ESB Certification: Small Business, Entrepreneurship, and Financials
Study online at https://quizlet.com/_ixx6pa
1. Small business Not always interested in taking on new business opportunities; their key objective
owners is to generate profits.
2. U.S. Small Busi- Counts companies with as much as $35.5 million in sales and 1,500 employees
ness Administra- as 'small businesses', depending on the industry.
tion (SBA)
3. Entrepreneurs Individuals interested in taking on new business opportunities, formulating and
growing a business from an innovative product or service.
4. Franchises Owners license their operations, products or services, branding, and knowledge
for a franchise fee.
5. Franchise fee A previously agreed-upon amount in sales revenue to be paid to the franchise
owner.
6. Physical Products Tangible items usually perceived to be of higher value, need to be stored and
tracked.
7. Shipping and Account for additional costs in the sale of physical products.
packaging
8. Services Intangible things like a skill or expertise that is performed.
9. E-commerce Selling items over the internet, which can be physical or digital products.
10. Digital goods & Considered intangible services, such as Dropbox, Grammarly, electronic cards,
services and e-books.
11. Business-to-Con- A customer purchases an item from a business.
sumer (B2C)
transaction
12.
, ESB Certification: Small Business, Entrepreneurship, and Financials
Study online at https://quizlet.com/_ixx6pa
Business-to-Busi- When a business purchases a product, service, or information from another
ness (B2B) business.
transaction
13. Entity Selection Includes S Corporation, C Corporation, Limited Liability Company (LLC), Sole
Proprietorship & Non-Profit Corporation.
14. S Corporation Provided with a special tax advantage that allows the company to pass its income,
losses, deductions, and credits through its shareholders.
15. C Corporation Taxes the corporation separately from its owners, creating double taxation.
16. Limited Liability Offers limited liability as a corporation but costs less to create and allows
Company (LLC) pass-through taxation.
17. Sole Proprietor- Easy to create due to the lack of government regulation; the owner is responsible
ship for all the business's debt.
18. Non-profit entity No one owns a non-profit entity; it is given a tax-exempt status.
19. Chief Executive Highest-ranked employee in the company, responsible for the business's success
Officer (CEO) and major decisions.
20. Board of direc- An elected group of individuals that represent shareholders and set corporate
tors management and oversight policies.
21. Limited liability Shields the owners' personal assets from business creditors.
protection
22. Double taxation Occurs in C Corporations where the company's profits are taxed when earned and
dividends are taxed when distributed.
23. Pass-through Allows owners to pay taxes on their profits or losses through their own taxes using
taxation a personal tax rate.
, ESB Certification: Small Business, Entrepreneurship, and Financials
Study online at https://quizlet.com/_ixx6pa
24. Franchise loca- Strict stipulation on where a franchise location can be opened.
tion stipulation
25. Ongoing support Provided by franchise owners to franchisees.
and training
26. Tax exemption Required for B2B transactions where the buyer is reselling the goods.
certificate
27. Ownership in Unlimited owners (members) are allowed, and they are not called shareholders.
LLCs
28. S Corporation Must meet strict requirements including no more than 100 shareholders and only
qualification re- one class of stock.
quirements
29. International C Corporations do not require international business owners to file a US personal
business income tax return.
taxation
30. Chief Financial Of- In charge of the company's finances
ficer (CFO)
31. Chief Operating Oversees the business's day-to-day operational and administrative functions
Officer (COO)
32. Owner(s) of a Works with the CEO, CFO, and COO to make strategic decisions
large company
33. Owner(s) of a Shoulders some or all the CEO, CFO, and COO responsibilities
small business
34. Founder The individual that developed or created the company or organization
Study online at https://quizlet.com/_ixx6pa
1. Small business Not always interested in taking on new business opportunities; their key objective
owners is to generate profits.
2. U.S. Small Busi- Counts companies with as much as $35.5 million in sales and 1,500 employees
ness Administra- as 'small businesses', depending on the industry.
tion (SBA)
3. Entrepreneurs Individuals interested in taking on new business opportunities, formulating and
growing a business from an innovative product or service.
4. Franchises Owners license their operations, products or services, branding, and knowledge
for a franchise fee.
5. Franchise fee A previously agreed-upon amount in sales revenue to be paid to the franchise
owner.
6. Physical Products Tangible items usually perceived to be of higher value, need to be stored and
tracked.
7. Shipping and Account for additional costs in the sale of physical products.
packaging
8. Services Intangible things like a skill or expertise that is performed.
9. E-commerce Selling items over the internet, which can be physical or digital products.
10. Digital goods & Considered intangible services, such as Dropbox, Grammarly, electronic cards,
services and e-books.
11. Business-to-Con- A customer purchases an item from a business.
sumer (B2C)
transaction
12.
, ESB Certification: Small Business, Entrepreneurship, and Financials
Study online at https://quizlet.com/_ixx6pa
Business-to-Busi- When a business purchases a product, service, or information from another
ness (B2B) business.
transaction
13. Entity Selection Includes S Corporation, C Corporation, Limited Liability Company (LLC), Sole
Proprietorship & Non-Profit Corporation.
14. S Corporation Provided with a special tax advantage that allows the company to pass its income,
losses, deductions, and credits through its shareholders.
15. C Corporation Taxes the corporation separately from its owners, creating double taxation.
16. Limited Liability Offers limited liability as a corporation but costs less to create and allows
Company (LLC) pass-through taxation.
17. Sole Proprietor- Easy to create due to the lack of government regulation; the owner is responsible
ship for all the business's debt.
18. Non-profit entity No one owns a non-profit entity; it is given a tax-exempt status.
19. Chief Executive Highest-ranked employee in the company, responsible for the business's success
Officer (CEO) and major decisions.
20. Board of direc- An elected group of individuals that represent shareholders and set corporate
tors management and oversight policies.
21. Limited liability Shields the owners' personal assets from business creditors.
protection
22. Double taxation Occurs in C Corporations where the company's profits are taxed when earned and
dividends are taxed when distributed.
23. Pass-through Allows owners to pay taxes on their profits or losses through their own taxes using
taxation a personal tax rate.
, ESB Certification: Small Business, Entrepreneurship, and Financials
Study online at https://quizlet.com/_ixx6pa
24. Franchise loca- Strict stipulation on where a franchise location can be opened.
tion stipulation
25. Ongoing support Provided by franchise owners to franchisees.
and training
26. Tax exemption Required for B2B transactions where the buyer is reselling the goods.
certificate
27. Ownership in Unlimited owners (members) are allowed, and they are not called shareholders.
LLCs
28. S Corporation Must meet strict requirements including no more than 100 shareholders and only
qualification re- one class of stock.
quirements
29. International C Corporations do not require international business owners to file a US personal
business income tax return.
taxation
30. Chief Financial Of- In charge of the company's finances
ficer (CFO)
31. Chief Operating Oversees the business's day-to-day operational and administrative functions
Officer (COO)
32. Owner(s) of a Works with the CEO, CFO, and COO to make strategic decisions
large company
33. Owner(s) of a Shoulders some or all the CEO, CFO, and COO responsibilities
small business
34. Founder The individual that developed or created the company or organization
