ESB Certification Exam Study Guide with Complete Solutions
Domain 1 Lesson 1 - ANSWER -
Businesses can offer ____ in addition to a lower
The key objective of a small business owner is to salary - ANSWER -equity
generate ____ - ANSWER -profits
During the ____ stage of the business life cycle,
Entrepreneurs are willing to take on new a company is regularly taking on new customers
opportunities and unknown ____ to grow their and starting to generate a consistent income -
businesses rapidly - ANSWER -risks ANSWER -survival
Tangible items that require pick-up or delivery The owner may decide to sell their ownership in
are ____ products - ANSWER -physical the company during the ____ stage -
ANSWER -exit plan
When a ____ purchases an item from a
business, it is a business-to-consumer The five elements of the design thinking process
transaction - ANSWER -customer are ____ - ANSWER -empathize, define,
ideate, prototype , and test
____ are for-profit corporations with limited
liability - ANSWER -S corporations ____ allows one to see and experience a
customer's perspective - ANSWER -
Empathy
____ are ideal for international businesses -
ANSWER -C corporations
The design team creates multiple inexpensive
versions of a product, known as ____ -
The ____ oversees daily operational and ANSWER -Minimum Viable Products
administrative functions - ANSWER -Chief
Operating Officer
Name benefits of a franchise - ANSWER -
less risk involved, tested operational processes,
A ____ votes on the management of a company or recognized brands
- ANSWER -stockholder
No ownership, no US federal taxes -
____ employees are paid a fixed amount each ANSWER -Non-profit
pay period - ANSWER -Salary
Best for international business even with being
Businesses can compensate employees for work double-taxed - ANSWER -C corporation
they produce when being paid by ____ -
ANSWER -piece work
, ESB Certification Exam Study Guide with Complete Solutions
Easy to create but comes with unlimited liability -
ANSWER -Sole proprietorship Set rate of pay for hours worked -
ANSWER -Hourly
Lower tax rate that prevents the company from
being double-taxed - ANSWER -S Usually found in sales roles - ANSWER -
corporation Commission
Ideal for a single owner seeking low risk - Set amount of pay in a given period -
ANSWER -LLC (limited liability company) ANSWER -Salary
Shared financial backing - ANSWER - List the correct order of the business life cycle
Partnership stages - ANSWER -Existence, Survival,
Success, Take-off, Resource maturity, Pivot or
persist, Exit plan
Creates the company - ANSWER -Founder
Michael owns a small but profitable tech
Oversees company finances - ANSWER - company. He has been approached by a larger
CFO company that wants to purchase his business. In
which business life cycle stage is Michael? -
ANSWER -Exit Plan
Owns stock in the company - ANSWER -
Stockholder
Bill just started a new graphic design business.
He is advertising online and trying to gain
Reports to the board of directors - customers. He just finished working with his first
ANSWER -CEO client. In which business life cycle stage is Bill? -
ANSWER -Existence
Oversees daily operational and administrative
functions Stakeholder Has a vested interest in Stephanie started a new flower shop last year.
She has a good customer base and money
the success of the company - ANSWER -
coming in. In which business life cycle stage is
COO
Stephanie? - ANSWER -Survival
Has a vested interest in the success of the
List the correct order of the design thinking
company - ANSWER -Stakeholder
process - ANSWER -Empathize, Define,
Ideate, Prototype, Test
Non-cash compensation - ANSWER -
Equity
During which stage of the design thinking
Domain 1 Lesson 1 - ANSWER -
Businesses can offer ____ in addition to a lower
The key objective of a small business owner is to salary - ANSWER -equity
generate ____ - ANSWER -profits
During the ____ stage of the business life cycle,
Entrepreneurs are willing to take on new a company is regularly taking on new customers
opportunities and unknown ____ to grow their and starting to generate a consistent income -
businesses rapidly - ANSWER -risks ANSWER -survival
Tangible items that require pick-up or delivery The owner may decide to sell their ownership in
are ____ products - ANSWER -physical the company during the ____ stage -
ANSWER -exit plan
When a ____ purchases an item from a
business, it is a business-to-consumer The five elements of the design thinking process
transaction - ANSWER -customer are ____ - ANSWER -empathize, define,
ideate, prototype , and test
____ are for-profit corporations with limited
liability - ANSWER -S corporations ____ allows one to see and experience a
customer's perspective - ANSWER -
Empathy
____ are ideal for international businesses -
ANSWER -C corporations
The design team creates multiple inexpensive
versions of a product, known as ____ -
The ____ oversees daily operational and ANSWER -Minimum Viable Products
administrative functions - ANSWER -Chief
Operating Officer
Name benefits of a franchise - ANSWER -
less risk involved, tested operational processes,
A ____ votes on the management of a company or recognized brands
- ANSWER -stockholder
No ownership, no US federal taxes -
____ employees are paid a fixed amount each ANSWER -Non-profit
pay period - ANSWER -Salary
Best for international business even with being
Businesses can compensate employees for work double-taxed - ANSWER -C corporation
they produce when being paid by ____ -
ANSWER -piece work
, ESB Certification Exam Study Guide with Complete Solutions
Easy to create but comes with unlimited liability -
ANSWER -Sole proprietorship Set rate of pay for hours worked -
ANSWER -Hourly
Lower tax rate that prevents the company from
being double-taxed - ANSWER -S Usually found in sales roles - ANSWER -
corporation Commission
Ideal for a single owner seeking low risk - Set amount of pay in a given period -
ANSWER -LLC (limited liability company) ANSWER -Salary
Shared financial backing - ANSWER - List the correct order of the business life cycle
Partnership stages - ANSWER -Existence, Survival,
Success, Take-off, Resource maturity, Pivot or
persist, Exit plan
Creates the company - ANSWER -Founder
Michael owns a small but profitable tech
Oversees company finances - ANSWER - company. He has been approached by a larger
CFO company that wants to purchase his business. In
which business life cycle stage is Michael? -
ANSWER -Exit Plan
Owns stock in the company - ANSWER -
Stockholder
Bill just started a new graphic design business.
He is advertising online and trying to gain
Reports to the board of directors - customers. He just finished working with his first
ANSWER -CEO client. In which business life cycle stage is Bill? -
ANSWER -Existence
Oversees daily operational and administrative
functions Stakeholder Has a vested interest in Stephanie started a new flower shop last year.
She has a good customer base and money
the success of the company - ANSWER -
coming in. In which business life cycle stage is
COO
Stephanie? - ANSWER -Survival
Has a vested interest in the success of the
List the correct order of the design thinking
company - ANSWER -Stakeholder
process - ANSWER -Empathize, Define,
Ideate, Prototype, Test
Non-cash compensation - ANSWER -
Equity
During which stage of the design thinking
