ESB Test DOS
In general, which two characteristics define a "small" business? (Choose two) - correct answer ✔✔-
Fewer than 1,500 employees
-Less than $35.5 million revenue
Classify each other the following businesses as either Physical or Digital. - correct answer ✔✔PHYSICAL:
-Bakery in your community
-Hair salon that makes appointments online
DIGITAL:
-Online store that dropships camping gear
-Bookstore on Amazon that sells eBooks
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 answer ✔✔C-Corporation
Match each business management role to its corresponding description.
To answer, move each role from the list on the left to its description on the right. - correct answer
✔✔The highest ranking employee in the company; reports to the board of directors. CEO
Creates budgets, analyzes financial data, and forecasts company profits. CFO
Develops policies and structures to protect company data. CIO
Oversees the day-to-day administrative functions of a business; second in command. COO
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
answer ✔✔Salary and Hourly
Match each Stage of the Business Life cycle to its corresponding description.
To answer, move each stage from the list on the left to its description on the right. - correct answer
✔✔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.
MATURITY
Company is stable and profitable. SUCCESS
Expansion strategies are implemented, and investment is balanced with potential. TAKEOFF
Focus shifts to revenue, expenses, and growth. Cashflow is the major issue. SURVIVAL OF THE FITTEST
The business introduces itself to the market and attempts to catch the attention of potential customers.
EXISTENCE
For each statement about the Design Thinking Process, select True or False. - correct answer ✔✔TRUE:
Assumptions are challenged and ideas are created in the Ideate phase. Problem statements are written
in the Define phase.
FALSE: The Empathize phase tests solutions to users' problems. Building Prototypes is the final phase of
the Design Thinking Process.
Which of these is a characteristic of a successful entrepreneur mindset? - correct answer ✔✔Doesn't
give up easily. NEVER BACK DOWN NEVER WHAT!?
Which is one of the greatest risks of being an entrepreneur? - correct answer ✔✔Financial instability
In general, which two characteristics define a "small" business? (Choose two) - correct answer ✔✔-
Fewer than 1,500 employees
-Less than $35.5 million revenue
Classify each other the following businesses as either Physical or Digital. - correct answer ✔✔PHYSICAL:
-Bakery in your community
-Hair salon that makes appointments online
DIGITAL:
-Online store that dropships camping gear
-Bookstore on Amazon that sells eBooks
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 answer ✔✔C-Corporation
Match each business management role to its corresponding description.
To answer, move each role from the list on the left to its description on the right. - correct answer
✔✔The highest ranking employee in the company; reports to the board of directors. CEO
Creates budgets, analyzes financial data, and forecasts company profits. CFO
Develops policies and structures to protect company data. CIO
Oversees the day-to-day administrative functions of a business; second in command. COO
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
answer ✔✔Salary and Hourly
Match each Stage of the Business Life cycle to its corresponding description.
To answer, move each stage from the list on the left to its description on the right. - correct answer
✔✔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.
MATURITY
Company is stable and profitable. SUCCESS
Expansion strategies are implemented, and investment is balanced with potential. TAKEOFF
Focus shifts to revenue, expenses, and growth. Cashflow is the major issue. SURVIVAL OF THE FITTEST
The business introduces itself to the market and attempts to catch the attention of potential customers.
EXISTENCE
For each statement about the Design Thinking Process, select True or False. - correct answer ✔✔TRUE:
Assumptions are challenged and ideas are created in the Ideate phase. Problem statements are written
in the Define phase.
FALSE: The Empathize phase tests solutions to users' problems. Building Prototypes is the final phase of
the Design Thinking Process.
Which of these is a characteristic of a successful entrepreneur mindset? - correct answer ✔✔Doesn't
give up easily. NEVER BACK DOWN NEVER WHAT!?
Which is one of the greatest risks of being an entrepreneur? - correct answer ✔✔Financial instability
