ESB Certification Exam #2
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1. Elements of the Stage 1: Emphasize- Research Your Users' Needs
Design Thinking Stage 2: Define- State Your Users' Needs and Problems
Process Stage 3: Ideate- Challenge Assumptions and Create Ideas
Stage 4: Prototype- Start to Create Solutions
Stage 5: Test- Try Your Solutions Out
2. Difference be- Small businesses are not always interested in taking on new business opportuni-
tween small busi- ties.
nesses and entre- Entrepreneurs set up a business with the aim to make a profit.
preneurs?
3. Compensation 1. Piece work- compensation on a per-unit basis. EX: an employer can choose to
Types pay mechanics a fixed rate for each vehicle they repair instead of paying an hourly
rate.
2. Salary- employee receives a set amount of pay each month without overtime
compensation for extra hours worked.
3. Hourly- Employees most affected by minimum wage laws are compensated
hourly.
4. Commission- An employee who is paid a percentage of a sale.
5. Equity- Non-cash compensations offered to employees in place of or in addition
to a lower salary.
4. Types of Sales 1. Business-to-Business (B2B): a transaction or business conducted between one
Channel business and another, such as a wholesaler and retailer. Transactions tend to
happen in the supply chain, where one company will purchase raw materials from
another to be used in the manufacturing process.
2. Business-to-Consumer (B2C): process of businesses selling products/services
directly to consumers, with no middle person.
, ESB Certification Exam #2
Study online at https://quizlet.com/_iyxa45
Typically refers to online retailers who sell products/services to consumers through
the Internet.
Online B2C became a threat to traditional retailers, who profited from adding a
markup to the price.
3. Retail: sell items or services to customers. They typically sell items in-store or may
be sold online.
4. Wholesale: the act of buying goods in bulk from a manufacturer at a discounted
price and selling to a retailer for a higher price, for them to repackage and in turn
resell in smaller quantities at an even higher price to consumers.
5. Acquisition Costs These costs include shipping, sales taxes, and customs fees, as well as the costs
of site preparation, installation, and testing. When acquiring property, acquisition
costs can include surveying, closing fees, and paying off liens.
6. Angel Investor a wealthy private investor who provides capital for a business start-up for a stake
in the business in return.
7. Asset A tangible item a business owns. They can generate revenue or be converted
into cash. They can be physical items, such as machinery, or intangible, such as
intellectual property.
8. Balance Sheet A financial statement used for evaluating the performance of a business. It com-
pares ASSETS to LIABILITIES plus owner's EQUITY on a specific date.
EX:
Equipment- Long term assets
Bank loans- Current liabilities
Inventory- Current assets
Mortgage payments- Long term liabilities
9. Bootstrapping
Study online at https://quizlet.com/_iyxa45
1. Elements of the Stage 1: Emphasize- Research Your Users' Needs
Design Thinking Stage 2: Define- State Your Users' Needs and Problems
Process Stage 3: Ideate- Challenge Assumptions and Create Ideas
Stage 4: Prototype- Start to Create Solutions
Stage 5: Test- Try Your Solutions Out
2. Difference be- Small businesses are not always interested in taking on new business opportuni-
tween small busi- ties.
nesses and entre- Entrepreneurs set up a business with the aim to make a profit.
preneurs?
3. Compensation 1. Piece work- compensation on a per-unit basis. EX: an employer can choose to
Types pay mechanics a fixed rate for each vehicle they repair instead of paying an hourly
rate.
2. Salary- employee receives a set amount of pay each month without overtime
compensation for extra hours worked.
3. Hourly- Employees most affected by minimum wage laws are compensated
hourly.
4. Commission- An employee who is paid a percentage of a sale.
5. Equity- Non-cash compensations offered to employees in place of or in addition
to a lower salary.
4. Types of Sales 1. Business-to-Business (B2B): a transaction or business conducted between one
Channel business and another, such as a wholesaler and retailer. Transactions tend to
happen in the supply chain, where one company will purchase raw materials from
another to be used in the manufacturing process.
2. Business-to-Consumer (B2C): process of businesses selling products/services
directly to consumers, with no middle person.
, ESB Certification Exam #2
Study online at https://quizlet.com/_iyxa45
Typically refers to online retailers who sell products/services to consumers through
the Internet.
Online B2C became a threat to traditional retailers, who profited from adding a
markup to the price.
3. Retail: sell items or services to customers. They typically sell items in-store or may
be sold online.
4. Wholesale: the act of buying goods in bulk from a manufacturer at a discounted
price and selling to a retailer for a higher price, for them to repackage and in turn
resell in smaller quantities at an even higher price to consumers.
5. Acquisition Costs These costs include shipping, sales taxes, and customs fees, as well as the costs
of site preparation, installation, and testing. When acquiring property, acquisition
costs can include surveying, closing fees, and paying off liens.
6. Angel Investor a wealthy private investor who provides capital for a business start-up for a stake
in the business in return.
7. Asset A tangible item a business owns. They can generate revenue or be converted
into cash. They can be physical items, such as machinery, or intangible, such as
intellectual property.
8. Balance Sheet A financial statement used for evaluating the performance of a business. It com-
pares ASSETS to LIABILITIES plus owner's EQUITY on a specific date.
EX:
Equipment- Long term assets
Bank loans- Current liabilities
Inventory- Current assets
Mortgage payments- Long term liabilities
9. Bootstrapping
