ESB Certification Exam Review
Questions and Answers
Alan just started a technology business. he is advertising online and trying to gain customers. He
just finished working with his first client. In which business life cycle stage is Alan in? - ANSWERS
-existence
The owner of a housecleaning business wants to target customers for its services. Which
method would target homeowners with busy lifestyles that don't have time to clean it
themselves? - ANSWERS -psychographic
A home remodeling business wants to identify customer segments to target its services .What
method would target homeowners who respond to promotional discounts? - ANSWERS -
behavioral
James owns a restaurant with beginning cash balance of $5,000, $30,000 in sales, $2,000 in
utilities, $6,000 in loans and $4,000 in marketing. What is James ending cash balance? -
ANSWERS -$24,800
Shelly owns a car dealership. She just received a shipment of teslas and paid $70,000 for each
one and wants to make 25%. What should her selling price be? - ANSWERS -$87,500
TRUE OR FALSE: Mortgage Payments are Long Term Liabilities - ANSWERS -True
Equipment is considered ... - ANSWERS -a long term asset
ROI is calculated by ... - ANSWERS -Net Profit / Cost of Investment X 100
, Run Rate is calculated by ... - ANSWERS -Current Revenue for one month X 12
Michelle owns a bakery shop. Her revenue at the end of last month was $6,000. What is
Michelle's run rate? - ANSWERS -$72,000
Which of the following is a variable expense? - ANSWERS -commission payments
Anthony owns a bike shop. His monthly cost is $2,750.00. Each bike costs $275.00. How many
bikes does he have to sell to break even? - ANSWERS -10
How does an entrepreneur determine his / her selling price? - ANSWERS -selling price = cost X
desired profit margin + cost
TRUE OF FALSE: Equity = Assets + Liabilities - ANSWERS -False
________ is the owner's remaining value after all liabilities have been deducted. - ANSWERS -
Equity
Peter owns a barber shop. His total monthly cost is $3,500.00. He charges $15.00 per hair cut.
How many hair cuts must his shop perform to break-even? - ANSWERS -234
TRUE OR FALSE: Fixed Costs change depending on the volume of production. - ANSWERS -False
Which 2 types of information may be found on a profit and loss statement? - ANSWERS -
Revenue / Expenses
TRUE OR FALSE: Customer Retention Rate is the percentage of existing customers who remain
customers after a given period. Your customer retention rate can help you better understand
what keeps customers with your company. - ANSWERS -True
Questions and Answers
Alan just started a technology business. he is advertising online and trying to gain customers. He
just finished working with his first client. In which business life cycle stage is Alan in? - ANSWERS
-existence
The owner of a housecleaning business wants to target customers for its services. Which
method would target homeowners with busy lifestyles that don't have time to clean it
themselves? - ANSWERS -psychographic
A home remodeling business wants to identify customer segments to target its services .What
method would target homeowners who respond to promotional discounts? - ANSWERS -
behavioral
James owns a restaurant with beginning cash balance of $5,000, $30,000 in sales, $2,000 in
utilities, $6,000 in loans and $4,000 in marketing. What is James ending cash balance? -
ANSWERS -$24,800
Shelly owns a car dealership. She just received a shipment of teslas and paid $70,000 for each
one and wants to make 25%. What should her selling price be? - ANSWERS -$87,500
TRUE OR FALSE: Mortgage Payments are Long Term Liabilities - ANSWERS -True
Equipment is considered ... - ANSWERS -a long term asset
ROI is calculated by ... - ANSWERS -Net Profit / Cost of Investment X 100
, Run Rate is calculated by ... - ANSWERS -Current Revenue for one month X 12
Michelle owns a bakery shop. Her revenue at the end of last month was $6,000. What is
Michelle's run rate? - ANSWERS -$72,000
Which of the following is a variable expense? - ANSWERS -commission payments
Anthony owns a bike shop. His monthly cost is $2,750.00. Each bike costs $275.00. How many
bikes does he have to sell to break even? - ANSWERS -10
How does an entrepreneur determine his / her selling price? - ANSWERS -selling price = cost X
desired profit margin + cost
TRUE OF FALSE: Equity = Assets + Liabilities - ANSWERS -False
________ is the owner's remaining value after all liabilities have been deducted. - ANSWERS -
Equity
Peter owns a barber shop. His total monthly cost is $3,500.00. He charges $15.00 per hair cut.
How many hair cuts must his shop perform to break-even? - ANSWERS -234
TRUE OR FALSE: Fixed Costs change depending on the volume of production. - ANSWERS -False
Which 2 types of information may be found on a profit and loss statement? - ANSWERS -
Revenue / Expenses
TRUE OR FALSE: Customer Retention Rate is the percentage of existing customers who remain
customers after a given period. Your customer retention rate can help you better understand
what keeps customers with your company. - ANSWERS -True
