ESB certification vocabulary Questions and Answers(A+ Solution guide)

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 processVariable Costs - Expense that can go up and down during the budget period