ESB Certification Test UPDATED Exam
Questions and CORRECT Answers
Entrepreneurship - 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
Questions and CORRECT Answers
Entrepreneurship - 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
