ESB Certification Exam Study Guide
(Answered) Complete Verified Solution
Domain 1 Lesson 1
The key objective of a small business owner is to generate ____
profits
Entrepreneurs are willing to take on new opportunities and unknown ____ to
grow their businesses rapidly
risks
Tangible items that require pick-up or delivery are ____ products
physical
When a ____ purchases an item from a business, it is a business-to-consumer
transaction
customer
____ are for-profit corporations with limited liability
S corporations
____ are ideal for international businesses
C corporations
The ____ oversees daily operational and administrative functions
Chief Operating Officer
A ____ votes on the management of a company
stockholder
____ employees are paid a fixed amount each pay period
Salary
Businesses can compensate employees for work they produce when being paid
by ____
piece work
Businesses can offer ____ in addition to a lower salary
equity
During the ____ stage of the business life cycle, a company is regularly taking on
new customers and starting to generate a consistent income
survival
The owner may decide to sell their ownership in the company during the ____
stage
exit plan
The five elements of the design thinking process are ____
empathize, define, ideate, prototype , and test
____ allows one to see and experience a customer's perspective
Empathy
The design team creates multiple inexpensive versions of a product, known as
____
Minimum Viable Products
Name benefits of a franchise
less risk involved, tested operational processes, or recognized brands
, No ownership, no US federal taxes
Non-profit
Best for international business even with being double-taxed
C corporation
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
(Answered) Complete Verified Solution
Domain 1 Lesson 1
The key objective of a small business owner is to generate ____
profits
Entrepreneurs are willing to take on new opportunities and unknown ____ to
grow their businesses rapidly
risks
Tangible items that require pick-up or delivery are ____ products
physical
When a ____ purchases an item from a business, it is a business-to-consumer
transaction
customer
____ are for-profit corporations with limited liability
S corporations
____ are ideal for international businesses
C corporations
The ____ oversees daily operational and administrative functions
Chief Operating Officer
A ____ votes on the management of a company
stockholder
____ employees are paid a fixed amount each pay period
Salary
Businesses can compensate employees for work they produce when being paid
by ____
piece work
Businesses can offer ____ in addition to a lower salary
equity
During the ____ stage of the business life cycle, a company is regularly taking on
new customers and starting to generate a consistent income
survival
The owner may decide to sell their ownership in the company during the ____
stage
exit plan
The five elements of the design thinking process are ____
empathize, define, ideate, prototype , and test
____ allows one to see and experience a customer's perspective
Empathy
The design team creates multiple inexpensive versions of a product, known as
____
Minimum Viable Products
Name benefits of a franchise
less risk involved, tested operational processes, or recognized brands
, No ownership, no US federal taxes
Non-profit
Best for international business even with being double-taxed
C corporation
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
