ESB Practice Test – Version 1

Front

Which of the following best defines entrepreneurship? Managing an established business, Starting and operating a business to pursue opportunities, Working as an employee in a corporation, Expanding a government organization

Back

Starting and operating a business to pursue opportunities

Front

A sole proprietorship has which disadvantage? Options: Limited liability protection, Profits are shared, Requires a board of directors

Back

Owner has unlimited personal liability

Front

A limited liability company (LLC) provides:

Back

Liability protection with flexible tax treatment

Front

Which of the following is a stage in the business life cycle? Options: Invention, Decline, Retirement; Startup, Growth, Maturity, Decline; Entry, Employment, Expansion; Recruitment, Planning, Exit

Back

Startup, Growth, Maturity, Decline

Front

A commission-based compensation structure is most likely used for: Customer service representatives, Salespeople, Manufacturing workers, Administrative staff

Back

Salespeople

Front

Which is NOT part of the design thinking process? Empathize, Define, Prototype, Budgeting

Back

Budgeting

Front

Which characteristic is most associated with an entrepreneurial mindset? Options: Preference for stability, Risk tolerance and innovation, Avoiding decision-making, Dependence on supervision

Back

Risk tolerance and innovation

Front

A strong business opportunity is defined by: Market need and potential for profit

Back

Market need and potential for profit

Front

Which of the following is a key purpose of a business plan?
Options:
To replace employee training manuals,
To outline goals, strategies, and financial projections,
To register for tax IDs,
To avoid legal disputes

Back

To outline goals, strategies, and financial projections

Front

A trademark protects:

Back

A company logo or brand name