ESB Certification Exam Study Guide
Domain 1
1. The key objective of a small business owner is to generate ____ -
Answer✔️ ✔p️ rofits
2. Entrepreneurs are willing to take on new opportunities and unknown ____ to
grow their businesses rapidly - Answer✔️ ✔r️isks
3. Tangible items that require pick-up or delivery are ____ products -
Answer✔️ ✔p️ hysical
4. When a ____ purchases an item from a business, it is a business-to-
consumer transaction - Answer✔️ ✔️customer
5. ____ are for-profit corporations with limited liability - Answer✔️
✔S
️
corporations
6. ____ are ideal for international businesses - Answer✔️
✔C
️corporations
7. The ____ oversees daily operational and administrative functions -
Answer✔️ ✔C️ hief Operating Officer
8. A ____ votes on the management of a company - Answer✔️
✔️stockholder
,9. ____ employees are paid a fixed amount each pay period -
Answer✔️ ✔S ️alary
10.Businesses can compensate employees for work they produce when being
paid by ____ - Answer✔️✔p️ iece work
11.Businesses can offer ____ in addition to a lower salary - Answer✔️
✔e️
quity
12.During the ____ stage of the business life cycle, a company is regularly
taking on new customers and starting to generate a consistent income -
Answer✔️ ✔s️urvival
13.The owner may decide to sell their ownership in the company during the
____ stage - Answer✔️✔️ exit plan
14.The five elements of the design thinking process are ____ -
Answer✔️ ✔e️mpathize, define, ideate, prototype , and test
15.____ allows one to see and experience a customer's perspective -
Answer✔️ ✔E ️mpathy
16.The design team creates multiple inexpensive versions of a product, known
as ____ - Answer✔️ ✔️ Minimum Viable Products
17.Name benefits of a franchise - Answer✔️ ✔l️ess risk involved, tested
operational processes, or recognized brands
, 18.No ownership, no US federal taxes - Answer✔️
✔️Non-profit
19.Best for international business even with being double-taxed -
Answer✔️ ✔C ️corporation
20.Easy to create but comes with unlimited liability - Answer✔️
✔S
️ ole
proprietorship
21.Lower tax rate that prevents the company from being double-taxed -
Answer✔️ ✔S ️corporation
22.Ideal for a single owner seeking low risk - Answer✔️
✔L
️ LC (limited
liability company)
23.Shared financial backing - Answer✔️
✔️Partnership
24.Creates the company - Answer✔️
✔F
️ ounder
25.Oversees company finances - Answer✔️
✔️CFO
26.Owns stock in the company - Answer✔️
✔️Stockholder
27.Reports to the board of directors - Answer✔️
✔️CEO
28.Oversees daily operational and administrative functions Stakeholder Has a
vested interest in the success of the company - Answer✔️ ✔️ COO
Domain 1
1. The key objective of a small business owner is to generate ____ -
Answer✔️ ✔p️ rofits
2. Entrepreneurs are willing to take on new opportunities and unknown ____ to
grow their businesses rapidly - Answer✔️ ✔r️isks
3. Tangible items that require pick-up or delivery are ____ products -
Answer✔️ ✔p️ hysical
4. When a ____ purchases an item from a business, it is a business-to-
consumer transaction - Answer✔️ ✔️customer
5. ____ are for-profit corporations with limited liability - Answer✔️
✔S
️
corporations
6. ____ are ideal for international businesses - Answer✔️
✔C
️corporations
7. The ____ oversees daily operational and administrative functions -
Answer✔️ ✔C️ hief Operating Officer
8. A ____ votes on the management of a company - Answer✔️
✔️stockholder
,9. ____ employees are paid a fixed amount each pay period -
Answer✔️ ✔S ️alary
10.Businesses can compensate employees for work they produce when being
paid by ____ - Answer✔️✔p️ iece work
11.Businesses can offer ____ in addition to a lower salary - Answer✔️
✔e️
quity
12.During the ____ stage of the business life cycle, a company is regularly
taking on new customers and starting to generate a consistent income -
Answer✔️ ✔s️urvival
13.The owner may decide to sell their ownership in the company during the
____ stage - Answer✔️✔️ exit plan
14.The five elements of the design thinking process are ____ -
Answer✔️ ✔e️mpathize, define, ideate, prototype , and test
15.____ allows one to see and experience a customer's perspective -
Answer✔️ ✔E ️mpathy
16.The design team creates multiple inexpensive versions of a product, known
as ____ - Answer✔️ ✔️ Minimum Viable Products
17.Name benefits of a franchise - Answer✔️ ✔l️ess risk involved, tested
operational processes, or recognized brands
, 18.No ownership, no US federal taxes - Answer✔️
✔️Non-profit
19.Best for international business even with being double-taxed -
Answer✔️ ✔C ️corporation
20.Easy to create but comes with unlimited liability - Answer✔️
✔S
️ ole
proprietorship
21.Lower tax rate that prevents the company from being double-taxed -
Answer✔️ ✔S ️corporation
22.Ideal for a single owner seeking low risk - Answer✔️
✔L
️ LC (limited
liability company)
23.Shared financial backing - Answer✔️
✔️Partnership
24.Creates the company - Answer✔️
✔F
️ ounder
25.Oversees company finances - Answer✔️
✔️CFO
26.Owns stock in the company - Answer✔️
✔️Stockholder
27.Reports to the board of directors - Answer✔️
✔️CEO
28.Oversees daily operational and administrative functions Stakeholder Has a
vested interest in the success of the company - Answer✔️ ✔️ COO
