P1 - ESB Certification Prep - Exam - Part 1

What THREE steps are part of the sales process?

• Prospect
• Present the pitch
• Close the deal
• Implement product feedback
• Analyze the market

Which is the biggest challenge in creating a successful crowdfunding campaign?

• Entrepreneurs must dedicate a lot of time and resources to the marketing efforts.
• Entrepreneurs must share profits with contributors.
• Entrepreneurs are obligated to fulfill orders even if the project is not fully funded.
• Entrepreneurs give up ownership of their ideas.

What legal structure do you have if you work alone, do not plan to sell stock. and need to protect your personal property?

• Limited Liability Corporation
• C Corporation
• S Corporation
• Sole Proprietorship

What is the primary difference between wholesale and retail sales channels?

• Wholesale has more public locations than retail.
• Wholesale products demand higher prices than retail.
• Wholesale is business-to-business while retail is business-to-consumer
• Wholesale provides more control over the brand experience than retail

What are the TWO DISADVANTAGES of debt financing?

• Owners may be required to personally guarantee debt.
• Debt has to be repaid.
• Owners are required to give up ownership.
• Loans take longer to procure than investments.

What are the characteristics of an entrepreneurial mindset?

• People skills, problem solving, and career exploration
• Community awareness, educational readiness, and literacy
• Business knowledge, financial knowledge, and organizational skills
• Creativity, adaptability, determination, and empathy

What TWO types of information are on an income statement?

• An indication of profitability.
• A clasification of revenue and expenses.
• A classification of assets and liabilities.
• An analysis of the shareholder equity.

Which lean canvas component describes how a business solves customer problems in a better way than existing solutions?

• Value proposition
• Competition
• Milestones
• Business model

What are the qualities of an entrepreneurial mindset?

• Demanding and authoritative
• Flexible and resilient
• Sensitive and obedient
• Assertive and independent

You created a new product. What THREE things do you have to consider before mass producing it?

• Finding a manufacturer
• Sourcing materials needed for the product components
• Establishing quality control measures & accountability
• Developing the product website and social media campaign
• Setting up your text marketing strategy