ESB Practice Test 1

What is Entrepreneurship?

• Quickly advancing in positions within a corporation.

• Acquiring leadership and managerial skills.

• Marketing and selling products.

• Setting up a business with the aim to make a profit.

Which is a true statement about an S-Corporation?

• Unlimited shareholders are allowed.

• Shareholders are not personally responsible for business liabilities.

• The owner is personally responsible for business liabilities.

• Unlimited owners are allowed.

Which business structure has only one owner?

• S-Corporation

• C-Corporation

• Sole Proprietorship

• Limited Liability Company (LLC)

What is the first stage of the business cycle?

• Existence

• Survival of the fittest

• Success

• Maturity

During the Design Thinking Process, which element has you state your users' needs and problems?

• Empathize

• Define

• Challenge Assumptions and Create Ideas

• Try your solutions

In general, which two characteristics define a "small" business?

• No more than $200,000 in sales

• Non-profit

• S-Corporation

• Fewer than 1,500 employees

Which business management role is the highest-ranking employee in the company?

• CFO

• CEO

• CIO

• COO

Which business management role is the one that creates budgets, analyzes financial data, and forecasts company profits?

• CEO

• CFO

• CIO

• COO

Which business management role is the one that oversees the day-to-day administrative functions of a business?

• CEO

• CFO

• CIO

• COO

What are three disadvantages of selling physical products?

• Needing employees to track the supply

• Shipping and packaging costs

• Needing storage space

• Physical products tend to have a lower value