ESB EXAM Study Guide best complete solutions
2025/2026
A beekeeper is analyzing the cash flow for his business for the prior year. What was the ending
inventory value? - ANSWERS $6,500
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 same time
will be $18,000. What is Total Financing Required by the beekeeper? - ANSWERS $29,700
A business is legally structured as C corporation. What are the tax implications for this
structure? - ANSWERS The corporation pays taxes and each of the share holders pays taxes
A business owner is applying for a loan with a bank. The bank uses a standard credit application
form that asks the business owner about her personal income, bank accounts, credit cards,
current balances outstanding, whether she rents or owns her house and other personal
information. Which three are factors that affect credit scores? - ANSWERS Payment history on
existing loans
Amounts owed on existing loans
Types of credit already in use by the applicant
A business owner sells ownership to a retirement fund for the employees - ANSWERS Employee
Stock Ownership Plan (ESOP)
A carpenter builds and remodels residential decks. Classify the carpenter's cost according to
how each cost acts in connection with the number of decks built and remodeled. - ANSWERS
Variable cost- Building permits paid by the carpenter for new and remodeled decks
,Fixed cost- Professional license fee to sit for the state builders' exam
Variable Cost- Travel to the residences of customers to build and remodel decks
Variable Cost- Woods for building and remodeling decks
A carpenter wants to start his own business building custom cabinets. Unfortunately, he has no
business training and needs assistance writing a business plan, finding funding, and obtaining
general advice. Which agency should the carpenter utilize? - ANSWERS SBA
A chef is considering opening a restaurant and wants to identify the benefits and drawbacks of
various business opportunities. - ANSWERS Buy a franchise: Benefit: branding success
Drawback: pays a royalty
Start a new business: Benefit: build your own way Drawback: riskiness
Buy an existing business Benefit: has customers Drawback: expensive
A chef is interested in opening a restaurant in a nearby town. He wants to learn more about
possible competitors. Where should the chef go to obtain a list of restaurants in the nearby
town? - ANSWERS Local Chamber of Commerce
A child daycare center needs to identify a value of proposition that will help parents feel secure
about using their services. Which two initiatives meets this objective? - ANSWERS Providing live
web cams parents can access from the Internet by using a secure logon. Offering a list of
references from other parents
, A consultant wants to use a form of personal communication to market his services to
businesses during a conference. Which form of communication should be used? - ANSWERS
Networking
A DJ notices the number of customers attending her Saturday night dances is decreasing. What
should the DJ do to create more loyal repeat customers? - ANSWERS Create a Facebook page
about the dances and make changes based on customer comments/ suggestions
A family owns a tractor sales and supply store. Over the past decade sales of large tractors and
implements have decreased as many of the old farms in the community have sold and been
subdivided into smaller residential hobby farms. Given the facts provided, which action would
be most likely to increase the sustainability of the business? - ANSWERS Add a line of small lawn
and garden tractors
A farmer providing custom farming and tractor services averages averages $1,000 per day in
revenue with a gross profit margin of $40. How many prospects should the farmer have in their
active clients listing at all times at a minimum? - ANSWERS 20
A fitness trainer in a neighborhood is trying to add new consumers who have recently moved
into the neighborhood. What is effective for attracting new customers? - ANSWERS Promotional
Discount
A fitness trainer provides her services to clients as a sole proprietorship. What are the tax
implications for this structure? - ANSWERS Income earned by a sole proprietorship passes to
one owner to be taxed
A fitness trainer wants to create a legal structure that will help protect her from lawsuits. She
will have no partners or employees. - ANSWERS Limited Liability Company
2025/2026
A beekeeper is analyzing the cash flow for his business for the prior year. What was the ending
inventory value? - ANSWERS $6,500
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 same time
will be $18,000. What is Total Financing Required by the beekeeper? - ANSWERS $29,700
A business is legally structured as C corporation. What are the tax implications for this
structure? - ANSWERS The corporation pays taxes and each of the share holders pays taxes
A business owner is applying for a loan with a bank. The bank uses a standard credit application
form that asks the business owner about her personal income, bank accounts, credit cards,
current balances outstanding, whether she rents or owns her house and other personal
information. Which three are factors that affect credit scores? - ANSWERS Payment history on
existing loans
Amounts owed on existing loans
Types of credit already in use by the applicant
A business owner sells ownership to a retirement fund for the employees - ANSWERS Employee
Stock Ownership Plan (ESOP)
A carpenter builds and remodels residential decks. Classify the carpenter's cost according to
how each cost acts in connection with the number of decks built and remodeled. - ANSWERS
Variable cost- Building permits paid by the carpenter for new and remodeled decks
,Fixed cost- Professional license fee to sit for the state builders' exam
Variable Cost- Travel to the residences of customers to build and remodel decks
Variable Cost- Woods for building and remodeling decks
A carpenter wants to start his own business building custom cabinets. Unfortunately, he has no
business training and needs assistance writing a business plan, finding funding, and obtaining
general advice. Which agency should the carpenter utilize? - ANSWERS SBA
A chef is considering opening a restaurant and wants to identify the benefits and drawbacks of
various business opportunities. - ANSWERS Buy a franchise: Benefit: branding success
Drawback: pays a royalty
Start a new business: Benefit: build your own way Drawback: riskiness
Buy an existing business Benefit: has customers Drawback: expensive
A chef is interested in opening a restaurant in a nearby town. He wants to learn more about
possible competitors. Where should the chef go to obtain a list of restaurants in the nearby
town? - ANSWERS Local Chamber of Commerce
A child daycare center needs to identify a value of proposition that will help parents feel secure
about using their services. Which two initiatives meets this objective? - ANSWERS Providing live
web cams parents can access from the Internet by using a secure logon. Offering a list of
references from other parents
, A consultant wants to use a form of personal communication to market his services to
businesses during a conference. Which form of communication should be used? - ANSWERS
Networking
A DJ notices the number of customers attending her Saturday night dances is decreasing. What
should the DJ do to create more loyal repeat customers? - ANSWERS Create a Facebook page
about the dances and make changes based on customer comments/ suggestions
A family owns a tractor sales and supply store. Over the past decade sales of large tractors and
implements have decreased as many of the old farms in the community have sold and been
subdivided into smaller residential hobby farms. Given the facts provided, which action would
be most likely to increase the sustainability of the business? - ANSWERS Add a line of small lawn
and garden tractors
A farmer providing custom farming and tractor services averages averages $1,000 per day in
revenue with a gross profit margin of $40. How many prospects should the farmer have in their
active clients listing at all times at a minimum? - ANSWERS 20
A fitness trainer in a neighborhood is trying to add new consumers who have recently moved
into the neighborhood. What is effective for attracting new customers? - ANSWERS Promotional
Discount
A fitness trainer provides her services to clients as a sole proprietorship. What are the tax
implications for this structure? - ANSWERS Income earned by a sole proprietorship passes to
one owner to be taxed
A fitness trainer wants to create a legal structure that will help protect her from lawsuits. She
will have no partners or employees. - ANSWERS Limited Liability Company
