ESB CERTIFICATION TEST QUESTIONS
WITH CORRECT ANSWERS 2025
Entrepreneurship - CORRECT ANSWER -Setting up business with the aim to make profit.
B2B (business-to-business) - CORRECT ANSWER -
Sells products and services directly to other businesses. Normally requires a sales tax exemption
certificate from the buyer.
B2C (business-to-consumer) - CORRECT ANSWER -
Sells products and services directly to customer for personal use.
Small buisness - CORRECT ANSWER -
A small business is when a business has less than 35.5 million dollars in revenue, and fewer than
1,500 employees.
S corporation(Small businesses) - CORRECT ANSWER -
is a legal structure with 100 shareholders(U.S. citizens only) MAX, who are not responsible for Li
abilities. And they are only taxed once, and there is a separate tax return for the business.
CPCorporation (Companies) - CORRECT ANSWER -
is a legal structure used for when the company plans to sell stock to the public. It has unlimited s
hareholders (not responsible for liabilities) that are taxed twice (corporatesPlevel and income rec
eived). A separate tax return is required for business.
Sole Proprietorship - CORRECT ANSWER -
A business owned by one person that legally needs a DBA or business license. The owner is resp
onsible for liabilities, no separate tax needed (taxed once).
, Limitied-Liability Company (LLC) - CORRECT ANSWER -
This is best for businesses concerned about liability protection. It has unlimited owners who are
n't responsible for liabilities, and can choose how they want to be taxed. LLCs cannot go public.
Equity (business) - CORRECT ANSWER -
The amount an owner(s) would receive if their ownership interests in a business (stock) were sol
d. (The money the owner has left over)
Equity Funding - CORRECT ANSWER -
Using money from investors to finance a project in exchange for shares in the company. Can be u
sed to raise working capitals.
equity financing - CORRECT ANSWER -
money raised from within the firm, from operations or through the sale of ownership in the firm
(stock or venture capital). Advantage: there's no obligation to repay the money acquired.
Piece work - CORRECT ANSWER -work paid for according to the amount produced.
Salary - CORRECT ANSWER -
A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an
annual sum.
Hourly - CORRECT ANSWER -wage based on the amount of time worked (Minimum wage).
Commission - CORRECT ANSWER -
An amount paid to an employee based on a percentage of the employee's sales.
Business cycle - CORRECT ANSWER -1. Existence
2. Survival
WITH CORRECT ANSWERS 2025
Entrepreneurship - CORRECT ANSWER -Setting up business with the aim to make profit.
B2B (business-to-business) - CORRECT ANSWER -
Sells products and services directly to other businesses. Normally requires a sales tax exemption
certificate from the buyer.
B2C (business-to-consumer) - CORRECT ANSWER -
Sells products and services directly to customer for personal use.
Small buisness - CORRECT ANSWER -
A small business is when a business has less than 35.5 million dollars in revenue, and fewer than
1,500 employees.
S corporation(Small businesses) - CORRECT ANSWER -
is a legal structure with 100 shareholders(U.S. citizens only) MAX, who are not responsible for Li
abilities. And they are only taxed once, and there is a separate tax return for the business.
CPCorporation (Companies) - CORRECT ANSWER -
is a legal structure used for when the company plans to sell stock to the public. It has unlimited s
hareholders (not responsible for liabilities) that are taxed twice (corporatesPlevel and income rec
eived). A separate tax return is required for business.
Sole Proprietorship - CORRECT ANSWER -
A business owned by one person that legally needs a DBA or business license. The owner is resp
onsible for liabilities, no separate tax needed (taxed once).
, Limitied-Liability Company (LLC) - CORRECT ANSWER -
This is best for businesses concerned about liability protection. It has unlimited owners who are
n't responsible for liabilities, and can choose how they want to be taxed. LLCs cannot go public.
Equity (business) - CORRECT ANSWER -
The amount an owner(s) would receive if their ownership interests in a business (stock) were sol
d. (The money the owner has left over)
Equity Funding - CORRECT ANSWER -
Using money from investors to finance a project in exchange for shares in the company. Can be u
sed to raise working capitals.
equity financing - CORRECT ANSWER -
money raised from within the firm, from operations or through the sale of ownership in the firm
(stock or venture capital). Advantage: there's no obligation to repay the money acquired.
Piece work - CORRECT ANSWER -work paid for according to the amount produced.
Salary - CORRECT ANSWER -
A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an
annual sum.
Hourly - CORRECT ANSWER -wage based on the amount of time worked (Minimum wage).
Commission - CORRECT ANSWER -
An amount paid to an employee based on a percentage of the employee's sales.
Business cycle - CORRECT ANSWER -1. Existence
2. Survival
