Entrepreneurship and Small
Business Certification Exam
Questions & Correct Accurate
Answers
Difference between small businesses and entrepreneurs? - correct answer ✔✔Small businesses
are not always interested in taking on new business opportunities.
Entrepreneurs set up a business with the aim to make a profit.
Elements of the Design Thinking Process - correct answer ✔✔Stage 1: Emphasize- Research
Your Users' Needs
Stage 2: Define- State Your Users' Needs and Problems
Stage 3: Ideate- Challenge Assumptions and Create Ideas
Stage 4: Prototype- Start to Create Solutions
Stage 5: Test- Try Your Solutions Out
Compensation Types - correct answer ✔✔1. Piece work- compensation on a per-unit basis. EX:
an employer can choose to pay mechanics a fixed rate for each vehicle they repair instead of
paying an hourly rate.
2. Salary- employee receives a set amount of pay each month without overtime compensation
for extra hours worked.
3. Hourly- Employees most affected by minimum wage laws are compensated hourly.
, 4. Commission- An employee who is paid a percentage of a sale.
5. Equity- Non-cash compensations offered to employees in place of or in addition to a lower
salary.
Types of Sales Channel - correct answer ✔✔1. Business-to-Business (B2B): a transaction or
business conducted between one business and another, such as a wholesaler and retailer.
Transactions tend to happen in the supply chain, where one company will purchase raw
materials from another to be used in the manufacturing process.
2. Business-to-Consumer (B2C): process of businesses selling products/services directly to
consumers, with no middle person.
Typically refers to online retailers who sell products/services to consumers through the Internet.
Online B2C became a threat to traditional retailers, who profited from adding a markup to the
price.
3. Retail: sell items or services to customers. They typically sell items in-store or may be sold
online.
4. Wholesale: the act of buying goods in bulk from a manufacturer at a discounted price and
selling to a retailer for a higher price, for them to repackage and in turn resell in smaller
quantities at an even higher price to consumers.
Angel Investor - correct answer ✔✔a wealthy private investor who provides capital for a
business start-up for a stake in the business in return.
Acquisition Costs - correct answer ✔✔These costs include shipping, sales taxes, and customs
fees, as well as the costs of site preparation, installation, and testing. When acquiring property,
acquisition costs can include surveying, closing fees, and paying off liens.
Business Certification Exam
Questions & Correct Accurate
Answers
Difference between small businesses and entrepreneurs? - correct answer ✔✔Small businesses
are not always interested in taking on new business opportunities.
Entrepreneurs set up a business with the aim to make a profit.
Elements of the Design Thinking Process - correct answer ✔✔Stage 1: Emphasize- Research
Your Users' Needs
Stage 2: Define- State Your Users' Needs and Problems
Stage 3: Ideate- Challenge Assumptions and Create Ideas
Stage 4: Prototype- Start to Create Solutions
Stage 5: Test- Try Your Solutions Out
Compensation Types - correct answer ✔✔1. Piece work- compensation on a per-unit basis. EX:
an employer can choose to pay mechanics a fixed rate for each vehicle they repair instead of
paying an hourly rate.
2. Salary- employee receives a set amount of pay each month without overtime compensation
for extra hours worked.
3. Hourly- Employees most affected by minimum wage laws are compensated hourly.
, 4. Commission- An employee who is paid a percentage of a sale.
5. Equity- Non-cash compensations offered to employees in place of or in addition to a lower
salary.
Types of Sales Channel - correct answer ✔✔1. Business-to-Business (B2B): a transaction or
business conducted between one business and another, such as a wholesaler and retailer.
Transactions tend to happen in the supply chain, where one company will purchase raw
materials from another to be used in the manufacturing process.
2. Business-to-Consumer (B2C): process of businesses selling products/services directly to
consumers, with no middle person.
Typically refers to online retailers who sell products/services to consumers through the Internet.
Online B2C became a threat to traditional retailers, who profited from adding a markup to the
price.
3. Retail: sell items or services to customers. They typically sell items in-store or may be sold
online.
4. Wholesale: the act of buying goods in bulk from a manufacturer at a discounted price and
selling to a retailer for a higher price, for them to repackage and in turn resell in smaller
quantities at an even higher price to consumers.
Angel Investor - correct answer ✔✔a wealthy private investor who provides capital for a
business start-up for a stake in the business in return.
Acquisition Costs - correct answer ✔✔These costs include shipping, sales taxes, and customs
fees, as well as the costs of site preparation, installation, and testing. When acquiring property,
acquisition costs can include surveying, closing fees, and paying off liens.
