Entrepreneurship and Small Business
Certification Exam Already Passed
Elements of the Design Thinking Process ✔✔Stage 1: Emphasize- Research Your Users' Needs
Stage 2: Define- State Your Users' Needs and Problems
Stage 3: Ideate- Challenge Assumptions and Create Ideas
Stage 4: Prototype- Start to Create Solutions
Stage 5: Test- Try Your Solutions Out
Difference between small businesses and entrepreneurs? ✔✔Small businesses are not always
interested in taking on new business opportunities.
Entrepreneurs set up a business with the aim to make a profit.
Compensation Types ✔✔1. Piece work- compensation on a per-unit basis. EX: an employer can
choose to pay mechanics a fixed rate for each vehicle they repair instead of paying an hourly
rate.
2. Salary- employee receives a set amount of pay each month without overtime compensation for
extra hours worked.
,3. Hourly- Employees most affected by minimum wage laws are compensated hourly.
4. Commission- An employee who is paid a percentage of a sale.
5. Equity- Non-cash compensations offered to employees in place of or in addition to a lower
salary.
Types of Sales Channel ✔✔1. Business-to-Business (B2B): a transaction or business conducted
between one business and another, such as a wholesaler and retailer. Transactions tend to happen
in the supply chain, where one company will purchase raw materials from another to be used in
the manufacturing process.
2. Business-to-Consumer (B2C): process of businesses selling products/services directly to
consumers, with no middle person.
Typically refers to online retailers who sell products/services to consumers through the Internet.
Online B2C became a threat to traditional retailers, who profited from adding a markup to the
price.
3. Retail: sell items or services to customers. They typically sell items in-store or may be sold
online.
, 4. Wholesale: the act of buying goods in bulk from a manufacturer at a discounted price and
selling to a retailer for a higher price, for them to repackage and in turn resell in smaller
quantities at an even higher price to consumers.
Acquisition Costs ✔✔These costs include shipping, sales taxes, and customs fees, as well as the
costs of site preparation, installation, and testing. When acquiring property, acquisition costs can
include surveying, closing fees, and paying off liens.
Angel Investor ✔✔a wealthy private investor who provides capital for a business start-up for a
stake in the business in return.
Asset ✔✔A tangible item a business owns. They can generate revenue or be converted into cash.
They can be physical items, such as machinery, or intangible, such as intellectual property.
Balance Sheet ✔✔A financial statement used for evaluating the performance of a business. It
compares ASSETS to LIABILITIES plus owner's EQUITY on a specific date.
EX:
Certification Exam Already Passed
Elements of the Design Thinking Process ✔✔Stage 1: Emphasize- Research Your Users' Needs
Stage 2: Define- State Your Users' Needs and Problems
Stage 3: Ideate- Challenge Assumptions and Create Ideas
Stage 4: Prototype- Start to Create Solutions
Stage 5: Test- Try Your Solutions Out
Difference between small businesses and entrepreneurs? ✔✔Small businesses are not always
interested in taking on new business opportunities.
Entrepreneurs set up a business with the aim to make a profit.
Compensation Types ✔✔1. Piece work- compensation on a per-unit basis. EX: an employer can
choose to pay mechanics a fixed rate for each vehicle they repair instead of paying an hourly
rate.
2. Salary- employee receives a set amount of pay each month without overtime compensation for
extra hours worked.
,3. Hourly- Employees most affected by minimum wage laws are compensated hourly.
4. Commission- An employee who is paid a percentage of a sale.
5. Equity- Non-cash compensations offered to employees in place of or in addition to a lower
salary.
Types of Sales Channel ✔✔1. Business-to-Business (B2B): a transaction or business conducted
between one business and another, such as a wholesaler and retailer. Transactions tend to happen
in the supply chain, where one company will purchase raw materials from another to be used in
the manufacturing process.
2. Business-to-Consumer (B2C): process of businesses selling products/services directly to
consumers, with no middle person.
Typically refers to online retailers who sell products/services to consumers through the Internet.
Online B2C became a threat to traditional retailers, who profited from adding a markup to the
price.
3. Retail: sell items or services to customers. They typically sell items in-store or may be sold
online.
, 4. Wholesale: the act of buying goods in bulk from a manufacturer at a discounted price and
selling to a retailer for a higher price, for them to repackage and in turn resell in smaller
quantities at an even higher price to consumers.
Acquisition Costs ✔✔These costs include shipping, sales taxes, and customs fees, as well as the
costs of site preparation, installation, and testing. When acquiring property, acquisition costs can
include surveying, closing fees, and paying off liens.
Angel Investor ✔✔a wealthy private investor who provides capital for a business start-up for a
stake in the business in return.
Asset ✔✔A tangible item a business owns. They can generate revenue or be converted into cash.
They can be physical items, such as machinery, or intangible, such as intellectual property.
Balance Sheet ✔✔A financial statement used for evaluating the performance of a business. It
compares ASSETS to LIABILITIES plus owner's EQUITY on a specific date.
EX:
