Small Business Types and Opportunities: ESB Review

Which type of transaction is it when a phone repair shop fixes a screen for a customer?

• Business-to-business transaction

• Business-to-consumer transaction

• Consumer-to-consumer transaction

• Government-to-business transaction

What is a main benefit of buying a franchise?

• Create your own rules and brand

• Recognized brand and proven model

• Lowest upfront costs and no royalties

• Access to pre-existing customers only

Which type of business opportunity gives you full control but comes with higher risk?

• Start your own business

• Buy a franchise

• Form a business partnership

• Buy an existing business

Which type of business is easy for one person to start but makes the owner fully responsible for all debts?

• General partnership with shared limited liability

• Nonprofit corporation without federal tax payments

• C corporation with limited shareholder liability

• Sole proprietorship with full personal liability

Which business structure offers limited liability and avoids double taxation for a small, domestic company?

• Nonprofit corporation with no owners

• General partnership with dissolution risk

• C corporation with double taxation

• S corporation with pass-through taxation

Two people start a general partnership. If one partner dies, what usually happens to the partnership?

• The corporation continues unchanged

• The partnership dissolves automatically

• The nonprofit transfers ownership

• The LLC converts to a sole proprietorship

Which executive is mainly responsible for a company’s finances and budgeting?

• Chief Marketing Officer (CMO)

• Chief Financial Officer (CFO)

• Chief Executive Officer (CEO)

• Chief Operations Officer (COO)

Which group cares about a company’s success but might not own its shares?

• Founders of the business

• Stakeholders in the organization

• Stockholders of the company

• Bondholders of the firm

At which stage is a business financially stable and growing steadily?

• Stage 5 – Resource maturity

• Stage 2 – Survival phase

• Stage 7 – Exit plan stage

• Stage 3 – Success stage

Which step is about understanding users’ experiences and needs without bias?

• Build a basic product to experiment

• Empathize with users and learn perspectives

• Generate multiple solution ideas rapidly

• Define the problem clearly and precisely