ESB Certification Test Questions with
Complete Solutions
Business sustainability - ANSWERS -The long-term viability of a business related to its financial
results, social performance, and environmental impact.
Business Plan Components - ANSWERS -Executive summary; Product/service plan; Management
team plan; Industry/market analysis; Operational plan; Organizational plan; Marketing plan;
Financial plan; Growth plan
Initial Public Offering (IPO) - ANSWERS -Selling a corporation's stock on public markets for the
first time.
Entrepreneurship - ANSWERS -Setting up business with the aim to make profit.
B2B (business-to-business) - ANSWERS -Sells products and services directly to other businesses.
Normally requires a sales tax exemption certificate from the buyer.
B2C (business-to-consumer) - ANSWERS -Sells products and services directly to customer for
personal use.
Small buisness - ANSWERS -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) - ANSWERS -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) - ANSWERS -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 - ANSWERS -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) - ANSWERS -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) - ANSWERS -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 - ANSWERS -Using money from investors to finance a project in exchange for
shares in the company. Can be used to raise working capitals.
equity financing - ANSWERS -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 - ANSWERS -work paid for according to the amount produced.
Salary - ANSWERS -A fixed regular payment, typically paid on a monthly or biweekly basis but
often expressed as an annual sum.
Hourly - ANSWERS -wage based on the amount of time worked (Minimum wage).
Complete Solutions
Business sustainability - ANSWERS -The long-term viability of a business related to its financial
results, social performance, and environmental impact.
Business Plan Components - ANSWERS -Executive summary; Product/service plan; Management
team plan; Industry/market analysis; Operational plan; Organizational plan; Marketing plan;
Financial plan; Growth plan
Initial Public Offering (IPO) - ANSWERS -Selling a corporation's stock on public markets for the
first time.
Entrepreneurship - ANSWERS -Setting up business with the aim to make profit.
B2B (business-to-business) - ANSWERS -Sells products and services directly to other businesses.
Normally requires a sales tax exemption certificate from the buyer.
B2C (business-to-consumer) - ANSWERS -Sells products and services directly to customer for
personal use.
Small buisness - ANSWERS -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) - ANSWERS -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) - ANSWERS -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 - ANSWERS -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) - ANSWERS -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) - ANSWERS -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 - ANSWERS -Using money from investors to finance a project in exchange for
shares in the company. Can be used to raise working capitals.
equity financing - ANSWERS -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 - ANSWERS -work paid for according to the amount produced.
Salary - ANSWERS -A fixed regular payment, typically paid on a monthly or biweekly basis but
often expressed as an annual sum.
Hourly - ANSWERS -wage based on the amount of time worked (Minimum wage).
