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ESB Certification Test- Version 1 Questions
and Answers (Expert Solutions)
Q: Entrepreneurship
ANS 🗹🗹: Setting up business with the aim to make profit.
Q: B2B (business-to-business)
ANS 🗹🗹: Sells products and services directly to other businesses. Normally
requires a sales tax exemption certificate from the buyer.
Q: B2C (business-to-consumer)
ANS 🗹🗹: Sells products and services directly to customer for personal use.
Q: Small buisness
ANS 🗹🗹: A small business is when a business has less than 35.5 million dollars in
revenue, and fewer than 1,500 employees.
Q: S corporation(Small businesses)
ANS 🗹🗹: 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.
Q: C Corporation (Companies)
ANS 🗹🗹: 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.
Q: Sole Proprietorship
ANS 🗹🗹: 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).
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Q: Limitied-Liability Company (LLC)
ANS 🗹🗹: 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.
Q: Equity (business)
ANS 🗹🗹: The amount an owner(s) would receive if their ownership interests in a
business (stock) were sold. (The money the owner has left over)
Q: Equity Funding
ANS 🗹🗹: Using money from investors to finance a project in exchange for shares in
the company. Can be used to raise working capitals.
Q: equity financing
ANS 🗹🗹: 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.
Q: Piece work
ANS 🗹🗹: work paid for according to the amount produced.
Q: Salary
ANS 🗹🗹: A fixed regular payment, typically paid on a monthly or biweekly basis
but often expressed as an annual sum.
Q: Hourly
ANS 🗹🗹: wage based on the amount of time worked (Minimum wage).
Q: Commission
ANS 🗹🗹: An amount paid to an employee based on a percentage of the employee's
sales.
Q: Business cycle
ESB Certification Test- Version 1 Questions
and Answers (Expert Solutions)
Q: Entrepreneurship
ANS 🗹🗹: Setting up business with the aim to make profit.
Q: B2B (business-to-business)
ANS 🗹🗹: Sells products and services directly to other businesses. Normally
requires a sales tax exemption certificate from the buyer.
Q: B2C (business-to-consumer)
ANS 🗹🗹: Sells products and services directly to customer for personal use.
Q: Small buisness
ANS 🗹🗹: A small business is when a business has less than 35.5 million dollars in
revenue, and fewer than 1,500 employees.
Q: S corporation(Small businesses)
ANS 🗹🗹: 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.
Q: C Corporation (Companies)
ANS 🗹🗹: 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.
Q: Sole Proprietorship
ANS 🗹🗹: 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).
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Q: Limitied-Liability Company (LLC)
ANS 🗹🗹: 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.
Q: Equity (business)
ANS 🗹🗹: The amount an owner(s) would receive if their ownership interests in a
business (stock) were sold. (The money the owner has left over)
Q: Equity Funding
ANS 🗹🗹: Using money from investors to finance a project in exchange for shares in
the company. Can be used to raise working capitals.
Q: equity financing
ANS 🗹🗹: 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.
Q: Piece work
ANS 🗹🗹: work paid for according to the amount produced.
Q: Salary
ANS 🗹🗹: A fixed regular payment, typically paid on a monthly or biweekly basis
but often expressed as an annual sum.
Q: Hourly
ANS 🗹🗹: wage based on the amount of time worked (Minimum wage).
Q: Commission
ANS 🗹🗹: An amount paid to an employee based on a percentage of the employee's
sales.
Q: Business cycle
