ESB Certification Exam Study Guide
2024/2025 Exam Questions Marking
Scheme New Update | A+ Rated
Domain 1 Lesson 1
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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,____ 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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
2024/2025 Exam Questions Marking
Scheme New Update | A+ Rated
Domain 1 Lesson 1
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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,____ 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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
