ESB Gmetrix Practice Exam 1
Questions and Answers
small affiliate market service (PPC) - ANSWERS -20%
start-up costs - ANSWERS -permits/business cards
Benefit of equity funding - ANSWERS -can be used/investors do not get paid
Equity vs Debt Financing True/False - ANSWERS -True: creditors, the main advantage, debt
financing
False: equity financing
What is Entrepreneurship? - ANSWERS -Setting up a business with the aim to make a profit
B2B or B2C - ANSWERS -Wholesale flooring distributer- B2B
Purchases requiring a tax exemption certificate- B2B
Chain of local grocery stores- B2C
Motorcycle repair shop- B2C
You would like some benefits enjoyed by large corporations, but do not want to be taxed twice.
You have four partners that would be shareholders. None of you plan to sell your ownership to
the public, but do want to be protected by business liabilities. - ANSWERS -S-Corporation
True/False - ANSWERS -True: A partner owns equity; A founder owns equity
, False: All stakeholders own equity; Contractors own equity
Company roles and responsibilities - ANSWERS -Piece Work- amount of fruit they pick
Salary- set amount of pay each month, without overtime compensation for extra hours
Hourly- most affected by minimum wage laws
Commission- paid by percentage
Business Life Cycle - ANSWERS -1. existence
2. survival of the fittest
3. success
4. take-off
5. maturity
Element of the Design Thinking Process - ANSWERS -Empathize- research needs
Define- state the problem
Ideate- challenge assumptions and create ideas
Prototype- create solutions
Test- try your solutions
Successful entrepreneur have mindsets that possess three characteristics... - ANSWERS -
responsible, tenacious, adaptable
One of the greatest benefits of being an entrepreneur? - ANSWERS -schedule control
Questions and Answers
small affiliate market service (PPC) - ANSWERS -20%
start-up costs - ANSWERS -permits/business cards
Benefit of equity funding - ANSWERS -can be used/investors do not get paid
Equity vs Debt Financing True/False - ANSWERS -True: creditors, the main advantage, debt
financing
False: equity financing
What is Entrepreneurship? - ANSWERS -Setting up a business with the aim to make a profit
B2B or B2C - ANSWERS -Wholesale flooring distributer- B2B
Purchases requiring a tax exemption certificate- B2B
Chain of local grocery stores- B2C
Motorcycle repair shop- B2C
You would like some benefits enjoyed by large corporations, but do not want to be taxed twice.
You have four partners that would be shareholders. None of you plan to sell your ownership to
the public, but do want to be protected by business liabilities. - ANSWERS -S-Corporation
True/False - ANSWERS -True: A partner owns equity; A founder owns equity
, False: All stakeholders own equity; Contractors own equity
Company roles and responsibilities - ANSWERS -Piece Work- amount of fruit they pick
Salary- set amount of pay each month, without overtime compensation for extra hours
Hourly- most affected by minimum wage laws
Commission- paid by percentage
Business Life Cycle - ANSWERS -1. existence
2. survival of the fittest
3. success
4. take-off
5. maturity
Element of the Design Thinking Process - ANSWERS -Empathize- research needs
Define- state the problem
Ideate- challenge assumptions and create ideas
Prototype- create solutions
Test- try your solutions
Successful entrepreneur have mindsets that possess three characteristics... - ANSWERS -
responsible, tenacious, adaptable
One of the greatest benefits of being an entrepreneur? - ANSWERS -schedule control
