ESB V2 CERTIFICATION UPDATED COMPREHENSIVE
QUESTIONS AND ANSWERS SURE A+
✔✔Easy to create but comes with unlimited liability - ✔✔Sole proprietorship
✔✔Lower tax rate that prevents the company from being double-taxed - ✔✔S
corporation
✔✔Ideal for a single owner seeking low risk - ✔✔LLC (limited liability company)
✔✔Shared financial backing - ✔✔Partnership
✔✔Creates the company - ✔✔Founder
✔✔Oversees company finances - ✔✔CFO
✔✔Owns stock in the company - ✔✔Stockholder
✔✔Reports to the board of directors - ✔✔CEO
✔✔Oversees daily operational and administrative functions Stakeholder Has a vested
interest in the success of the company - ✔✔COO
✔✔Has a vested interest in the success of the company - ✔✔Stakeholder
✔✔Non-cash compensation - ✔✔Equity
✔✔Set rate of pay for hours worked - ✔✔Hourly
✔✔Usually found in sales roles - ✔✔Commission
✔✔Set amount of pay in a given period - ✔✔Salary
✔✔List the correct order of the business life cycle stages - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔Survival
✔✔List the correct order of the design thinking process - ✔✔Empathize, Define, Ideate,
Prototype, Test
✔✔During which stage of the design thinking process will the design team create
multiple inexpensive product versions? - ✔✔Prototype
✔✔During which stage of the design thinking process is a problem statement formed? -
✔✔Define
✔✔Which stage of the design thinking process involves learning about customers'
challenges? - ✔✔Empathize
✔✔Domain 1 Lesson 2 - ✔✔
✔✔____ is the amount of loss one is willing to take when making an investment
decision - ✔✔Risk tolerance
✔✔Having a ____ mindset means believing that one can accomplish anything through
hard work - ✔✔growth
✔✔An example of an ____ risk is a natural disaster - ✔✔environmental
✔✔A business opportunity is an ____ that lets a buyer start a business - ✔✔investment
✔✔A ____ needs to be obtained to use a brand name on products - ✔✔license
✔✔The five factors that determine the viability of a business opportunity are ____,
relationships, cash flow management, management skillsets, and passion - ✔✔market
size
✔✔A business plan helps a business achieve short-term and long-term ____ - ✔✔goals
✔✔A lean canvas should only be ____ long - ✔✔one page
✔✔The ____ summary creates the first impression of a business plan - ✔✔executive
✔✔The ____ plan should specifically be directed to investors and lenders - ✔✔financial
QUESTIONS AND ANSWERS SURE A+
✔✔Easy to create but comes with unlimited liability - ✔✔Sole proprietorship
✔✔Lower tax rate that prevents the company from being double-taxed - ✔✔S
corporation
✔✔Ideal for a single owner seeking low risk - ✔✔LLC (limited liability company)
✔✔Shared financial backing - ✔✔Partnership
✔✔Creates the company - ✔✔Founder
✔✔Oversees company finances - ✔✔CFO
✔✔Owns stock in the company - ✔✔Stockholder
✔✔Reports to the board of directors - ✔✔CEO
✔✔Oversees daily operational and administrative functions Stakeholder Has a vested
interest in the success of the company - ✔✔COO
✔✔Has a vested interest in the success of the company - ✔✔Stakeholder
✔✔Non-cash compensation - ✔✔Equity
✔✔Set rate of pay for hours worked - ✔✔Hourly
✔✔Usually found in sales roles - ✔✔Commission
✔✔Set amount of pay in a given period - ✔✔Salary
✔✔List the correct order of the business life cycle stages - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔Survival
✔✔List the correct order of the design thinking process - ✔✔Empathize, Define, Ideate,
Prototype, Test
✔✔During which stage of the design thinking process will the design team create
multiple inexpensive product versions? - ✔✔Prototype
✔✔During which stage of the design thinking process is a problem statement formed? -
✔✔Define
✔✔Which stage of the design thinking process involves learning about customers'
challenges? - ✔✔Empathize
✔✔Domain 1 Lesson 2 - ✔✔
✔✔____ is the amount of loss one is willing to take when making an investment
decision - ✔✔Risk tolerance
✔✔Having a ____ mindset means believing that one can accomplish anything through
hard work - ✔✔growth
✔✔An example of an ____ risk is a natural disaster - ✔✔environmental
✔✔A business opportunity is an ____ that lets a buyer start a business - ✔✔investment
✔✔A ____ needs to be obtained to use a brand name on products - ✔✔license
✔✔The five factors that determine the viability of a business opportunity are ____,
relationships, cash flow management, management skillsets, and passion - ✔✔market
size
✔✔A business plan helps a business achieve short-term and long-term ____ - ✔✔goals
✔✔A lean canvas should only be ____ long - ✔✔one page
✔✔The ____ summary creates the first impression of a business plan - ✔✔executive
✔✔The ____ plan should specifically be directed to investors and lenders - ✔✔financial
