ESB Exam Study Guide with Complete
Solutions.
Entrepreneurship - -Setting up business with the aim to make profit.
-B2B (business-to-business) - -Sells products and services directly to other
businesses. Normally requires a sales tax exemption certificate from the buyer.
-B2C (business-to-consumer) - -Sells products and services directly to customer for
personal use.
-Small buisness - -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) - -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) - -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 - -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) - -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) - -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 - -Using money from investors to finance a project in exchange for
shares in the company. Can be used to raise working capitals.
-equity financing - -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 - -work paid for according to the amount produced.
-Salary - -A fixed regular payment, typically paid on a monthly or biweekly basis but
often expressed as an annual sum.
-Hourly - -wage based on the amount of time worked (Minimum wage).
, -Commission - -An amount paid to an employee based on a percentage of the
employee's sales.
-Business cycle - -1. Existence
2. Survival
3. Success
4. Take- Off
5. Maturity
-Elements of the design thinking process - -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) - -Highest ranking employee in the company; Reports
to the board of directors.
-Chief Financial Officer (CFO) - -Creates budgets, analyzes financial data, and
forecast company profits. (Finances)
-Chief Information Officer (CIO) - -Develops polices and structures to protect
company data. (Technical)
-Chief Operating Officer (COO) - -Oversees the day to day administrative functions
of business. (Communications)
-Lean Canvas - -A single-page business summary template created by Ash Maurya.
-Pitch Deck - -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 - -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.
-Balance Sheet - -A summary of business assets (what the business owns) and
liabilities (what the business owes). Mortgage and bank loans are liabilities.
Equipment is long term assets, and inventory are current assets.
-Marketing Plan - -An operational document that outlines a company's advertising
strategy to generate leads and reach its target market.
-Behavioral Segment - -Benefits to customers based on their wants and needs.
-Geographic Segment - -Where customers are located and how they can be
reached.
-Demographic Segment - -Statistical information about customers.
Solutions.
Entrepreneurship - -Setting up business with the aim to make profit.
-B2B (business-to-business) - -Sells products and services directly to other
businesses. Normally requires a sales tax exemption certificate from the buyer.
-B2C (business-to-consumer) - -Sells products and services directly to customer for
personal use.
-Small buisness - -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) - -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) - -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 - -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) - -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) - -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 - -Using money from investors to finance a project in exchange for
shares in the company. Can be used to raise working capitals.
-equity financing - -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 - -work paid for according to the amount produced.
-Salary - -A fixed regular payment, typically paid on a monthly or biweekly basis but
often expressed as an annual sum.
-Hourly - -wage based on the amount of time worked (Minimum wage).
, -Commission - -An amount paid to an employee based on a percentage of the
employee's sales.
-Business cycle - -1. Existence
2. Survival
3. Success
4. Take- Off
5. Maturity
-Elements of the design thinking process - -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) - -Highest ranking employee in the company; Reports
to the board of directors.
-Chief Financial Officer (CFO) - -Creates budgets, analyzes financial data, and
forecast company profits. (Finances)
-Chief Information Officer (CIO) - -Develops polices and structures to protect
company data. (Technical)
-Chief Operating Officer (COO) - -Oversees the day to day administrative functions
of business. (Communications)
-Lean Canvas - -A single-page business summary template created by Ash Maurya.
-Pitch Deck - -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 - -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.
-Balance Sheet - -A summary of business assets (what the business owns) and
liabilities (what the business owes). Mortgage and bank loans are liabilities.
Equipment is long term assets, and inventory are current assets.
-Marketing Plan - -An operational document that outlines a company's advertising
strategy to generate leads and reach its target market.
-Behavioral Segment - -Benefits to customers based on their wants and needs.
-Geographic Segment - -Where customers are located and how they can be
reached.
-Demographic Segment - -Statistical information about customers.
