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WorksheetsESB Exam prep
Total questions: 42
Worksheet time: 26mins
You decide to create a new type of energy bar. You take samples to a focus group to get their reactions to your product. Which stage of the development process are you in?
Concept development
Idea generation
Market strategy creation
Product development
Which two actions help start-up companies achieve product/market fit?
Identifying underserved customer needs
Testing the minimum viable product prototype with customers
Hiring additional staff to handle exponential growth
Determining the primary competition
You want to buy a gift shop in a popular location within a large town. Which three factors will help you determine if the business opportunity is viable?
Financing requirements
Current Inventory
Current number of employees
Shop’s floorplan
Revenues and cost
What is the benefit of being an entrepreneur?
Predictable job description
Consistent 40-hour work weeks
Limitless income potential
Paid sick time and health insurance
You recently opened a food truck business. Which of the following is a start-up cost?
Gasoline
Cooking utensils
Business license
Truck lease payments
You recently opened a food truck business. Which of the following is an operating cost?
Gasoline
Cooking utensils
Business license
Truck lease payments
What is the first step in forming a product/ market fit in the hypothesis?
Establish a distribution system
Determine who the competition is
Create a prototype
Determine who the target customer is
What are the two advantages of using the Lean Canvas business plan instead of the traditional business plan model?
A Lean Canvas includes financial projections, a market analysis, and the marketing strategy
A Lean Canvas is an extremely detailed, thorough, multiple-page report
A Lean Canvas focuses on the problem, solutions, key metrics, and unique value proposition
A Lean Canvas is a quick, concise tool to document or update a business plan
In your business plan, you describe that in five years, you plan to sell your company to another organization. In what section of the business plan should you include this information?
Financial projections
Executive summary
Exit strategy
Vision
You are creating a business plan that includes your value proposition. Which three items should you have in your value proposition? Choose 3
Projected financial reports and operating costs
The services you offer to customers
The differences between your business and your competitor's businesses
Market research you conducted on similar businesses
Your target audience’s demographic information
What are three characteristics of entrepreneurs( Choose 3)
Determination
Creativity
Enthusiasm
Young
College Graduate
After a self-assessment, a potential entrepreneur has learned that she has a very low-risk tolerance. Based on this finding, which approach might be less stressful for the entrepreneur to have her own business?
Start the business from scratch, so it can be built exactly as desired
Buy an existing business that is already successful
Go get a job and work for someone else
Buy a franchise
Which of the following is a type of intangible business property that is protected by law:
Inventory
Trademark
Equipment
Acreage
Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of ownership are considered advantages of a
sole proprietorship.
partnership.
trade union.
corporation
Which of the following statements is true about business startup requirements:
New business owners usually need to register for patent protection.
The financial needs to start a new business depend on the nature of the venture.
Purchasing a franchise is usually easy and inexpensive for startup business owners.
Equipment is the least expensive requirement for a startup business.
You need to start a customer loyalty program. Which two types of programs should they use?
Referral program
Points program
Coupon code
Annual sale
Which two actions should you complete when conducting a competitive analysis?
Assess the competitor’s management style
Research the competitor’s strengths and weaknesses
Evaluate the competitor’s branding
Identify the competitor’s market share
You need to perform a SWOT analysis. What identifies the internal factors that impact your business?
Strengths and weaknesses
Weaknesses and threats
Opportunities and threats
Strengths and opportunities
For third-party sellers, what are two marketing benefits of selling products on a marketplace?
Access to the marketplace’s customer base
Access to the marketplace’s market knowledge
Access to the marketplace’s technology
Access to the marketplace’s employees
Which two marketing platforms are examples of owned media? Choose 2
Reviews
Blogs
Websites
Social media ads
You own an eCommerce website where customers can purchase the jewelry that you make. Which type of sales channel are you using?
Retail
Wholesale
Direct to consumer
Business to business
For which two reasons should a meal delivery company use direct distribution channels over indirect distribution channels? (Choose 2)
To quickly get products to customers before they spoil
To lower shipping costs
To serve customers in a wide geographic area
To build stronger relationships with customers
Which two services does direct distribution provide that fulfillment centers do not? Choose 2
Product shipping
Product Manufacturing
Product Marketing
Product storage
Product shipping
Product Manufacturing
Product Marketing
Product storage
You need to invest in a business with simple transactions, low inventory costs, and fast, free product delivery. Which type of business would you choose?
A business that sells products directly to other businesses
A business that sells digital products
A business that is a restaurant franchise
A business that offers cleaning services
Channels of distribution benefit consumers by
increasing profits for businesses.
lowering the prices of all consumer products.
raising the quality of all consumer products.
making a variety of products available to them
You have a cleaning company. You raised $10,000 from investors to get started. After three months, you have $7,450. What is your burn rate current runway?
$850 and about nine months of expenses covered
$850 and about twelve months of expenses covered
$1,000 and about three months of expenses covered
$1,000 and about ten months of expenses covered
You need money for your start-up company. You have a few ideas for your business. You are seeking mentorship and are willing to give up some equity. Which type of funding should you seek?
Personal loan
Small business loan
Crowdfunding
Angel Investor
Personal loan
Small business loan
Crowdfunding
Angel Investor
The (a) creates budgets and financial strategies
The (a) reports to the board of directors and is the highest-ranking employee in the company
You own a business that manufactures pool chairs. For each pool chair, you determine the following:
i. Labor: $40
ii. Materials:$100
iii. Desired markup: 40%
$140
$180
$196
$280
Which two criteria are required for obtaining venture capital funding? (Choose 2)
Multiple business partners
A profitable exit strategy
Brand new technology
A scalable business model
You need to create an operating budget for your business. Your financial information for the month is as follows:
Labor: 1,000
Materials: 4,000
Utilities: 400
Computer: 1,400
Rent: 700
Website design: 1,200
Insurance: 150
What is your monthly operating budget?
6,250
7,450
7,650
8,850
You need to present a summary of your income statement to potential investors. According to the information in the Income Statement, what is your operating income?. Income Statement for year ending December 31
Total Revenues: 225,000
Expenses
Rent: 30,000
Supplies 1,750
Insurance: 1,000
Sales Reps: 90,000
Staff: 33,750
Administrative: 22,500
Other: 1,000
Total Expenses: 180,000
Income before taxes: 45,000
Net Income: 38,700
38,700
45,000
225,000
275,000
You own a business that manufactures sandals. For each sandal, you determine the following:
Labor: 20
Materials: 30
Desired markup: 25%
50
62.5
65.50
75.00
During July, sales at Handy's Shoe Mart totaled $2,500. The cost of the shoes was $1,025. The owner paid $866 for supplies, insurance, rent, and utilities during the month. The $609 left over represents the owner's
net profit.
gross profit.
sales income.
operating expenses.
net profit.
gross profit.
sales income.
operating expenses.
Distributors use their sales force to sell another company’s product
TRUE
FALSE
Most online marketplaces charge fees to vendors for listing or selling products
TRUE
FALSE
Affiliate sales programs offer commissions to companies that sell their products
TRUE
FALSE
Patent licensing is used for a new product or invention
TRUE
FALSE
Trade secret licensing must be registered with the government
TRUE
FALSE
Business longevity increases potential funding opportunities
TRUE
FALSE
Lenders require business owners to identify the purpose of the loan
TRUE
FALSE
