ESB Concepts 1

Which statement defines entrepreneurship?

• marketing and selling products

• setting up a business with the aim to make a profit

• acquiring leadership and managerial skills

• quickly advancing in positions within a corporation

You have been asked to classify several businesses as either B2B or B2C.

Groups:

(a) B2B

,

(b) B2C

• corporate training provider

• local coffee shop

• pet grooming service

• mobile car wash

• home cleaning service

• motorcycle repair shop

• industrial equipment manufacturer

• commercial real estate agency

• business consulting services

• wholesale flooring distributer

• chain of local grocery stores

• bulk office supply distributor

• purchases requiring a tax exemption certificate

• IT services for enterprises

• fitness center

• online clothing retailer

You need to create a legal structure for your small business. You would like some of the benefits enjoyed by large corporations, but you do not want to be taxed twice. You have 4 partners who will be shareholders. None of you plan to sell your ownership shares to the public, but do want to be protected from business liabilities. Which legal structure should you set up?

• Sole Proprietorship

• C-Corporation

• Limited Liability Company

• S-Corporation

Answer explanation

S-Corp is better for small businesses.

100 shareholders maximum. All must be US citizens.

Shareholders are not personally responsible for business liabilities

Taxed once-only the shareholders pay on profits received.

For each role and responsibility for a business, categorize the role or responsibility as belonging to either a founder or a stakeholder.

Groups:

(a) Founder

,

(b) Stakeholder

• starts a company around an idea

• can include both customers and employees

• part of company activities, including decision making

• the main driver for a vision of a startup

An example of​ (a)   compensation, is paying field laborers for the amount of fruit they pick.

• piece work
• salary
• commission
• hourly

A(n)​ (a)   employee receives a set amount of pay each month without overtime compensation for extra hours worked.

• salary
• hourly
• commission
• piece rate

Employees most affected by minimum wage laws are compensated​ ​ (a)  

• hourly
• salaried
• commission-based
• interns

An employee who is paid a percentage of a sale is paid by ​ (a)   .

• commission
• salary
• hourly wage
• bonus

Reorder the following

• Existence

• Survival of the Fittest

• Success

• Takeoff

• Maturity

Match each element of the Design Thinking Process to its description.

• Define

• State your users' needs and problems

• Prototype

• Create Solutions

• Ideate

• Research your users' needs

• Empathize

• Challenge assumptions and Create ideas

• Test

• Try your solutions