ESB Certification Practice 1

Which two ways can a Customer Service and Support affect sales?

"Increased Sales through Responsiveness and Personalization" and "More Sales through Customer Evangelists"

Which outside agencies might set quality control standards in some industries?

"Industry leaders," "local health and safety inspectors," and "a government regulatory agency."

Define Entrepreneurship

Setting up a business with the aim to make a profit.

Place that stages of the business life cycle in the correct order.

Stage 1: Existence Stages 2: Survival of the Fittest Stage 3: Success Stage 4: Take-off Stage 5: Maturity

What is a Target Market?

"Customers to whom a company wants to sell its products and services."

Which Sales Channel has been opened to manufacturers because of digital tools?

"Direct-to-Consumer"

Which three statements help define a Market/Fit Hypothesis?

"A fit exists when people need your product rather than just seeing a potential benefit of using it," "Product/market fit exists when you have the right solution to a problem worth solving," and "When users love your product so much they tell other people to use it."

The owner of a landscaping business has noticed that none of his competitors are including ponds or other water features in the gardens they create. The landscaper wants to determine the viability of this business opportunity. What should this entrepreneur do FIRST before offering to design and build water features as part of his landscaping business?

"Ask the customers in the area if they are interested in adding a water feature to their gardens."

Which three are segments in a Marketing Plan?

"Behavioral," "Geographic," and "Demographic."

You create a new type of electric shaver that is light-weight, portable, and holds a longer charge. What are three things you will need to consider regarding the mass production of your electric shaver?

"Creating your prototype to demonstrate the product's function to potential customers," "Finding a manufacturer," and "Sourcing materials needed for the components of the products."

Which three elements are required to have a Trade Secret?

"Information has economic value not generally known," "others cannot legitimately obtain the information," and "subject to reasonable efforts to maintain its secrecy."

Which two are benefits of equity funding?

"Investors do not get paid if the business does not make a profit" and "Can be used to raise working capital."

Which two documents summarize the business plan of a company?

"Lean Canvas" and "Pitch Deck"

Which two should be included when calculating start-up costs for a business?

"Permits, licenses, and incorporation fees" and "Business cards."

Which three characteristics help identify a business opportunity?

"Price," "Quality," and "Service."

Your company manufactures 72 hr. emergency kits and sells them for a low profit margins. You want to expand your customer base to increase your sales volume, but you have a limited budget. What marketing method would be the best choice?

"Social Media"

A DJ wants to analyze market reactions to the new music selections played at his dance last weekend. He advertises his weekly dances using social media and email. Which would be the most effective way to gather reactions from those who attended the dance.

"Surveys"

Which two are offline marketing platforms?

"TV ads" and "Flyers and Pamphlets"

Successful entrepreneurs have mindsets that typically possess which three characteristics?

"Tenacious", "adaptable," and "responsible."

Which are two characteristics of direct distribution that differ from fulfillment centers?

"The manufacturer controls all aspects of distribution," and "Direct distribution is also known as a zero level channel."

According to the information in the Balance Sheet, what is your equity in the business? Assets Cash: $10,000 Inventory: $2,000 Equipment: $5,000 Total Assets: $17,000 Liabilities Credit card balance: $2,500 Long-term debt: $0 Unearned revenues: $3,500 Total Liabilities: $6,000

$11,000 To calculate equity, subtract Total Liabilities from Total Assets $17,000 - $6,000 = $11,000

A hair salon acquired 100 new customers last year. Costs in the marketing and sales areas were the following: Marketing costs = $1,000 Sales costs = $10,000 Salaries = $96,000 What was the customer acquisition cost?

$110 To calculate, divide all costs spent on getting customers by the number of customers. 1,000 + 10,000 = 11,000 11,000/100 = 110

You recently started a small affiliate marketing service. Last month, you spend $1,000 on a Pay-Per-Click (PPC) online advertising campaign that resulted in $1,200 in sales. What was last month's Return on Investment (ROI) for your affiliate marketing service?

20% ROI is calculated as (Total Return - Amount Invested)/Amount Invested ($1,200 - $1,000) = $200 $200/$1,000 = .20, or 20%

A law was passed increasing the minimum wage by 30%. The owner of a small landscaping business must now pay all of her laborers 30% higher wages. What is the minimum amount the owner must now charge her customers for labor to balance her increased operational expenses?

30% Increasing hourly pay to workers by 30% will force the price of labor charged to the customer by the same amount.

Identify the foundational concepts of entrepreneurship and small business ownership. Complete the sentence about company roles and responsibilities by selection the correct option from each drop-down list.

An example of "Piece Work" compensation is paying field laborers for the amount of fruit they pick. A "Salary" employee receives a set amount of pay each month without overtime compensation for extra hours worked. Employees most affected by minimum wage laws are compensated "Hourly." An employee who is paid a percentage of a sale is paid by a "Commission."

Categorize B2B (business to business) vs B2C (business to consumer)

B2B: "Wholesale flooring distributor" and "purchases requiring a tax exemption" B2C: "Chain of local grocery stores" and "motorcycle repair shop"

You are a technical trainer. You teach online courses to help workers more efficiently use Microsoft Office applications. What is an effective way to measure your teaching performance during an online course?

Conduct onscreen pop-up quizzes

You need a photograph to use in a commercial presentation. You decide to use a photo with a Creative Commons license and implement the intellectual property guidelines for reusing the author's work. Match each Creative Commons license type to its usage Guideline.

Identifies it is a Creative Commons license: CC Credit must be given to the creator: BY Adaptations must be shared under the same terms: SA Only noncommercial uses of the work are permitted: NC No derivatives or adaptations of the work are permitted: ND

You have an idea for a new product. Market research suggests the product is needed to solve a problem and will be enthusiastically embraced by customers. What is one of the first steps you must do before creating a product prototype?

Identify materials

Classify the following data as either Primary or Secondary. For each business, Primary or Secondary.

Primary Data is "A marketing survey you posted on Facebook" and "Information collected from your company focus group". Secondary Data is "Demographic data you obtained from the government" and "Facts you collected from professional journal articles".

You operate a small insurance office with a partner. Which expense is a fixed cost?

Property lease for the office.

Identify the foundational concepts of entrepreneurship and small business ownership. Match each Element of the Design Thinking Process to its corresponding description.

Research your users' needs: "Empathize" State Your Users' Needs and Problems: "Define" Challenge Assumptions and Create Ideas: "Ideate" Create Solutions: "Prototype" Try Your Solutions: "Test"

Match each Type of Sales Channel to its corresponding description.

Retail: "Selling products directly to end customers for a profit, either in-store, online, mail-order, or by phone." Wholesale: "Selling products in bulk to various outlets or retailers for onward sale." Direct-to-Consumer: "When a brand or manufacturer sells direct to consumers and the end users of their products, as opposed to selling to them solely through retailers." B2B: "Businesses that sell to other businesses who are the intended end user of the product."

You need to create a legal structure for your small business. You would like some of the benefits enjoyed by large corporations, but do not want to be taxed twice. You have four partners who will be shareholders. None of you plan to sell your ownership shares to the public, but do want to be protected from business liabilities. Which legal structure should you set up for your business?

S-Corporation

Which is one of the greatest benefits of being an entrepreneur?

Schedule Control

A photographer wants to do a SWOT Analysis with the characteristics identified. Setup a SWOT analysis with the characteristics provided about this business by matching the company characteristics with appropriate SWOT element.

Strengths: "Large gallery of stock photos" Weaknesses: "Working alone, no skilled help" Opportunities: "Increase in weddings expected as COVID restrictions ease" Threats: "COVID pandemic restrictions disallow large family gatherings."

Sharon owns a law firm. She has recently begun earning more money, and the firm's finances are doing well. In which business life cycle is Sharon in?

Success.

For each statement about the Sales Process, select true or false.

True "Prospect is usually the first step in the Sales Process," "Determining if the potential customer can afford your product is part of Prospecting," and "Handing Objections involves listening to the potential customer's concerns and addressing him." False: "Closing the deal is the last and final element in the Sales Process," and "Presentation is best done with a PowerPoint slide deck."

Identify the foundational concepts of entrepreneurship and small business ownership. For each statement about owners of equity in a business, select true of false.

True: "A partner owns equity" and "founders own equity." False: "All stakeholder owns equity" and "contractors own equity."

For each statement about the components of Business Plans and Pitch Decks, select true or false.

True: "Business Plans are text-based documents," "the goal of a Pitch Deck is to get investors' attention," "the goal of a Business Plan is to get investors' buy-in," and "a Pitch Deck is a visual slide presentation." False: "A typical Pitch Deck has between 20 - 100 slides" and "Business Plans are highly visual."

For each statement about requirements for Equity vs Debt Financing, select True of False.

True: "Debt financing requires borrowing money whereas equity financing requires selling a portion of the company," "The main advantage of equity financing is that there is no obligation to repay the money acquired through it," and "Creditors look favorably upon a relatively low debt-to-equity ratio, which benefits the company if it needs to access addition debt financing in the future." False: "Equity financing places a large financial burden on the company."

For each statement about Direct Competition and Indirect Competition, select true or false.

True: "Direct Competition is a company that offers the same thing you offer", "Indirect Competition is a business whose services are different from yours but satisfy the same need", and "When your target audience buys products from a competitor instead of you, that is Indirect Competition". False: "All companies that sells goods and services are Indirect Competitors".

For each statement about the Selection of Distribution Channels, select True or False.

True: "Product price affects the length of a distribution channel," and "Perishable products require more direct distribution." False: "Products that are bulky, large in size, and technically complicated are usually sold through multiple handlers before reaching the end customer."

For each statement about Product Quality Control Testing, select True or False

True: "Refine quality measures as needed to increase the level of satisfaction with your product," "Establish the method to use for testing product quality," and "Determine what standards have to be met based on the product and industry." False: "Review the results of a competitors quality assurance testing," and "Don't spend money on Product Quality Control Testing unless more than 10% of customers complain."