ESB Test 3 Questions with Complete
Solutions
A well-conceived business plan benefits which groups the most? Choose two answers -
ANSWERS -business owner
investors
An entrepreneur discovers that residents in a small rural area travel an average of 10 miles to
shop at the nearest grocery store. The entrepreneur finds an old two-story ranch house for sale
located on a busy road in the center of the rural area. The entrepreneur determines the home
could easily be converted to become a cute country store. What will the entrepreneur need to
obtain before proceeding? - ANSWERS -zoning variance
A landscape architect wishes to start his own business constructing custom water features This
is his first venture and requires assistance drafting a business plan, securing capital, and
receiving overall general guidance. Which of the following agencies should he go to first ? -
ANSWERS -SBA
A fitness trainer wants to create a legal structure that will help protect her from lawsuits She
will have no partners or employees. - ANSWERS -limited liability company
The owner of a mobile food truck plans to sell tacos , hamburgers, and other foods to
employees in a large office complex . Before opening his business , the owner will most likely
need to obtain which of the following documents from each employee to verify they have
completed a course in food handling safety? - ANSWERS -certificate
The owner of a pet supply store wants to expand her business and by boarding animals. She has
designed plans to add a 30^ prime *60^ prime kennel onto the back of her retail buildingShe
has checked the zoning and discovered a kennel would be allowed on her property What will
she need to obtain before adding the kennel? - ANSWERS -permit
, A sprinkler system company opens a new location in a suburb that has endured a long history of
poorly installed water and irrigation systems. What would be the most effective way for this
company to gain the trust of the neighborhood ? - ANSWERS -advertise a 72-hour rapid
response time for all repairs
The owner of a gas station on one side of town wants to retire and offers to sell the station to a
competitor located on the other side of town. The competitor agrees to cash out the seller,
merge the two businesses, and continue operating both locations. This is an example of which
exit strategy? - ANSWERS -harvesting
Meredith is starting a cleaning business with a 3-year loan of $10,000, at a 5% compound
annual interest rate. Assuming the loan is not paid back in full until the end of the 3-year term,
how much will she owe at the end of her loan? - ANSWERS -$11,576.25
An individual starts a babysitting business with a loan of $1,000. The loan is for 2 years at a
5COMPOUND interest rate. How much will the individual owe by the end of the loan assuming
nothing is paid until the end of the 2 year term (future value of loan)? - ANSWERS -$1,102.5
A welding shop owner rents space in a building and needs a \$5,000 in supplies to complete a
large project for a new customer. The bank has turned down a personal loan request. The
welding shop owner does not want to share ownership of the business by selling equity shares
to raise the funds needed for these supplies. What is the most practical source of funding for
the materials needed to complete this customers job ? - ANSWERS -Asking for an advance
payment from the customer whose large order is the reason the materials are needed
A retiring hardware shop owner offers to sell his store to a competitor located on the south end
of town. The competitor agrees to cash out the seller, merge the two businesses , and continue
operating both locations. Which exit strategy is this an example of ? - ANSWERS -harvesting
Businesses accept many forms of payment in exchange for goods and services. Match the form
of payment with its definition. - ANSWERS -cash - Government backed currency
Solutions
A well-conceived business plan benefits which groups the most? Choose two answers -
ANSWERS -business owner
investors
An entrepreneur discovers that residents in a small rural area travel an average of 10 miles to
shop at the nearest grocery store. The entrepreneur finds an old two-story ranch house for sale
located on a busy road in the center of the rural area. The entrepreneur determines the home
could easily be converted to become a cute country store. What will the entrepreneur need to
obtain before proceeding? - ANSWERS -zoning variance
A landscape architect wishes to start his own business constructing custom water features This
is his first venture and requires assistance drafting a business plan, securing capital, and
receiving overall general guidance. Which of the following agencies should he go to first ? -
ANSWERS -SBA
A fitness trainer wants to create a legal structure that will help protect her from lawsuits She
will have no partners or employees. - ANSWERS -limited liability company
The owner of a mobile food truck plans to sell tacos , hamburgers, and other foods to
employees in a large office complex . Before opening his business , the owner will most likely
need to obtain which of the following documents from each employee to verify they have
completed a course in food handling safety? - ANSWERS -certificate
The owner of a pet supply store wants to expand her business and by boarding animals. She has
designed plans to add a 30^ prime *60^ prime kennel onto the back of her retail buildingShe
has checked the zoning and discovered a kennel would be allowed on her property What will
she need to obtain before adding the kennel? - ANSWERS -permit
, A sprinkler system company opens a new location in a suburb that has endured a long history of
poorly installed water and irrigation systems. What would be the most effective way for this
company to gain the trust of the neighborhood ? - ANSWERS -advertise a 72-hour rapid
response time for all repairs
The owner of a gas station on one side of town wants to retire and offers to sell the station to a
competitor located on the other side of town. The competitor agrees to cash out the seller,
merge the two businesses, and continue operating both locations. This is an example of which
exit strategy? - ANSWERS -harvesting
Meredith is starting a cleaning business with a 3-year loan of $10,000, at a 5% compound
annual interest rate. Assuming the loan is not paid back in full until the end of the 3-year term,
how much will she owe at the end of her loan? - ANSWERS -$11,576.25
An individual starts a babysitting business with a loan of $1,000. The loan is for 2 years at a
5COMPOUND interest rate. How much will the individual owe by the end of the loan assuming
nothing is paid until the end of the 2 year term (future value of loan)? - ANSWERS -$1,102.5
A welding shop owner rents space in a building and needs a \$5,000 in supplies to complete a
large project for a new customer. The bank has turned down a personal loan request. The
welding shop owner does not want to share ownership of the business by selling equity shares
to raise the funds needed for these supplies. What is the most practical source of funding for
the materials needed to complete this customers job ? - ANSWERS -Asking for an advance
payment from the customer whose large order is the reason the materials are needed
A retiring hardware shop owner offers to sell his store to a competitor located on the south end
of town. The competitor agrees to cash out the seller, merge the two businesses , and continue
operating both locations. Which exit strategy is this an example of ? - ANSWERS -harvesting
Businesses accept many forms of payment in exchange for goods and services. Match the form
of payment with its definition. - ANSWERS -cash - Government backed currency
