cold. Which two competitive factors are being addressed by this business opportunity? ✔✔Quality Service Which is one of the greatest risks of entrepreneurship? ✔✔Loss of money A photographer enjoys traveling and having freedom over her own schedule. She would like to turn her photography hobby into a business. Which are the two greatest benefits she might experience by turning her hobby into a successful business? ✔✔Making her own rules Satisfaction What is a primary drawback of starting a new business without purchasing a franchise or buying an existing business? ✔✔Greater chance the business will fail Which two are advantages of buying a franchise? ✔✔Branding Marketing assistance An entrepreneur wants to own a flower shop and researching the business options available. When 100 potential customers were surveyed, they provided the following responses: Which opportunity for starting a florist business would have the highest probability of success? ✔✔Buy an existing florist business and enhance it so customers have the option to also place orders online Which opportunity for starting a photography business would have the highest probability? ✔✔Setup a studio with a gallery of sample photography A home remodeling business wants to identify customer segments to target its services. Match each method of segmentation to its potential customers. ✔✔Geographic- Setup a studio with a gallery of sample photography 10 ✔✔Between the gourmet chocolate shop and the base chocolate suppliers A new dog grooming business is setting milestones that will determine if it is successful or not. The owner has decided the business will be considered successful when it starts to make a profit. Which milestone will measure profitability? ✔✔When revenue exceeds the break-even point A mobile lunch truck is introducing a new seasonal salad. Which group of people would be the most likely to purchase this new salad? ✔✔Employees who work at nearby businesses A consultant wants to use a form of personal communication to market his services to businesses during a conference. Which form of communication should be used? ✔✔Networking A fitness trainer in a neighborhood is trying to add new consumers who have recently moved into the neighborhood. What is effective for attracting new customers? ✔✔Promotional Discount Match each cost or expense with the proper category of an income statement. ✔✔Operating expense- advertising Operating expense- insurance cost of goods sold- labor cost of goods sold-materials operating expense- rent revenue- sales The owner of Quality Electrical is analyzing financial parts of the Income statement including Net Sales, Total Cost of Goods Sold, Gross Profit, Total expenses, Pre-Tax Profit and Net Profit. Match each figure to the correct calculation in the income statement worksheet ✔✔A. -$85,030 B. -$18,545 C. -$42,485 D. - $27,615 The owner of a new automobile sales lot is applying for two loans at the bank. Why would the bank be more inclined to approve the first loan but not the second? ✔✔The inventory loan would have the automobiles as collateral, but the operating loan has no collateral A carpenter builds and remodels residential decks. Classify the carpenter's cost according to how each cost 11 acts in connection with the number of decks built and remodeled. ✔✔Variable cost- Building permits paid by the carpenter for new and remodeled decks Fixed cost- Professional license fee to sit for the state builders' exam Variable Cost- Travel to the residences of customers to build and remodel decks Variable Cost- Woods for building and remodeling decks An independent gas station sits besides a busy highway. Half of its customers are travelers passing through the area. Why would the gas station charge more for purchases made with a credit card? ✔✔To offset processing fees charged by the credit card companies A beekeeper is analyzing the cash flow for his business for the prior year. What was the ending inventory value? ✔✔$6,500 The owner of a landscaping business is developing a cash flow budget for the coming month. If the beginning cash balance is $1,500, what will be the ending cash balance? ✔✔$3,350 An electrician has fixed costs of $1,500 per month. The only variable costs are needed for labor and supplies. How many repairs are needed to break-even for the year? ✔✔450 repairs A pizza maker has come up with a new takeout restaurant concept that sells only large gourmet pizzas. Match the correct figure to the appropriate location in the break-even formula. ✔✔A. Fixed Costs = $380,000 B. Average Price = $20 C. Variable Cost = $7 D. Break Even Point in units = 29,231 A DJ notices the number of customers attending her Saturday night dances is decreasing. What should the DJ do to create more loyal repeat customers? ✔✔Create a Facebook page about the dances and make changes based on customer comments/ suggestions Which characteristic would be beneficial to an entrepreneur? ✔✔Doesn't give up easily What are three characteristics of entrepreneurs? ✔✔Responsible Disciplined 12 Honest How would a perspective entrepreneur benefit from a personality self - assessment? ✔✔It can identify strengths and weaknesses in the entrepreneur's leadership style An automotive has noticed that a local major competitor has several vehicles parked outside his garage waiting for service. The mechanic learns that many people complain about the long wait. Which variable should be used by the automotive mechanic to attract these customers? ✔✔Speed of service An entrepreneur wants to own a bakery. She opens a bakery that specializes in wedding cakes. After 6 months the business fails and the bakery must close. Which choice should the entrepreneur make based on this failure? ✔✔The entrepreneur should evaluate why the business failed and identify the strengths and weaknesses of the business. Then she should apply what she learned to any future startup, so it will have a greater chance of success A horse owner loves training animals. She would like to turn her hobby of training horses into a business. Which two are the greatest entrepreneurial risks being taken to start this business? ✔✔Loss of free time Financial uncertainty Which are three rewards of entrepreneurship? ✔✔Helping the community Doing work your way Potential for greater wealth A chef is considering opening a restaurant and wants to identify the benefits and drawbacks of various business opportunities. ✔✔Buy a franchise: Benefit: branding success Drawback: pays a royalty Start a new business: Benefit: build your own way Drawback: riskiness Buy an existing business Benefit: has customers Drawback: expensive Which are three reasons to buy a franchise instead of starting a business from scratch? ✔✔Proven System Easier Financing Exclusive Geographic Area An experienced residential painter wants to move his family to a new town. Before he moves, he needs to