ESB Certification exam with 100% correct answers

Acquisition Costs Cost incurred by a business. Angel Investor An investor who provides funding to a business for a stake in the business in return. Asset A tangible item a business owns. B2B A business-to-business (B2B) commercial transaction between businesses. B2C A business-to-consumer (B2C) transaction. Balance Sheet A document that compares assets to liabilities plus owner's equity. Bootstrapping A business owner that uses their own money to fund their business. Brand Recognition The level of familiarity one has with a brand. Break-Even Point The point where a business's revenue matches its expenses over a given period. Budget The amount of money a business plans on spending during a given period. Burn Rate A calculation used to measure a business's monthly cash flow. Business Opportunity A situation an entrepreneur analyzes and evaluates to see if starting a sustainable, profitable business is feasible. Business Plan A document that addresses the concept, customers, and capital for a business. C Corporation A business structure that allows the company to pass its income, losses, deductions, and credits through its shareholders to decrease their taxation. CEO The Chief Executive Officer (CEO) holds a leadership role within a business. The CEO oversees a business's operations and resources and makes the major decisions for the company. CFO The Chief Financial Officer (CFO) holds a leadership role within a business. The CFO oversees a company's finances. Collaboration The action of working with one or more people toward a common goal. Commission A fee paid to an employee for completing a task. Compensation A monetary amount given to employees in return for their work. Confidentiality Agreement A signed agreement stating that an entity will not disclose information agreed upon by all parties in an arrangement. Contract An agreement between an employee and a company outlining obligations and terms of employment. COO The Chief Operating Officer (COO) holds a leadership role within a business. The COO is responsible for overseeing the day-to-day administrative and operational functions of a business. Copyright A form of protection individuals can implement to protect their intellectual property. Copyright is designated for print, music, film, and various other forms of creative licenses. Critical Thinking Using one's mind to solve a problem in the best way by considering various potential solutions to the problem. Crowdfunding The method of sharing a start-up business online to pre-sell products. Customer An individual or business that purchases goods and services from a business. Customer Acquisition Cost The total cost of acquiring a new customer. Customer Retention Activities or strategies employed by a business to retain existing customers. Chamber of Commerce A local agency with information on participating local businesses. Demographics Statistical data that refers to particular groups within a population. Distribution Channel A method used to get a product from the manufacturer to the end-users. Employee An individual hired by a company and compensated for their work. Entrepreneur An individual who aspires to start and run a successful business. Equity Non-cash compensations offered to employees in place of or in addition to a lower salary. Ethical Practices Standards of professional conduct professionals should uphold. Fixed Costs Costs a business has that remain the same no matter the volume of production. Forward-Thinking Mentality Thinking about and planning for the future. Founder The person that developed or created a company or organization. Franchise A business that takes its name and characteristics from an existing business chain. Grit The characteristic of being able to tackle goals with courage and perseverance. Growth Mindset Believing that one can accomplish anything with hard work. Hourly Pay A payment amount provided to employees for the number of hours they worked. Income Statement A financial statement that details a business's revenue and expenses for a given period. Initiative A characteristic in which an individual acts to turn ideas into action. Innovation A new idea, product, or method. Intellectual Property A creative work or invention to which an individual has been given rights. Inventory Goods a business owns with the purpose of selling. Investor A person or entity willing to provide monetary funds to a business with the hopes of earning a return on their money. Lean Canvas A one-page document discussing key information commonly seen in a business plan. Liability The amount of money owed to an entity. LLC A limited liability company (LLC) is a business with pass-through taxation where owners pay taxes on the company's profit and losses through their personal taxes. Marketing A form of communication between businesses and customers which relays a message promoting services and/or goods. Marketing Plan A written plan that outlines a company's marketing strategies. MVP A minimum viable product (MVP) is an inexpensive