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WorksheetsESB Practice Test – Version 1
Total questions: 25
Worksheet time: 25mins
Which of the following best defines entrepreneurship?
Managing an established business
Starting and operating a business to pursue opportunities
Working as an employee in a corporation
Expanding a government organization
A sole proprietorship has which disadvantage?
Limited liability protection
Profits are shared
Owner has unlimited personal liability
Requires a board of directors
A limited liability company (LLC) provides:
Complete immunity from taxes
Liability protection with flexible tax treatment
No reporting requirements
Unlimited liability for members
Which of the following is a stage in the business life cycle?
Invention, Decline, Retirement
Startup, Growth, Maturity, Decline
Entry, Employment, Expansion
Recruitment, Planning, Exit
A commission-based compensation structure is most likely used for:
Customer service representatives
Salespeople
Manufacturing workers
Administrative staff
Which is NOT part of the design thinking process?
Empathize
Define
Prototype
Budgeting
Which characteristic is most associated with an entrepreneurial mindset?
Preference for stability
Risk tolerance and innovation
Avoiding decision-making
Dependence on supervision
A strong business opportunity is defined by:
High cost and low demand
Market need and potential for profit
No competition and no customers
Government funding guarantee
Which of the following is a key purpose of a business plan?
To replace employee training manuals
To outline goals, strategies, and financial projections
To register for tax IDs
To avoid legal disputes
A trademark protects:
An invention
A company logo or brand name
A creative book or song
Confidential formulas
A target market is:
All potential buyers worldwide
The group most likely to purchase your product or service
The group with the highest income only
Competitors in the same industry
Primary research is best described as:
Data gathered from existing reports
Data collected directly from surveys or interviews
Information obtained from competitors
Government databases only
A SWOT analysis identifies:
Salary, Wages, Overtime, Taxes
Strengths, Weaknesses, Opportunities, Threats
Sales, Workforce, Output, Trends
Systems, Workflow, Optimization, Testing
Which is a marketing platform?
Payroll software
Accounting spreadsheet
Assembly line
An example of customer acquisition cost (CAC) is:
The cost of producing one unit
Advertising expenses per new customer gained
Employee payroll
Taxes paid annually
A value proposition is:
The legal structure of a company
A statement explaining why customers should buy from you
The markup added to a product
A method of budgeting
Which sales channel is digital?
Retail storefront
Trade show booth
E-commerce website
Farmers market stand
Which of the following is most critical in customer retention?
Exceptional customer service and support
Offering only one product line
Frequent relocation of business locations
High employee turnover
A Minimum Viable Product (MVP) is:
A. A fully polished final product
B. A simplified version used to test market demand
C. A large-scale production model
D. A government-approved standard
Which is an example of a production option for digital products?
Writing software code
Assembling cars
Farming crops
Operating factories
Which is a direct distribution channel?
Selling directly on your own website
Using Amazon fulfillment services
Selling through a wholesaler
Selling through retail partners
An advantage of using a wholesaler is:
Increased control over branding
Lower volume sales
Wider distribution reach
No need for quality control
Which is considered a fixed cost?
Rent for office space
Raw materials
Shipping fees
Utility usage charges
A variable cost changes with:
Product demand or production volume
Lease agreements
Loan repayment schedules
Owner’s salary
Which is part of startup costs?
Initial equipment purchases
Advertising for launch
