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WorksheetsESB Practice Exam 1
Total questions: 20
Worksheet time: 10mins
Which of the following is an advantage of starting a sole proprietorship?
Limited liability
Shared decision-making
Easy to set up and full control
Double taxation
A business plan primarily helps an entrepreneur:
Secure funding and organize their strategy
Guarantee business success
Avoid paying taxes
Immediately generate profit
What is the primary purpose of a market analysis in a business plan?
To estimate the cost of starting the business
To identify potential customers and competition
To determine employee salaries
To create a company logo
Which financial statement shows a company’s revenues, expenses, and profits over time?
Balance Sheet
Income Statement
Cash Flow Statement
Statement of Retained Earnings
What is equity financing?
Borrowing money that must be repaid with interest
Selling shares of the business to investors in exchange for capital
Using company profits to fund growth
Paying off business debt early
The break-even point is when:
Total revenue equals total expenses
The business begins making a profit
The company runs out of cash
The company pays off all debts
Which of the following is NOT a characteristic of an entrepreneur?
Risk-taking
Creativity
Fear of failure
Persistence
Which government agency is responsible for helping small businesses in the U.S.?
IRS
FTC
SBA
SEC
A target market is defined as:
The largest possible audience for a product
A group of people most likely to buy a product or service
A list of potential investors
Businesses that compete directly with you
What is the purpose of conducting a SWOT analysis?
To analyze financial reports
To evaluate a company’s Strengths, Weaknesses, Opportunities, and Threats
To determine pricing strategies
To assess customer feedback
Which of the following is an intangible asset?
Office equipment
Company vehicles
A company’s brand reputation
Inventory
The Four Ps of Marketing include:
Price, Place, Promotion, Product
Profit, Price, People, Planning
Production, Profit, Place, Product
Planning, Processing, Price, Product
If an entrepreneur wants to protect their invention, they should apply for a:
Copyright
Trademark
Patent
Business License
A franchise is best described as:
A type of nonprofit organization
A business that has no legal structure
A business that allows others to operate using its name and system for a fee
A type of corporation
What is the primary purpose of a mission statement?
To outline day-to-day operations
To define the company’s purpose and goals
To list financial projections
To provide a legal business structure
A company’s brand identity includes:
The business's bank account details
The company's website traffic
Its logo, colors, and messaging
Employee salary structure
Which of the following is an example of a fixed cost?
Raw materials
Monthly rent for office space
Employee wages based on hours worked
Shipping costs for customer orders
The supply and demand model suggests that:
High demand and low supply lead to higher prices
High supply and high demand reduce prices
Demand has no impact on price
Prices are set without considering supply
Which of the following best describes a competitive advantage?
A business’s ability to charge the highest price
A unique feature that makes a business stand out from competitors
The ability to operate without any competitors
A strategy to eliminate competitors
Which of the following is a primary function of human resources?
Managing product inventory
Recruiting and training employees
Developing financial statements
Conducting market research
