10 exam-style questions with answers and explanations. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The ESB exam has 45 questions and runs 50 minutes.
These 10 free ESB questions are organized by exam domain, so you can see how each part of the Entrepreneurship and Small Business blueprint is tested. Reveal the answer and explanation under each question.
Maria is starting a business on her own. She wants to protect her personal savings and home if the business is ever sued, but she also wants to avoid the 'double taxation' that comes with a corporation. Which legal structure BEST meets both goals?
Correct answer: C - A limited liability company (LLC)
A product team is following the five-stage design thinking process. They have just finished the 'Define' stage, where they framed the customer's problem clearly. Which stage should they move to NEXT?
Correct answer: A - Ideate
An aspiring entrepreneur has several concepts in mind. Which of the following BEST describes a genuine business opportunity, rather than merely a business idea?
Correct answer: C - A sizable, feasible, and profitable unmet market need
A bakery has developed a secret recipe that gives it a real competitive edge. The owner wants to protect the recipe for as long as possible without ever publicly disclosing how it is made. Which form of intellectual property is MOST appropriate?
Correct answer: D - A trade secret
An entrepreneur has just 10 minutes in front of a room of investors and wants to persuade them to fund her startup. Which document is BEST suited to this specific situation?
Correct answer: A - A pitch deck
A company buys finished goods in large quantities directly from manufacturers and resells them in smaller quantities to retail stores. It does not sell to the general public. This business is BEST classified as a:
Correct answer: B - Wholesaler
Compared with a traditional salaried job, which of the following is generally considered a DRAWBACK of being an entrepreneur?
Correct answer: C - Irregular income that can be hard to predict
Last month, a startup spent $4,000 on marketing and gained 80 new customers as a result. What was the company's customer acquisition cost (CAC)?
Correct answer: A - $50
To understand its market, a company studies government census reports and previously published industry research. This type of information is BEST described as:
Correct answer: B - Secondary data, because it already existed and was collected by others
While planning strategy, a business notes that a strong new competitor has just entered its market. In a SWOT analysis, this factor should be recorded as a:
Correct answer: D - Threat
The ESB exam also covers these domains. Drill them in the full free practice test:
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