Entrepreneurship and Small Business (ESB) V2 Certification Practice Exam

What role does Sarah perform in a company?

1. Shareholder

2. Owner

3. Employee

4. Consultant

The correct answer is: Employee

The role of an employee within a company is essential as they are the individuals who carry out specific tasks and responsibilities that drive the organization's operations and contribute to its objectives. Employees typically work under the guidance of management and may have defined roles that involve collaborating with others, fulfilling job duties, and adhering to company policies. In the context of the other roles, a shareholder holds ownership shares in a company but may not be involved in daily operations. An owner has a significant stake and control over a business's direction but might not be involved in day-to-day tasks. A consultant provides specialized knowledge or services to the company on a temporary basis, offering advice and solutions rather than performing routine operational roles like an employee would. Therefore, identifying Sarah as an employee reflects her involvement in the company's operational framework, executing tasks and contributing directly to the business's functioning.