ESB EXAM QUESTIONS WITH CORRECT
ANSWERS 2025
whatPtwoPcharacteristicsPdefinePaPsmallPbusiness?P-PCORRECTPANSWERP-
fewerPthanP1,500PemployeesPandPlessPthanP$35.5PmillionPrevenue
physicalPbusinessesP-PCORRECTPANSWERP-
sellPtheirPgoodsPorPservicesPonsiteP(bakeryPandPhairPsalon)
digitalPbusinessesP-PCORRECTPANSWERP-
sellPtheirPgoodsPorPservicesPonlineP(onlinePstoresPandPbookstorePonPamazon)
c-corporationP-PCORRECTPANSWERP--PcompanyPplansPtoPsellPstockPtoPpublicPonePday
-PunlimitedPownersP
-PshareholdersPnotPresponsiblePforPbusinessPliabilities
-PtaxedPtwice
s-corporationP-PCORRECTPANSWERP--PsimilarPtoPc-corporationPbutPforPsmallPbusinesses
-P100PshareholdersPmaximum
-PshareholdersPnotPresponsiblePforPbusinessPliabilities
-PtaxedPonce
solePproprietorshipP-PCORRECTPANSWERP--PeasyPset-upP(lessPpaperwork)
-PonePownerPmaximum
-PownerPisPpersonallyPresponsiblePforPbusinessPliabilities
-PnoPpersonalPliabilityPprotection
-PtaxedPonce
, limitedPliabilityPcompanyP(LLC)P-PCORRECTPANSWERP--
PpopularPforPbusinessesPconcernedPwithPliabilityPprotection
-PunlimitedPowners,PcannotPgoPpublic
-PmembersParePnotPpersonallyPresponsiblePforPbusinessPliabilities
-PchoosePhowPtoPbePtaxed
chiefPexecutivePofficerP(CEO)P-PCORRECTPANSWERP-
highestPrankingPemployeePinPthePcompany;PreportsPtoPthePboardPofPdirectors
chiefPfinancialPofficerP(CFO)P-PCORRECTPANSWERP-
createsPbudgets,PanalyzesPfinancialPdata,PandPforecastsPcompanyPprofits
chiefPinformationPofficerP(CIO)P-PCORRECTPANSWERP-
developsPpoliciesPandPstructuresPtoPprotectPcompanyPdata
chiefPoperatingPofficerP(COO)P-PCORRECTPANSWERP-overseesPthePday-to-
dayPadministrativePfunctionsPofPaPbusiness;PsecondPinPcommand
maturityP(businessPlifePcycle)P-PCORRECTPANSWERP-
thePbusinessPisPseparatePfromPthePownerPwithPresponsibilitiesPdelegatedPtoPstaff.PaPbusinessPinPthi
sPstagePusuallyPcommandsPaPconsiderablePsharePofPthePmarketPandPmayPevenPbePaPhouseholdPnam
e.P(5)
successP(businessPlifePcycle)P-PCORRECTPANSWERP-companyPisPstablePandPprofitableP(3)
takeoffP(businessPlifePcycle)P-PCORRECTPANSWERP-
expansionPstrategiesParePimplemented,PandPinvestmentPisPbalancedPwithPpotentialP(4)
ANSWERS 2025
whatPtwoPcharacteristicsPdefinePaPsmallPbusiness?P-PCORRECTPANSWERP-
fewerPthanP1,500PemployeesPandPlessPthanP$35.5PmillionPrevenue
physicalPbusinessesP-PCORRECTPANSWERP-
sellPtheirPgoodsPorPservicesPonsiteP(bakeryPandPhairPsalon)
digitalPbusinessesP-PCORRECTPANSWERP-
sellPtheirPgoodsPorPservicesPonlineP(onlinePstoresPandPbookstorePonPamazon)
c-corporationP-PCORRECTPANSWERP--PcompanyPplansPtoPsellPstockPtoPpublicPonePday
-PunlimitedPownersP
-PshareholdersPnotPresponsiblePforPbusinessPliabilities
-PtaxedPtwice
s-corporationP-PCORRECTPANSWERP--PsimilarPtoPc-corporationPbutPforPsmallPbusinesses
-P100PshareholdersPmaximum
-PshareholdersPnotPresponsiblePforPbusinessPliabilities
-PtaxedPonce
solePproprietorshipP-PCORRECTPANSWERP--PeasyPset-upP(lessPpaperwork)
-PonePownerPmaximum
-PownerPisPpersonallyPresponsiblePforPbusinessPliabilities
-PnoPpersonalPliabilityPprotection
-PtaxedPonce
, limitedPliabilityPcompanyP(LLC)P-PCORRECTPANSWERP--
PpopularPforPbusinessesPconcernedPwithPliabilityPprotection
-PunlimitedPowners,PcannotPgoPpublic
-PmembersParePnotPpersonallyPresponsiblePforPbusinessPliabilities
-PchoosePhowPtoPbePtaxed
chiefPexecutivePofficerP(CEO)P-PCORRECTPANSWERP-
highestPrankingPemployeePinPthePcompany;PreportsPtoPthePboardPofPdirectors
chiefPfinancialPofficerP(CFO)P-PCORRECTPANSWERP-
createsPbudgets,PanalyzesPfinancialPdata,PandPforecastsPcompanyPprofits
chiefPinformationPofficerP(CIO)P-PCORRECTPANSWERP-
developsPpoliciesPandPstructuresPtoPprotectPcompanyPdata
chiefPoperatingPofficerP(COO)P-PCORRECTPANSWERP-overseesPthePday-to-
dayPadministrativePfunctionsPofPaPbusiness;PsecondPinPcommand
maturityP(businessPlifePcycle)P-PCORRECTPANSWERP-
thePbusinessPisPseparatePfromPthePownerPwithPresponsibilitiesPdelegatedPtoPstaff.PaPbusinessPinPthi
sPstagePusuallyPcommandsPaPconsiderablePsharePofPthePmarketPandPmayPevenPbePaPhouseholdPnam
e.P(5)
successP(businessPlifePcycle)P-PCORRECTPANSWERP-companyPisPstablePandPprofitableP(3)
takeoffP(businessPlifePcycle)P-PCORRECTPANSWERP-
expansionPstrategiesParePimplemented,PandPinvestmentPisPbalancedPwithPpotentialP(4)