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ESB D1-D3 Review

Total questions: 45

Worksheet time: 34mins

Name
Class
Date
1.

An entrepreneur scans the environment to spot trends before competitors. This activity is known as:

a)

Opportunity recognition

b)

Product diversification

c)

Market penetration

d)

Target mapping

2.

Which of the following best characterizes an entrepreneur?

a)

Focuses mainly on employee management

b)

Prefers stability over change

c)

Avoids all risk in decision-making

d)

Identifies unmet needs and acts on them

3.

A “minimum viable product” (MVP) is designed to:

a)

Avoid customer feedback entirely

b)

Serve as the final version ready for mass distribution

c)

Provide the simplest version that still tests core functionality

d)

Replace a fully developed product

4.

Which factor is most likely to create a new business opportunity?

a)

Emerging technology or shifting customer behavior

b)

Lack of interest in market research

c)

Decreasing product quality

d)

Reducing daily working hours

5.

A founder interviews potential customers before building the product. This is an example of:

a)

Post-launch analysis

b)

Pre-sale marketing

c)

Market saturation

d)

Customer discovery

6.

Which motivation best aligns with entrepreneurial thinking?

a)

Seeking predictable routines

b)

Wanting independence and creative control

c)

Avoiding leadership roles

d)

Preferring work with no responsibility

7.

What is a common barrier to starting a business?

a)

Limited access to resources or networks

b)

Overly large target markets

c)

Excess customer feedback

d)

Too many new ideas

8.

A student who sees a long line outside the school store and designs a faster mobile order system is demonstrating:

a)

Customer avoidance

b)

Opportunity recognition

c)

Brand dilution

d)

Operational inefficiency

9.

Entrepreneurial innovation usually begins when someone:

a)

Focuses on internal cost structures

b)

Reduces product features

c)

Identifies a problem and proposes a new solution

d)

Copies a competitor’s product

10.

What is a common benefit of entrepreneurship to the community?

a)

Maintaining existing job levels only

b)

Increasing demand for imports

c)

Creating new jobs and innovations

d)

Reducing competition permanently

11.

A person who starts a business primarily to solve a social issue is known as a:

a)

Frugal founder

b)

Competitive strategist

c)

Social entrepreneur

d)

Retail operator

12.

Which scenario best reflects entrepreneurial risk-taking?

a)

Launching a new product with no research

b)

Calculated decision-making with imperfect information

c)

Waiting for every competitor to enter first

d)

Avoiding all uncertain markets

13.

Why do entrepreneurs create prototypes early in development?

a)

To test assumptions quickly

b)

To comply with government regulation

c)

To avoid customer involvement

d)

To finalize packaging

14.

An entrepreneur observing long-term demographic shifts is analyzing:

a)

Product cannibalization

b)

Internal weaknesses

c)

Environmental trends

d)

Short-term issues

15.

Identifying a problem, generating ideas, testing them, and refining solutions describes:

a)

Competitive parity

b)

The creative thinking cycle

c)

Financial reporting

d)

Operational scaling

16.

Which Lean Canvas element identifies the specific people or groups most likely to buy the product?

a)

Key Metrics

b)

Problem

c)

Unfair Advantage

d)

Customer Segments

17.

The part of the Lean Canvas that describes what makes the business difficult to copy is the:

a)

Channels

b)

Unfair Advantage

c)

Unique Value Proposition

d)

Key Metrics

18.

Which question is addressed in the “Problem” section of the Lean Canvas?

a)

How much revenue will the product generate?

b)

What customer frustrations or gaps exist today?

c)

What barriers prevent competitors from copying us?

d)

Where will the product be sold?

19.

A company’s business model MOST clearly explains:

a)

The number of years it has been operating

b)

How it creates, delivers, and captures value

c)

Employee preferences and benefits

d)

Laws regulating the business

20.

A “value proposition” communicates:

a)

Why the product is priced lower

b)

The unique benefit that appeals to customers

c)

The company’s long-term legal obligations

d)

The detailed business structure

21.

A core competency gives a company an advantage because it:

a)

Reduces customer expectations

b)

Eliminates the need for marketing

c)

Reflects what competitors cannot easily copy

d)

Increases employee turnover

22.

What is the main purpose of a feasibility analysis?

a)

Replace customer discovery

b)

Increase advertising exposure

c)

Select employee schedules

d)

Determine whether an idea is practical and worth pursuing

23.

Which scenario best represents a pivot?

a)

A company closes its store temporarily

b)

A company changes its product features after learning customers want something different

c)

A company hires additional staff

d)

A company lowers its marketing budget

24.

A business that sells products only through its own website is primarily choosing a:

a)

Direct distribution channel

b)

Wholesale distribution model

c)

Franchise expansion model

d)

Consolidated supplier chain

25.

Which is an example of a key activity in many business models?

a)

Developing core product features

b)

Approving federal legislation

c)

Assigning classroom grades

d)

Setting tax regulations

26.

Which type of partnership helps a business reach new customers quickly?

a)

Legal arbitration

b)

Internal auditing

c)

Joint marketing alliances

d)

Workforce downsizing

27.

A unique selling proposition (USP) focuses on:

a)

The company’s internal mission

b)

The total target market size

c)

The one compelling reason customers should buy from you

d)

The regulatory environment

28.

A founder chooses a niche strategy because:

a)

It requires no market research

b)

It guarantees fast scaling

c)

It allows deep focus on a narrower, well-defined segment

d)

Wide audiences dislike specialized products

29.

Positioning answers which key question?

a)

What will our total revenue be?

b)

Who will manage daily operations?

c)

How will we price our products?

d)

How will customers perceive us compared to competitors?

30.

Which factor is most commonly used in demographic segmentation?

a)

Brand preference

b)

Personality

c)

Lifestyle

d)

Age

31.

A company creates a fictional, representative customer to guide marketing decisions. This describes a:

a)

Compliance checklist

b)

Buyer persona

c)

Seasonal forecast

d)

Cost ledger

32.

— Direct Response Marketing — A hallmark of direct response marketing is that it:

a)

Never uses digital channels

b)

Eliminates the need for segmentation

c)

Requires customers to take immediate, trackable action

d)

Focuses only on entertaining content

33.

— Direct Response Marketing — Which is the strongest example of a direct response call-to-action?

a)

“Click here to claim your spot in today’s workshop.”

b)

“We care about quality and reliability.”

c)

“Learn more about our brand story.”

d)

“Our product has been around for 20 years.”

34.

— Direct Response Marketing — Direct response marketing is different from brand marketing because it:

a)

Avoids customer interactions

b)

Requires no messaging strategy

c)

Improves customer service

d)

Measures immediate conversions

35.

Which scenario best describes behavioral segmentation?

a)

Marketing based on industry trends

b)

Marketing based on age brackets

c)

Marketing based on purchase history and usage patterns

d)

Marketing based on ZIP code

36.

A brand promise is meant to:

a)

Explain product pricing

b)

Tell customers what consistent experience they can expect

c)

Replace the marketing plan

d)

Define the company's legal structure

37.

Which action most helps a company strengthen brand loyalty?

a)

Raising prices annually

b)

Delivering consistent quality and service

c)

Limiting customer communication

d)

Reducing product options

38.

A company compares reviews, ratings, and product features from competing businesses. This process is called:

a)

Brand dilution

b)

Competitive analysis

c)

Inbound prospecting

d)

Internal assessment

39.

What is the primary purpose of A/B testing in digital marketing?

a)

Remove competitors from the marketplace

b)

Increase the number of product variations

c)

Prevent customers from leaving the website

d)

Compare two versions of a message or design to see which performs better

40.

A bakery displays fresh pastries near the checkout counter to encourage impulse purchases. This is an example of:

a)

Brand consolidation

b)

Channel saturation

c)

Customer behavior strategy

d)

Geographic positioning

41.

What is a fundamental step in identifying a business opportunity?

a)

Ignoring customer feedback

b)

Analyzing market gaps and consumer needs

c)

Replicating a competitor's product

d)

Focusing solely on personal interests

42.
A/An __________ is a small, specialized market.
a)
profit center
b)
opportunity
c)
mass market
d)
niche
43.

Which type of customer segmentation includes income, education, and occupation?

a)

Behaviorgraphics

b)

Demographics

c)

Psychographics

d)

Geographics

44.
Target Markets can be everyone.
a)
false
b)
true
45.

Which of the following is a simple procedure involved in business opportunity identification?

a)

Conducting a SWOT analysis

b)

Writing a detailed business plan

c)

Developing a marketing strategy

d)

Hiring a management team