ESB Test 1 Practice

Your company's customer acquisition is too high.

Which two actions should you take to lower the customer acquisition cost? (Choose two)

• Decrease social media advertisements

  
  

• Decrease direct mail and print advertisements

  
  

• Increase the price of popular products

  
  

• Increase advertising targeted at new customer

  
  

Which three roles have equity in a business?

• Partner

  
  

• Contractor

  
  

• Stockholder

• Employee

  
  

• Owner

  
  

You have a small business. Your first-year financials are as follows:

- Start-up costs: $60,800

- Gross Sales: $65,800

- Total Expenses: $28,500

- Income Taxes: $6,370

What is the return of investment?

• 1.96%

  
  

• 51%

  
  

• 61%

  
  

• 92%

  
  

You are creating a business plan that includes your value proposition.

Which three terms should you include in your value proposition? (Choose three)

• The services you offer to customers

  
  

• Your target audience's demographic information

  
  

• The differences between your business and your competitor's businesses

  
  

• Projected financial reports and operating costs

  
  

• An overview of your business

  
  

You need to create an operating budget for your business. Your financial information for the month is as follows:

- Labor: $1,000

- Materials: $4,000

- Utilities: $400

- Computer: $1,400

- Rent: $700

- Website Design: $1,200

- Insurance: $150

What is your monthly operating budget?

• $6,250

  
  

• $7,450

  
  

• $7,650

  
  

• $8,850

  
  

You need to create a new type of energy bar. You take some samples to a focus group to get their reactions to your product. Which stage of the development process are you in?

• Market strategy creation

  
  

• Concept development

  
  

• Product development

  
  

• Idea generation

  
  

According to the information in the Balance Sheet, what is your equity in the business?

Balance Sheet for year ending December 31

Assets - Cash: $15,000 Inventory: $2,000 Equipment: $10,000

Total Assets: $27,000

Liabilities - Credit Card Balance: $3,500 Long Term Debt: $0 Unearned Revenue: $2,500

Total Liabilities: $6,000

• $6,000

  
  

• $15,000

  
  

• $21,000

  
  

• $27,000

  
  

Which two actions help start-up companies achieve product/market fit? (Choose two)

• Determining the primary competition

  
  

• Identifying undeserved customer needs

  
  

• Hiring additional staff to handle exponential growth

  
  

• Testing the minimum value product (MVP) prototype with customers

  
  

You need money for your start-up company. You have a few potential ideas for your business. You are seeking mentorship and are willing to give up some equity in your company. Which type of funding should you seek?

• Personal Loan

  
  

• Angel Investor

  
  

• Crowdfunding

  
  

• Small Business Loan

  
  

A consultant determined that your company needs a better social media presence to market your health and fitness products. Which three marketing methods should you use? (Choose three)

• Produce a television informercial

  
  

• Create company profiles on relevant online platforms

  
  

• Use brand influencers

  
  

• Create an online community for customers

  
  

• Use direct mail flyers