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ESB Exam Simulation Practice
ESB Exam Simulation Practice
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This quiz will serve as a test preparation for the ESB Exam.
Flashcards
36 cards
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Practice quiz
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Questions
36
Answers
1
Companies that sell to other companies are called:
C2C
B2B
none of the above
B2C
2
A patent is the exclusive right to make, use or sell a device or process?
False
True
3
The book value of a business is equal to:
net worth minus owner’s equity
the overall value of the business
a multiple of business’s earnings
total assets minus total liabilities on the company’s balance sheet
4
The period of time you have to act on a business opportunity before it disappears is called the:
opportunity time limit
none of the above
window of opportunity
reasonable time frame
5
A franchise fee is:
A fee required to pay into a advertising fund based on percentage of sales
Fund that pays the distrib, market, advert and materials for franchisees
an upfront charge that is sizable and allows franchisee to join the system
a percentage of the sales the franchisee earns
6
A sales forecast is a prediction of the amount of future sales expected in a period of time:
True
False
7
Pauline’s Pooch Palace gives $1 from every dog grooming to the local animal shelter. This is an example of
fair trade
sustainable design
business ethics
philanthropy
8
The most successful salespeople..
Know how to listen and ask questions
Don't have to make many sales calls
Tell customers what they want to hear
Support people who perform follow up after the sale
9
An itemized list of goods delivered, or services rendered and the total amount due is called:
invoice
a receipt
purchase order
packing slip
10
A mission statement should include:
Why a company exists and guides a company´s work and actions
leadership and teamwork abilities
safe workplace and fair emplyment policies
Social responsibility
11
Which of the following is a risk to entrepreneurship?
Generating wealth over time
Applying your own experience
Loss of investment
Fulfilling a passion
12
Taxes pay for:
Unemployment insurance
All of the above
The national guard
Roads
13
Bootstrapping means:
Starting a business financed by a credit union
Starting a business financed by a loan of relatives or friends
Starting a business financed by a bank
Starting a business by yourself, without any outside investment
14
A franchise royalty is:
The same as a franchise fee
A regular ongoing payment based on the franchisee’s sales
The fee for filing a franchise disclosure agreement
Regular ongoing payment made to Federal Trade Commission by the franchisor
15
One advantage of a corporation as compared to a sole proprietorship is:
A corporation provides limited liability for its owners.
Corporation has a partnership agreement
A corporation has fewer shareholders
A corporation is easier to set up and requires less paper work
16
One of the primary goals when exiting a business is to:
convert the business to cash
prepare a franchise disclosure document for the new owner
have exclusive licensing agreements
have nonexclusive licensing agreements
17
If the operating expenses are $5,000 and the gross profit per unit is $5, the number of break-even units is:
1000
100
10000
10
18
Which of the following are works protected by copyright?
songs
movies
compositions
Articles of maufacture
19
The initials SWOT means:
strengths, weaknesses, opportunities, threats
strenghts, weaknesses, offers, threats
strengths, weaknesses, opportunities, time
20
The special permit that allows retailers to purchase goods tax free from wholesalers and collect taxes is called:
retailing permit
Reseller's permit
wholesale permit
tax permit
21
Which of the following is the best definition of inventory goods on hand?
The amount of product the owner is holding
Amount of products a company has on hand that they can sell to customers
The amount of product the customer is holding
Amount of product a company has on hand that is already sold to customers
22
Differentiators are unique characteristics that distinguish your business from other businesses
False
True
23
A trade barrier is a limit on the quantity of a good that can be imported into a country
False
True
24
How does the SBA define “small business”?
one with 750–1,000 employees
one with fewer than 100 employees
one with 500–750 employees
one with 1,000–1,250 employees
25
The stages of a product life cycle are:
intensive, integrative, and diversification
introduction, growth, maturity, and decline
space, materials, people, and money
vertical and horizontal
26
Profit is beneficial to entrepreneurs because:
profit is a barrier to international trade
profit builds wealth and financial independence
profit is the equilibrium quantity on a supply and demand curve
profit is the answer to one of the fundamental questions of economics
27
A credit union is an organization that makes profit from interest loans to members
True
False
28
The cost reduction made possible by spreading costs over a larger volume is called
strategic economics
volume discount
economy of scale
economy of volume
29
Social, economic, and political factors that could impact your business are called:
business environment
carrying capacity
mass market
Industry dynamics,
30
Which of the following is an advantage of franchising to the franchisor?
selling a franchise is an inexpensive process
selling a franchise can help a struggling business
the franchisor collects a fee and royalties from the franchisee
the franchisor must pay legal fees to prepare a franchising document
31
Which of the following is not a source for obtaining secondary data:
chamber of commerce
annual business reports from other companies
interviews about your product
government statistics
32
An experienced person who volunteers to provide free guidance, tutoring, and suggestions to younger individuals is a:
intrapreneur
employee
entrepreneur
mentor
33
Which of the following is the greatest opportunity of entrepreneurship?
Long hours
Loss of investment
Working with customers
Generating wealth over time
34
The four functions of a small business are
marketing, operations, human resources, and finance
research, development, marketing, and sales
recordkeeping, accounting, auditing, and finance
advertising, promotions, public relations, and sales
35
Which options are the three C's that must be addressed in all types of business plans? (Choose three)
Customers
Capital
Competition
Concept
36
After a self assessment, an entrepreneur has learned that he knows nothing about accounting. What should he/she do?
Go get a job and work for someone else
Buy a franchise for a well known brand
Buy an existing business that is already successful
Enroll in a beginning level business accounting course at a local college
