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ESB PRACTICE QUIZ

Total questions: 20

Worksheet time: 5hrs 0mins

Name
Class
Date
1.

Estimate Your Rent: Your lease is $3,000 per quarter, what would it equal for the year. $3,000 x (a)   =$12,000

2.

Which of the following financial statement tells the net worth of a company at a given point in time?

a)

Cash flow budget

b)

Balance sheet

c)

Income statement

d)

Profit & loss statement

3.

Which of the following U.S. government federal agencies would be helpful to turn to if an entrepreneur had no business training and needed assistance writing a business plan?

a)

Occupational Safety and Health Administration (OSHA)

b)

Internal Revenue Service (IRS)

c)

Environmental Protection Agency (EPA)

d)

Small Business Association (SBA)

4.

If Kathy's cleaning biz wanted to increase revenue, selling cleaning products that would bring in an extra $175 weekly, she'd make $175x 52 weeks $9,100

a)

True

b)

False

5.

If Kathy wanted to increase revenue by offering services to a nearby 5‐building apartment complex that would pay $3,000 per suite annually, how much would they make

a)

$12,000

b)

$15,000

c)

36,000

d)

None of the above

6.

Employee stock ownership plan (ESOP)

a)

When the owner puts money in stocks

b)

Owner puts business % into a retirement fund to its workers

c)

Employees buy stock from one another

d)

Owners sell the business to management

7.

"Zoning Variances" are usually regarding changing the physical appearance/use of a building, as it relates to buying or moving to a new building

a)

True

b)

False

8.

Rachel owns a summer camp for children. Based on a survey she gave to parents, she learned that her customers want their children to have a healthy lifestyle. What is a legitimate value proposition for potential customers?

a)

A Providing flexible hours for picking up and dropping off the children

b)

Sending parents daily photographs of the children’s activities

c)

Serving fresh, organic meals and nutritious snacks

d)

Offering discounts during different times of the year

9.

Which characteristic(s) are not REQUIRED to be successful entrepreneurs?

a)

Good with math & public speaking

b)

Opportunity Recognition

c)

Truthful with others-Integrity

d)

Willing to take risk

10.

Anya wants to set up a legal structure for her food delivery service. Which of the following is NOT a question she should she ask herself to help her make her decision?

a)

Is it important for me to make all of the decisions for the business?

b)

Do I even need to set up a legal structure?

c)

Will this business be too risky for me to start it alone?

d)

Do I have any personal assets that I want to make sure are protected?

11.

After a self‐assessment, the owner of Tony’s Fresh and Hot Pizza Shop realizes that he lacks the creativity to offer a large menu that competes with gourmet pizza shops. What is Tony’s best strategy for successfully competing despite this weakness?

a)

Wait for gourmet pizza to go out of style

b)

Start making something other than pizza.

c)

Promote his fast delivery service of hot pizzas.

d)

Buy a franchise gourmet pizza shop with a large menu

12.

Gage is getting married and needs to hire a photographer for the event. He meets with several local wedding photographers and is surprised by how expensive their services are. Gage is a talented photographer with his own professional gear. He decides to start his own business as a wedding photographer. Based on the scenario provided, what should Gage emphasize to attract customers to his new business?

a)

Lower prices

b)

Friendly Service

c)

Convenient location

d)

Higher quality photos

13.

Shauna works at a restaurant. She wants to own her own restaurant someday. Which is one of GREATEST risks of entrepreneurship?

a)

Less freedom

b)

Less challenges

c)

Loss of investment

d)

Loss of flexibility in schedule

14.

When an owner transfers ownership to people who already operate the business, is called

a)

Harvesting

b)

IPO

c)

Early Retirement

15.

Troy owns a cleaning business that specializes in residential houses in his neighborhood. He thinks the business needs to grow, so he is reviewing potential growth strategies and new revenue streams for the following year. Which of the following approaches would generate the highest gross revenue for the next year?

a)

Buying a nearby cleaning company that would bring in an extra $500 monthly

b)

Offering services to a nearby 5‐building apartment complex that would pay $3,000 per suite annually

16.

Aiyana sells homemade smoothies at a local park during the summer. She’s concerned about meeting all the regulations around selling food. She only makes $15,000 a year and does not have a lot of money to spend on that process. Which exception granted by the government might help her in this scenario?

a)

Businesses with fewer than 10 employees are exempt from some parts of the Americans with Disabilities Act.

b)

Food sellers earning less than $50,000 a year do not need to include nutrition facts on labels.

c)

Food sellers can work with agencies to establish workplace safety standards.

d)

Businesses that use sustainable practices are eligible for tax credits.

17.

Martina and Crystal just graduated from a cooking school in a big city. They are both vegans and enjoy the treats at a vegan bakery downtown. However, traffic is bad in the city, and it takes them over an hour to drive to the bakery from their neighborhood. They decide to open a vegan bakery in their part of town. Based on the scenario provided, what should they emphasize in marketing to attract customers, in their area to their shop?

a)

Quality service

b)

Variety of backed goods

c)

Convenient location

d)

Cooking school education

18.

Darby is the owner of a taco truck that parks in busy areas of his city at lunchtime. One day, a traffic officer tells him that he is not allowed to park his food truck in the busy part of the city without the city’s consent. What is Darby most likely missing?

a)

Permit

b)

Certificate

c)

Zoning variance

d)

Severance pay

19.

Buying a nearby cleaning company that would bring in an extra $5,000 quarterly.

a)

$15,000

b)

$6,000

c)

$60,000

d)

$20,000

20.

A "Permit " is a legal document that allows a business to take a specific action

a)

True

b)

False