ESB V2 CERTIFICATION UPDATED FINAL EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔Social responsibilities - ✔✔_____________ involve preventing and removing any
corruption and unethical behavior that could harm a business, the community, or the
environment.
✔✔They must obtain ownership of the patent - ✔✔What must happen before one can
use someone else's patent?
✔✔Newspaper marketing - ✔✔With ________, it is easy to target a specific geographic
location.
✔✔(cost * desired profit margin) + cost - ✔✔What is the formula for selling price?
✔✔(Marketing expenses + Sales expenses)/ number of new customers in the period -
✔✔What is the formula for calculating Customer Acquisition Cost (CAC)?
✔✔[(Ending number of customers in a period - new customers gained in a
period)/Starting number of customers in a period] * 100 - ✔✔What is the formula for
calculating Customer Retention Rate (CRR)?
✔✔Equity - ✔✔___________ is the owner's remaining value after all liabilities have
been deducted.
✔✔Assets - Liabilities - ✔✔What is the formula for calculating equity?
✔✔Liabilities + Equity - ✔✔What is the formula for calculating assets?
✔✔Balance Sheet - ✔✔A(n) _____________ shows what a company owns (both
assets and liabilities.)
✔✔Income Statement - ✔✔A(n) _____________ shows the total revenues and
expenses for a specific period of time.
✔✔total income - COGS - expenses - ✔✔What is the formula for calculating net
income?
✔✔income - COGS - ✔✔What is the formula for calculating gross profit?
✔✔gross profit * tax rate - ✔✔What is the formula for calculating income tax expense?
✔✔Total monthly cost/selling price - ✔✔What is the formula for calculating the break-
even point?
, ✔✔Total cash - total costs - ✔✔What is the formula for calculating ending cash
balance?
✔✔burn rate - ✔✔A ________ is used to identify the amount of cash a company is
spending each month.
✔✔Month starting balance - month ending balance - ✔✔What is the formula for
calculating the burn rate for a company?
✔✔Run rate - ✔✔A __________ is used to make projections about a company's future
performance. It usually uses a specific period (usually a month).
✔✔Current revenue * 12 - ✔✔What is the formula used to calculate the run rate for a
company?
✔✔Return on Investment (ROI) - ✔✔___________ is used by businesses to show how
much their investment is earning.
✔✔(value of investment - cost of investment/cost of investment) * 100 - ✔✔What is the
formula used to calculate ROI? (hint: the first part is used to calculate net profit)
✔✔Bootstrapping - ✔✔__________ is where an owner uses their own savings to fund a
business.
✔✔Small Business Administration (SBA) - ✔✔The ____________ makes it easier for
small businesses to get loans. It reduces the risk for lenders, etc.
✔✔real estate - ✔✔_____________ loans must be paid back within 25 years.
✔✔equipment and inventory - ✔✔____________ loans must be paid back within 10
years.
✔✔grants - ✔✔__________ do not have to be paid back. They commonly come with
restrictions/guidelines on how the money can be spent.
✔✔Angel investors - ✔✔___________ are wealthy individuals willing to finance a
business for an equity stake in the business in return.
✔✔Crowdfunding - ✔✔___________is done by sharing your startup business on an
online platform where you can pre-sell your products. The $ from the pre-sell orders can
be used as capital for your business. (some websites require a processing fee and/or
you meet your full financial goal to access the $ you raise)
QUESTIONS AND ANSWERS SURE A+
✔✔Social responsibilities - ✔✔_____________ involve preventing and removing any
corruption and unethical behavior that could harm a business, the community, or the
environment.
✔✔They must obtain ownership of the patent - ✔✔What must happen before one can
use someone else's patent?
✔✔Newspaper marketing - ✔✔With ________, it is easy to target a specific geographic
location.
✔✔(cost * desired profit margin) + cost - ✔✔What is the formula for selling price?
✔✔(Marketing expenses + Sales expenses)/ number of new customers in the period -
✔✔What is the formula for calculating Customer Acquisition Cost (CAC)?
✔✔[(Ending number of customers in a period - new customers gained in a
period)/Starting number of customers in a period] * 100 - ✔✔What is the formula for
calculating Customer Retention Rate (CRR)?
✔✔Equity - ✔✔___________ is the owner's remaining value after all liabilities have
been deducted.
✔✔Assets - Liabilities - ✔✔What is the formula for calculating equity?
✔✔Liabilities + Equity - ✔✔What is the formula for calculating assets?
✔✔Balance Sheet - ✔✔A(n) _____________ shows what a company owns (both
assets and liabilities.)
✔✔Income Statement - ✔✔A(n) _____________ shows the total revenues and
expenses for a specific period of time.
✔✔total income - COGS - expenses - ✔✔What is the formula for calculating net
income?
✔✔income - COGS - ✔✔What is the formula for calculating gross profit?
✔✔gross profit * tax rate - ✔✔What is the formula for calculating income tax expense?
✔✔Total monthly cost/selling price - ✔✔What is the formula for calculating the break-
even point?
, ✔✔Total cash - total costs - ✔✔What is the formula for calculating ending cash
balance?
✔✔burn rate - ✔✔A ________ is used to identify the amount of cash a company is
spending each month.
✔✔Month starting balance - month ending balance - ✔✔What is the formula for
calculating the burn rate for a company?
✔✔Run rate - ✔✔A __________ is used to make projections about a company's future
performance. It usually uses a specific period (usually a month).
✔✔Current revenue * 12 - ✔✔What is the formula used to calculate the run rate for a
company?
✔✔Return on Investment (ROI) - ✔✔___________ is used by businesses to show how
much their investment is earning.
✔✔(value of investment - cost of investment/cost of investment) * 100 - ✔✔What is the
formula used to calculate ROI? (hint: the first part is used to calculate net profit)
✔✔Bootstrapping - ✔✔__________ is where an owner uses their own savings to fund a
business.
✔✔Small Business Administration (SBA) - ✔✔The ____________ makes it easier for
small businesses to get loans. It reduces the risk for lenders, etc.
✔✔real estate - ✔✔_____________ loans must be paid back within 25 years.
✔✔equipment and inventory - ✔✔____________ loans must be paid back within 10
years.
✔✔grants - ✔✔__________ do not have to be paid back. They commonly come with
restrictions/guidelines on how the money can be spent.
✔✔Angel investors - ✔✔___________ are wealthy individuals willing to finance a
business for an equity stake in the business in return.
✔✔Crowdfunding - ✔✔___________is done by sharing your startup business on an
online platform where you can pre-sell your products. The $ from the pre-sell orders can
be used as capital for your business. (some websites require a processing fee and/or
you meet your full financial goal to access the $ you raise)
