ESB EXAM Study Guide best complete solutions 2025/2026

ESB EXAM Study Guide best complete solutions 2025/2026 /. 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 /.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? - Answer-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? - Answer-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? - Answer-Survival /.List the correct order of the design thinking process - Answer-Empathize, Define, Ideate, Prototype, Test /.During which stage of the design thinking process will the design team create multiple inexpensive product versions? - Answer-Prototype /.During which stage of the design thinking process is a problem statement formed? - Answer-Define /.Which stage of the design thinking process involves learning about customers' challenges? - Answer-Empathize /.Domain 1 Lesson 2 - Answer- /.____ is the amount of loss one is willing to take when making an investment decision - Answer-Risk tolerance /.Having a ____ mindset means believing that one can accomplish anything through hard work - Answer-growth /.An example of an ____ risk is a natural disaster - Answer-environmental /.A business opportunity is an ____ that lets a buyer start a business - Answer-investment /.A ____ needs to be obtained to use a brand name on products - Answer-license /.The five factors that determine the viability of a business opportunity are ____, relationships, cash flow management, management skillsets, and passion - Answer-market size /.A business plan helps a business achieve short-term and long-term ____ - Answer-goals /.A lean canvas should only be ____ long - Answer-one page