Entrepreneurship and Small Business (ESB) Certification Practice Exam

Which of the following is NOT considered a common startup cost?

1. Market research

2. Employee wages

3. Advertising and marketing

4. Utility bills

The correct answer is: Utility bills

Utility bills are typically regarded as ongoing operational costs rather than startup costs. When starting a business, initial expenses often focus on activities that help the business establish itself in the market. Market research is crucial for understanding customer needs and validating the business concept before launch. Employee wages are a significant investment for a startup, as businesses often require at least some staff to operate effectively. Advertising and marketing are essential for promoting the new business and attracting customers, so they are also considered startup costs. In contrast, utility bills are recurring expenses necessary for the day-to-day functioning of a business once it is operational. They cover costs such as electricity, water, and internet service, which are incurred after the business is already established. Therefore, utility bills do not fall under the category of common startup costs, making this the correct answer to the question.