ESB CERTIFICATION TEST QUESTIONS AND
ANSWERS
Entrepreneurship - ANSWER Starting a business to make a profit.
B2B (business-to-business): ANSWER Sells goods and services directly to
other businesses. Normally requires the buyer to provide a sales tax exemption
certificate.
B2C (business-to-consumer) - ANSWER: Sells items and services directly to
customers for personal use.
Small Business - ANSWER A small firm is defined as one that generates less
than $35.5 million in revenue and employs fewer than 1,500 people.
S corporation (Small business) - ANSWER is a legal structure with a maximum
of 100 shareholders (U.S. citizens) who are not liable for any liabilities. And
they are only taxed once, with a separate tax return for the firm.
C Corporations (Companies) - ANSWER is a legal structure used when a firm
intends to sell stock to the public. It has limitless shareholders who are not
liable for liabilities and are taxed twice (at the corporate level and on income
received). A separate tax return is required for businesses.
Sole Proprietorship - Answer A sole proprietorship that is legally required to
obtain a DBA or business license. The owner is accountable for liabilities; no
separate tax is required (taxed once).
Limited Liability Company (LLC) - ANSWER This is ideal for firms
concerned with liability protection. It has an unlimited number of owners who
are not accountable for liabilities and can choose how they want to be taxed.
LLCs cannot go public.
, Equity (business) - Answer The amount an owner(s) would receive if their
ownership interests in a company (stock) were sold. (The money the owner has
left over.)
Equity Funding - Answer Using investor money to fund a project in exchange
for business shares. Can be utilized to increase working capital.
Equity finance is money raised from within the company, from operations, or
via the sale of stock or venture capital. Advantage: There is no commitment to
repay the funds acquired.
Piecework – ANSWER work is paid for based on the quantity produced.
Salary - ANSWER A fixed regular payment made on a monthly or biweekly
basis, but generally represented as an annual total.
Hourly wage is depending on the amount of time worked (minimum wage).
Commission - ANSWER An amount given to an employee based on a
percentage of their sales.
The business cycle consists of five stages: existence, survival, success, take-off,
and maturity.
Elements of the Design Thinking Process - ANSWER 1. Empathize: Research
the users' needs.
2. Define: Identify your users' requirements and challenges.
3. Ideate: challenge assumptions and generate ideas.
4. Prototype: create solutions.
5. Test your solutions.
CEO - ANSWER The highest-ranked employee in the organization; reports to
the board of directors.
Chief Financial Officer (CFO) - Answer Makes budgets, analyzes financial
data, and forecasts firm profitability. (Finances)
ANSWERS
Entrepreneurship - ANSWER Starting a business to make a profit.
B2B (business-to-business): ANSWER Sells goods and services directly to
other businesses. Normally requires the buyer to provide a sales tax exemption
certificate.
B2C (business-to-consumer) - ANSWER: Sells items and services directly to
customers for personal use.
Small Business - ANSWER A small firm is defined as one that generates less
than $35.5 million in revenue and employs fewer than 1,500 people.
S corporation (Small business) - ANSWER is a legal structure with a maximum
of 100 shareholders (U.S. citizens) who are not liable for any liabilities. And
they are only taxed once, with a separate tax return for the firm.
C Corporations (Companies) - ANSWER is a legal structure used when a firm
intends to sell stock to the public. It has limitless shareholders who are not
liable for liabilities and are taxed twice (at the corporate level and on income
received). A separate tax return is required for businesses.
Sole Proprietorship - Answer A sole proprietorship that is legally required to
obtain a DBA or business license. The owner is accountable for liabilities; no
separate tax is required (taxed once).
Limited Liability Company (LLC) - ANSWER This is ideal for firms
concerned with liability protection. It has an unlimited number of owners who
are not accountable for liabilities and can choose how they want to be taxed.
LLCs cannot go public.
, Equity (business) - Answer The amount an owner(s) would receive if their
ownership interests in a company (stock) were sold. (The money the owner has
left over.)
Equity Funding - Answer Using investor money to fund a project in exchange
for business shares. Can be utilized to increase working capital.
Equity finance is money raised from within the company, from operations, or
via the sale of stock or venture capital. Advantage: There is no commitment to
repay the funds acquired.
Piecework – ANSWER work is paid for based on the quantity produced.
Salary - ANSWER A fixed regular payment made on a monthly or biweekly
basis, but generally represented as an annual total.
Hourly wage is depending on the amount of time worked (minimum wage).
Commission - ANSWER An amount given to an employee based on a
percentage of their sales.
The business cycle consists of five stages: existence, survival, success, take-off,
and maturity.
Elements of the Design Thinking Process - ANSWER 1. Empathize: Research
the users' needs.
2. Define: Identify your users' requirements and challenges.
3. Ideate: challenge assumptions and generate ideas.
4. Prototype: create solutions.
5. Test your solutions.
CEO - ANSWER The highest-ranked employee in the organization; reports to
the board of directors.
Chief Financial Officer (CFO) - Answer Makes budgets, analyzes financial
data, and forecasts firm profitability. (Finances)
