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

• pet grooming service

• purchases requiring a tax exemption certificate

• IT services for enterprises

• online clothing retailer

• bulk office supply distributor

• industrial equipment manufacturer

• commercial real estate agency

• fitness center

• home cleaning service

• business consulting services

• mobile car wash

• corporate training provider

• motorcycle repair shop

• wholesale flooring distributer

• local coffee shop

• chain of local grocery stores

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

• can include both customers and employees

• the main driver for a vision of a startup

• starts a company around an idea

• part of company activities, including decision making

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

• Takeoff

• Survival of the Fittest

• Maturity

• Existence

• Success

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

• Test

• Research your users' needs

• Empathize

• State your users' needs and problems

• Define

• Create Solutions

• Prototype

• Try your solutions

• Ideate

• Challenge assumptions and Create ideas