Free Printable ESB Mock 1-20

1.

A landscaper believes that if a value proposition can be identified that makes the business stand out, the business will grow.

Which 3 strategies are considered potential value propositions to customers of a new business?

a)

Installing new inventory management software

b)

Streamlining staffing through job sharing options

c)

Offering free consultations

d)

Becoming a leader in a trade association

e)

Providing extended hours

2.

An individual owns a dog grooming business and must pay self-employment tax on individual earnings.

Which type of legal structure makes self-employment tax a relevant concern?

a)

C corporation

b)

S corporation

c)

Sole proprietorship

d)

Limited liability companies

3.

A real estate agent started a successful business, but is concerned because revenues are down and the number of sales have dropped rapidly over the last year.

The agent wants to increase the likelihood of business success and sustainability over time.

What should the agent do?

a)

Eliminate promotional materials to reduce costs

b)

Develop a marketing plan based on an analysis of why revenues are failing.

c)

Impose an across-the-board cut of 25% in all expenditures

d)

Update the business website with a new logo

4.

An independent pizza operator wants to reach customers who eat pizza at a competing national chain.

Which is a strategy for identifying those customers?

a)

Advertise more than the competitor

b)

Accept competitor coupons

c)

Determine revenues of competitor

d)

Offer a broader menu than the competitor

5.

A cabinetmaker is seeking a new customer for a business that makes expensive cabinets. The cabinetmaker has identified a group of potential customers with high incomes.

Which method of segmentation is the owner using?

a)

Behavioral

b)

Demographic

c)

Geographic

d)

Psychographic

6.

Which component of a business plan addresses a company's understanding of why their business would succeed in a specific marketplace?

a)

Competitive Analysis

b)

Supply chain analysis

c)

Transportation analysis

d)

Workforce analysis

7.

The chef of a fine dining restaurant has created several DVDs demonstrating how to prepare the restaurant's best-selling menu items. The chef wants to protect intellectual property rights for the videos.

What action should the chef take?

a)

Apply for a patent on the videos

b)

Insert anti-piracy software on the DVDs

c)

Register the DVDs with the Copyright Office

d)

Register the restaurant's trademark

8.

A regular customer at a restaurant ordered a steak. The server realizes that the steak came out overcooked. The customer is visibly displeased but does not complain.

The owner wants to give good service and retain this valued repeat customer.

What should the server do FIRST to achieve this goal?

a)

Allow the customer to finish the meal and discuss the situation later

b)

Avoid discussing the situation to reduce conflict

c)

Bring the steak to the owner and gain agreement that the customer should get a new steak

d)

Wait for the customer to complain, then agree that the steak was overcooked

9.

What is a charasteristic of an entrepreneur?

a)

Evasive

b)

Passive

c)

Smug

d)

Tenacious

10.

Part 1:

A dog groomer wants to start a business in a local strip mall. The goal is to sell the grooming packages at an average of $30 and break even within one year of operating. For this analysis, the groomer needs to know fixed cost, variable costs, and how many grooming service packages (units) need to be sole in order to break even.

Given the above costs, what is the total fixed costs amount.

a)

7,242

b)

7,858

c)

160,000

d)

220,000

11.

Part 2:

A dog groomer wants to start a business in a local strip mall. The goal is to sell the grooming packages at an average of $30 and break even within one year of operating. For this analysis, the groomer needs to know fixed cost, variable costs, and how many grooming service packages (units) need to be sole in order to break even.

Given the above costs, what is the average price?

a)

220,000

b)

160,000

c)

7,242

d)

7,858

e)

30

12.

Part 3:

A dog groomer wants to start a business in a local strip mall. The goal is to sell the grooming packages at an average of $30 and break even within one year of operating. For this analysis, the groomer needs to know fixed cost, variable costs, and how many grooming service packages (units) need to be sole in order to break even.

Given the above costs, what is the variable costs

a)

1.00

b)

1.50

c)

2.00

d)

30

13.

Part 4:

A dog groomer wants to start a business in a local strip mall. The goal is to sell the grooming packages at an average of $30 and break even within one year of operating. For this analysis, the groomer needs to know fixed cost, variable costs, and how many grooming service packages (units) need to be sole in order to break even.

Given the above costs, what is the Break Even (in Units)

a)

7,242

b)

7,857

c)

160,000

d)

220,000

14.

What is a common drawback of buying an existing business?

a)

Higher risk of failure than with a start-up

b)

Trouble in identifying market needs

c)

Potential for being misled on viability

d)

Slow pathway to entrepreneurship

15.

A successful fitness trainer has decided to open a health club. The trainer's business plan includes an organization chart with 3 levels of employees:

1) top management 2)department heads, and 3) front line employees.

What are some of the expected roles of the health club's front line employees?

a)

Developing succession plans and building a board of advisors

b)

Determining the fitness class schedule and hiring club trainers and staff

c)

Greeting guests and training clients

d)

Planning firm expansion and training key managers

16.

Which expense is fixed?

a)

Cost of raw materials for a product produced at a factory

b)

Paycheck for an hourly worker at a factory

c)

Property lease for an office

d)

Water bill for an office

17.

Which benefit allows entrepreneurs to work the long hours necessary to make a new venture successful?

a)

Ability to do work directed by someone else

b)

Ability to take unlimited vacation time

c)

Ability to earn overtime

d)

Doing work they are passionate about

18.

A furniture builder generates $1,000 per sale on average and she needs to generate $12,000 per month to break even. Through experience, she finds that 20% of her active prospects buy within 30 days.

How many prospects should the furniture builder have in her active client listings at all times, at a minimum?

a)

12

b)

24

c)

50

d)

60

19.

Gerry wants to open a florist shop in a vacant building in a downtown shopping area. Gerry needs to determine whether there is sufficient demand for a florist shop.

Which 2 questions should Gerry ask? (Choose two)

a)

How much foot traffic is there in the neighborhood?

b)

Is skilled labor available in the area?

c)

Is there a dependable supply chain?

d)

What is the size of the vacant building in square feet?

e)

What is the disposable income of consumers who live or work in the area?

20.

A hair salon is trying to determine how to tell if it is successful or not and has decided it will be successful when it starts to make a profit.

Which milestone will indicate this?

a)

Reached expense limit

b)

Reached staffing goal

c)

Reached marginal revenue point

d)

Reached break-even point

ESB Mock 1-20

Total questions: 20

Worksheet time: 38mins

Similar Resources on Wayground