ESB Domain 1 Prep

What is Entrepreneurship?

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

• Marketing and selling products

• Acquiring leadership and managerial skills

• Quickly advancing in positions within a corporation.

Match the following

• Limited Liability Company (LLC)

• has no ownership and pays no US federal taxes (tax-exempt status.)

• Sole Proprietorship

• • Allows the owner to pay taxes on their profits or losses through their own taxes using a personal tax rate. Ideal for a single owner seeking low risk. Popular choice for business concerned about liability protection. Unlimited owners allowed. No shareholders

• C-Corporation

• • Easy to create but comes with unlimited liability

  • Best if you need an easy set-up. One owner max. The owner is personally responsible for business liabilities. No personal protection

• Non-Profit

• Is for a for-profit corporation with a lower tax rate that prevents the company from being double taxed

• S-Corporation

• Profits are taxed when earned, then the shareholders’ dividends are taxed after they are distributed. are best for international business

An example of _______ compensation is paying field laborers for the amount of fruit they pick.

• salary

• hourly

• piece work

• commission

A ________ employee received a set amount of pay each month without overtime compensation for extra hours worked.

• piece work

• salary

• hourly

• commission

An employee who is paid a percentage of a sale is paid by _______.

• commission

• hourly

• piece work

• salary

Place the stages of the business life cycle in the correct order

• Success

• Existence

• Survival of the Fittest

• Maturity

• Take-Off

Match the following elements of the design-thinking process to its description

• state your users' needs and problems

• Prototype

• create solutions

• Empathize

• try your solutions

• Ideate

• research your users' needs

• Test

• challenge assumptions and create ideas

• Define

In general, which two characteristics define a "small" business? (CHOOSE TWO)

• fewer than 1,500 employees

• no more than $200,000 in sales

• less than $35.5 million revenue

• non-profit

• between 500 and 2,500 employees

You need to create a legal structure for your small business. You have plans for it to grow and hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and Japan. You do not want to be personally responsible for business liabilities.

Which legal structure should you set up for your business?

• Sole Proprietorship

• S-Corp

• C-Corp

• Limited Liability Company

Match the following

• CIO (Chief Informational Officer)

• Creates budgets, analyzes financial data, and forecasts company profits

• COO (Chief Operations Officer)

• Develops policies and structures to protect company data

• CEO (Chief Executive Officer)

• Oversees the day to day administrative functions of a business; 2nd in command

• CFO (Chief Financial Officer)

• The highest ranking employee in the company; reports to the board of directors