ESB Certification

A fixed cost has the same value each time it is incurred.

• true

• false

• varies with production

• only applies to variable costs

The design thinking process places a high emphasis on developing customer empathy.

• true

• false

• sometimes

• not at all

Lenders require business owners to identify the purpose of the loan.

• true

• false

• sometimes

• only for large loans

What is a key advantage of owning a franchise?

• Established brand recognition

• Higher profit margins than independent businesses

• Complete control over business operations

• Lower initial investment compared to starting a new business

An entrepreneur is a person who assumes the responsibilities and risks of starting a business.

• true

• false

• sometimes

• only if successful

In what section of the business plan should you describe that in five years you plan to sell your company to another organization?

• exit strategy

• market analysis

• financial projections

• operational plan

This market segment describes where customers are located and how they can be reached.

• demographic

• psychographic

• geographic

• behavioral

Which type of sales channel is someone using if they own an ecommerce website where customers can purchase the jewelry that they make?

• direct to consumer

• wholesale

• retail

• affiliate marketing

An S corporation is suitable for international companies with at least 200 shareholders.

• true

• false

• only for domestic companies

• only for companies with less than 100 shareholders

Who reports to the board of directors and is the highest-ranking employee in the company?

• CFO

• COO

• CTO

• CEO