ESB v2 Certification Exam Review – Entrepreneurship and Small Business Certification Guide
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.
B2B - (ANSWER)commercial transaction between businesses.
B2C - (ANSWER)commercial transaction between a business and a customer
Balance Sheet - (ANSWER)A financial statement that reports assets, liabilities, and owner's equity on a
specific date.
Bootstrapping - (ANSWER)starting a business without external help or capital
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.
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 a business.
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)Person who oversees a business's operations and resources and makes the major
decisions for the company.
CFO - (ANSWER)Person who oversees a company's finances.
, ESB v2 Certification Exam Review – Entrepreneurship and Small Business Certification Guide
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.
COO - (ANSWER)A person who is responsible for overseeing the day-to-day administrative and
operational functions of a business.
Copyright - (ANSWER)A form of protection individuals can implement to protect their intellectual
property; designated for print, music, film, and various other forms of creative licenses.
Crowdfunding - (ANSWER)The method of sharing a start-up business online to pre-sell products.
Customer - (ANSWER)An individual or business that purchases goods and services from a business.
Customer Acquisition Cost - (ANSWER)The total cost of acquiring a new customer.
Customer Retention Cost - (ANSWER)The total cost to retain existing customers.
Demographic Segmentation - (ANSWER)dividing the market into segments based on variables such as
age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
Distribution Channel - (ANSWER)A method used to get a product from the manufacturer to the end-
users.
Employee - (ANSWER)An individual hired by a company and compensated for their work.
Entrepreneur - (ANSWER)An individual who aspires to start and run a successful 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.
B2B - (ANSWER)commercial transaction between businesses.
B2C - (ANSWER)commercial transaction between a business and a customer
Balance Sheet - (ANSWER)A financial statement that reports assets, liabilities, and owner's equity on a
specific date.
Bootstrapping - (ANSWER)starting a business without external help or capital
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.
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 a business.
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)Person who oversees a business's operations and resources and makes the major
decisions for the company.
CFO - (ANSWER)Person who oversees a company's finances.
, ESB v2 Certification Exam Review – Entrepreneurship and Small Business Certification Guide
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.
COO - (ANSWER)A person who is responsible for overseeing the day-to-day administrative and
operational functions of a business.
Copyright - (ANSWER)A form of protection individuals can implement to protect their intellectual
property; designated for print, music, film, and various other forms of creative licenses.
Crowdfunding - (ANSWER)The method of sharing a start-up business online to pre-sell products.
Customer - (ANSWER)An individual or business that purchases goods and services from a business.
Customer Acquisition Cost - (ANSWER)The total cost of acquiring a new customer.
Customer Retention Cost - (ANSWER)The total cost to retain existing customers.
Demographic Segmentation - (ANSWER)dividing the market into segments based on variables such as
age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
Distribution Channel - (ANSWER)A method used to get a product from the manufacturer to the end-
users.
Employee - (ANSWER)An individual hired by a company and compensated for their work.
Entrepreneur - (ANSWER)An individual who aspires to start and run a successful business.
