ESB Test 3 || A+ Verified Solutions.
The owner of a mobile food truck plans to sell tacos , hamburgers, and other foods to employees
in a large office complex . Before opening his business , the owner will most likely need to
obtain which of the following documents from each employee to verify they have completed a
course in food handling safety? correct answers certificate
The owner of a pet supply store wants to expand her business and by boarding animals. She has
designed plans to add a 30^ prime *60^ prime kennel onto the back of her retail buildingShe has
checked the zoning and discovered a kennel would be allowed on her property What will she
need to obtain before adding the kennel? correct answers permit
A sprinkler system company opens a new location in a suburb that has endured a long history of
poorly installed water and irrigation systems. What would be the most effective way for this
company to gain the trust of the neighborhood ? correct answers advertise a 72-hour rapid
response time for all repairs
The owner of a gas station on one side of town wants to retire and offers to sell the station to a
competitor located on the other side of town. The competitor agrees to cash out the seller, merge
the two businesses, and continue operating both locations. This is an example of which exit
strategy? correct answers harvesting
Meredith is starting a cleaning business with a 3-year loan of $10,000, at a 5% compound annual
interest rate. Assuming the loan is not paid back in full until the end of the 3-year term, how
much will she owe at the end of her loan? correct answers $11,576.25
An individual starts a babysitting business with a loan of $1,000. The loan is for 2 years at a
5COMPOUND interest rate. How much will the individual owe by the end of the loan assuming
nothing is paid until the end of the 2 year term (future value of loan)? correct answers $1,102.5
A welding shop owner rents space in a building and needs a \$5,000 in supplies to complete a
large project for a new customer. The bank has turned down a personal loan request. The
welding shop owner does not want to share ownership of the business by selling equity shares to
raise the funds needed for these supplies. What is the most practical source of funding for the
materials needed to complete this customers job ? correct answers Asking for an advance
payment from the customer whose large order is the reason the materials are needed
A retiring hardware shop owner offers to sell his store to a competitor located on the south end of
town. The competitor agrees to cash out the seller, merge the two businesses , and continue
operating both locations. Which exit strategy is this an example of ? correct answers harvesting
Businesses accept many forms of payment in exchange for goods and services. Match the form
of payment with its definition. correct answers cash - Government backed currency
line of credit - A loan to purchase now and pay later
check - payable note used by account owner to pay debt
debit card - electronic deduction from existing account
, Which two groups benefit most from a well-written business plan? (Choose two correct answers
investors
business owner
An entrepreneur wants to become the sole proprietor of a sandwich shop. She has no experience
operating a retail business, but has great recipes for unique sandwiches and has tested her recipes
with friends and relatives who claim they are fabulous! She applies for a business loan from a
bank. The bank has a standard 40\% debt ratio. The entrepreneur estimates her expenses will be
$4,000 per month. She estimates the sandwich shop will have an income of $8,000 per month.
Based on the estimates provided by the entrepreneur, will the bank approve her loan? correct
answers no, because her debt ratio is too high
Identify the agency that solely focuses on uniting mentors with business owners to offer them
free advice on how to operate their business. correct answers SBA
What is the primary advantage of the General Partnership versus a Sole Proprietorship? correct
answers more than one person is responsible for financial backing
A beekeeper wants to start a seasonal business renting hives to farmers to pollinate their orchards
and crops. The beekeeper believes the business will cover its own costs after three months , and
that start-up expenses for hives, trucking , and other costs through that time will be $18,000. The
beekeeper has raised some of the money and asks a bank to loan the remaining start up capital
needed. The bank asks the beekeeper to complete a form with the following information: A.
Estimated Start -Up Expenditures : B. Contingency Amount (10% of A): C. Start-Up Capital (A
+ B) : D. Required Cash Reserve (50% of C): E. Total Financing Required (C + D) : What is
Total Financing Required by the beekeeper? correct answers 29,700
identify why maintaining strong ethics practices for a business is a good idea from a legal
standpoint correct answers to avoid potential lawsuits
A new business owner needs some advice and mentoring about operating her business Where
should she go for help? correct answers SCORE
Heinrich lives in a county of spread-out rural communities. For one community located on the
county line, he realized residents there must endure a 90- minute round-trip commute to the
nearest grocery store. He thinks he could serve their needs by opening a country store there, and
notices a real estate listing for an old residence that might be the perfect site. Which of the
following will he need to obtain before proceeding? correct answers variance
Marcus runs a business designing large outdoor fountains . A new client has requested a project
that would require $6,500 to produce . Even though his loan request was rejected by the bank, he
still wishes to be the sole business owner and does not want to sell shares to raise capital for the
project. He also does not want to lose this new customer . What would be the ideal route to
pursue these funds ? correct answers request an advance payment from the customer
The owner of a mobile food truck plans to sell tacos , hamburgers, and other foods to employees
in a large office complex . Before opening his business , the owner will most likely need to
obtain which of the following documents from each employee to verify they have completed a
course in food handling safety? correct answers certificate
The owner of a pet supply store wants to expand her business and by boarding animals. She has
designed plans to add a 30^ prime *60^ prime kennel onto the back of her retail buildingShe has
checked the zoning and discovered a kennel would be allowed on her property What will she
need to obtain before adding the kennel? correct answers permit
A sprinkler system company opens a new location in a suburb that has endured a long history of
poorly installed water and irrigation systems. What would be the most effective way for this
company to gain the trust of the neighborhood ? correct answers advertise a 72-hour rapid
response time for all repairs
The owner of a gas station on one side of town wants to retire and offers to sell the station to a
competitor located on the other side of town. The competitor agrees to cash out the seller, merge
the two businesses, and continue operating both locations. This is an example of which exit
strategy? correct answers harvesting
Meredith is starting a cleaning business with a 3-year loan of $10,000, at a 5% compound annual
interest rate. Assuming the loan is not paid back in full until the end of the 3-year term, how
much will she owe at the end of her loan? correct answers $11,576.25
An individual starts a babysitting business with a loan of $1,000. The loan is for 2 years at a
5COMPOUND interest rate. How much will the individual owe by the end of the loan assuming
nothing is paid until the end of the 2 year term (future value of loan)? correct answers $1,102.5
A welding shop owner rents space in a building and needs a \$5,000 in supplies to complete a
large project for a new customer. The bank has turned down a personal loan request. The
welding shop owner does not want to share ownership of the business by selling equity shares to
raise the funds needed for these supplies. What is the most practical source of funding for the
materials needed to complete this customers job ? correct answers Asking for an advance
payment from the customer whose large order is the reason the materials are needed
A retiring hardware shop owner offers to sell his store to a competitor located on the south end of
town. The competitor agrees to cash out the seller, merge the two businesses , and continue
operating both locations. Which exit strategy is this an example of ? correct answers harvesting
Businesses accept many forms of payment in exchange for goods and services. Match the form
of payment with its definition. correct answers cash - Government backed currency
line of credit - A loan to purchase now and pay later
check - payable note used by account owner to pay debt
debit card - electronic deduction from existing account
, Which two groups benefit most from a well-written business plan? (Choose two correct answers
investors
business owner
An entrepreneur wants to become the sole proprietor of a sandwich shop. She has no experience
operating a retail business, but has great recipes for unique sandwiches and has tested her recipes
with friends and relatives who claim they are fabulous! She applies for a business loan from a
bank. The bank has a standard 40\% debt ratio. The entrepreneur estimates her expenses will be
$4,000 per month. She estimates the sandwich shop will have an income of $8,000 per month.
Based on the estimates provided by the entrepreneur, will the bank approve her loan? correct
answers no, because her debt ratio is too high
Identify the agency that solely focuses on uniting mentors with business owners to offer them
free advice on how to operate their business. correct answers SBA
What is the primary advantage of the General Partnership versus a Sole Proprietorship? correct
answers more than one person is responsible for financial backing
A beekeeper wants to start a seasonal business renting hives to farmers to pollinate their orchards
and crops. The beekeeper believes the business will cover its own costs after three months , and
that start-up expenses for hives, trucking , and other costs through that time will be $18,000. The
beekeeper has raised some of the money and asks a bank to loan the remaining start up capital
needed. The bank asks the beekeeper to complete a form with the following information: A.
Estimated Start -Up Expenditures : B. Contingency Amount (10% of A): C. Start-Up Capital (A
+ B) : D. Required Cash Reserve (50% of C): E. Total Financing Required (C + D) : What is
Total Financing Required by the beekeeper? correct answers 29,700
identify why maintaining strong ethics practices for a business is a good idea from a legal
standpoint correct answers to avoid potential lawsuits
A new business owner needs some advice and mentoring about operating her business Where
should she go for help? correct answers SCORE
Heinrich lives in a county of spread-out rural communities. For one community located on the
county line, he realized residents there must endure a 90- minute round-trip commute to the
nearest grocery store. He thinks he could serve their needs by opening a country store there, and
notices a real estate listing for an old residence that might be the perfect site. Which of the
following will he need to obtain before proceeding? correct answers variance
Marcus runs a business designing large outdoor fountains . A new client has requested a project
that would require $6,500 to produce . Even though his loan request was rejected by the bank, he
still wishes to be the sole business owner and does not want to sell shares to raise capital for the
project. He also does not want to lose this new customer . What would be the ideal route to
pursue these funds ? correct answers request an advance payment from the customer
