ESB Certification Test Questions & Answers 100% Correct

Entrepreneurship - ANSWER-Setting up business with the aim to make profit. B2B (business-to-business) - ANSWER-Sells products and services directly to other businesses. Normally requires a sales tax exemption certificate from the buyer. B2C (business-to-consumer) - ANSWER-Sells products and services directly to customer for personal use. Small buisness - 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) - ANSWER-is a legal structure with 100 shareholders(U.S. citizens only) MAX, who are not responsible for Liabilities. And they are only taxed once, and there is a separate tax return for the business. C Corporation (Companies) - ANSWER-is a legal structure used for when the company plans to sell stock to the public. It has unlimited shareholders (not responsible for liabilities) that are taxed twice (corporates level and income received). A separate tax return is required for business. Sole Proprietorship - ANSWER-A business owned by one person that legally needs a DBA or business license. The owner is responsible for liabilities, no separate tax needed (taxed once). Limitied-Liability Company (LLC) - ANSWER-This is best for businesses concerned about liability protection. It has unlimited owners who aren't responsible for liabilities, and can choose how they want to be taxed. LLCs cannot go public. Equity (business) - ANSWER-The amount an owner(s) would receive if their ownership interests in a business (stock) were sold. (The money the owner has left over) Equity Funding - ANSWER-Using money from investors to finance a project in exchange for shares in the company. Can be used to raise working capitals. equity financing - 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 - ANSWER-work paid for according to the amount produced. Salary - ANSWER-A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum. Hourly - A