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ESB Certification Test questions and correct answers
ESB Certification Test questions and correct answers
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ESB Certification TestEntrepreneurship - correct answer ✔✔Setting up business with the aim to make profit.
B2B (business-to-business) - correct answer ✔✔Sells products and services directly to other businesses.
Normally requires a sales tax exemption certificate from the buyer.
B2C (business-to-consumer) - correct answer ✔✔Sells products and services directly to customer for
personal use.
Small buisness - correct 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) - correct 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) - correct 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 - correct 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) - correct 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) - correct 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 - correct 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 - correct 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 - correct answer ✔✔work paid for according to the amount produced.
Salary - correct answer ✔✔A fixed regular payment, typically paid on a monthly or biweekly basis but
often expressed as an annual sum.
Hourly - correct answer ✔✔wage based on the amount of time worked (Minimum wage).
Commission - correct answer ✔✔An amount paid to an employee based on a percentage of the
employee's sales.
Business cycle - correct answer ✔✔1. Existence
2. Survival
3. Success
4. Take- Off
5. Maturity
Elements of the design thinking process - correct 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) - correct answer ✔✔Highest ranking employee in the company; Reports to
the board of directors.
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