Latest ESB Certification Exam Study
Guide with Actual Answers 2025/2026
Updated.
Domain 1 Lesson 1 - Answer
The key objective of a small business owner is to generate ____ - Answer profits
Entrepreneurs are willing to take on new opportunities and unknown ____ to grow their
businesses rapidly - Answer risks
Tangible items that require pick-up or delivery are ____ products - Answer physical
When a ____ purchases an item from a business, it is a business-to-consumer transaction -
Answer customer
____ are for-profit corporations with limited liability - Answer S corporations
____ are ideal for international businesses - Answer C corporations
The ____ oversees daily operational and administrative functions - Answer Chief Operating
Officer
A ____ votes on the management of a company - Answer stockholder
____ employees are paid a fixed amount each pay period - Answer Salary
Businesses can compensate employees for work they produce when being paid by ____ -
Answer piece work
Businesses can offer ____ in addition to a lower salary - Answer equity
During the ____ stage of the business life cycle, a company is regularly taking on new customers
and starting to generate a consistent income - Answer survival
,The owner may decide to sell their ownership in the company during the ____ stage - Answer
exit plan
The five elements of the design thinking process are ____ - Answer empathize, define,
ideate, prototype , and test
____ allows one to see and experience a customer's perspective - Answer Empathy
The design team creates multiple inexpensive versions of a product, known as ____ - Answer
Minimum Viable Products
Name benefits of a franchise - Answer less risk involved, tested operational processes, or
recognized brands
No ownership, no US federal taxes - Answer Non-profit
Best for international business even with being double-taxed - Answer C corporation
Easy to create but comes with unlimited liability - Answer Sole proprietorship
Lower tax rate that prevents the company from being double-taxed - Answer S corporation
Ideal for a single owner seeking low risk - Answer LLC (limited liability company)
Shared financial backing - Answer Partnership
Creates the company - Answer Founder
Oversees company finances - Answer CFO
Owns stock in the company - Answer Stockholder
Reports to the board of directors - Answer CEO
Oversees daily operational and administrative functions Stakeholder Has a vested interest in the
success of the company - Answer COO
, Has a vested interest in the success of the company - Answer Stakeholder
Non-cash compensation - Answer Equity
Set rate of pay for hours worked - Answer Hourly
Usually found in sales roles - Answer Commission
Set amount of pay in a given period - Answer Salary
List the correct order of the business life cycle stages - Answer Existence, Survival, Success,
Take-off, Resource maturity, Pivot or persist, Exit plan
Michael owns a small but profitable tech company. He has been approached by a larger
company that wants to purchase his business. In which business life cycle stage is Michael? -
Answer Exit Plan
Bill just started a new graphic design business. He is advertising online and trying to gain
customers. He just finished working with his first client. In which business life cycle stage is Bill?
- Answer Existence
Stephanie started a new flower shop last year. She has a good customer base and money
coming in. In which business life cycle stage is Stephanie? - Answer Survival
List the correct order of the design thinking process - Answer Empathize, Define, Ideate,
Prototype, Test
During which stage of the design thinking process will the design team create multiple
inexpensive product versions? - Answer Prototype
During which stage of the design thinking process is a problem statement formed? - Answer
Define
Which stage of the design thinking process involves learning about customers' challenges? -
Answer Empathize
Domain 1 Lesson 2 - Answer
Guide with Actual Answers 2025/2026
Updated.
Domain 1 Lesson 1 - Answer
The key objective of a small business owner is to generate ____ - Answer profits
Entrepreneurs are willing to take on new opportunities and unknown ____ to grow their
businesses rapidly - Answer risks
Tangible items that require pick-up or delivery are ____ products - Answer physical
When a ____ purchases an item from a business, it is a business-to-consumer transaction -
Answer customer
____ are for-profit corporations with limited liability - Answer S corporations
____ are ideal for international businesses - Answer C corporations
The ____ oversees daily operational and administrative functions - Answer Chief Operating
Officer
A ____ votes on the management of a company - Answer stockholder
____ employees are paid a fixed amount each pay period - Answer Salary
Businesses can compensate employees for work they produce when being paid by ____ -
Answer piece work
Businesses can offer ____ in addition to a lower salary - Answer equity
During the ____ stage of the business life cycle, a company is regularly taking on new customers
and starting to generate a consistent income - Answer survival
,The owner may decide to sell their ownership in the company during the ____ stage - Answer
exit plan
The five elements of the design thinking process are ____ - Answer empathize, define,
ideate, prototype , and test
____ allows one to see and experience a customer's perspective - Answer Empathy
The design team creates multiple inexpensive versions of a product, known as ____ - Answer
Minimum Viable Products
Name benefits of a franchise - Answer less risk involved, tested operational processes, or
recognized brands
No ownership, no US federal taxes - Answer Non-profit
Best for international business even with being double-taxed - Answer C corporation
Easy to create but comes with unlimited liability - Answer Sole proprietorship
Lower tax rate that prevents the company from being double-taxed - Answer S corporation
Ideal for a single owner seeking low risk - Answer LLC (limited liability company)
Shared financial backing - Answer Partnership
Creates the company - Answer Founder
Oversees company finances - Answer CFO
Owns stock in the company - Answer Stockholder
Reports to the board of directors - Answer CEO
Oversees daily operational and administrative functions Stakeholder Has a vested interest in the
success of the company - Answer COO
, Has a vested interest in the success of the company - Answer Stakeholder
Non-cash compensation - Answer Equity
Set rate of pay for hours worked - Answer Hourly
Usually found in sales roles - Answer Commission
Set amount of pay in a given period - Answer Salary
List the correct order of the business life cycle stages - Answer Existence, Survival, Success,
Take-off, Resource maturity, Pivot or persist, Exit plan
Michael owns a small but profitable tech company. He has been approached by a larger
company that wants to purchase his business. In which business life cycle stage is Michael? -
Answer Exit Plan
Bill just started a new graphic design business. He is advertising online and trying to gain
customers. He just finished working with his first client. In which business life cycle stage is Bill?
- Answer Existence
Stephanie started a new flower shop last year. She has a good customer base and money
coming in. In which business life cycle stage is Stephanie? - Answer Survival
List the correct order of the design thinking process - Answer Empathize, Define, Ideate,
Prototype, Test
During which stage of the design thinking process will the design team create multiple
inexpensive product versions? - Answer Prototype
During which stage of the design thinking process is a problem statement formed? - Answer
Define
Which stage of the design thinking process involves learning about customers' challenges? -
Answer Empathize
Domain 1 Lesson 2 - Answer
