ESB Exam Simulation Practice III Bach

Question 1

The special permit that allows retailers to purchase goods tax free from wholesalers and collect taxes is called:

Accepted Answer

Reseller's permit

Question 2

The initials SWOT means:

Accepted Answer

strengths, weaknesses, opportunities, threats

Question 3

Differentiators are unique characteristics that distinguish your business from other businesses

Accepted Answer

True

Question 4

The four functions of a small business are

Accepted Answer

marketing, operations, human resources, and finance

Question 5

One of the primary goals when exiting a business is to:

Accepted Answer

convert the business to cash

Question 6

Which of the following are works protected by copyright?

Accepted Answer

songs, movies

Question 7

A credit union is an organization that makes profit from interest loans to members

Accepted Answer

False

Question 8

Bootstrapping means:

Accepted Answer

Starting a business by yourself, without any outside investment

Question 9

Profit is beneficial to entrepreneurs because:

Accepted Answer

profit builds wealth and financial independence

Question 10

The cost reduction made possible by spreading costs over a larger volume is called

Accepted Answer

economy of scale

Question 11

The period of time you have to act on a business opportunity before it disappears is called the:

Accepted Answer

window of opportunity

Question 12

If the operating expenses are $5,000 and the gross profit per unit is $5, the number of break-even units is:

Accepted Answer

1000

Question 13

One advantage of a corporation as compared to a sole proprietorship is:

Accepted Answer

A corporation provides limited liability for its owners.

Question 14

The book value of a business is equal to:

Accepted Answer

total assets minus total liabilities on the company’s balance sheet

Question 15

Which of the following is an advantage of franchising to the franchisor?

Accepted Answer

the franchisor collects a fee and royalties from the franchisee

Question 16

A patent is the exclusive right to make, use or sell a device or process?

Accepted Answer

True

Question 17

Social, economic, and political factors that could impact your business are called:

Accepted Answer

business environment

Question 18

Pauline’s Pooch Palace gives $1 from every dog grooming to the local animal shelter. This is an example of

Accepted Answer

philanthropy

Question 19

A franchise royalty is:

Accepted Answer

A regular ongoing payment based on the franchisee’s sales

Question 20

Companies that sell to other companies are called:

Accepted Answer

B2B

Question 21

A sales forecast is a prediction of the amount of future sales expected in a period of time:

Accepted Answer

False

Question 22

An itemized list of goods delivered, or services rendered and the total amount due is called:

Accepted Answer

invoice

Question 23

Taxes pay for:

Accepted Answer

All of the above

Question 24

Which options are the three C's that must be addressed in all types of business plans? (Choose three)

Accepted Answer

Customers, Concept, Capital

Question 25

The stages of a product life cycle are:

Accepted Answer

introduction, growth, maturity, and decline

Question 26

Which of the following is the best definition of inventory goods on hand?

Accepted Answer

Amount of products a company has on hand that they can sell to customers

Question 27

A trade barrier is a limit on the quantity of a good that can be imported into a country

Accepted Answer

False

Question 28

An experienced person who volunteers to provide free guidance, tutoring, and suggestions to younger individuals is a:

Accepted Answer

mentor

Question 29

Which of the following is not a source for obtaining secondary data:

Accepted Answer

interviews about your product

Question 30

How does the SBA define “small business”?

Accepted Answer

one with fewer than 100 employees

Question 31

A franchise fee is:

Accepted Answer

an upfront charge that is sizable and allows franchisee to join the system

Question 32

After a self assessment, an entrepreneur has learned that he knows nothing about accounting. What should he/she do?

Accepted Answer

Enroll in a beginning level business accounting course at a local college

Question 33

The most successful salespeople..

Accepted Answer

Know how to listen and ask questions

Question 34

Which of the following is the greatest opportunity of entrepreneurship?

Accepted Answer

Generating wealth over time

Question 35

Which of the following is a risk to entrepreneurship?

Accepted Answer

Loss of investment

Question 36

A mission statement should include:

Accepted Answer

Why a company exists and guides a company´s work and actions

ESB Exam Simulation Practice III Bach

Questions 36

ESB Exam Simulation Practice III Bach

Questions 36