ESB CERTIFICATION EXAM STUDY GUIDEWITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+ (2025/2026)
Domain 1 Lesson 1
The key objective of a small business owner is to generate
____ -correct answer -->>profits
Entrepreneurs are willing to take on new opportunities and
unknown ____ to grow their businesses rapidly -correct
answer -->>risks
Tangible items that require pick-up or delivery are ____
products -correct answer -->>physical
When a ____ purchases an item from a business, it is a
business-to-consumer transaction -correct answer --
>>customer
____ are for-profit corporations with limited liability -
correct answer -->>S corporations
____ are ideal for international businesses -correct
answer -->>C corporations
,The ____ oversees daily operational and administrative
functions -correct answer -->>Chief Operating Officer
A ____ votes on the management of a company -correct
answer -->>stockholder
____ employees are paid a fixed amount each pay period
-correct answer -->>Salary
Businesses can compensate employees for work they
produce when being paid by ____ -correct answer --
>>piece work
Businesses can offer ____ in addition to a lower salary -
correct answer -->>equity
During the ____ stage of the business life cycle, a
company is regularly taking on new customers and
starting to generate a consistent income -correct
answer -->>survival
The owner may decide to sell their ownership in the
company during the ____ stage -correct answer --
>>exit plan
The five elements of the design thinking process are ____
-correct answer -->>empathize, define, ideate,
prototype , and test
,____ allows one to see and experience a customer's
perspective -correct answer -->>Empathy
The design team creates multiple inexpensive versions of
a product, known as ____ -correct answer --
>>Minimum Viable Products
Name benefits of a franchise -correct answer -->>less
risk involved, tested operational processes, or recognized
brands
No ownership, no US federal taxes -correct answer --
>>Non-profit
Best for international business even with being double-
taxed -correct answer -->>C corporation
Easy to create but comes with unlimited liability -correct
answer -->>Sole proprietorship
Lower tax rate that prevents the company from being
double-taxed -correct answer -->>S corporation
Ideal for a single owner seeking low risk -correct
answer -->>LLC (limited liability company)
, Shared financial backing -correct answer --
>>Partnership
Creates the company -correct answer -->>Founder
Oversees company finances -correct answer -->>CFO
Owns stock in the company -correct answer --
>>Stockholder
Reports to the board of directors -correct answer --
>>CEO
Oversees daily operational and administrative functions
Stakeholder Has a vested interest in the success of the
company -correct answer -->>COO
Has a vested interest in the success of the company -
correct answer -->>Stakeholder
Non-cash compensation -correct answer -->>Equity
Set rate of pay for hours worked -correct answer --
>>Hourly
Usually found in sales roles -correct answer --
>>Commission
CORRECT ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+ (2025/2026)
Domain 1 Lesson 1
The key objective of a small business owner is to generate
____ -correct answer -->>profits
Entrepreneurs are willing to take on new opportunities and
unknown ____ to grow their businesses rapidly -correct
answer -->>risks
Tangible items that require pick-up or delivery are ____
products -correct answer -->>physical
When a ____ purchases an item from a business, it is a
business-to-consumer transaction -correct answer --
>>customer
____ are for-profit corporations with limited liability -
correct answer -->>S corporations
____ are ideal for international businesses -correct
answer -->>C corporations
,The ____ oversees daily operational and administrative
functions -correct answer -->>Chief Operating Officer
A ____ votes on the management of a company -correct
answer -->>stockholder
____ employees are paid a fixed amount each pay period
-correct answer -->>Salary
Businesses can compensate employees for work they
produce when being paid by ____ -correct answer --
>>piece work
Businesses can offer ____ in addition to a lower salary -
correct answer -->>equity
During the ____ stage of the business life cycle, a
company is regularly taking on new customers and
starting to generate a consistent income -correct
answer -->>survival
The owner may decide to sell their ownership in the
company during the ____ stage -correct answer --
>>exit plan
The five elements of the design thinking process are ____
-correct answer -->>empathize, define, ideate,
prototype , and test
,____ allows one to see and experience a customer's
perspective -correct answer -->>Empathy
The design team creates multiple inexpensive versions of
a product, known as ____ -correct answer --
>>Minimum Viable Products
Name benefits of a franchise -correct answer -->>less
risk involved, tested operational processes, or recognized
brands
No ownership, no US federal taxes -correct answer --
>>Non-profit
Best for international business even with being double-
taxed -correct answer -->>C corporation
Easy to create but comes with unlimited liability -correct
answer -->>Sole proprietorship
Lower tax rate that prevents the company from being
double-taxed -correct answer -->>S corporation
Ideal for a single owner seeking low risk -correct
answer -->>LLC (limited liability company)
, Shared financial backing -correct answer --
>>Partnership
Creates the company -correct answer -->>Founder
Oversees company finances -correct answer -->>CFO
Owns stock in the company -correct answer --
>>Stockholder
Reports to the board of directors -correct answer --
>>CEO
Oversees daily operational and administrative functions
Stakeholder Has a vested interest in the success of the
company -correct answer -->>COO
Has a vested interest in the success of the company -
correct answer -->>Stakeholder
Non-cash compensation -correct answer -->>Equity
Set rate of pay for hours worked -correct answer --
>>Hourly
Usually found in sales roles -correct answer --
>>Commission
