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ESB Practice Quiz Lessons 1 and 2

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

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

2.

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

3.

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

4.

What is Entrepreneurship?

a)

Marketing and selling products

b)

Setting up a business with the aim to make a profit.

c)

Acquiring leadership and managerial skills

d)

Quickly advancing in positions within a corporation

5.

In General, which 2 characteristics define a "small business"? (Choose 2)

a)

No more than $200,000 in sales

b)

Fewer than 1500 employees

c)

Less than $35.5 Million revenue

d)

Non-Profit

e)

Between 500 and 2500 employees

6.

Determining if the potential customer can afford your product is part of prospecting.

a)

True

b)

False

7.

Shauna works at a restaurant. She wants to own her own restaurant someday. Which is one of GREATEST risks of entrepreneurship?

a)

Less freedom

b)

Less challenges

c)

Loss of investment

d)

Loss of flexibility in schedule

8.

Rachel owns a summer camp for children. Based on a survey she gave to parents, she learned that her customers want their children to have a healthy lifestyle. What is a legitimate value proposition for potential customers?

a)

A Providing flexible hours for picking up and dropping off the children

b)

Sending parents daily photographs of the children’s activities

c)

Serving fresh, organic meals and nutritious snacks

d)

Offering discounts during different times of the year

9.
This is the legal right granted to an individual (or group) to operate a business as if it were part of a larger chain of stores.
a)
franchise
b)
patent
10.

This is the individual or organization selling the franchise.

a)

franchisor

b)

franchisee

11.
This is the person or organization purchasing the franchise.
a)
franchisee
b)
franchisor     
12.
What does the franchisor provide for those purchasing the franchise?
a)
advice
b)
training
c)
advertising
d)
all of these are provided 
13.

Which is a franchisor?

a)

Allows others to use their brand and business for a fee

b)

Takes over a business

c)

Buys into an existing brand

14.

Which of these is NOT an advantage of the franchisee

a)

They enter into an existing market

b)

It is usually expensive to buy a franchise

c)

Market research is done by the franchisor

d)

The franchisor provides the franchisee with equipment

15.

Positive and controllable factors that contribute to the business’ success.

a)

Strength

b)

Weaknesses

c)

Opportunities

d)

Threats

16.

Negative factors that are beyond the control of the business.

a)

Strength

b)

Weaknesses

c)

Opportunities

d)

Threats

17.

Areas where you or your organization may be weaker than others.

a)

Strength

b)

Weaknesses

c)

Opportunities

d)

Threats

18.

Positive factors that are not within the control of the business.

a)

Strength

b)

Weaknesses

c)

Opportunities

d)

Threats

19.

The business space has a limited capacity to entertain many customers at the same time.

a)

Strength

b)

Weaknesses

c)

Opportunities

d)

Threats

20.

The following are the examples of Strength except one.

a)

Cheap raw materials

b)

Too many competitors

c)

Skilled employees

d)

Small capital outlay