ESB Certification Exam Study Guide with Complete Solutions!!

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