ESB CERTIFICATION EXAM REVIEW
QUESTIONS WITH CORRECT ANSWERS 2025
James owns a restaurant with beginning cash balance of $5,000, $30,000 in sales, $2,000 in utilit
ies, $6,000Pin loans and $4,000 in marketing. What is James ending cash balance? -
CORRECT ANSWER -$24,800
Shelly owns a car dealership. She just received a shipment of teslas and paid $70,000 for each on
e and wants to make 25%. What should her selling price be? - CORRECT ANSWER -$87,500
TRUE OR FALSE: Mortgage Payments are Long Term Liabilities - CORRECT ANSWER -True
Equipment is considered ... - CORRECT ANSWER -a long term asset
ROI is calculated by ... - CORRECT ANSWER -Net Profit / Cost of Investment X 100
Run Rate is calculated by ... - CORRECT ANSWER -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 Michell
e's run rate? - CORRECT ANSWER -$72,000
Which of the following is a variable expense? - CORRECT ANSWER -commission payments
Anthony owns a bike shop. His monthly cost is $2,750.00. Each bike costs $275.00. How many bi
kes does he have to sell to break even? - CORRECT ANSWER -10
How does an entrepreneur determine his / her selling price? - CORRECT ANSWER -
selling price = cost X desired profit margin + cost
, TRUE OF FALSE: Equity = Assets + Liabilities - CORRECT ANSWER -False
is the owner's remaining value after all liabilities have been deducted. -
CORRECT ANSWER -Equity
Peter owns a barber shop. His total monthly cost is $3,500.00. He charges $15.00 per hair cut. H
ow many hair cuts must his shop perform to break-even? - CORRECT ANSWER -234
TRUE OR FALSE: Fixed Costs change depending on the volume of production. -
CORRECT ANSWER -False
Which 2 types of information may be found on a profit and loss statement? -
CORRECT ANSWER -Revenue / Expenses
TRUE OR FALSE: Customer Retention Rate is the percentage of existing customers who remain cu
stomers after a given period. Your customer retention rate can help you better understand what
keeps customers with your company. - CORRECT ANSWER -True
TRUE OR FALSE: Customer Retention Rate can also signal opportunities to improve customer ser
vice - CORRECT ANSWER -True
TRUE OR FALSE: Customer Acquisition refers to bringing in new customers -
or convincing people to buy your products - CORRECT ANSWER -True
In which step of the sales process would you address customer concerns? - CORRECT ANSWER -
Objection
QUESTIONS WITH CORRECT ANSWERS 2025
James owns a restaurant with beginning cash balance of $5,000, $30,000 in sales, $2,000 in utilit
ies, $6,000Pin loans and $4,000 in marketing. What is James ending cash balance? -
CORRECT ANSWER -$24,800
Shelly owns a car dealership. She just received a shipment of teslas and paid $70,000 for each on
e and wants to make 25%. What should her selling price be? - CORRECT ANSWER -$87,500
TRUE OR FALSE: Mortgage Payments are Long Term Liabilities - CORRECT ANSWER -True
Equipment is considered ... - CORRECT ANSWER -a long term asset
ROI is calculated by ... - CORRECT ANSWER -Net Profit / Cost of Investment X 100
Run Rate is calculated by ... - CORRECT ANSWER -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 Michell
e's run rate? - CORRECT ANSWER -$72,000
Which of the following is a variable expense? - CORRECT ANSWER -commission payments
Anthony owns a bike shop. His monthly cost is $2,750.00. Each bike costs $275.00. How many bi
kes does he have to sell to break even? - CORRECT ANSWER -10
How does an entrepreneur determine his / her selling price? - CORRECT ANSWER -
selling price = cost X desired profit margin + cost
, TRUE OF FALSE: Equity = Assets + Liabilities - CORRECT ANSWER -False
is the owner's remaining value after all liabilities have been deducted. -
CORRECT ANSWER -Equity
Peter owns a barber shop. His total monthly cost is $3,500.00. He charges $15.00 per hair cut. H
ow many hair cuts must his shop perform to break-even? - CORRECT ANSWER -234
TRUE OR FALSE: Fixed Costs change depending on the volume of production. -
CORRECT ANSWER -False
Which 2 types of information may be found on a profit and loss statement? -
CORRECT ANSWER -Revenue / Expenses
TRUE OR FALSE: Customer Retention Rate is the percentage of existing customers who remain cu
stomers after a given period. Your customer retention rate can help you better understand what
keeps customers with your company. - CORRECT ANSWER -True
TRUE OR FALSE: Customer Retention Rate can also signal opportunities to improve customer ser
vice - CORRECT ANSWER -True
TRUE OR FALSE: Customer Acquisition refers to bringing in new customers -
or convincing people to buy your products - CORRECT ANSWER -True
In which step of the sales process would you address customer concerns? - CORRECT ANSWER -
Objection
