ESB CERTIFICATION EXAM STUDY GUIDE
QUESTIONS WITH CORRECT ANSWERS 2026
The key objective of a small business owner is to generate - CORRECT ANSWER -profits
Entrepreneurs are willing to take on new opportunities and unknown to grow their busines
ses rapidly - CORRECT ANSWER -risks
Tangible items that require pick-up or delivery are products - CORRECT ANSWER -physical
When a purchases an item from a business, it is a business-to-consumer transaction -
CORRECT ANSWER -customer
are for-profit corporations with limited liability - CORRECT ANSWER -S corporations
are ideal for international businesses - CORRECT ANSWER -C corporations
The oversees daily operational and administrative functions - CORRECT ANSWER -
Chief Operating Officer
A votes on the management of a company - CORRECT ANSWER -stockholder
employees are paid a fixed amount each pay period - CORRECT ANSWER -Salary
,Businesses can compensate employees for workPthey produce when being paid by -
CORRECT ANSWER -piece work
Businesses can offer in addition to a lower salary - CORRECT 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 - CORRECT ANSWER -survival
The owner may decide to sell their ownership in the company during the stage -
CORRECT ANSWER -exit plan
The five elements of the design thinking process are - CORRECT ANSWER -
empathize, define, ideate, prototype , and test
allows one to see and experience a customer's perspective - CORRECT ANSWER -Empathy
The design team creates multiple inexpensive versions of a product, known as -
CORRECT ANSWER -Minimum Viable Products
Name benefits of a franchise - CORRECT ANSWER -
less risk involved, tested operational processes, or recognized brands
No ownership, no US federal taxes - CORRECT ANSWER -Non-profit
Best for international business even with being double-taxed - CORRECT ANSWER -C corporation
Easy to create but comes with unlimited liability - CORRECT ANSWER -Sole proprietorship
, Lower tax rate that prevents the company from being double-taxed - CORRECT ANSWER -
S corporation
Ideal for a single owner seeking low risk - CORRECT ANSWER -LLC (limited liability company)
Shared financial backing - CORRECT ANSWER -Partnership
Creates the company - CORRECT ANSWER -Founder
Oversees company finances - CORRECT ANSWER -CFO
Owns stock in the company - CORRECT ANSWER -Stockholder
Reports to the board of directors - CORRECT ANSWER -CEO
Oversees daily operational and administrative functions Stakeholder Has a vested interest in the
success of the company - CORRECT ANSWER -COO
Has a vested interest in the success of the company - CORRECT ANSWER -Stakeholder
Non-cash compensation - CORRECT ANSWER -Equity
Set rate of pay for hours worked - CORRECT ANSWER -Hourly
Usually found in sales roles - CORRECT ANSWER -Commission
Set amount of pay in a given period - CORRECT ANSWER -Salary
QUESTIONS WITH CORRECT ANSWERS 2026
The key objective of a small business owner is to generate - CORRECT ANSWER -profits
Entrepreneurs are willing to take on new opportunities and unknown to grow their busines
ses rapidly - CORRECT ANSWER -risks
Tangible items that require pick-up or delivery are products - CORRECT ANSWER -physical
When a purchases an item from a business, it is a business-to-consumer transaction -
CORRECT ANSWER -customer
are for-profit corporations with limited liability - CORRECT ANSWER -S corporations
are ideal for international businesses - CORRECT ANSWER -C corporations
The oversees daily operational and administrative functions - CORRECT ANSWER -
Chief Operating Officer
A votes on the management of a company - CORRECT ANSWER -stockholder
employees are paid a fixed amount each pay period - CORRECT ANSWER -Salary
,Businesses can compensate employees for workPthey produce when being paid by -
CORRECT ANSWER -piece work
Businesses can offer in addition to a lower salary - CORRECT 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 - CORRECT ANSWER -survival
The owner may decide to sell their ownership in the company during the stage -
CORRECT ANSWER -exit plan
The five elements of the design thinking process are - CORRECT ANSWER -
empathize, define, ideate, prototype , and test
allows one to see and experience a customer's perspective - CORRECT ANSWER -Empathy
The design team creates multiple inexpensive versions of a product, known as -
CORRECT ANSWER -Minimum Viable Products
Name benefits of a franchise - CORRECT ANSWER -
less risk involved, tested operational processes, or recognized brands
No ownership, no US federal taxes - CORRECT ANSWER -Non-profit
Best for international business even with being double-taxed - CORRECT ANSWER -C corporation
Easy to create but comes with unlimited liability - CORRECT ANSWER -Sole proprietorship
, Lower tax rate that prevents the company from being double-taxed - CORRECT ANSWER -
S corporation
Ideal for a single owner seeking low risk - CORRECT ANSWER -LLC (limited liability company)
Shared financial backing - CORRECT ANSWER -Partnership
Creates the company - CORRECT ANSWER -Founder
Oversees company finances - CORRECT ANSWER -CFO
Owns stock in the company - CORRECT ANSWER -Stockholder
Reports to the board of directors - CORRECT ANSWER -CEO
Oversees daily operational and administrative functions Stakeholder Has a vested interest in the
success of the company - CORRECT ANSWER -COO
Has a vested interest in the success of the company - CORRECT ANSWER -Stakeholder
Non-cash compensation - CORRECT ANSWER -Equity
Set rate of pay for hours worked - CORRECT ANSWER -Hourly
Usually found in sales roles - CORRECT ANSWER -Commission
Set amount of pay in a given period - CORRECT ANSWER -Salary
