WorksheetsESB Practice Test – Version 4
Total questions: 40
Worksheet time: 23mins
Which of the following is a characteristic of a small business?
Operates internationally with thousands of employees
Independently owned and operated
Traded on the stock exchange
Requires government funding to operate
Which is an example of a general partnership?
Two individuals sharing profits and liabilities equally
One person owning 100% of the business
A corporation issuing stock
A nonprofit charity
A franchise agreement usually includes:
Royalties paid to the franchisor
No brand restrictions
Free ownership with no obligations
Independent trademarks
Which business role is typically responsible for financial planning?
Marketing manager
Accountant or CFO
Sales representative
Human resources manager
Which of the following best describes a trade secret?
Publicly available trademark
Confidential information giving a business advantage
Government patent
Published copyright
Which of the following is an advantage of corporations?
Unlimited liability for shareholders
Ability to raise capital by selling stock
Which of the following best describes the growth stage of a business life cycle?
Sales decline
Sales and customer base expand rapidly
Business is first introduced
Owner exits the business
A business plan is useful for:
Securing funding and guiding operations
Filing taxes
Paying employees
Customer surveys
Which is a risk of being an entrepreneur?
Job security
Financial uncertainty
Guaranteed benefits
Lower workload
A copyright protects:
Company inventions
Literary and artistic works
Logos and slogans
Trade secrets
A target market is defined as:
The group of customers most likely to buy your product
The largest population possible
All international customers
A company’s competitors
Which is an example of primary data collection?
Reading industry journals
Observing customer shopping behavior in-store
Using government databases
Reviewing competitor reports
A SWOT analysis helps businesses:
Identify strengths, weaknesses, opportunities, and threats
Record tax payments
File patents
Design packaging
Which of the following is a sales channel?
E-commerce website
Payroll department
Government regulators
Human resources
Which of the following is a pricing strategy?
Penetration pricing
Job costing
Equity financing
Loan amortization
Which type of promotion is typically free?
Word-of-mouth referrals
Paid advertising
Direct mail
Social media ads
Which metric is used to analyze customer acquisition cost (CAC)?
Total marketing spend ÷ New customers gained
Revenue ÷ Assets
Net income ÷ Equity
Expenses ÷ Profit
Which is an example of a physical sales channel?
Pop-up retail shop
Company website
Mobile app
Email campaign
Which of the following is a value proposition example?
“The fastest meal delivery service in under 30 minutes”
Employee payroll data
Company balance sheet
Customer service complaints
Which is the primary purpose of a marketing plan?
Guide promotional, pricing, and customer strategies
Record sales receipts
Report government taxes
Manage employees
Which of the following is an example of a service product?
Business consulting
Smartphones
Furniture
Food packaging
Which is part of quality assurance testing?
Checking products for defects before distribution
Filing patents
Writing marketing campaigns
Reviewing employee contracts
Which of the following is an advantage of outsourcing production?
Lower costs and access to expertise
Complete control of operations
No reliance on external vendors
Guaranteed profits
Which best defines product/market fit?
Customers value and purchase the product regularly
Product is produced at the lowest cost possible
Product is made only for wholesalers
Market ignores the product
Which is a factor in choosing a distribution channel?
Customer buying habits
Employee benefits
Tax obligations
Office location
A prototype is best described as:
A fulfillment service handles:
Storage, packing, and shipping orders for a business
Customer advertising campaigns
Payroll and accounting
Market research
Which of the following is a direct distribution example?
Bakery selling directly to customers in its store
Manufacturer selling through wholesalers
Retailers selling through e-commerce platforms
Dropshipping companies
Which is a key element of supply chain management?
Transportation logistics
Employee training
Business mission statement
Competitor reviews
Which is an example of performance criteria for a product?
Battery life of a smartphone
Employee hours worked
Tax rate of the company
Owner salary
Which of the following is part of an income statement?
Revenue and expenses
Assets and liabilities
Owner equity only
Cash inflows only
Which type of cost changes with production volume?
Fixed cost
Variable cost
Which of the following is an example of a fixed expense?
Monthly lease payment
Raw materials
Shipping costs per order
Commissions
Which funding source is equity-based?
Angel investors
Bank loans
Business credit cards
Equipment leasing
Which is a benefit of accurate financial records?
Informed decision-making and compliance
Guaranteed profits
No need for taxes
Unlimited funding
Which financial statement tracks cash in and out?
Cash flow statement
Income statement
Balance sheet
Retained earnings
A startup’s operating budget should include:
Salaries, rent, utilities, and marketing costs
Only revenue projections
Intellectual property filings
Patents and trademarks
Which is a requirement for bank financing?
Business plan and collateral
Social media followers
Free advertising
Market monopoly
Which is a purpose of calculating ROI?
Measure profitability of investments
Calculate loan payments
A business that earns 50,000revenuewith 40,000 costs has a profit margin of:
20%
25%
10%
50%
