ESB Practice Test 2 Exam (2023 – 2024) Questions and Answers 100% Correct, Exams of Entrepreneurship

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ESB Practice Test 2 Exam (2023 – 2024) Questions

and Answers 100% Correct

In general, which characteristics define a "small" business? - - fewer than 1, employees

• less than $35.5 million revenue classify each of the following as either physical or digital - PHYSICAL:
• bakery in your community
• hair salon that makes appointments online DIGITAL:
• online store that dropships camping gear
• bookstore on amazon that sells ebooks You need to create a legal structure for your small business. you have plans for it to grow and hope in the future to sell shares to the public. your startup partners are citizens of Mexico and Japan. you do not want to be personally responsible for business liabilities. Which legal structure should you set up for your business? - c-corporation match each business management role to its corresponding description

1. the highest ranking employee in the company; reports to the board of directors
2. creates budgets, analyzes financial data, and forecasts company profits
3. develops policies and structures to protect company data
4. oversees the day-to-day administrative functions of a business; second in command. - 1. CEO
5. CFO
6. CIO
7. COO You own a lawn care business. You have employees who work long hours laboring in good weather, often exceeding 40 hours per week. They also work short hours when the weather is bad, sometimes they can't work at all. You do all of the sales for your business. Which two types of compensation would be appropriate for these landscape employees? - salary hourly Match something idk. The stages in a business life cycle i guess
8. existence
9. survival of the fittest
10. success
11. take-off

5. maturity - 1. the business introduces itself to the market and attempts to catch the attention of potential customers.
6. focus shifts to revenue, expenses, and growth. cashflow is the major issue.
7. company is stable and profitable.
8. expansion strategies are implemented, and investment is balanced with potential.
9. the business is separate from the owner with responsibilities delegated to staff. a business in this stage usually commands a considerable share of the market and may even be a household name. design thinking process true/false - TRUE

• problem statements are written in the Define phase
• assumptions are challenged and ideas are created in the Ideate phase FALSE
• Building Prototypes is the final phase of the design thinking process
• the Empathize phase tests solutions to users' problems which of these is a characteristic of a successful entrepreneur mindset? - doesn't give up easily Which is one of the greatest risks of being an entrepreneur? - financial instability What is a primary benefit of starting a new business without purchasing a franchise or buying an existing business? - developing your own rules a rancher is preparing to retire. he is considering selling half of his land and giving the other half to his children. he hears that development for a ski resort was just approved on land adjacent to his property. which viable business opportunity does the retiring rancher foresee? - an increase in land value

1. a _______ is a multi-page document describing and detailing a business
2. a slide presentation for potential investors that summarizes the key items of a business is called a _______
3. a _______ is a single-page business summary template that was created by Ash Maurya - business plan pitch deck lean canvas Which three components are characteristics of a pitch deck? - used to get investors attention 10 - 20 slides highly visual trademarks, trade secrets, copyrights, patents

true / false - TRUE

• a Trademark protects a brand name
• Trade Secrets are confidential information which may be sold or licensed. FALSE
• a Copyright is used to protect a company logo
• a Patent is used to protect an original work, like music You downloaded several of your favorite songs and used them in an ad to promote your product on social media sites. The ad was rejected because of the songs you chose. You are told that you violated Fair Use copyright. Which three are factors used to evaluate Fair Use copyright? - purpose of your use effect of your use on the potential market of the work copied amount of the work copied pricing strategy ☆ ૮꒰ • ༝ • 。꒱ ა

1. economy pricing
2. bundle pricing
3. market penetration
4. price skimming
5. premium pricing - 1. prices that target customers looking to save as much money as possible
6. pairing several products together and selling them for less money than each would be individually
7. setting prices low until after a reliable customer base is established, then raising prices
8. setting high prices when a product is introduced, and then gradually lowering the price
9. high quality products marketed to high income individuals which of the following is an example of primary data? - information collected from a poll of your company facebook followers you own a mobile taco truck. you have a short list of competitors. classify each as direct or indirect competition - DIRECT COMPETITION

• walk up mexican food stand
• a local taco bell franchise INDIRECT COMPETITION
• mobile fish and chips truck
• a local burger king franchise SWOT analysis true/false - TRUE
• threats identified in a SWOT analysis are the most difficult element to mitigate

• acting on weaknesses identified in a SWOT analysis can be challenging but often necessary to grow business FALSE
• strengths identified in a SWOT analysis are new actions a business should implement
• opportunities identified in a SWOT analysis are not meant to be actionable which three are online marketing platforms? - email google ads social media you have opened a for-product adult technical school and you want to advertise it to potential students throughout your state. which marketing method would be most appropriate? - local television ad the owner of an organic pet food store would like to analyze the sales data to determine if the business is growing, declining, or remaining flat. the owner has the following data:
• sales revenue last year = $350.
• sales revenue current year = $402. what is the sales growth? - 15% a local restaurant prides itself in having a high number of return customers. to build loyalty, the owner of the restaurant offers a free Prime Rib dinner (value $20) to any customer who purchases a meal during 10 previous visits. meals purchased are tracked on a Loyalty Card. at the end of the month, the owner decides to calculate the customer retention cost. the data is the following:
• number of customers at start of month = 100
• number of customers at end of month = 120
• number of new customers = 40
• value of free dinners redeemed = 240 what was the customer retention cost? - $ which two are segments in a marketing plan? - psychographic demographic elements of a sales process ☆ ૮꒰ • ༝ • 。꒱ ა - prospecting preparation approach

presentation handling objections closing follow-up which is the primary characteristic of all physical and digital sales channels? - closing sales which two types of sales channels sell primarily to other businesses? - wholesale B2B which tool is most useful in helping customer service support sales strategies? - CRM product market fit true/false - TRUE

• a fit exists when people need your product rather than just seeing a potential benefit of using it
• when users love your product so much they tell other people to use it.
• before hypothesizing a solution, first determine if there is a problem worth solving FALSE
• startups should develop a growth hypothesis before testing their value hypothesis a bakery has developed a new artisan bread. the staff are giving away taste samples to customers as they enter the store. what are two criteria the bakery can use to determine the quality of their new product? - measure sales of the new bread after customers have sampled it. observe customer reactions while they taste the product. you have an idea for a new service. market research suggests the service is needed to solve a problem and will be enthusiastically embraced by customers. what is one of the first steps you must do before offering a new service? - identify knowledge required you create a new strategy for lawncare services that involves assessing lawn health, applying the correct herbicides and pesticides and other necessary solutions to quickly bring a lawn back to health. what are three things you will need to consider regarding the mass delivery of your service? - finding a source of materials to support your service training employees with the knowledge to consistently deliver the service creating an effective demonstration of your service for potential customers your company is manufacturing a new product. you need to establish a Product Quality Control Process.

what are three things you must do to establish your Product Quality Control Process?

• review the results of internal quality assurance testing determine what standards have to be met based on the product and industry establish the method to use for testing product quality selection of distribution channels true/false - TRUE
• technical and complex products are best sold through direct distribution
• products that are bulky or large in size are usually sold directly by the company to their consumers FALSE
• product price has no effect on the length of a distribution channel
• the geographic location of customers does not require different distribution channels which are two characteristics of fulfillment centers differ from direct distribution - warehousing is a primary role fulfillment centers pack and ship for a manufacturer a barber charges $20 per haircut. the total cost for running his home-based business is $4000 per month, which includes his salary of $3000 per month. the minimum number of haircuts he must do to cover all of these expenses and his salary is 200 per month. the barber wants to increase his salary to $4000 per month, making his total monthly expenses $5000. what is the minimum price he must charge for each of the 200 haircuts so he can cover this increased salary? - $ asset or liability? balance sheet long term assets current assets long term liabilities current liabilities - equipment inventory mortgage payments bank loans which expense is a variable cost? - hourly wages for an office employee you have a handyman services business. you have the following financial information for the month.
• initial cash balance: $1.
• projected revenue based on existing clients: $2.
• gas: $

• equipment maintenance fees: $
• truck payment: $
• payroll: $3.
• insurance: $ what is your projected ending cash balance for the month? - $ start-up costs and operating costs true/false - TRUE:
• logo and website design are examples of start-up costs
• building improvements should be calculated into start-up costs
• operating costs include payroll FALSE:
• operating costs include your down payment on rental property
• business insurance is a start up cost which two are benefits of using angel investors to help start a business? - angels often accept a lower return on investment compared to other sources of equity capital angel investors typically do not expect to be paid until the business begins making money requirements to obtain funding true/false - TRUE:
• equity financing requires a business owner to give up control of the business to obtain funding
• bootstrapping requires the owners of the company to provide all of the funding FALSE:
• lenders do not require owners to identify the purpose of the loan
• the business owners personal credit score does not affect their ability to qualify for a loan