Entrepreneurship and Small Business
Certification Vocabulary Test
Questions and Answers.
Acquisition Costs - Answer Costs incurred by a business
Angel Investor - Answer An investor who provides funding to a business for a stake in the
business in return
Asset - Answer A tangible item a business owns
Balance Sheet - Answer A document that compares assets to liabilities plus owner's equity
Brand Recognition - Answer The level of familiarity one has with a brand
Bootstrapping - Answer A business owner that uses their own money to fund their business
Break-Even Point - Answer The point where a business's revenue matches its expenses over a
given period
Budget - Answer The amount of money a business plans on spending during a given period
Burn Rate - Answer A calculation used to measure a business's monthly cash flow
Business Opportunity - Answer A situation an entrepreneur analyzes and evaluates to see if
starting a sustainable, profitable business is feasible
Business Plan - Answer A document that addresses the concept, customers, and capital for
business
B2B - Answer A business-to-business commercial transaction between businesses
B2C - Answer A business-to-consumer transaction
C Corporation - Answer A business structure that allows the company to pass its income,
losses, deductions, and credits through its shareholders to decrease their taxation
, CEO - Answer The Chief Executive Officer holds a leadership role within a business; the CEO
oversees a business's operations and resources and makes the major decisions for the company
CFO - Answer The Chief Financial Officer holds a leadership role within a business; the CFO
oversees the company's finances
COO - Answer The Chief Operating Officer holds a leadership role within a business; the COO
is responsible for overseeing the day-to-day administrative and operational functions of a
business
Critical Thinking - Answer Using one's mind to solve a problem in the best way by
considering various potential solutions to the problem
Crowdfunding - Answer The method of sharing a start-up business online to pre-sell
products
Chamber of Commerce - Answer A local agency with information on participating local
businesses
Collaboration - Answer The action of working with one or more people towards a common
goal
Commission - Answer A fee paid to an employee for completing a task
Compensation - Answer A monetary amount given to employees in return for their work
Confidentiality Agreement - Answer A signed agreement stating that an entity will not
disclose information agreed upon by all parties in an arrangement
Contract - Answer An agreement between an employee and a company outlining obligations
in terms of employment
Copyright - Answer A form of protection individuals can implement to protect their
intellectual property; copyright is designated for print, music, film, and various other forms of
creative licenses
Customer - Answer An individual or business that purchases goods and services from a
business
Certification Vocabulary Test
Questions and Answers.
Acquisition Costs - Answer Costs incurred by a business
Angel Investor - Answer An investor who provides funding to a business for a stake in the
business in return
Asset - Answer A tangible item a business owns
Balance Sheet - Answer A document that compares assets to liabilities plus owner's equity
Brand Recognition - Answer The level of familiarity one has with a brand
Bootstrapping - Answer A business owner that uses their own money to fund their business
Break-Even Point - Answer The point where a business's revenue matches its expenses over a
given period
Budget - Answer The amount of money a business plans on spending during a given period
Burn Rate - Answer A calculation used to measure a business's monthly cash flow
Business Opportunity - Answer A situation an entrepreneur analyzes and evaluates to see if
starting a sustainable, profitable business is feasible
Business Plan - Answer A document that addresses the concept, customers, and capital for
business
B2B - Answer A business-to-business commercial transaction between businesses
B2C - Answer A business-to-consumer transaction
C Corporation - Answer A business structure that allows the company to pass its income,
losses, deductions, and credits through its shareholders to decrease their taxation
, CEO - Answer The Chief Executive Officer holds a leadership role within a business; the CEO
oversees a business's operations and resources and makes the major decisions for the company
CFO - Answer The Chief Financial Officer holds a leadership role within a business; the CFO
oversees the company's finances
COO - Answer The Chief Operating Officer holds a leadership role within a business; the COO
is responsible for overseeing the day-to-day administrative and operational functions of a
business
Critical Thinking - Answer Using one's mind to solve a problem in the best way by
considering various potential solutions to the problem
Crowdfunding - Answer The method of sharing a start-up business online to pre-sell
products
Chamber of Commerce - Answer A local agency with information on participating local
businesses
Collaboration - Answer The action of working with one or more people towards a common
goal
Commission - Answer A fee paid to an employee for completing a task
Compensation - Answer A monetary amount given to employees in return for their work
Confidentiality Agreement - Answer A signed agreement stating that an entity will not
disclose information agreed upon by all parties in an arrangement
Contract - Answer An agreement between an employee and a company outlining obligations
in terms of employment
Copyright - Answer A form of protection individuals can implement to protect their
intellectual property; copyright is designated for print, music, film, and various other forms of
creative licenses
Customer - Answer An individual or business that purchases goods and services from a
business
