ESB Exam Study Guide Exam Questions With
Answers Graded A+
Acquisition Cost - Answer the cost of obtaining data that you don't have
Contingency costs - Answer amount of money included to cover potential events that are
not specifically accounted for in a cost estimate
Variable Cost - Answer a cost that rises or falls depending on how much is produced
fixed costs - Answer costs that do not vary with production or sales level
pro forma - Answer financial statement
Small Business Administration (SBA) - Answer government agency that helps small
business owners develop business plans and obtain financing
Limited Liability Company (LLC) - Answer a form of business ownership that offers both
limited liability to its owners and flexible tax treatment
S cooperation - Answer a small business entity that is created under state laws
liquid assets - Answer cash and items that can be quickly converted to cash
Assets - Answer resources owned by a business
, dividend - Answer The portion of corporate profits paid out to stockholders
liability - Answer An amount owed by a business
Net Income - Answer the difference between total revenue and total expenses when total
revenue is greater
shareholder - Answer Individual who owns part of a corporation
account payable - Answer money owed for products and services purchased on credit
Accounts Receivable - Answer Amounts to be received in the future due to the sale of
goods or services
Angel Investors - Answer individuals who invest in start-up companies with high growth
potential in exchange for a share of ownership
Bonds - Answer Certificates of debt that carry a promise to buy back the bonds at a
higher price
Capital/Equity - Answer Funds contributed by investors to a business.
capital expenditures - Answer Expenditures on equipment the business will use for many
years.
equity capital - Answer money that a business gets from its owners in order to operate
fiscal year - Answer A fiscal period consisting of 12 consecutive months.
Answers Graded A+
Acquisition Cost - Answer the cost of obtaining data that you don't have
Contingency costs - Answer amount of money included to cover potential events that are
not specifically accounted for in a cost estimate
Variable Cost - Answer a cost that rises or falls depending on how much is produced
fixed costs - Answer costs that do not vary with production or sales level
pro forma - Answer financial statement
Small Business Administration (SBA) - Answer government agency that helps small
business owners develop business plans and obtain financing
Limited Liability Company (LLC) - Answer a form of business ownership that offers both
limited liability to its owners and flexible tax treatment
S cooperation - Answer a small business entity that is created under state laws
liquid assets - Answer cash and items that can be quickly converted to cash
Assets - Answer resources owned by a business
, dividend - Answer The portion of corporate profits paid out to stockholders
liability - Answer An amount owed by a business
Net Income - Answer the difference between total revenue and total expenses when total
revenue is greater
shareholder - Answer Individual who owns part of a corporation
account payable - Answer money owed for products and services purchased on credit
Accounts Receivable - Answer Amounts to be received in the future due to the sale of
goods or services
Angel Investors - Answer individuals who invest in start-up companies with high growth
potential in exchange for a share of ownership
Bonds - Answer Certificates of debt that carry a promise to buy back the bonds at a
higher price
Capital/Equity - Answer Funds contributed by investors to a business.
capital expenditures - Answer Expenditures on equipment the business will use for many
years.
equity capital - Answer money that a business gets from its owners in order to operate
fiscal year - Answer A fiscal period consisting of 12 consecutive months.
