ESB CERTIFICATION EXAM 2025 |
GUARANTEED ACCURATE
ANSWERS
Domain 1 Lesson 1 - ACCURATE ANSWERS✔✔
The key objective of a small business owner is to generate ____ -
ACCURATE ANSWERS✔✔ profits
Entrepreneurs are willing to take on new opportunities and unknown
____ to grow their businesses rapidly - ACCURATE ANSWERS✔✔
risks
Tangible items that require pick-up or delivery are ____ products -
ACCURATE ANSWERS✔✔ physical
When a ____ purchases an item from a business, it is a business-to-
consumer transaction - ACCURATE ANSWERS✔✔ customer
____ are for-profit corporations with limited liability - ACCURATE
ANSWERS✔✔ S corporations
____ are ideal for international businesses - ACCURATE
ANSWERS✔✔ C corporations
,The ____ oversees daily operational and administrative functions -
ACCURATE ANSWERS✔✔ Chief Operating Officer
A ____ votes on the management of a company - ACCURATE
ANSWERS✔✔ stockholder
____ employees are paid a fixed amount each pay period - ACCURATE
ANSWERS✔✔ Salary
Businesses can compensate employees for work they produce when
being paid by ____ - ACCURATE ANSWERS✔✔ piece work
Businesses can offer ____ in addition to a lower salary - ACCURATE
ANSWERS✔✔ equity
During the ____ stage of the business life cycle, a company is regularly
taking on new customers and starting to generate a consistent income -
ACCURATE ANSWERS✔✔ survival
The owner may decide to sell their ownership in the company during the
____ stage - ACCURATE ANSWERS✔✔ exit plan
,The five elements of the design thinking process are ____ - ACCURATE
ANSWERS✔✔ empathize, define, ideate, prototype , and test
____ allows one to see and experience a customer's perspective -
ACCURATE ANSWERS✔✔ Empathy
The design team creates multiple inexpensive versions of a product,
known as ____ - ACCURATE ANSWERS✔✔ Minimum Viable
Products
Name benefits of a franchise - ACCURATE ANSWERS✔✔ less risk
involved, tested operational processes, or recognized brands
No ownership, no US federal taxes - ACCURATE ANSWERS✔✔ Non-
profit
Best for international business even with being double-taxed -
ACCURATE ANSWERS✔✔ C corporation
Easy to create but comes with unlimited liability - ACCURATE
ANSWERS✔✔ Sole proprietorship
Lower tax rate that prevents the company from being double-taxed -
ACCURATE ANSWERS✔✔ S corporation
, Ideal for a single owner seeking low risk - ACCURATE ANSWERS✔✔
LLC (limited liability company)
Shared financial backing - ACCURATE ANSWERS✔✔ Partnership
Creates the company - ACCURATE ANSWERS✔✔ Founder
Oversees company finances - ACCURATE ANSWERS✔✔ CFO
Owns stock in the company - ACCURATE ANSWERS✔✔ Stockholder
Reports to the board of directors - ACCURATE ANSWERS✔✔ CEO
Oversees daily operational and administrative functions Stakeholder Has
a vested interest in the success of the company - ACCURATE
ANSWERS✔✔ COO
Has a vested interest in the success of the company - ACCURATE
ANSWERS✔✔ Stakeholder
Non-cash compensation - ACCURATE ANSWERS✔✔ Equity
GUARANTEED ACCURATE
ANSWERS
Domain 1 Lesson 1 - ACCURATE ANSWERS✔✔
The key objective of a small business owner is to generate ____ -
ACCURATE ANSWERS✔✔ profits
Entrepreneurs are willing to take on new opportunities and unknown
____ to grow their businesses rapidly - ACCURATE ANSWERS✔✔
risks
Tangible items that require pick-up or delivery are ____ products -
ACCURATE ANSWERS✔✔ physical
When a ____ purchases an item from a business, it is a business-to-
consumer transaction - ACCURATE ANSWERS✔✔ customer
____ are for-profit corporations with limited liability - ACCURATE
ANSWERS✔✔ S corporations
____ are ideal for international businesses - ACCURATE
ANSWERS✔✔ C corporations
,The ____ oversees daily operational and administrative functions -
ACCURATE ANSWERS✔✔ Chief Operating Officer
A ____ votes on the management of a company - ACCURATE
ANSWERS✔✔ stockholder
____ employees are paid a fixed amount each pay period - ACCURATE
ANSWERS✔✔ Salary
Businesses can compensate employees for work they produce when
being paid by ____ - ACCURATE ANSWERS✔✔ piece work
Businesses can offer ____ in addition to a lower salary - ACCURATE
ANSWERS✔✔ equity
During the ____ stage of the business life cycle, a company is regularly
taking on new customers and starting to generate a consistent income -
ACCURATE ANSWERS✔✔ survival
The owner may decide to sell their ownership in the company during the
____ stage - ACCURATE ANSWERS✔✔ exit plan
,The five elements of the design thinking process are ____ - ACCURATE
ANSWERS✔✔ empathize, define, ideate, prototype , and test
____ allows one to see and experience a customer's perspective -
ACCURATE ANSWERS✔✔ Empathy
The design team creates multiple inexpensive versions of a product,
known as ____ - ACCURATE ANSWERS✔✔ Minimum Viable
Products
Name benefits of a franchise - ACCURATE ANSWERS✔✔ less risk
involved, tested operational processes, or recognized brands
No ownership, no US federal taxes - ACCURATE ANSWERS✔✔ Non-
profit
Best for international business even with being double-taxed -
ACCURATE ANSWERS✔✔ C corporation
Easy to create but comes with unlimited liability - ACCURATE
ANSWERS✔✔ Sole proprietorship
Lower tax rate that prevents the company from being double-taxed -
ACCURATE ANSWERS✔✔ S corporation
, Ideal for a single owner seeking low risk - ACCURATE ANSWERS✔✔
LLC (limited liability company)
Shared financial backing - ACCURATE ANSWERS✔✔ Partnership
Creates the company - ACCURATE ANSWERS✔✔ Founder
Oversees company finances - ACCURATE ANSWERS✔✔ CFO
Owns stock in the company - ACCURATE ANSWERS✔✔ Stockholder
Reports to the board of directors - ACCURATE ANSWERS✔✔ CEO
Oversees daily operational and administrative functions Stakeholder Has
a vested interest in the success of the company - ACCURATE
ANSWERS✔✔ COO
Has a vested interest in the success of the company - ACCURATE
ANSWERS✔✔ Stakeholder
Non-cash compensation - ACCURATE ANSWERS✔✔ Equity
