ESB EXAM 2025 STUDY GUIDE
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? - ANSWER-Certificate
An individual starts a babysitting business with a loan of $1000. The loan is for 2 years at a 5%
COMPOUND interest rate. How much will the individual owe by the end of the loan assuming
nothing is paid until the end of the 2 years term. - ANSWER-$1,102.50
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? - ANSWER-SBA
A software development consultant works with several clients. Some of the clients are
competitors. What is a consequence if the consultant violates confidentiality by discussing a
client's project with another client? - ANSWER-Loss of clients and possible lawsuit
Exchanging ownership for cash, either by acquisition or merger - ANSWER-Harvesting
Transferring ownership to people who already operate the business - ANSWER-Management
Buyout
A business owner sells ownership to a retirement fund for the employees - ANSWER-Employee
Stock Ownership Plan (ESOP)
Dividing ownership of a privately held company into shares sold to the public - ANSWER-Initial
Public Offering (IPO)
,The owner of a popular seafood restaurant needs to hire a new chef - ANSWER-1. Identify the
skills required of the new chef
2. Write the job description, including minimum and desired requirements
3. Post an ad in places most likely to be viewed by qualified candidates
4. Accept and review applications to assess the most qualified candidate
A successful software trainer has decided to open a corporate training business. The software
trainer is putting together an organizational chair and assessing what job roles will be needed.
What are some of the expected roles of those employees on the highest level of the
organizational chart? - ANSWER-Developing succession plans and building a board of advisors
An interior designer has learned the she must pay-self employment tax on her individual
earnings. Which type of legal structure must pay self-employment tax? - ANSWER-Sole
proprietorship
An entrepreneur was building a website for a new dog grooming business. Through internet
searches, the entrepreneur found many pictures to use on the new business's website. Which
type of intellectual property protection is at issue in this example? - ANSWER-Copyright
An entrepreneur notices new demand for products featuring characters from a recent movie.
The entrepreneur finds a manufacturer of kitchen products featuring these character. Based on
the scenario provided, what should be a primary concern of this entrepreneur? - ANSWER-
Reliability of supply
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? - ANSWER-Add a line of small lawn
and garden tractors
, The owner of a new landscaping company has set a number of milestones for the first year of
his business. Achieving which of the following goals will show that the business has broken even
or better? - ANSWER-Profitable operations
A property care business provides landscaping maintenance, debris cleanup, and snow removal.
The owner is reviewing several requests for its services. Which potential new customer will
generate the highest gross revenue over the next year? - ANSWER-Apartment complex paying
$175 weekly
A local bakery wants to develop close relationships with its customers to encourage return
business. What is the best option for the bakery to accomplish this goal? - ANSWER-Provide a
free baked good each quarter to customers who signup to receive a monthly newsletter
The owner of a tire shop in a large city wants to reach the largest number of people with
promotional efforts. Which method should be used? - ANSWER-TV advertising
The owner of a computer training center wants to know the book value of all the equipment in
the center at the end of the year. Which financial statement provides this information? -
ANSWER-Balance sheet
The owner of Reliable Appliance Repairs is analyzing financial parts of the income statement
including Net Sales, Total Cost of Goods Sold, Gross Profit, Total Expenses, Pre-Tax Profit and Net
Profit. Match each figure to correct location in the Income Statement worksheet. - ANSWER-
A.$45,144
B.$18,500
C.$26,644
D.$9,325
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
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? - ANSWER-Certificate
An individual starts a babysitting business with a loan of $1000. The loan is for 2 years at a 5%
COMPOUND interest rate. How much will the individual owe by the end of the loan assuming
nothing is paid until the end of the 2 years term. - ANSWER-$1,102.50
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? - ANSWER-SBA
A software development consultant works with several clients. Some of the clients are
competitors. What is a consequence if the consultant violates confidentiality by discussing a
client's project with another client? - ANSWER-Loss of clients and possible lawsuit
Exchanging ownership for cash, either by acquisition or merger - ANSWER-Harvesting
Transferring ownership to people who already operate the business - ANSWER-Management
Buyout
A business owner sells ownership to a retirement fund for the employees - ANSWER-Employee
Stock Ownership Plan (ESOP)
Dividing ownership of a privately held company into shares sold to the public - ANSWER-Initial
Public Offering (IPO)
,The owner of a popular seafood restaurant needs to hire a new chef - ANSWER-1. Identify the
skills required of the new chef
2. Write the job description, including minimum and desired requirements
3. Post an ad in places most likely to be viewed by qualified candidates
4. Accept and review applications to assess the most qualified candidate
A successful software trainer has decided to open a corporate training business. The software
trainer is putting together an organizational chair and assessing what job roles will be needed.
What are some of the expected roles of those employees on the highest level of the
organizational chart? - ANSWER-Developing succession plans and building a board of advisors
An interior designer has learned the she must pay-self employment tax on her individual
earnings. Which type of legal structure must pay self-employment tax? - ANSWER-Sole
proprietorship
An entrepreneur was building a website for a new dog grooming business. Through internet
searches, the entrepreneur found many pictures to use on the new business's website. Which
type of intellectual property protection is at issue in this example? - ANSWER-Copyright
An entrepreneur notices new demand for products featuring characters from a recent movie.
The entrepreneur finds a manufacturer of kitchen products featuring these character. Based on
the scenario provided, what should be a primary concern of this entrepreneur? - ANSWER-
Reliability of supply
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? - ANSWER-Add a line of small lawn
and garden tractors
, The owner of a new landscaping company has set a number of milestones for the first year of
his business. Achieving which of the following goals will show that the business has broken even
or better? - ANSWER-Profitable operations
A property care business provides landscaping maintenance, debris cleanup, and snow removal.
The owner is reviewing several requests for its services. Which potential new customer will
generate the highest gross revenue over the next year? - ANSWER-Apartment complex paying
$175 weekly
A local bakery wants to develop close relationships with its customers to encourage return
business. What is the best option for the bakery to accomplish this goal? - ANSWER-Provide a
free baked good each quarter to customers who signup to receive a monthly newsletter
The owner of a tire shop in a large city wants to reach the largest number of people with
promotional efforts. Which method should be used? - ANSWER-TV advertising
The owner of a computer training center wants to know the book value of all the equipment in
the center at the end of the year. Which financial statement provides this information? -
ANSWER-Balance sheet
The owner of Reliable Appliance Repairs is analyzing financial parts of the income statement
including Net Sales, Total Cost of Goods Sold, Gross Profit, Total Expenses, Pre-Tax Profit and Net
Profit. Match each figure to correct location in the Income Statement worksheet. - ANSWER-
A.$45,144
B.$18,500
C.$26,644
D.$9,325
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
