ENTREPRENEURSHIP AND SMALL
BUSINESS CERTIFICATION EXAM
GRADED A+
Elements mof mthe mDesign mThinking mProcess m- mcorrect manswers m-Stage m1:
mEmphasize- mResearch mYour mUsers' mNeeds
Stage m2: mDefine- mState mYour mUsers' mNeeds mand mProblems
Stage m3: mIdeate- mChallenge mAssumptions mand mCreate mIdeas
Stage m4: mPrototype- mStart mto mCreate mSolutions
Stage m5: mTest- mTry mYour mSolutions mOut
Difference mbetween msmall mbusinesses mand mentrepreneurs? m- mcorrect manswers
m-Small mbusinesses mare mnot malways minterested min mtaking mon mnew mbusiness
mopportunities.
Entrepreneurs mset mup ma mbusiness mwith mthe maim mto mmake ma mprofit.
, Compensation mTypes m- mcorrect manswers m-1. mPiece mwork- mcompensation mon ma
mper-unit mbasis. mEX: man memployer mcan mchoose mto mpay mmechanics ma mfixed
mrate mfor meach mvehicle mthey mrepair minstead mof mpaying man mhourly mrate.
2. mSalary- memployee mreceives ma mset mamount mof mpay meach mmonth mwithout
movertime mcompensation mfor mextra mhours mworked.
3. mHourly- mEmployees mmost maffected mby mminimum mwage mlaws mare
mcompensated mhourly.
4. mCommission- mAn memployee mwho mis mpaid ma mpercentage mof ma msale.
5. mEquity- mNon-cash mcompensations moffered mto memployees min mplace mof mor min
maddition mto ma mlower msalary.
Types mof mSales mChannel m- mcorrect manswers m-1. mBusiness-to-Business m(B2B):
ma mtransaction mor mbusiness mconducted mbetween mone mbusiness mand manother,
msuch mas ma mwholesaler mand mretailer. mTransactions mtend mto mhappen min mthe
msupply mchain, mwhere mone mcompany mwill mpurchase mraw mmaterials mfrom
manother mto mbe mused min mthe mmanufacturing mprocess. m
2. mBusiness-to-Consumer m(B2C): mprocess mof mbusinesses mselling
mproducts/services mdirectly mto mconsumers, mwith mno mmiddle mperson.
Typically mrefers mto monline mretailers mwho msell mproducts/services mto mconsumers
mthrough mthe mInternet.
Online mB2C mbecame ma mthreat mto mtraditional mretailers, mwho mprofited mfrom
madding ma mmarkup mto mthe mprice.
3. mRetail: msell mitems mor mservices mto mcustomers. mThey mtypically msell mitems min-
store mor mmay mbe msold monline.
4. mWholesale: mthe mact mof mbuying mgoods min mbulk mfrom ma mmanufacturer mat ma
mdiscounted mprice mand mselling mto ma mretailer mfor ma mhigher mprice, mfor mthem mto
mrepackage mand min mturn mresell min msmaller mquantities mat man meven mhigher
mprice mto mconsumers.
Acquisition mCosts m- mcorrect manswers m-These mcosts minclude mshipping, msales
mtaxes, mand mcustoms mfees, mas mwell mas mthe mcosts mof msite mpreparation,
minstallation, mand mtesting. mWhen macquiring mproperty, macquisition mcosts mcan
minclude msurveying, mclosing mfees, mand mpaying moff mliens.
Angel mInvestor m- mcorrect manswers m-a mwealthy mprivate minvestor mwho mprovides
mcapital mfor ma mbusiness mstart-up mfor ma mstake min mthe mbusiness min mreturn.
BUSINESS CERTIFICATION EXAM
GRADED A+
Elements mof mthe mDesign mThinking mProcess m- mcorrect manswers m-Stage m1:
mEmphasize- mResearch mYour mUsers' mNeeds
Stage m2: mDefine- mState mYour mUsers' mNeeds mand mProblems
Stage m3: mIdeate- mChallenge mAssumptions mand mCreate mIdeas
Stage m4: mPrototype- mStart mto mCreate mSolutions
Stage m5: mTest- mTry mYour mSolutions mOut
Difference mbetween msmall mbusinesses mand mentrepreneurs? m- mcorrect manswers
m-Small mbusinesses mare mnot malways minterested min mtaking mon mnew mbusiness
mopportunities.
Entrepreneurs mset mup ma mbusiness mwith mthe maim mto mmake ma mprofit.
, Compensation mTypes m- mcorrect manswers m-1. mPiece mwork- mcompensation mon ma
mper-unit mbasis. mEX: man memployer mcan mchoose mto mpay mmechanics ma mfixed
mrate mfor meach mvehicle mthey mrepair minstead mof mpaying man mhourly mrate.
2. mSalary- memployee mreceives ma mset mamount mof mpay meach mmonth mwithout
movertime mcompensation mfor mextra mhours mworked.
3. mHourly- mEmployees mmost maffected mby mminimum mwage mlaws mare
mcompensated mhourly.
4. mCommission- mAn memployee mwho mis mpaid ma mpercentage mof ma msale.
5. mEquity- mNon-cash mcompensations moffered mto memployees min mplace mof mor min
maddition mto ma mlower msalary.
Types mof mSales mChannel m- mcorrect manswers m-1. mBusiness-to-Business m(B2B):
ma mtransaction mor mbusiness mconducted mbetween mone mbusiness mand manother,
msuch mas ma mwholesaler mand mretailer. mTransactions mtend mto mhappen min mthe
msupply mchain, mwhere mone mcompany mwill mpurchase mraw mmaterials mfrom
manother mto mbe mused min mthe mmanufacturing mprocess. m
2. mBusiness-to-Consumer m(B2C): mprocess mof mbusinesses mselling
mproducts/services mdirectly mto mconsumers, mwith mno mmiddle mperson.
Typically mrefers mto monline mretailers mwho msell mproducts/services mto mconsumers
mthrough mthe mInternet.
Online mB2C mbecame ma mthreat mto mtraditional mretailers, mwho mprofited mfrom
madding ma mmarkup mto mthe mprice.
3. mRetail: msell mitems mor mservices mto mcustomers. mThey mtypically msell mitems min-
store mor mmay mbe msold monline.
4. mWholesale: mthe mact mof mbuying mgoods min mbulk mfrom ma mmanufacturer mat ma
mdiscounted mprice mand mselling mto ma mretailer mfor ma mhigher mprice, mfor mthem mto
mrepackage mand min mturn mresell min msmaller mquantities mat man meven mhigher
mprice mto mconsumers.
Acquisition mCosts m- mcorrect manswers m-These mcosts minclude mshipping, msales
mtaxes, mand mcustoms mfees, mas mwell mas mthe mcosts mof msite mpreparation,
minstallation, mand mtesting. mWhen macquiring mproperty, macquisition mcosts mcan
minclude msurveying, mclosing mfees, mand mpaying moff mliens.
Angel mInvestor m- mcorrect manswers m-a mwealthy mprivate minvestor mwho mprovides
mcapital mfor ma mbusiness mstart-up mfor ma mstake min mthe mbusiness min mreturn.
