ESB Certification Test Questions and Answers 2024

Entrepreneurship - Setting up business with the aim to make profit. B2B (business-to-business) - Sells products and services directly to other businesses. Normally requires a sales tax exemption certificate from the buyer. B2C (business-to-consumer) - Sells products and services directly to customer for personal use. Small buisness - 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) - 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) - 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 - 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) - 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) - 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 - Using money from investors to finance a project in exchange for shares in the company. Can be used to raise working capitals. equity financing - 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 - work paid for according to the amount produced. Salary - A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum. Hourly - wage based on the amount of time worked (Minimum wage). Commission - An amount paid to an employee based on a percentage of the employee's sales. Business cycle - 1. Existence 2. Survival 3. Success 4. Take- Off 5. Maturity Elements of the design thinking process - 1. Empathize: Research users needs 2. Define: State your users needs and problems 3. Ideate: Challenge Assumptions and create idea 4. Prototype: Create solutions 5. Test: Try your solutions Cheif Executive Officer (CEO) - Highest ranking employee in the company; Reports to the board of directors. Chief Financial Officer (CFO) - Creates budgets, analyzes financial data, and forecast company profits. (Finances) Chief Information Officer (CIO) - Develops polices and structures to protect company data. (Technical) Chief Operating Officer (COO) - Oversees the day to day administrative functions of business. (Communications) Lean Canvas - A single-page business summary template created by Ash Maurya. Pitch Deck - A slide presentation for potential investors that summarizes the key items of a business. The goals is to get investors attention. It is a highly visual slide presentation, and 10 to 20 slides. Business Plan - A multi-page document describing and detailing a business. The goal is to get investors to buy in. It is text based, and has 10 to 100 pages. Balance Sheet - A summary of business assets (what the business owns) and liabilities (what the business owes). Mortgage and bank loans are liabilities. Equipment is long term assets, and inventory are current assets.