ESB CERTIFICATION EXAM STUDY
GUIDE QUESTIONS WITH 100%
CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Domain 1 Lesson 1
The key objective of a small business owner is to generate ____ - ANS profits
Entrepreneurs are willing to take on new opportunities and unknown ____ to grow their
businesses rapidly - ANS risks
Tangible items that require pick-up or delivery are ____ products - ANS physical
When a ____ purchases an item from a business, it is a business-to-consumer transaction -
ANS customer
____ are for-profit corporations with limited liability - ANS S corporations
____ are ideal for international businesses - ANS C corporations
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,The ____ oversees daily operational and administrative functions - ANS Chief Operating
Officer
A ____ votes on the management of a company - ANS stockholder
____ employees are paid a fixed amount each pay period - ANS Salary
Businesses can compensate employees for work they produce when being paid by ____ -
ANS piece work
Businesses can offer ____ in addition to a lower salary - ANS equity
During the ____ stage of the business life cycle, a company is regularly taking on new customers
and starting to generate a consistent income - ANS survival
The owner may decide to sell their ownership in the company during the ____ stage -
ANS exit plan
The five elements of the design thinking process are ____ - ANS empathize, define, ideate,
prototype , and test
____ allows one to see and experience a customer's perspective - ANS Empathy
The design team creates multiple inexpensive versions of a product, known as ____ -
ANS Minimum Viable Products
Name benefits of a franchise - ANS less risk involved, tested operational processes, or
recognized brands
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, No ownership, no US federal taxes - ANS Non-profit
Best for international business even with being double-taxed - ANS C corporation
Easy to create but comes with unlimited liability - ANS Sole proprietorship
Lower tax rate that prevents the company from being double-taxed - ANS S corporation
Ideal for a single owner seeking low risk - ANS LLC (limited liability company)
Shared financial backing - ANS Partnership
Creates the company - ANS Founder
Oversees company finances - ANS CFO
Owns stock in the company - ANS Stockholder
Reports to the board of directors - ANS CEO
Oversees daily operational and administrative functions Stakeholder Has a vested interest in
the success of the company - ANS COO
Has a vested interest in the success of the company - ANS Stakeholder
Non-cash compensation - ANS Equity
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
GUIDE QUESTIONS WITH 100%
CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Domain 1 Lesson 1
The key objective of a small business owner is to generate ____ - ANS profits
Entrepreneurs are willing to take on new opportunities and unknown ____ to grow their
businesses rapidly - ANS risks
Tangible items that require pick-up or delivery are ____ products - ANS physical
When a ____ purchases an item from a business, it is a business-to-consumer transaction -
ANS customer
____ are for-profit corporations with limited liability - ANS S corporations
____ are ideal for international businesses - ANS C corporations
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,The ____ oversees daily operational and administrative functions - ANS Chief Operating
Officer
A ____ votes on the management of a company - ANS stockholder
____ employees are paid a fixed amount each pay period - ANS Salary
Businesses can compensate employees for work they produce when being paid by ____ -
ANS piece work
Businesses can offer ____ in addition to a lower salary - ANS equity
During the ____ stage of the business life cycle, a company is regularly taking on new customers
and starting to generate a consistent income - ANS survival
The owner may decide to sell their ownership in the company during the ____ stage -
ANS exit plan
The five elements of the design thinking process are ____ - ANS empathize, define, ideate,
prototype , and test
____ allows one to see and experience a customer's perspective - ANS Empathy
The design team creates multiple inexpensive versions of a product, known as ____ -
ANS Minimum Viable Products
Name benefits of a franchise - ANS less risk involved, tested operational processes, or
recognized brands
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, No ownership, no US federal taxes - ANS Non-profit
Best for international business even with being double-taxed - ANS C corporation
Easy to create but comes with unlimited liability - ANS Sole proprietorship
Lower tax rate that prevents the company from being double-taxed - ANS S corporation
Ideal for a single owner seeking low risk - ANS LLC (limited liability company)
Shared financial backing - ANS Partnership
Creates the company - ANS Founder
Oversees company finances - ANS CFO
Owns stock in the company - ANS Stockholder
Reports to the board of directors - ANS CEO
Oversees daily operational and administrative functions Stakeholder Has a vested interest in
the success of the company - ANS COO
Has a vested interest in the success of the company - ANS Stakeholder
Non-cash compensation - ANS Equity
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
