ESB V2 Practice Test 1

Question 1

What is the biggest challenge in creating a successful crowdfunding campaign?

Accepted Answer

You're obligated to fulfill orders even if the project is not fully funded.

Question 2

You want to buy a shop in a popular location.Which 3 factors will help determine if the business opporutnity is viable?

Accepted Answer

Market size, Financing requirements, Revenues and costs

Question 3

Which lean canvas component describes how a business idea solves customers' problems better than existing solutions?

Accepted Answer

Value proposition

Question 4

Your customer acquisition cost is too high. Which two actions should you take to lower the customer acquisition cost?

Accepted Answer

Decrease direct mail and print advertisements, Decrease social media advertisements

Question 5

You plan to sell your company in 5 years. In what section of your business plan should you include this information?

Accepted Answer

Exit strategy

Question 6

For which 2 reasons should a company select a fulfillment center for distribution instead of using direct distribution?

Accepted Answer

To ship goods to customers at a lower cost, To have better control over product inventory

Question 7

Bill has a graphics company. He just finished working with his 1st client. In which business life cycle state is he?

Accepted Answer

Existence

Question 8

You decide to open a coffee shop. Of your monthly recurring costs, which two are fixed (Choose 2)

Accepted Answer

Insurance, Rent

Question 9

You sell each taco for $4. You need to determine your monthly break-even point. Monthly Expenses: $400.

Accepted Answer

100

Question 10

You want to reward & retain your current customers. Which 2 types of customer loyalty programs should you select?

Accepted Answer

Coupon code, Points program

Question 11

Sue started a flower shop last year. She has customers & money coming in. In which business life cycle stage is Sue?

Accepted Answer

Survival

Question 12

Which two types of information does an income statement provide? (Choose 2)

Accepted Answer

A classification of revenues and expenses, An indication of profitability

Question 13

What are two disadvantages of debt financing? (Choose 2)

Accepted Answer

Debt has to be repaid, Owners may be required to personally guarantee debt.

Question 14

What are 3 characteristics of a business opportunity?

Accepted Answer

The initial buyer fee is at least $500, The seller is required to help the buyer find a location for the business, Seller Guarantees the income is = to or > than the buyer's price when sold

Question 15

What are the qualities of an entrepreneurial mindset?

Accepted Answer

Flexible and resilient

Question 16

For which 2 reasons should a meal delivery company use direct distribution channels over indirect distribution channels?

Accepted Answer

To quickly get products to customers before they spoil, To build stronger relationships with customers

Question 17

A non-profit has a ____________ status.

Accepted Answer

tax-exempt

Question 18

What is the primary difference between wholesale and retail sales channels?

Accepted Answer

Wholesale is business-to-business while retail is business-to-consumer

Question 19

You need a better social media presence to market your wellness products. Which 3 marketing methods should you use?

Accepted Answer

Use brand influencers, Create an online community for customers, Create company profiles on relevant online platforms

Question 20

You manufacture race cars. How should you determine performance criteria for your product?

Accepted Answer

Test an interactive prototype

Question 21

What are the characteristics of an entrepreneurial mindset?

Accepted Answer

Creativity, adaptability, determination, and empathy.

Question 22

In addition to pricing, which three elements comprise your marketing mix? (Choose 3)

Accepted Answer

Place, Promotion, Product

Question 23

You manufacture race cars. How should you determine performance criteria for your product?

Accepted Answer

Test an interactive prototype

Question 24

For third-party sellers, what are two marketing benefits of selling products on a marketplace? (Choose 2)

Accepted Answer

Access to the marketplace's technology, Access to the marketplace's customer base

Question 25

What is the first step in forming a product/market fit hypothesis?

Accepted Answer

Determine who the target customer is

Question 26

Which three resources represent secondary data? (Choose 3)

Accepted Answer

Academic journals, United States Census, Industry newsletter

Question 27

Which three steps are part of the sales process? (Choose 3)

Accepted Answer

Close the deal, Prospect, Present the pitch

Question 28

You create a new machine. What are 3 things you'll need to consider regarding the mass production of your new machine?

Accepted Answer

Establishing quality control measures and accoutability., Sourcing materials needed for the components of the product., Finding a manufacturer

Question 29

You need to perform a SWOT analysis.What identifies the internal factors that impact your business?

Accepted Answer

Strengths and weaknesses

Question 30

You manufacture race cars. How should you determine performance criteria for your product?

Accepted Answer

Test an interactive prototype.

Question 31

For which 2 reasons should a small company use a fulfillment center for distribution instead of a distribution center?

Accepted Answer

To personalize all aspects of the sale., To ship goods to customers at a lower cost.

Question 32

You own an e-commerce website where customers can buy jewelry that you make. Which type of sales channel are you using?

Accepted Answer

Direct-to-Consumer

Question 33

Which three roles have equity in a business? (Choose 3)

Accepted Answer

Owner, Stockholder, Partner

Question 34

In addition to pricing, which three elements comprise your marketing mix? (Choose 3)

Accepted Answer

Place, Promotion, Product

ESB V2 Practice Test 1

Questions 34

ESB V2 Practice Test 1

Questions 34