ESB Training - Domain 1

Entrepreneurship & Small Business V.2
Domain 1 – Entrepreneurial and Small Business Concepts

Domain 1 –
Lesson 1

Entrepreneurship and Small Business
Ownership

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Management:
CEO

• Highest ranked

• Responsible for business’s

success

• Makes major decisions for

the company

• Oversees operations and

resources

• Develops the company’s

vision, strategy, and mission

• Reports to the Board of

Directors

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Management:

COO

Oversees the business’s day-to-

day operations and

administrative functions

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Management:
CFO

• In charge of the company’s finances

• Manages and plans cash flow

• Creates budgets

• Forecasts whether the company will meet the set budget requirements or not

• Negotiates all financial matters

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Multiple Choice

What is the primary responsibility of a Chief Financial Officer (CFO)?

• Overseeing daily operations

• Developing company vision and strategy

• Managing the company’s finances

• Reporting to the board of directors

Multiple Choice

The highest ranked officer of a company or corporation is called ___.

• COO

• CFO

• CTE

• CEO

Multiple Choice

The officer who oversees the business’s day-to-day operations and administrative functions is called ___.

• COO

• CFO

• CTE

• CEO

Compensation

• Equity: Non-cash

compensation

• Hourly: Set rate of pay for

hours worked

• Commission: Usually found

in sales roles

• Salary: Set amount of pay in

a given period

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Match

Match the definition with each term.

• Equity

• Hourly

• Commission

• Salary

Ownership or non-cash compensation 

Set rate of pay for hours worked  

Usually found in sales roles  

Set amount of pay in a given period 

• Ownership or non-cash compensation 

• Set rate of pay for hours worked  

• Usually found in sales roles  

• Set amount of pay in a given period 

Multiple Choice

Which compensation method is typically used in sales roles?

• Salary

• Equity

• Hourly

• Commission

Employee Roles

Founder: Creates the company.

CFO: Oversees company finances.

Stockholder: Owns stock in the company

CEO: Reports to the board of directors.

COO: Oversees daily operational and administrative functions.

Stakeholder: Has a
vested interest in the success of the company

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Business
Life Cycle

• The first stage is existence, when a business

begins.

• Survival stage: income and customers begin

to grow.

• Success stage: economically healthy

• Take-off stage: an owner decides whether to

continue growing the business or to sell the
business.

• Resource maturity stage: the owner can

separate financially and operationally from a
business.

• Pivot or persist is next as an owner decides if

they will continue to grow the business into a
large company or pivot to a new project.

• Finally, an owner may choose to sell their

company in the exit plan stage.

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Match

Match each stage of the business cycle with its description.

• Existence

• Success

• Exit Plan

• Survival

The first stage of the business cycle.

The business is economically healthy.

Owner may choose to sell their company.

Income and customers begin to grow.

• The first stage of the business cycle.

• The business is economically healthy.

• Owner may choose to sell their company.

• Income and customers begin to grow.

Multiple Choice

Which stage of the business life cycle involves deciding whether to continue growing the business or sell it?

• Survival stage

• Take-off stage

• Success stage

• Resource maturity stage

Design Thinking Process

• Empathize: Identify needs of customer

• Define: Identify & define problems

• Ideate: Create solutions

• Prototype:

• and Test.

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Reorder

Reorder the following steps to the Design Thinking Process.

• Empathize

• Define

• Ideate

• Prototype

• Test

1

2

3

4

5

• 1
• 2
• 3
• 4
• 5

Domain 1
Lesson 2

Skills of a Successful Entrepreneur, Potential
Business Opportunities, Business Plan
Elements, and Intellectual Property Concepts

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Characteristics

of an

Entrepreneur

Self-reliance: Trusting one’s self, goals, and progress

Forward thinking: Thinking about and planning for the
future

Opportunity recognition: The way one approaches new
ideas and ventures

Initiative: Turning one’s ideas into action or bringing
new ideas to generate more or better business

Resiliency: Adapting to change, loss and disappointment

Grit: Tackling goals with courage and perseverance,
even when it’s challenging

Risk tolerance: The amount of loss one is willing to take
when making investment decisions

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Match

Match the characteristics of an entrepreneur with its definition.

• Forward thinking

• Initiative

• Grit

• Resilience

• Risk Tolerance

Thinking about & planning for the future

Turning one’s ideas into action.

Tackling goals with courage& persevere.

Adapting to change, loss and disappoint

Amount of loss one is willing to take.

• Thinking about & planning for the future

• Turning one’s ideas into action.

• Tackling goals with courage& persevere.

• Adapting to change, loss and disappoint

• Amount of loss one is willing to take.

Characteristics

of an

Entrepreneur

Growth mindset: Believe that anything can be accomplished
with enough hard work

Critical Thinking: Solving problems using a variety of possible
solutions

Creativity &Innovation: Bringing new and unconventional
ideas

Collaboration: Working with others towards a common goal

Problem solving: Coming up with solutions

Personal Agency: Working towards a goal without direction or
push by others

Ethical Practices: Making decisions based on doing the right
thing

Social Responsibilities: Preventing or removing corruption or
unethical behavior from a business or community

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Multiple Choice

_______ is believing that anything can be accomplished with enough hard work.

• Social Responsibilities

• Personal Agency

• Growth mindset

• Collaboration

Multiple Choice

_______ is working towards a goal without direction or push by others.

• Social Responsibilities

• Personal Agency

• Growth mindset

• Collaboration

Business Opportunity

• An investment that lets a buyer start a business

• Selling and leasing a product, service, or piece of

equipment that allows the buyer to start a business

• Initial buyer fee is at least $500

• Seller is required to help the buyer find an ideal

location for the business

• Seller guarantees that the income is equal to or more

than the buyer’s price when the product is resold

• If the product cannot be resold, the original seller

agrees to buy the product back

• The buyer agrees to buy any products or services that

the seller develops

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Franchise

• Strict stipulations on where a franchise can be opened

• Higher start-up costs

• Offer ongoing support and training

• Lower risk to start

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Buyers agree to buy and sell the products developed by the seller or owner of the franchise

Network
Marketing

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Network marketers recruit other
marketers who work under them
to create a distribution network

Make money off commissions

Distributors agree to sell
products or services another
company sells

Mary Kay, Tupperware & Otara

Licensing

MUST PAY A FEE OR ROYALTY TO USE THE

BRAND OR TRADEMARK OF ANOTHER

COMPANY ON YOUR PRODUCT

USING A DISNEY CHARACTER ON CLOTHING

YOU WANT TO SELL

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Multiple Choice

_______________________ is a model where a business owner grants another individual or company the right to use their established brand, business model, and systems to operate a business.

• Sole Proprietorship

• Network Marketing

• Licensing

• Franchise

Multiple Choice

_______________________ a business model where independent representatives sell products and earn commissions on their sales, as well as on the sales of people they recruit into their network.

• Sole Proprietorship

• Network Marketing

• Licensing

• Franchise

Multiple Choice

_______________________ a legal arrangement where a company grants another company the right to use its intellectual property, such as a brand name, trademark, patent, or copyrighted material, in exchange for royalties

or other fees.

• Sole Proprietorship

• Network Marketing

• Licensing

• Franchise

Common Risks

• Environmental

• Political

• Competition from similar businesses.

Entrepreneurs should work proactively to overcome
these risks.

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Viability

Market size: researches the demand for
products or services - is there enough
demand

Relationships: building relationships
with experienced professionals - may
help to find investors

Managing cash flow involves potential
funding and uses of that funding

Management skillset: analyzes the
skills of the employees

Passion: can help an entrepreneur
make up for a lack of skills

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refers to a company's ability to sustain its operations and generate profits over a long period of time.

Business Plan

It outlines goals and shows investors
how their investments will help
achieve them.

• Includes an executive summary,

• a marketing plan,

• an organizational structure,

• and a financial plan.

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Drag and Drop

A business plan Includes an ​

Placeholder

summary, a ​

Placeholder

plan, an ​

Placeholder

structure, and a ​

Placeholder

plan.

Drag these tiles and drop them in the correct blank above

executive

marketing

organizational

financial

lesson

Pitch Deck

A pitch deck is typically presented
to investors as a slideshow.

Brief overview of the business plan

• Outlines the business,

• what funding is needed,

• and financial projections.

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Lean Canvas

Covers problems, solutions,
and key details of a
business plan.

A one-
page document.

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Lean
Canvas

Problem: Discuss what problem the
products or services solve

Vision and value proposition: A brief
overview of a business company’s mission
and the value provided to its customers

Team: Highlight key team members, skills,
expertise and experience

Milestones: The traction the company has
gained, such as crowdfunding

Business model: How a business works,
how it makes money, and its marketing
strategies

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Multiple Choice

A brief overview of a business company’s mission and the value provided to its customers is called _____________.

• Problem

• Milestones

• Vision and value proposition

• Business model

Multiple Choice

How a business works, how it makes money, and its marketing strategies is called _____________.

• Problem

• Milestones

• Vision and value proposition

• Business model

Multiple Choice

How a business works, how it makes money, and its marketing strategies is called _____________.

• Problem

• Milestones

• Vision and value proposition

• Business model

Multiple Choice

What does the term, traction, means in business when referring to milestones?

• Traction means the number of employees hired in a year.
• Traction in business refers to measurable progress in gaining customers or market share.
• Traction in business indicates a decrease in customer engagement.
• Traction refers to the total revenue generated in a quarter.

Copyright protects creative
works such as art, literature,
and music

Patent protects an invention
from being copied.

Trademark protects brand
names, logos, and business
names.

Trade Secret protects a
company’s practice, process,
or formula from being
shared with competitors.

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Intellectual Property

Multiple Choice

Protects an invention from being copied.

• Trademark
• Copyright
• Trade Secret
• Patent

Multiple Choice

Protects creative works such as art, literature, and music.

• trade secret

• patent
• copyright
• trademark

Multiple Choice

Protects brand names, logos, and business names.

• patent
• trade secret
• copyright
• trademark

Trademarked material is usually well
recognized and may boost sales but
requires permission to be used.

An entrepreneur can sign a licensing
agreement and pay a licensing fee to
use trademarked material.

To use a patent, the owner assigns
ownership of the patent to another,
allowing them to use and sell the
invention. Royalty fees are then paid
to the original patent owner.

To protect trade secrets, an employee
will sign confidentiality or non-
disclosure agreements.

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Intellectual Property