Venture Vocabulary Worksheet
ESB Certification Prep • Domain 1
Venture Vocabulary Worksheet
Domain 1: The Entrepreneur, Opportunity Recognition, Entities & Design Thinking
Page 1 Score
______ / 12 pts
Student Name:
Date:
Period:
1
Design Thinking & Product Development
Fill in the blank (6 pts)
Word Bank: Design Thinking Empathize Define Ideate Prototype Test
1. An iterative, human-centered problem-solving methodology used to solve complex user needs and discover commercial opportunities.
Term:
2. Researching, shadowing, and observing consumers to gain deep personal understanding of their experiences and emotional frustrations.
Term:
3. Synthesizing customer observations into a clear, actionable problem statement focusing on unmet user needs.
Term:
4. Generating a broad, unrestricted volume of creative concepts, solutions, and potential product angles without early evaluation.
Term:
5. Constructing quick, low-cost physical mockups or wireframes to tangibly demonstrate and evaluate ideas.
Term:
6. Presenting the product mockup to authentic end users to observe reactions, gather critique, and iterate the design.
Term:
2
Business Structures & Legal Entities
Matching Practice (6 pts)
Match each legal business structure with its official ESB certification definition. Write the correct letter (A-F) in each box.
7. Sole Proprietorship
8. Franchise
9. LLC (Limited Liability Co.)
10. S Corporation
11. C Corporation
12. Non-profit
A. An entity operating exclusively for public, charitable, or educational purposes; reinvests all surplus funds and enjoys federal tax exemption.
B. An unincorporated enterprise owned by one individual who assumes complete, unlimited personal liability for business obligations and debts.
C. A legal entity separate from its owners, subject to double taxation, but capable of issuing unlimited shares and classes of public stock.
D. A hybrid entity providing personal liability protection while maintaining single pass-through taxation for members.
E. A corporation restricted to 100 or fewer domestic individual shareholders that avoids corporate-level taxation through pass-through profits.
F. A legal license allowing an independent operator to sell established goods/services under an existing brand system, trademark, and operating guidelines.
ESB Certification Study Series • Domain 1 Page 1 of 2 • Continue to Page 2 →
ESB Domain 1 Review • Page 2
Vocabulary Matching: Roles, Offerings, Compensation & Strategy
Page 2 Score
______ / 22 pts
3
Organizational Roles & Governance Matching (7 pts)
Write letter A–G in each box
13. Founder
14. CEO
15. CFO
16. COO
17. Employee
18. Stockholder
19. Stakeholder
A. Chief Financial Officer; oversees financial planning, budgets, cash flow, and fiscal reporting.
B. The visionary person who creates, launches, and registers a brand new business venture.
C. Any party affected by corporate decisions, including local neighbors, suppliers, and patrons.
D. Chief Executive Officer; highest ranking executive accountable for overall corporate strategy.
E. An individual hired under contract to complete operational tasks in return for wages or salary.
F. An investor or entity legally holding fractional shares of corporate stock.
G. Chief Operating Officer; directs internal daily workflow, administrative operations, and production.
4
Business Offerings (4 pts)
Match A–D
20. Products
21. Physical Products
22. Digital Goods
23. Services
A. Intangible labor, specialized expertise, or tasks performed for a client.
B. Tangible goods requiring inventory, storage, packaging, and shipping.
C. Broad term for any tangible item or intangible asset sold to satisfy market need.
D. Electronic files or software delivered over the web with zero physical freight cost.
5
Compensation Models (5 pts)
Match A–E
24. Salary
25. Hourly
26. Piece Work
27. Commission
28. Equity
A. Payment strictly calculated per unit of output or merchandise produced.
B. Fixed annual compensation disbursed in equal amounts regardless of hours.
C. Variable sales incentive paid as an agreed percentage of revenue closed.
D. Wages calculated by multiplying an hourly rate by total hours logged.
E. Non-cash compensation awarding shares or partial ownership in the company.
6
Venture Strategy & Capital Matching (6 pts)
Write letter A–F in each box
29. Business Plan
30. Target Market
31. Value Proposition
32. Angel Investor
33. Crowdfunding
34. Opportunity Recognition
A. An affluent individual providing personal seed funds to an early-stage startup in return for equity.
B. The process where entrepreneurs spot underserved consumer pain points that can form viable ventures.
C. A comprehensive document outlining venture goals, marketing strategy, operations, and financials.
D. A clear statement explaining the unique benefits and problem-solving edge a business gives customers.
E. Raising small amounts of capital from a large public audience via online platforms (e.g., Kickstarter).
F. The defined segment of consumers most likely to purchase a company's offerings.
ESB Certification Study Series • Domain 1 Total Worksheet Score: ______ / 34 pts • End of Worksheet
Venture Vocabulary Answer Key
Teacher Resource • Answer Key ESB Domain 1
Venture Vocabulary Answer Key
Domain 1: The Entrepreneur, Opportunity Recognition, Entities & Design Thinking
Scoring Reference
Total: 34 Points
Standards: Certiport ESB Domain 1.1 - 1.5 Passing: 24/34 (70%) • Proficient: 28/34 (82%) • Mastery: 31/34 (91%)
1
Design Thinking & Product Development (6 pts)
1 pt each
1. An iterative, human-centered problem-solving methodology used to solve complex user needs...
Correct: Design Thinking
2. Researching, shadowing, and observing consumers to gain deep personal understanding...
Correct: Empathize
3. Synthesizing customer observations into a clear, actionable problem statement...
Correct: Define
4. Generating a broad, unrestricted volume of creative concepts, solutions, and potential angles...
Correct: Ideate
5. Constructing quick, low-cost physical mockups or wireframes to tangibly demonstrate ideas...
Correct: Prototype
6. Presenting the product mockup to authentic end users to observe reactions and iterate...
Correct: Test
Teaching Tip: Remind students that Design Thinking is non-linear; user feedback during testing regularly loops back to empathizing or re-defining.
2
Business Structures & Legal Entities Matching (6 pts)
1 pt each
B 7. Sole Proprietorship
F 8. Franchise
D 9. LLC (Limited Liability Co.)
E 10. S Corporation
C 11. C Corporation
A 12. Non-profit
B (7): Unlimited Liability: The owner's personal savings and assets can be seized for debt.
F (8): Turnkey System: Franchisee pays fees/royalties in exchange for brand trademark and procedures.
D (9): Hybrid Shield: Owners (members) enjoy corporate liability shield plus partnership pass-through taxation.
E (10): Pass-Through Corp: Max 100 domestic shareholders; single tax level.
C (11): Double Taxation: Taxed at corporate entity level, then dividends taxed on individual shareholder returns.
A (12): 501(c)(3): No private shareholders; surplus revenue must support the charitable mission.
