ESB Certification Test Exam with 100%
Correct Answers 2024
Entrepreneurship - Correct Answer-Setting up business with the aim to make profit.
B2B (business-to-business) - Correct Answer-Sells products and services directly to
other businesses. Normally requires a sales tax exemption certificate from the buyer.
B2C (business-to-consumer) - Correct Answer-Sells products and services directly to
customer for personal use.
Small buisness - Correct Answer-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) - Correct Answer-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) - Correct Answer-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 - Correct Answer-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) - Correct Answer-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) - Correct Answer-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 - Correct Answer-Using money from investors to finance a project in
exchange for shares in the company. Can be used to raise working capitals.
equity financing - Correct Answer-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 - Correct Answer-work paid for according to the amount produced.
, Salary - Correct Answer-A fixed regular payment, typically paid on a monthly or
biweekly basis but often expressed as an annual sum.
Hourly - Correct Answer-wage based on the amount of time worked (Minimum wage).
Commission - Correct Answer-An amount paid to an employee based on a percentage
of the employee's sales.
Business cycle - Correct Answer-1. Existence
2. Survival
3. Success
4. Take- Off
5. Maturity
Elements of the design thinking process - Correct Answer-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) - Correct Answer-Highest ranking employee in the
company; Reports to the board of directors.
Chief Financial Officer (CFO) - Correct Answer-Creates budgets, analyzes financial
data, and forecast company profits. (Finances)
Chief Information Officer (CIO) - Correct Answer-Develops polices and structures to
protect company data. (Technical)
Chief Operating Officer (COO) - Correct Answer-Oversees the day to day administrative
functions of business. (Communications)
Lean Canvas - Correct Answer-A single-page business summary template created by
Ash Maurya.
Pitch Deck - Correct Answer-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 - Correct Answer-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.
Correct Answers 2024
Entrepreneurship - Correct Answer-Setting up business with the aim to make profit.
B2B (business-to-business) - Correct Answer-Sells products and services directly to
other businesses. Normally requires a sales tax exemption certificate from the buyer.
B2C (business-to-consumer) - Correct Answer-Sells products and services directly to
customer for personal use.
Small buisness - Correct Answer-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) - Correct Answer-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) - Correct Answer-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 - Correct Answer-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) - Correct Answer-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) - Correct Answer-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 - Correct Answer-Using money from investors to finance a project in
exchange for shares in the company. Can be used to raise working capitals.
equity financing - Correct Answer-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 - Correct Answer-work paid for according to the amount produced.
, Salary - Correct Answer-A fixed regular payment, typically paid on a monthly or
biweekly basis but often expressed as an annual sum.
Hourly - Correct Answer-wage based on the amount of time worked (Minimum wage).
Commission - Correct Answer-An amount paid to an employee based on a percentage
of the employee's sales.
Business cycle - Correct Answer-1. Existence
2. Survival
3. Success
4. Take- Off
5. Maturity
Elements of the design thinking process - Correct Answer-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) - Correct Answer-Highest ranking employee in the
company; Reports to the board of directors.
Chief Financial Officer (CFO) - Correct Answer-Creates budgets, analyzes financial
data, and forecast company profits. (Finances)
Chief Information Officer (CIO) - Correct Answer-Develops polices and structures to
protect company data. (Technical)
Chief Operating Officer (COO) - Correct Answer-Oversees the day to day administrative
functions of business. (Communications)
Lean Canvas - Correct Answer-A single-page business summary template created by
Ash Maurya.
Pitch Deck - Correct Answer-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 - Correct Answer-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.
