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ESB Domain 1 Test

Total questions: 65

Worksheet time: 36mins

Name
Class
Date
1.

Entrepreneurs are willing to take on new opportunities and unknown risks to grow their businesses rapidly

a)

True

b)

False

2.

Who is the "creator of the company" ?

a)

founder

b)

employee

c)

intern

3.

Having a _______mindset means believing that one can accomplish anything through hard work.

a)

growth

b)

closed

4.

Paul is writing code for his new software program. Which intellectual property law would best protect Paul's code?

a)

copyright

b)

patent

c)

trademark

5.

Cohen creates a new cellphone case for the latest iPhone that is said to rival the most protective on the market. Which intellectual property law would best protect Cohen's design?

a)

copyright

b)

patent

c)

trademark

6.

Faith created company branding design for her new company including logos and a color board. Which intellectual property would best protect her creative work?

a)

copyright

b)

patent

c)

trademark

7.

Business owners are legally bound to treat customers fairly, living by these qualities: (select all that apply)

a)

Honesty

b)

Attention

c)

Accessibility

d)

Respect

8.

True or False: If a nonprofit organization earns more than they spend, the nonprofit must, by law, use the money to support the organization's mission.

a)

True

b)

False

9.

Which section of the business plan is focused on customer retention, growth and acquistion?

a)

Marketing

b)

Organizational

c)

Financial

d)

Executive Summary

10.

Which section of the business plan is a brief summary detailing overview of the business

most important because it is read first

a)

Executive Summary

b)

Business Plan

c)

Marketing Plan

d)

Organizational Plan

11.

The Executive Summary should be brief- about 2 pages.

a)

True

b)

False

12.

What section of the business details the roles of your employees and roles yet to be filled?

a)

Organizational

b)

Marketing

c)

Executive Summary

d)

Financial

13.

In the Financial Plan, you should include budgets, cash flow statements and profit loss projection.

a)

True

b)

False

14.

True or False: a Pitch Desk is 25-100 brief slides.

a)

True

b)

False

15.

Which documents summarize a business plan of a company?

a)

lean canvas

b)

marketing plan

c)

business plan

d)

pitch deck

16.

An entrepreneur is someone who runs their own business.

a)

True

b)

False

17.

What is a reward of being your own boss?

a)

Making your own decisions

b)

Potential of more money

c)

losing your business

18.

What protects this brand logo?

a)

trademark

b)

copyright

c)

patent

d)

trade secret

19.

What would protect this music?

a)

copyright

b)

patent

c)

trademark

d)

trade secret

20.

What would protect the design of this phone?

a)

copyright

b)

patent

c)

trademark

d)

trade secret

21.

What 3 elements are required to have a trade secret?

a)

a unique logo or brand names

b)

information has economic value not generally known

c)

must be a service

d)

subject to reasonable efforts to maintain its secrecy

e)

others cannot legitimately obtain the information

22.

Identifies it is a Creative Commons license

a)

NC

b)

BY

c)

CC

d)

SA

e)

ND

23.

Credit must be given to the creator

a)

NC

b)

BY

c)

CC

d)

SA

e)

ND

24.

Adaptations must be shared under the same terms

a)

NC

b)

BY

c)

CC

d)

SA

e)

ND

25.

Only noncommercial uses of the work are permitted

a)

NC

b)

BY

c)

CC

d)

SA

e)

ND

26.

No derivatives or adaptations of the work are permitted

a)

NC

b)

BY

c)

CC

d)

SA

e)

ND

27.

Which role creates the company?

a)

Founder

b)

CEO

c)

COO

d)

Stakeholder

28.

Which role oversees the company finances?

a)

CFO

b)

CEO

c)

COO

d)

Stakeholder

29.

Which role oversees daily operational and administrative functions?

a)

CFO

b)

CEO

c)

COO

d)

Stakeholder

30.

Which role reports to the board of directors?

a)

CFO

b)

CEO

c)

COO

d)

Stakeholder

31.

Which role would have a vested interest in the success of the company?

a)

Stakeholder

b)

Stockholder

32.

Which role owns stock in the company?

a)

Stakeholder

b)

Stockholder

33.

You own a lawn care business. You have employees who work long hours laboring in good weather, often exceeding 40 hours per week. They also work short hours when the weather is bad, sometimes they can't work at all. You do all of the sale for your business. Which 2 types of compensation would be appropriate for these landscape employees?

a)

Salary

b)

Equity

c)

Commission

d)

Hourly

34.

Choose the correct Business Life Cycle Stages in order from beginning

a)

Existence, Survival of the Fittest, Success, Takeoff, Maturity

b)

Takeoff, Maturity, Survival of the Fittest, Existence

c)

Existence, Success, Takeoff, Survival of the Fittest, Maturity

d)

Takeoff, Existence, Maturity, Success, Survival of the Fittest

35.

Match the stage of the Business Life Cycle:

COMPANY IS STABLE AND PROFITABLE

a)

Success

b)

Takeoff

c)

Maturity

d)

Existence

36.

Match the stage of the Business Life Cycle:

Expansion strategies are implemented, and investment is balanced with potential

a)

Success

b)

Takeoff

c)

Maturity

d)

Existence

37.

Match the stage of the Business Life Cycle:

The business introduces itself to the market and attempts to catch the attention of potential customers

a)

Success

b)

Takeoff

c)

Maturity

d)

Existence

38.

Match the stage of the Business Life Cycle:

Focus shifts to revenue, expenses and growth. Cashflow is the major issue

a)

Survival of the Fittest

b)

Takeoff

c)

Maturity

d)

Existence

39.

Match the stage of the Business Life Cycle:

The business is separate from the owner with responsibilities delegated to staff. A business in this stage usually commands a considerable share of the market and may even be a household name

a)

Survival of the Fittest

b)

Takeoff

c)

Maturity

d)

Existence

40.

Which phase of the Design Process will :

State your users' needs and problems

a)

Empathize

b)

Define

c)

Ideate

d)

Prototype

e)

Test

41.

Which phase of the Design Process will :

Challenge Assumptions and create ideas

a)

Empathize

b)

Define

c)

Ideate

d)

Prototype

e)

Test

42.

Which phase of the Design Process will :

Try your solutions

a)

Empathize

b)

Define

c)

Ideate

d)

Prototype

e)

Test

43.

Which phase of the Design Process will :

Create solutions

a)

Empathize

b)

Define

c)

Ideate

d)

Prototype

e)

Test

44.

Which phase of the Design Process will :

research your users' needs

a)

Empathize

b)

Define

c)

Ideate

d)

Prototype

e)

Test

45.

What is the only structure with UNLIMITED liability?

a)

S-Corp

b)

C-Corp

c)

Sole Proprietorship

d)

LLC

46.

What is the only structure that is subject to double taxation?

a)

S Corp

b)

C Corp

c)

Sole Proprietorship

d)

LLC

47.

What is the biggest drawback and risk for Sole Proprietorship structures?

a)

Easy to set up

b)

unlimited personal liability

c)

taxed twice

d)

international business laws

48.

Can a nonprofit be taxed and does it have any owners?

a)

No

b)

Yes

49.

You need to create a legal structure for your small business. You have plans for it to grow and hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and Japan. You do not want to be personally responsible for business liabilities.

Which legal structure should you set up for your business?

a)

S Corp

b)

LLC

c)

Sole proprietorship

d)

C-Corp

50.

You need to create a legal structure for your small business. You would like some of the benefits enjoyed by large corporations, but do not want to be taxed twice. You have four partners who will be shareholders. None of you plan to sell your ownership shares to the public, but do want to be protected from business liabilities.

Which legal structure should you set up for your business?

a)

LLC

b)

Sole Proprietorship

c)

C-Corporation

d)

S-Corporation

51.

What would be B2B?

Business to Business

a)

wholesale flooring distributor

b)

purchases requiring a tax exemption

c)

motorcycle repair shop

d)

chain of local grocery shops

52.

A business that takes its name and characteristics from an existing business chain.

(a)  

53.

A corporation, partnership, or sole proprietorship that is privately owned by one individual or a small group of people. They commonly have fewer employees and revenue than larger-sized businesses.

a)

small business

b)

franchise

c)

entrepreneur

54.

In general, what defines a small business?

a)

non-profit

b)

fewer than 1,500 employees

c)

less than $35.5 million in revenue

d)

between 500 to 2500 employees

e)

no more than $200,000 in sales

55.

What would be B2C?

Business to Consumer

a)

wholesale flooring distributor

b)

purchases requiring a tax exemption

c)

motorcycle repair shop

d)

chain of local grocery shops

56.

Successful entrepreneurs have mindsets that typically possess what characteristics? Select all that apply

a)

tenacious

b)

argumentative

c)

responsible

d)

adaptable

e)

nervous

57.

Which one is the greatest benefits of being an entrepreneur?

a)

quick return on investment

b)

meeting new people

c)

paying less on taxes

d)

schedule control

58.

Which one of these is a characteristic of a successful entrepreneur mindset?

a)

doesn't give up easily

b)

likes to argue

c)

makes friends quickly

d)

lives in a dreamworld

59.

What is the greatest risk of being an entrepreneur?

a)

loss of experience

b)

financial instability

c)

damage to reputation

d)

no control over schedule

60.

What is the main difference between small business owners and entrepreneurs?

a)

Small business owners are not always interested in taking on new business opportunities

b)

small business owners are more willing to take on unknown risks

c)

entrepreneurs are focused on generating profits.

61.

What is a tangible item?

a)

product

b)

service

62.

A Netflix subscription is an example of what type of product?

a)

digital

b)

tangible/physical

63.

What are the 3 disadvantages of selling physical products?

a)

needing storage space for inventory

b)

packaging and shipping costs

c)

physical products tend to have a lower value

d)

needing employees to track supply/inventory

64.

A common financial risk that entrepreneurs face is

a)

higher taxes

b)

higher income

c)

bankruptcy

d)

high maintenance cost

65.

What are two benefits of being an entrepreneur?

a)

working with like minded people

b)

setting your own hours

c)

having a set pay

d)

lower income tax