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WorksheetsESB Practice Test – Version 5
Total questions: 40
Worksheet time: 23mins
Which is a feature of entrepreneurship?
A. Innovating to meet customer needs
B. Avoiding risk completely
C. Relying only on government funding
D. Hiring without business plans
Which of the following is an example of a cooperative?
Farmers pooling resources to sell crops collectively
One individual running a bakery
A corporation issuing stock
A sole proprietorship
Which role in a business typically manages day-to-day operations?
A. Operations manager
B. CEO only
C. Accountant
D. Board of directors
Which is part of the idea stage of a business life cycle?
Concept development and validation
High profit growth
Business decline
Market exit
Which compensation method is common for salespeople?
Commission-based pay
Salary only
Government stipend
Ownership equity
Which intellectual property protects logos and slogans?
Trademark
Patent
Which best describes a lean canvas?
One-page startup planning tool
Financial budget report
Employee payroll system
Production line design
Which of the following is a drawback of small businesses?
Limited access to funding
Strong community relationships
Flexibility and quick decision-making
Niche markets
Which best describes a business pitch deck?
Presentation for potential investors or partners
Internal financial statement
Employee handbook
Competitor analysis
Which of the following is an opportunity recognition skill?
Identifying unmet customer needs
Ignoring competitors
Filing taxes
Limiting product development
Which of the following is an example of market segmentation?
Grouping customers by age, location, or lifestyle
Tracking expenses
Managing employee payroll
Filing patents
Which is a benefit of competitive analysis?
Identifying gaps in the market
Avoiding business planning
Reducing bookkeeping tasks
Eliminating customer surveys
Which is a promotion strategy?
Buy-one-get-one-free campaign
Employee payroll processing
Equipment maintenance
Supplier negotiations
A value-based pricing strategy considers:
Customer perception of product worth
Only production cost
Competitor salaries
Tax obligations
Which of the following is a sales process element?
Prospecting and lead generation
Filing annual reports
Business incorporation
Employee scheduling
Which is an example of customer retention?
Offering loyalty rewards for repeat purchases
Attracting new customers only
Ignoring customer service
Reducing product quality
Which of the following is a digital sales channel?
Social media marketplace
Farmer’s market
Trade show
Mall kiosk
Which metric is used to analyze sales performance?
Conversion rate
Net present value
Asset turnover ratio
Current liabilities
Which of the following is a pull strategy?
Advertising that encourages customers to request products
Wholesalers pushing products to retailers
Direct salesperson cold-calling
Franchise expansion
Which is a benefit of effective customer service?
Higher customer loyalty and repeat business
Reduced employee training needs
Increased fixed costs
Less need for planning
A minimum viable product (MVP) helps businesses:
Test ideas with customers quickly
Avoid all risks
Skip prototypes
Expand without planning
Which of the following is a digital product?
Online course
Furniture
Packaged foods
Clothing
Which is part of a regulatory compliance check?
Verifying safety standards for products
Running social media ads
Filing payroll
Employee bonuses
Which is an example of direct distribution?
A. A restaurant serving food directly to customers
B. Manufacturer selling through wholesalers
C. Distributor supplying retail chains
D. Dropshipping vendors
Which is an advantage of using fulfillment services?
Simplified storage and shipping
Higher control over logistics
Lower shipping costs guaranteed
No reliance on third parties
Which is a supply chain activity?
Which of the following is an example of quality control testing?
Inspecting products for defects before shipment
Measuring customer satisfaction surveys
Payroll auditing
Supplier contracts
Which is a factor when choosing a distribution channel?
Speed of delivery required by customers
Employee benefits
Tax structures
Office size
Which business is most likely to use a service-based distribution channel?
Fitness trainer offering online classes
Furniture store
Clothing manufacturer
Food packaging company
Which is a performance criterion in manufacturing?
Product reliability during use
Owner salary
Tax deductions
Competitor analysis
Which financial statement shows profit or loss over a period?
Income statement
Balance sheet
Cash flow statement
Equity statement
Which is an example of a variable cost?
Raw materials
Rent
Which is a fixed cost?
Office lease
Packaging per unit
Sales commissions
Inventory purchases
Which of the following is a debt financing option?
Bank loan
Angel investment
Venture capital
Equity crowdfunding
Which is a benefit of analyzing cash flow?
Predicting ability to pay expenses on time
Tracking employee performance
Calculating taxes
Filing trademarks
Which is an example of startup cost?
Buying initial equipment for operations
Monthly advertising bill
Utility bills for the third year
Employee raises
Which of the following is an operating budget expense?
Salaries and rent
Patents and copyrights
Owner’s equity
Stock dividends
Which funding source is repayable with interest?
Bank loan
Grant
Equity investment
Donation
A business with 200,000insalesand 160,000 in costs has what profit margin?
20%
15%
Which is a requirement often requested for investor funding?
Pitch deck with growth projections
Payroll records only
Tax return from customers
Competitor patents
