Entrepreneurship and Small Business (ESB) Certification Practice Exam

Which viability factor focuses on analyzing the skills possessed by employees?

1. Management skillset

2. Market trends

3. Industry standards

4. Cash flow analysis

The correct answer is: Management skillset

The viability factor that focuses on analyzing the skills possessed by employees is centered around the management skillset. This factor emphasizes the importance of having individuals in leadership positions who possess the necessary expertise and experience to effectively guide and manage the organization. Understanding the skills of employees is crucial for ensuring that the team is capable of executing the business strategy, adapting to challenges, and achieving the company's goals. In the context of entrepreneurship and small business, a strong management skillset not only enhances operational efficiency but also fosters innovation and improves decision-making. The collective skills of the team directly influence the competitiveness and overall viability of a business. The other options, while important in their own contexts, do not specifically address employee skills. Market trends pertain to consumer preferences and behavioral changes, industry standards deal with benchmarks for performance and quality in a particular sector, and cash flow analysis focuses on the financial health of a business. Each of these factors contributes to the broader assessment of a business's viability but does not specifically analyze employee skillsets.