ESB Exam One (GMETRIX) Entrepreneurship
and Small Business Study Set 2023 Assured A+.
What is entrepreneurship? correct answers Setting up a business with the aim to make a profit.
You need to create a legal structure for your small business. You would like some of the benefits
enjoyed by large corporations, but do not want to be taxed twice. You have four partners who
will be shareholders. None of you plan to sell your ownership shares to the public, but do not
want to be protected from business liabilities.
Which legal structure should you set up for your business? correct answers S- Corporation
Place the stages of the business life cycle in the correct order. correct answers 1. Existence
2. Survival of the Fittest
3. Success
4. Take-Off
5. Maturity
Match each Element of the Design Thinking Process to its corresponding description. correct
answers Research your users' needs: Empathize
State your users' needs and problems: Define
Challenge assumptions and create ideas: Ideate
Create Solutions: Prototype
Try your solutions: Test
In general, which TWO characteristics define a "small" business? correct answers Less than
$35.5 million revenue
Fewer than 1,500 employees
You need to create a legal structure for your small business. You have plans for it to grow and
hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and
Japan. You do not want to be personally responsible for business liabilities.
Which legal structure should you set up for your business? correct answers C-Corporation
, Match each business management role to its corresponding description. correct answers CEO:
The highest-ranking employee in the company; reports to the board of directors.
CFO: Creates budgets, analyzes financial data, and forecasts company profits.
CIO: Develops policies and structures to protect company data.
COO: Oversees the day-to-day administrative functions of a business; second in command.
You own a lawn care business. You have employees who work long hours laboring in good
weather, often exceeding 40 hours per week. They also work short hours when the weather is
bad, sometimes they can't work at all. You do all of the sales for your business.
Which TWO types of compensation would be appropriate for these landscape employees?
correct answers Hourly
Salary
Match each Stage of the Business Life Cycle to its corresponding description. correct answers
Maturity: The business is separate from the owner with responsibilities delegated to staff. A
business in this stage usually commands a considerable share of the market and may even be a
household name.
Success: Company is stable and profitable.
Takeoff: Expansion strategies are implemented, and investment is balanced with potential.
Survival of the Fittest: Focus shifts to revenue, expenses, and growth. Cashflow is the major
issue.
Existence: The business introduces itself to the market and attempts to catch the attention of
potential customers.
What is a Target Market? correct answers Customers to whom a company wants to sell its
products and services.
A photographer wants to do a SWOT Analysis with the characteristics identified.
Setup a SWOT Analysis with the characteristics provided about this business by matching the
company characteristic with the appropriate SWOT element. correct answers Strengths: Large
gallery of stock photos.
Weaknesses: Working alone, no skilled help.
Opportunities: Increase in weddings expected as COVID restrictions ease.
and Small Business Study Set 2023 Assured A+.
What is entrepreneurship? correct answers Setting up a business with the aim to make a profit.
You need to create a legal structure for your small business. You would like some of the benefits
enjoyed by large corporations, but do not want to be taxed twice. You have four partners who
will be shareholders. None of you plan to sell your ownership shares to the public, but do not
want to be protected from business liabilities.
Which legal structure should you set up for your business? correct answers S- Corporation
Place the stages of the business life cycle in the correct order. correct answers 1. Existence
2. Survival of the Fittest
3. Success
4. Take-Off
5. Maturity
Match each Element of the Design Thinking Process to its corresponding description. correct
answers Research your users' needs: Empathize
State your users' needs and problems: Define
Challenge assumptions and create ideas: Ideate
Create Solutions: Prototype
Try your solutions: Test
In general, which TWO characteristics define a "small" business? correct answers Less than
$35.5 million revenue
Fewer than 1,500 employees
You need to create a legal structure for your small business. You have plans for it to grow and
hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and
Japan. You do not want to be personally responsible for business liabilities.
Which legal structure should you set up for your business? correct answers C-Corporation
, Match each business management role to its corresponding description. correct answers CEO:
The highest-ranking employee in the company; reports to the board of directors.
CFO: Creates budgets, analyzes financial data, and forecasts company profits.
CIO: Develops policies and structures to protect company data.
COO: Oversees the day-to-day administrative functions of a business; second in command.
You own a lawn care business. You have employees who work long hours laboring in good
weather, often exceeding 40 hours per week. They also work short hours when the weather is
bad, sometimes they can't work at all. You do all of the sales for your business.
Which TWO types of compensation would be appropriate for these landscape employees?
correct answers Hourly
Salary
Match each Stage of the Business Life Cycle to its corresponding description. correct answers
Maturity: The business is separate from the owner with responsibilities delegated to staff. A
business in this stage usually commands a considerable share of the market and may even be a
household name.
Success: Company is stable and profitable.
Takeoff: Expansion strategies are implemented, and investment is balanced with potential.
Survival of the Fittest: Focus shifts to revenue, expenses, and growth. Cashflow is the major
issue.
Existence: The business introduces itself to the market and attempts to catch the attention of
potential customers.
What is a Target Market? correct answers Customers to whom a company wants to sell its
products and services.
A photographer wants to do a SWOT Analysis with the characteristics identified.
Setup a SWOT Analysis with the characteristics provided about this business by matching the
company characteristic with the appropriate SWOT element. correct answers Strengths: Large
gallery of stock photos.
Weaknesses: Working alone, no skilled help.
Opportunities: Increase in weddings expected as COVID restrictions ease.
