NEW
Font size
WorksheetsESB v2 Practice
Total questions: 67
Worksheet time: 34mins
What is the key objective of a small business owner?
To generate risks
To generate profits
To generate physical products
To generate empathy
What type of products require pick-up or delivery?
Digital
Physical
Empathetic
Profitable
When a customer purchases an item from a business, it is a transaction classified as:
Business-to-business
Consumer-to-consumer
Business-to-consumer
Consumer-to-business
What type of corporations are ideal for international businesses?
S corporations
Non-Profit
C corporations
Sole Proprietorships
Who oversees daily operational and administrative functions in a company?
Chief Executive Officer
Chief Operating Officer
Shareholder
Customer
What is offered to employees in addition to a lower salary to compensate for their work?
Salary
Equity
Empathy
Piece work
During which stage of the business life cycle is a company starting to generate a consistent income?
Entry
Growth
Survival
Maturity
During which stage of the business life cycle might the owner decide to sell their ownership in the company?
Survival
Growth
Exit plan
Start-up
What are the five elements of the design thinking process?
Empathize, define, ideate, prototype, and test
Analyze, build, consult, deliver, and evaluate
Plan, fund, execute, review, and adapt
Research, design, manufacture, market, and sell
What term is used for multiple inexpensive versions of a product known in the design thinking process?
Maximum Viable Products
Minimum Viable Products
Median Viable Products
Multiple Viable Products
What is a key difference between small business owners and entrepreneurs?
Entrepreneurs focus on generating profits with unknown risks, while small business owners focus on known risks.
Entrepreneurs sell products, while small business owners provide services.
Small business owners invest more time and money into a business than entrepreneurs.
What is a franchise?
A business that sells digital products only.
A licensed business with established operations, products, or services, and branding.
A business that only provides services and not products.
A business that does not require upfront investment.
What does B2C stand for?
Business-to-Community
Business-to-Customer
Business-to-Company
Business-to-Creator
What does B2B stand for?
Business-to-Broker
Business-to-Buyer
Business-to-Business
Business-to-Beneficiary
Which of the following is a benefit of a franchise?
Higher risk involved
Unrecognized brands
Tested operational processes
No established operations
Is "Muffins" a product or a service?
Product
Service
Both
Neither
Is "AC repairs" a product or a service?
Product
Service
Both
Neither
Is "Toilet paper" a product or a service?
Product
Service
Both
Neither
Is "Jewelry" a product or a service?
Product
Service
Both
Neither
Is "Web designs" a product or a service?
Product
Service
Both
Neither
Is "Couch" a product or a service?
Product
Service
Both
Neither
Is "Guitar lessons" a product or a service?
Product
Service
Both
Neither
Which legal structure is described as having no ownership, no US federal taxes?
S corporation
Sole proprietorship
Non-profit
LLC
Which legal structure is best for international business even with being double-taxed?
C corporation
Partnership
S corporation
Non-profit
What is a characteristic of a sole proprietorship?
Shared financial backing
Lower tax rate that prevents the company from being double-taxed
No ownership, no US federal taxes
Easy to create but comes with unlimited liability
What is an advantage of an S corporation?
Ideal for a single owner seeking low risk
Shared financial backing
Lower tax rate that prevents the company from being double-taxed
Best for international business even with being double-taxed
Which legal structure is ideal for a single owner seeking low risk?
Partnership
Non-profit
LLC
Sole proprietorship
What is a feature of a partnership?
No ownership, no US federal taxes
Shared financial backing
Lower tax rate that prevents the company from being double-taxed
Easy to create but comes with unlimited liability
Who is responsible for making the major decisions for a company?
CEO
CFO
COO
Stakeholder
What is the role of a CFO in a company?
Creates the company
Oversees company finances
Owns stock in the company
Oversees daily operational and administrative functions
What does a stakeholder have in a company?
A role in daily operations
A vested interest in the success of the company
Responsibility for company finances
The task of creating the company
Which type of compensation is usually found in sales roles?
Equity
Hourly
Commission
Salary
What does equity compensation mean?
Set rate of pay for hours worked
Set amount of pay in a given period
Non-cash compensation
What is the first stage in the business life cycle?
Survival
Success
Existence
Take-off
During which stage does an owner decide whether to continue growing the business into a large company or pivot to a new project?
Survival
Resource maturity
Pivot or persist
Exit plan
At which stage might an owner separate financially and operationally from a business?
Take-off
Resource maturity
Success
Which stage is characterized by the business being economically healthy and moving to success?
Existence
Survival
Take-off
In which business life cycle stage is a business when the owner is considering selling the company?
Take-off
Resource maturity
Exit plan
Michael owns a small but profitable tech company. He has been approached by a larger company that wants to purchase his business. In which business life cycle stage is Michael?
Existence
Survival
Success
Exit plan
Bill just started a new graphic design business. He is advertising online and trying to gain customers. He just finished working with his first client. In which business life cycle stage is Bill?
Existence
Success
Take-off
Stephanie started a new flower shop last year. She has a good customer base and money coming in. In which business life cycle stage is Stephanie?
Existence
Survival
Take-off
List the correct order of the design thinking process.
Empathize, Define, Ideate, Prototype, Test
Define, Empathize, Ideate, Test, Prototype
Ideate, Empathize, Define, Prototype, Test
During which stage of the design thinking process will the design team create multiple inexpensive product versions?
Empathize
Define
Ideate
Prototype
During which stage of the design thinking process is a problem statement formed?
Empathize
Define
Ideate
Test
Which stage of the design thinking process involves learning about customers' challenges?
Empathize
Define
Ideate
Prototype
What is the term for the amount of loss one is willing to take when making an investment decision?
Market size
Risk tolerance
Investment
License
What mindset means believing that one can accomplish anything through hard work?
Investment mindset
Growth mindset
Environmental mindset
Executive mindset
What type of risk is a natural disaster considered as?
Financial risk
Environmental risk
Market size risk
Investment risk
What is a business opportunity that lets a buyer start a business?
License
Investment
Vision
Invention
What needs to be obtained to use a brand name on products?
Authorization
Non-disclosure
License
Vision
Which of the following is NOT one of the five factors that determine the viability of a business opportunity?
Market size
Cash flow management
Passion
Executive summary
How long should a lean canvas typically be?
Two pages
One page
Three pages
No specific length
What part of a business plan creates the first impression?
Financial plan
Executive summary
Vision statement
License agreement
What is most commonly used to present a pitch deck?
Slide presentation
Written report
Verbal explanation
Video demonstration
What does a patent protect?
Invention
Vision
License
Financial plan
What are trade secrets intended to protect against being shared with?
Investors
Competitors
Lenders
Employees
To license a product, one must obtain what from the author or creator?
Non-disclosure agreement
Financial plan
Authorization
Vision statement
What type of agreements are signed by employees to agree not to share trade secrets?
License agreements
Financial agreements
Non-disclosure agreements
Authorization agreements
Which of the following is NOT a common characteristic found among entrepreneurs?
Self-reliance
Forward-thinking
Risk aversion
Resiliency
What is a benefit of becoming an entrepreneur?
Fixed business hours
Limited choice of who to work with
Choosing business hours
Guaranteed financial success
Which of the following is a common risk for businesses that entrepreneurs should work proactively to overcome?
Stable market conditions
Environmental risks
Predictable income
Lack of innovation
What does the term "bootstrapping" refer to in the context of starting a business?
Hiring employees on a shoestring budget
Starting a business with minimal financial resources, relying on personal money or revenue from the business
Creating a business plan in under 24 hours
Outsourcing all operations to reduce costs
What role does customer feedback play in the operations of a small business?
It is only useful for marketing purposes
It can guide product development and improve customer service
It should be ignored unless it is overwhelmingly positive
It is irrelevant in the digital age
Why is it important for a small business to have a unique selling proposition (USP)?
It is a legal requirement in most countries
To ensure the business pays lower taxes
To differentiate itself from competitors in the market
It is not important; most businesses succeed without one
The process of starting a new business is known as:
Diversification
Entrepreneurship
Liquidation
Amortization
