ESB certification vocabulary Questions And Answers Graded A+

Break Even Formula - To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit - Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin. Driving Sales - the largest automotive marketing resource and car dealer social network, providing industry best practices and more Inventory Loan - The loan is collateralized by the inventory it is used to purchase. Operating Loan - (also called a line of credit) is a short-term, flexible loan that a business can use as needed to borrow up to a pre-set amount of money.To ensure it will be repaid, the bank will often include a claim on the company's inventory and accounts receivable as part of the loan agreement. Tenacious - tending to keep a firm hold of something; clinging or adhering closely Competency - a set of particular abilities and knowledge that sets a company apart from its competitors. Non-Profit Organization - organization is a group organized for purposes other than generating profit and in which no part of the organization's income is distributed to its members, directors, or officers. Storefront - Store exterior which reflects on the image of the business Tax Liability - the total amount of tax debt owed by an individual, corporation, or other entity to a taxing authority like the Internal Revenue Service (IRS). Demographic - the collection and analysis of broad characteristics about groups of people and populations. Behavioral - divides consumers according to behavior patterns as they interact with a company Psychographic - the qualitative methodology of studying consumers based on psychological characteristics and traits such as values, desires, goals, interests, and lifestyle choices. Geographic - when a business divides its market on the basis of geography. Angel Investors - Private Investors who fund start up businesses IPO - initial public offering. ESPO - Eastern Shires Purchasing Organisation Management Buyout - a leveraged buyout in which the firm's top managers become significant shareholders in the acquired firm. Patent - Gives the holder the sole right to make, use or sell an invention for a set period of time, preventing others from using it without permission Copyright - Gives someone the exclusive right to publish, produce, sell, or distribute works of literature, music, art, and software Trademark - A word, symbol, or design, or a combination of these, used to distinguish one company's goods or services from others Invention - A product or process that does something that has never been done before Intellectual Property Rights - Something that comes from a person mind such as an idea invention or process Variable Costs - Expense that can go up and down during the budget period Fixed Costs - costs that remain the same regardless of level of production or services offered Harvesting - The process used by entrepreneurs and investors to reap the value of their investment in a business when they leave it. Outsourcing - where a company contracts with a third party to do some of the company's work on its behalf. Chamber of Commerce - nonprofit organization of local businesses formed to promote their interests Zoning Variance - an exception to a zoning ordinance that's granted on a case-by-case basis by a local government. Permit - any approvals, permits, filings, registrations, etc which the Company is required to have for legally and validly operating all its businesses, including without limitation, Business License of Corporate Legal Person, Operation Permit of Value-added