ESB EXAM 2 STUDY GUIDE
QUESTIONS AND ANSWERS8
Expenses - ANSWERS -The costs a business has to maintain operations and sell goods and
services.
Accounts payable - ANSWERS -The amount of money a business owes to vendors
Accounts Receivable - ANSWERS -The amount of money customers owe to a business for goods
and services sold.
What is a variable cost? - ANSWERS -Hourly wages for an office employee.
Economy Pricing - ANSWERS -Prices that targeting customers looking to save as much money as
possible.
What business scenario fits the definition of a small business, according to the SBA? - ANSWERS
-A fast food restaurant that is independently owned and operated
You need to create a legal structure for you small business. You have plans for it to grow and
hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and
Japan. You do not want to be personally responsible for business liabilities.
Which legal structure should you set up for your business? - ANSWERS -C-Corp
The highest-ranking employee in the company;reports to the board of directors - ANSWERS -
CEO
, Creates budgets, analyzes financial data, and forecasts company profits - ANSWERS -CFO
Manages the technological requirements of a company. - ANSWERS -CTO
Oversees the day-to-day administrative functions of a business; second in command. -
ANSWERS -COO
A computer training business needs to hire a consultant for a project to revamp the training
courseware. Once the courseware is revamped, the consultant's services are complete. Which
business compensation structure will pay the consultant and lead to the smallest payroll tax
liability for the business? - ANSWERS -Contract
Pivot - ANSWERS -Change part of a business model.
Persevere - ANSWERS -Make attempts to scale a business
Exit strategy - ANSWERS -Turn a business over to a family member
Which of these characteristics of a successful entrepreneur mindset? (Choose two) - ANSWERS -
Can tolerate risk and Resilient
You are weighing possible risk in becoming an entrepreneur. Which situation is a risk of being an
entrepreneur? - ANSWERS -Financial instability
What is a primary benefit of starting a new business without purchasing a franchise or buying
an existing business? - ANSWERS -Developing your own rules.
A______is a multi-page document describing and detailing a business. - ANSWERS -Business
plan
QUESTIONS AND ANSWERS8
Expenses - ANSWERS -The costs a business has to maintain operations and sell goods and
services.
Accounts payable - ANSWERS -The amount of money a business owes to vendors
Accounts Receivable - ANSWERS -The amount of money customers owe to a business for goods
and services sold.
What is a variable cost? - ANSWERS -Hourly wages for an office employee.
Economy Pricing - ANSWERS -Prices that targeting customers looking to save as much money as
possible.
What business scenario fits the definition of a small business, according to the SBA? - ANSWERS
-A fast food restaurant that is independently owned and operated
You need to create a legal structure for you small business. You have plans for it to grow and
hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and
Japan. You do not want to be personally responsible for business liabilities.
Which legal structure should you set up for your business? - ANSWERS -C-Corp
The highest-ranking employee in the company;reports to the board of directors - ANSWERS -
CEO
, Creates budgets, analyzes financial data, and forecasts company profits - ANSWERS -CFO
Manages the technological requirements of a company. - ANSWERS -CTO
Oversees the day-to-day administrative functions of a business; second in command. -
ANSWERS -COO
A computer training business needs to hire a consultant for a project to revamp the training
courseware. Once the courseware is revamped, the consultant's services are complete. Which
business compensation structure will pay the consultant and lead to the smallest payroll tax
liability for the business? - ANSWERS -Contract
Pivot - ANSWERS -Change part of a business model.
Persevere - ANSWERS -Make attempts to scale a business
Exit strategy - ANSWERS -Turn a business over to a family member
Which of these characteristics of a successful entrepreneur mindset? (Choose two) - ANSWERS -
Can tolerate risk and Resilient
You are weighing possible risk in becoming an entrepreneur. Which situation is a risk of being an
entrepreneur? - ANSWERS -Financial instability
What is a primary benefit of starting a new business without purchasing a franchise or buying
an existing business? - ANSWERS -Developing your own rules.
A______is a multi-page document describing and detailing a business. - ANSWERS -Business
plan
