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ESB Certification Test Questions and Answers 2024
ESB Certification Test
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ESB Certification TestEntrepreneurship - answer Setting up business with the aim to make profit.
B2B (business-to-business) - answer Sells products and services directly to other
businesses. Normally requires a sales tax exemption certificate from the buyer.
B2C (business-to-consumer) - answer Sells products and services directly to
customer for personal use.
Small buisness - answer A small business is when a business has less than 35.5
million dollars in revenue, and fewer than 1,500 employees.
S corporation(Small businesses) - answer is a legal structure with 100
shareholders(U.S. citizens only) MAX, who are not responsible for Liabilities. And they
are only taxed once, and there is a separate tax return for the business.
C Corporation (Companies) - answer is a legal structure used for when the company
plans to sell stock to the public. It has unlimited shareholders (not responsible for
liabilities) that are taxed twice (corporates level and income received). A separate tax
return is required for business.
Sole Proprietorship - answer A business owned by one person that legally needs a
DBA or business license. The owner is responsible for liabilities, no separate tax
needed (taxed once).
Limitied-Liability Company (LLC) - answer This is best for businesses concerned
about liability protection. It has unlimited owners who aren't responsible 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 business (stock) were sold. (The money the owner has left over)
Equity Funding - answer Using money from investors to finance a project in
exchange for shares in the company. Can be used to raise working capitals.
equity financing - answer money raised from within the firm, from operations or
through the sale of ownership in the firm (stock or venture capital). Advantage: there's
no obligation to repay the money acquired.
Piece work - answer work paid for according to the amount produced.
, Salary - answer A fixed regular payment, typically paid on a monthly or biweekly
basis but often expressed as an annual sum.
Hourly - answer wage based on the amount of time worked (Minimum wage).
Commission - answer An amount paid to an employee based on a percentage of the
employee's sales.
Business cycle - answer 1. Existence
2. Survival
3. Success
4. Take- Off
5. Maturity
Elements of the design thinking process - answer 1. Empathize: Research users
needs
2. Define: State your users needs and problems
3. Ideate: Challenge Assumptions and create idea
4. Prototype: Create solutions
5. Test: Try your solutions
Cheif Executive Officer (CEO) - answer Highest ranking employee in the company;
Reports to the board of directors.
Chief Financial Officer (CFO) - answer Creates budgets, analyzes financial data, and
forecast company profits. (Finances)
Chief Information Officer (CIO) - answer Develops polices and structures to protect
company data. (Technical)
Chief Operating Officer (COO) - answer Oversees the day to day administrative
functions of business. (Communications)
Lean Canvas - answer A single-page business summary template created by Ash
Maurya.
Pitch Deck - answer A slide presentation for potential investors that summarizes the
key items of a business. The goals is to get investors attention. It is a highly visual slide
presentation, and 10 to 20 slides.
Business Plan - answer A multi-page document describing and detailing a business.
The goal is to get investors to buy in. It is text based, and has 10 to 100 pages.
Balance Sheet - answer A summary of business assets (what the business owns)
and liabilities (what the business owes). Mortgage and bank loans are liabilities.
Equipment is long term assets, and inventory are current assets.
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