Domain 1 Lesson 1 - ANSWER
The key objective of a small business owner is to generate ____ - ANSWER profits
Entrepreneurs are willing to take on new opportunities and unknown ____ to grow their
businesses rapidly - ANSWER risks
Tangible items that require pick-up or delivery are ____ products - ANSWER physical
When a ____ purchases an item from a business, it is a business-to-consumer transaction -
ANSWER customer
____ are for-profit corporations with limited liability - ANSWER S corporations
____ are ideal for international businesses - ANSWER C corporations
The ____ oversees daily operational and administrative functions - ANSWER Chief Oper-
ating Officer
A ____ votes on the management of a company - ANSWER stockholder
____ employees are paid a fixed amount each pay period - ANSWER Salary
1
,Businesses can compensate employees for work they produce when being paid by ____ -
ANSWER piece work
Businesses can offer ____ in addition to a lower salary - ANSWER equity
During the ____ stage of the business life cycle, a company is regularly taking on new cus-
tomers and starting to generate a consistent income - ANSWER survival
The owner may decide to sell their ownership in the company during the ____ stage - AN-
SWER exit plan
The five elements of the design thinking process are ____ - ANSWER empathize, define,
ideate, prototype , and test
____ allows one to see and experience a customer's perspective - ANSWER Empathy
The design team creates multiple inexpensive versions of a product, known as ____ - AN-
SWER Minimum Viable Products
Name benefits of a franchise - ANSWER less risk involved, tested operational processes,
or recognized brands
No ownership, no US federal taxes - ANSWER Non-profit
Best for international business even with being double-taxed - ANSWER C corporation
Easy to create but comes with unlimited liability - ANSWER Sole proprietorship
2
, Lower tax rate that prevents the company from being double-taxed - ANSWER S corpora-
tion
Ideal for a single owner seeking low risk - ANSWER LLC (limited liability company)
Shared financial backing - ANSWER Partnership
Creates the company - ANSWER Founder
Oversees company finances - ANSWER CFO
Owns stock in the company - ANSWER Stockholder
Reports to the board of directors - ANSWER CEO
Oversees daily operational and administrative functions Stakeholder Has a vested interest in
the success of the company - ANSWER COO
Has a vested interest in the success of the company - ANSWER Stakeholder
Non-cash compensation - ANSWER Equity
Set rate of pay for hours worked - ANSWER Hourly
Usually found in sales roles - ANSWER Commission
Set amount of pay in a given period - ANSWER Salary
3
The key objective of a small business owner is to generate ____ - ANSWER profits
Entrepreneurs are willing to take on new opportunities and unknown ____ to grow their
businesses rapidly - ANSWER risks
Tangible items that require pick-up or delivery are ____ products - ANSWER physical
When a ____ purchases an item from a business, it is a business-to-consumer transaction -
ANSWER customer
____ are for-profit corporations with limited liability - ANSWER S corporations
____ are ideal for international businesses - ANSWER C corporations
The ____ oversees daily operational and administrative functions - ANSWER Chief Oper-
ating Officer
A ____ votes on the management of a company - ANSWER stockholder
____ employees are paid a fixed amount each pay period - ANSWER Salary
1
,Businesses can compensate employees for work they produce when being paid by ____ -
ANSWER piece work
Businesses can offer ____ in addition to a lower salary - ANSWER equity
During the ____ stage of the business life cycle, a company is regularly taking on new cus-
tomers and starting to generate a consistent income - ANSWER survival
The owner may decide to sell their ownership in the company during the ____ stage - AN-
SWER exit plan
The five elements of the design thinking process are ____ - ANSWER empathize, define,
ideate, prototype , and test
____ allows one to see and experience a customer's perspective - ANSWER Empathy
The design team creates multiple inexpensive versions of a product, known as ____ - AN-
SWER Minimum Viable Products
Name benefits of a franchise - ANSWER less risk involved, tested operational processes,
or recognized brands
No ownership, no US federal taxes - ANSWER Non-profit
Best for international business even with being double-taxed - ANSWER C corporation
Easy to create but comes with unlimited liability - ANSWER Sole proprietorship
2
, Lower tax rate that prevents the company from being double-taxed - ANSWER S corpora-
tion
Ideal for a single owner seeking low risk - ANSWER LLC (limited liability company)
Shared financial backing - ANSWER Partnership
Creates the company - ANSWER Founder
Oversees company finances - ANSWER CFO
Owns stock in the company - ANSWER Stockholder
Reports to the board of directors - ANSWER CEO
Oversees daily operational and administrative functions Stakeholder Has a vested interest in
the success of the company - ANSWER COO
Has a vested interest in the success of the company - ANSWER Stakeholder
Non-cash compensation - ANSWER Equity
Set rate of pay for hours worked - ANSWER Hourly
Usually found in sales roles - ANSWER Commission
Set amount of pay in a given period - ANSWER Salary
3
