ESB Exam Study Guide Questions
with Complete Solutions
overhead - ANSWERS -broad category of fixed costs that includes interest, rent, taxes, and
executive salaries
overdraft - ANSWERS -A check written for more money than your account contains
pledged - ANSWERS -A legal agreement that an assets is part of a guarantee to a lender, when
the lender can take possession of the assets and sell it to recover the funds owed by a borrower
in the event the borrower is unable to make a required debt payment.
secured debt - ANSWERS -debt guaranteed by collateral
Origination Fee - ANSWERS -
Acquisition Cost - ANSWERS -the cost of obtaining data that you don't have
Contingency costs - ANSWERS -amount of money included to cover potential events that are not
specifically accounted for in a cost estimate
Variable Cost - ANSWERS -a cost that rises or falls depending on how much is produced
fixed costs - ANSWERS -costs that do not vary with production or sales level
pro forma - ANSWERS -financial statement
, Small Business Administration (SBA) - ANSWERS -government agency that helps small business
owners develop business plans and obtain financing
Limited Liability Company (LLC) - ANSWERS -a form of business ownership that offers both
limited liability to its owners and flexible tax treatment
S cooperation - ANSWERS -a small business entity that is created under state laws
liquid assets - ANSWERS -cash and items that can be quickly converted to cash
Assets - ANSWERS -resources owned by a business
dividend - ANSWERS -The portion of corporate profits paid out to stockholders
liability - ANSWERS -An amount owed by a business
Net Income - ANSWERS -the difference between total revenue and total expenses when total
revenue is greater
shareholder - ANSWERS -Individual who owns part of a corporation
account payable - ANSWERS -money owed for products and services purchased on credit
Accounts Receivable - ANSWERS -Amounts to be received in the future due to the sale of goods
or services
with Complete Solutions
overhead - ANSWERS -broad category of fixed costs that includes interest, rent, taxes, and
executive salaries
overdraft - ANSWERS -A check written for more money than your account contains
pledged - ANSWERS -A legal agreement that an assets is part of a guarantee to a lender, when
the lender can take possession of the assets and sell it to recover the funds owed by a borrower
in the event the borrower is unable to make a required debt payment.
secured debt - ANSWERS -debt guaranteed by collateral
Origination Fee - ANSWERS -
Acquisition Cost - ANSWERS -the cost of obtaining data that you don't have
Contingency costs - ANSWERS -amount of money included to cover potential events that are not
specifically accounted for in a cost estimate
Variable Cost - ANSWERS -a cost that rises or falls depending on how much is produced
fixed costs - ANSWERS -costs that do not vary with production or sales level
pro forma - ANSWERS -financial statement
, Small Business Administration (SBA) - ANSWERS -government agency that helps small business
owners develop business plans and obtain financing
Limited Liability Company (LLC) - ANSWERS -a form of business ownership that offers both
limited liability to its owners and flexible tax treatment
S cooperation - ANSWERS -a small business entity that is created under state laws
liquid assets - ANSWERS -cash and items that can be quickly converted to cash
Assets - ANSWERS -resources owned by a business
dividend - ANSWERS -The portion of corporate profits paid out to stockholders
liability - ANSWERS -An amount owed by a business
Net Income - ANSWERS -the difference between total revenue and total expenses when total
revenue is greater
shareholder - ANSWERS -Individual who owns part of a corporation
account payable - ANSWERS -money owed for products and services purchased on credit
Accounts Receivable - ANSWERS -Amounts to be received in the future due to the sale of goods
or services
