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WorksheetsESB Unit1 Review
Total questions: 50
Worksheet time: 25mins
Which characteristic best describes an entrepreneur who can recover quickly after a business failure?
Collaboration
Initiative
Risk Tolerance
Resiliency
A person who trusts their own decisions and takes responsibility for their success demonstrates:
Ethical Practices
Self-Reliance
Growth Mindset
Problem Solving
Forward-thinking entrepreneurs focus primarily on:
Avoiding risk at all costs
Short-term profits
Long-term planning and innovation
Present operations
The ability to identify new opportunities or market needs is known as:
Opportunity Recognition
Collaboration
Innovation
Initiative
Which term describes acting without being told and taking initiative in business?
Creativity
Resiliency
Initiative
Risk Tolerance
An entrepreneur who continues working toward a goal despite setbacks is showing:
Self-Reliance
Creativity
Grit
Critical Thinking
Risk tolerance refers to:
The ability to avoid taxes
The willingness to accept potential loss
The ability to avoid all risks
The willingness to borrow money only
Which mindset focuses on learning and effort rather than talent alone?
Growth Mindset
Fixed Mindset
Business Mindset
Ethical Practice
A business that sells handmade jewelry online is an example of:
B2C
Non-Profit
B2B
Franchise
Spotify is best classified as a:
Tangible Product
B2B Company
Digital Service
Physical Product
Entrepreneurs are often drawn to their career path because they can:
Control their own schedule
Avoid taxes
Work for a large corporation
Eliminate all business risk
A major drawback of entrepreneurship is:
Lack of guaranteed income
Independence
Flexible hours
Networking
Bankruptcy allows a business to:
Reorganize or discharge debts legally
Avoid paying employees
Improve reputation automatically
Increase taxes
How can an entrepreneur reduce financial risk?
Diversify products and plan ahead
Work fewer hours
Ignore market research
Avoid innovation
A small business owner typically has:
Low risk tolerance and consistent profits
High liability and no control
High risk tolerance and fast growth goals
No control over decisions
A franchise owner pays a fee to use a company’s:
Patents only
Logo, operations, and products
Personal tax ID
Stock options
Which of the following is a benefit of owning a franchise?
Proven business model
Full creative freedom
No fees required
Unlimited liability
The main goal of an entrepreneur is to:
Avoid competition
Limit innovation
Maintain small, steady profits
Rapidly grow and scale the business
The biggest difference between small business owners and entrepreneurs is:
Risk tolerance and growth goals
Ownership type
Legal status
Tax rate
Revenue refers to:
Business capital
Profit after taxes
Total income before expenses
Money borrowed for investment
C corporations experience double taxation because:
Both corporate profits and dividends are taxed
They are tax-exempt
Owners avoid paying income tax
Shareholders pay no taxes
Which legal structure allows profits to “pass through” to owners’ personal tax returns?
Non-Profit
S Corporation
C Corporation
Partnership
Which business structure combines limited liability with lower startup costs?
LLC
Sole Proprietorship
Franchise
C-Corp
Which legal structure is easiest to form but has unlimited liability?
LLC
S-Corp
Sole Proprietorship
Partnership
A non-profit organization is different from other business types because it:
Is owned by shareholders
Aims to maximize profits
Focuses on social causes and is tax-exempt
Pays taxes twice
Partnerships share which responsibility?
Record-keeping and paying taxes
Stock management
Voting on CEOs
Employee supervision only
A shareholder is:
Someone who buys company products
A government tax agent
Someone who owns stock in a corporation
A part-time employee
The U.S. corporate tax rate (as of 2024) is approximately:
35%
21%
10%
50%
Which structure is ideal for international owners?
C-Corp
LLC
Partnership
S-Corp
Limited liability means:
The company has a limited number of shareholders
Owners take full responsibility for debts
Owners’ personal assets are protected from business debts
The business pays fewer taxes
Who is responsible for setting a company’s vision and mission?
CFO
CEO
COO
Stockholder
The CFO primarily manages:
Operations and HR
Financial planning and budgets
Marketing
Public relations
The COO’s primary responsibility is:
Setting financial goals
Managing community relations
Overseeing day-to-day operations
Hiring stockholders
The founder’s role differs from other leaders because:
It cannot be replaced
It requires financial training
It is part-time
It is an elected position
Stockholders can vote to:
Remove the CEO
Manage daily operations
Appoint entry-level employees
Set product prices
Stakeholders include:
Investors, customers, and suppliers
Only the CEO and CFO
Government regulators only
Only employees
The term “chain of command” describes:
Legal liability in corporations
The hierarchy of authority in a business
The business’s product line
Payment schedule
The CEO, CFO, and COO roles are most common in:
Non-profit organizations
Large established companies
Start-ups only
Sole proprietorships
Which statement best describes employees?
They make executive decisions
They are responsible for specific tasks and follow company policies
They are investors in the company
They are volunteers
The CFO is negotiating with banks and managing cash flow. This shows which responsibility?
Vision planning
Financial management
Employee supervision
Budgeting
A signed employment contract outlines:
Compensation, schedule, and responsibilities
Job title only
Only salary
Hours only
Which type of pay is based on hours worked?
Hourly Wage
Commission
Equity
Salary
A jewelry maker paid per necklace completed is earning:
Hourly
Commission
Piecework
Salary
A salesperson earning a percentage of each sale receives:
Bonus
Salary
Piecework
Commission
Equity compensation gives employees:
Paid time off
Ownership in the company
Health benefits
Hourly bonuses
Chris receives part of his pay as company stock. What role does he also hold now?
Contractor
Shareholder
Manager
Customer
Ken earns a fixed amount per lawn and extra for fertilizer sales. His pay includes:
Hourly and overtime pay
Commission and equity
Salary and bonus
Piecework and commission
Which compensation type provides predictable income regardless of hours worked?
Commission
Salary
Hourly
Piecework
Which item would likely be listed under “benefits” in a contract?
PTO or insurance
Commission rate
Hourly pay
Overtime rate
Which of the following represents total compensation?
Only bonuses
Only base pay
Pay plus benefits and incentives
Only overtime hours
