ESB Certification Exam Review Questions and Answers (Graded A+)

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? - ANSWER-$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? - ANSWER-$87,500 TRUE OR FALSE: Mortgage Payments are Long Term Liabilities - ANSWER-True Equipment is considered ... - ANSWER-a long term asset ROI is calculated by ... - ANSWER-Net Profit / Cost of Investment X 100 Run Rate is calculated by ... - 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 Michelle's run rate? - ANSWER-$72,000 Which of the following is a variable expense? - ANSWER-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? - ANSWER-10 How does an entrepreneur determine his / her selling price? - ANSWER-selling price = cost X desired profit margin + cost TRUE OF FALSE: Equity = Assets + Liabilities - ANSWER-False ________ is the owner's remaining value after all liabilities have been deducted. - ANSWER-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? - ANSWER-234 TRUE OR FALSE: Fixed Costs change depending on the volume of production. - ANSWER-False Which 2 types of information may be found on a profit and loss statement? - ANSWER-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. - ANSWER-True TRUE OR FALSE: Customer Retention Rate can also signal opportunities to improve customer service - ANSWER-True TRUE OR FALSE: Customer Acquisition refers to bringing in new customers - or convincing people to buy your products - ANSWER-True In which step of the sales process would you address customer concerns? - ANSWER-Objection In which step of the sales process would a customer decide to make a purchase - ANSWER-Closing In which step of the sales process would a potential customer be identified? - ANSWER-Prospecting