ESB EXAM 2 STUDY GUIDE
QUESTIONS & ANSWERS
RATED 100% CORRECT
What business scenario fits the definition of a small business, according to the SBA? - correct
answer ✔✔A fast food restaurant that is independently owned and operated
Economy Pricing - correct answer ✔✔Prices that targeting customers looking to save as much
money as possible.
You need to create a legal structure for you small business. You have plans for it to grow and
hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and
Japan. You do not want to be personally responsible for business liabilities.
Which legal structure should you set up for your business? - correct answer ✔✔C-Corp
The highest-ranking employee in the company;reports to the board of directors - correct answer
✔✔CEO
Creates budgets, analyzes financial data, and forecasts company profits - correct answer
✔✔CFO
Manages the technological requirements of a company. - correct answer ✔✔CTO
Oversees the day-to-day administrative functions of a business; second in command. - correct
answer ✔✔COO
, A computer training business needs to hire a consultant for a project to revamp the training
courseware. Once the courseware is revamped, the consultant's services are complete. Which
business compensation structure will pay the consultant and lead to the smallest payroll tax
liability for the business? - correct answer ✔✔Contract
Pivot - correct answer ✔✔Change part of a business model.
Persevere - correct answer ✔✔Make attempts to scale a business
Exit strategy - correct answer ✔✔Turn a business over to a family member
Which of these characteristics of a successful entrepreneur mindset? (Choose two) - correct
answer ✔✔Can tolerate risk and Resilient
You are weighing possible risk in becoming an entrepreneur. Which situation is a risk of being an
entrepreneur? - correct answer ✔✔Financial instability
What is a primary benefit of starting a new business without purchasing a franchise or buying
an existing business? - correct answer ✔✔Developing your own rules.
A______is a multi-page document describing and detailing a business. - correct answer
✔✔Business plan
A slide presentation for potential investors that summarizes the kay items of a business is called
a_____. - correct answer ✔✔Pitch Deck
A______is a single-page business summary template that was created by Ask Maurya. - correct
answer ✔✔Lean Canvas
QUESTIONS & ANSWERS
RATED 100% CORRECT
What business scenario fits the definition of a small business, according to the SBA? - correct
answer ✔✔A fast food restaurant that is independently owned and operated
Economy Pricing - correct answer ✔✔Prices that targeting customers looking to save as much
money as possible.
You need to create a legal structure for you small business. You have plans for it to grow and
hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and
Japan. You do not want to be personally responsible for business liabilities.
Which legal structure should you set up for your business? - correct answer ✔✔C-Corp
The highest-ranking employee in the company;reports to the board of directors - correct answer
✔✔CEO
Creates budgets, analyzes financial data, and forecasts company profits - correct answer
✔✔CFO
Manages the technological requirements of a company. - correct answer ✔✔CTO
Oversees the day-to-day administrative functions of a business; second in command. - correct
answer ✔✔COO
, A computer training business needs to hire a consultant for a project to revamp the training
courseware. Once the courseware is revamped, the consultant's services are complete. Which
business compensation structure will pay the consultant and lead to the smallest payroll tax
liability for the business? - correct answer ✔✔Contract
Pivot - correct answer ✔✔Change part of a business model.
Persevere - correct answer ✔✔Make attempts to scale a business
Exit strategy - correct answer ✔✔Turn a business over to a family member
Which of these characteristics of a successful entrepreneur mindset? (Choose two) - correct
answer ✔✔Can tolerate risk and Resilient
You are weighing possible risk in becoming an entrepreneur. Which situation is a risk of being an
entrepreneur? - correct answer ✔✔Financial instability
What is a primary benefit of starting a new business without purchasing a franchise or buying
an existing business? - correct answer ✔✔Developing your own rules.
A______is a multi-page document describing and detailing a business. - correct answer
✔✔Business plan
A slide presentation for potential investors that summarizes the kay items of a business is called
a_____. - correct answer ✔✔Pitch Deck
A______is a single-page business summary template that was created by Ask Maurya. - correct
answer ✔✔Lean Canvas
