ESB EXAM STUDY GUIDE QUESTIONS AND CORRECT ANSWERS
|2026/2027 UPDATED |GUARANTEED PASS.
A beekeeper wants to start a seasonal business renting hives to farmers to pollinate their
orchards and crops. The beekeeper believes the business will cover its own costs after three
months, and that start-up expenses for hives, trucking, and other costs through that same time
will be $18,000. What is Total Financing Required by the beekeeper? - Answer -$29,700
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. What will the entrepreneur need to
obtain before proceeding? - Answer -Zoning variance
Businesses accept many forms of payment in exchange for goods and services. - Answer -Cash-
government back currency
Check- payable note used by account owner to pay debt
Debit card- electronic deduction from existing account
Line of Credit- a loan to purchase now and pay later
A chef is interested in opening a restaurant in a nearby town. He wants to learn more about
possible competitors. Where should the chef go to obtain a list of restaurants in the nearby
town? - Answer -Local Chamber of Commerce
1|Page
,An auto mechanic opens a business in a community that has a history of auto repair shops
delivering poor quality workmanship. How can the new auto mechanic regain the trust of local
customers? - Answer -Advertise a free 90-day warranty on all repairs
The owner of a small successful hardware store has died and left the business to his children.
None of his children want to operate the business. They decide to sell. The business has a book
value of $876,400 and annual earnings of $1,050,600. Four companies have made offers to buy
the hardware store. Which is the better offer? - Answer -Company C has offered to pay three
times the book value
A non-profit organization wants to hire a Director. The organization has been operating for only
a year and is growing fast. The newly created Director position will responsible for all aspects of
operating the entire organization, so the founders want to hire a candidate with at least 10
years experience. Which factor could prevent the hire? - Answer -Whether the non-profit
organization can afford the salary to attract a qualified candidate
A real estate broker employs 10 real estate agents. The broker provides offices, administrative
support, and marketing for her agents. Which of the following should outsourced? - Answer -
Internet services
A fitness trainer provides her services to clients as a sole proprietorship. What are the tax
implications for this structure? - Answer -Income earned by a sole proprietorship passes to one
owner to be taxed
2|Page
, An entrepreneur invents a new kind of ice cream scoop that is heated in a microwave oven to
make scooping ice cream easier. What should the entrepreneur do to protect the invention? -
Answer -Apply for a patent on the ice cream scoop
The owner of a rapidly growing landscaping business is finding the workload increasingly
difficult to manage projects, acquire clients, supervise employees, keep records and pay bills.
What business is being implemented in this example? - Answer -Separation of Duties
The owner of a gourmet chocolate shop creates treats that have unique flavors derived from
cocoa grown only in specific regions of the world. On which segment of the supply chain should
the owner focus? - Answer -Between the gourmet chocolate shop and the base chocolate
suppliers
A new dog grooming business is setting milestones that will determine if it is successful or not.
The owner has decided the business will be considered successful when it starts to make a
profit. Which milestone will measure profitability? - Answer -When revenue exceeds the break-
even point
A mobile lunch truck is introducing a new seasonal salad. Which group of people would be the
most likely to purchase this new salad? - Answer -Employees who work at nearby businesses
A consultant wants to use a form of personal communication to market his services to
businesses during a conference. Which form of communication should be used? - Answer -
Networking
3|Page
|2026/2027 UPDATED |GUARANTEED PASS.
A beekeeper wants to start a seasonal business renting hives to farmers to pollinate their
orchards and crops. The beekeeper believes the business will cover its own costs after three
months, and that start-up expenses for hives, trucking, and other costs through that same time
will be $18,000. What is Total Financing Required by the beekeeper? - Answer -$29,700
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. What will the entrepreneur need to
obtain before proceeding? - Answer -Zoning variance
Businesses accept many forms of payment in exchange for goods and services. - Answer -Cash-
government back currency
Check- payable note used by account owner to pay debt
Debit card- electronic deduction from existing account
Line of Credit- a loan to purchase now and pay later
A chef is interested in opening a restaurant in a nearby town. He wants to learn more about
possible competitors. Where should the chef go to obtain a list of restaurants in the nearby
town? - Answer -Local Chamber of Commerce
1|Page
,An auto mechanic opens a business in a community that has a history of auto repair shops
delivering poor quality workmanship. How can the new auto mechanic regain the trust of local
customers? - Answer -Advertise a free 90-day warranty on all repairs
The owner of a small successful hardware store has died and left the business to his children.
None of his children want to operate the business. They decide to sell. The business has a book
value of $876,400 and annual earnings of $1,050,600. Four companies have made offers to buy
the hardware store. Which is the better offer? - Answer -Company C has offered to pay three
times the book value
A non-profit organization wants to hire a Director. The organization has been operating for only
a year and is growing fast. The newly created Director position will responsible for all aspects of
operating the entire organization, so the founders want to hire a candidate with at least 10
years experience. Which factor could prevent the hire? - Answer -Whether the non-profit
organization can afford the salary to attract a qualified candidate
A real estate broker employs 10 real estate agents. The broker provides offices, administrative
support, and marketing for her agents. Which of the following should outsourced? - Answer -
Internet services
A fitness trainer provides her services to clients as a sole proprietorship. What are the tax
implications for this structure? - Answer -Income earned by a sole proprietorship passes to one
owner to be taxed
2|Page
, An entrepreneur invents a new kind of ice cream scoop that is heated in a microwave oven to
make scooping ice cream easier. What should the entrepreneur do to protect the invention? -
Answer -Apply for a patent on the ice cream scoop
The owner of a rapidly growing landscaping business is finding the workload increasingly
difficult to manage projects, acquire clients, supervise employees, keep records and pay bills.
What business is being implemented in this example? - Answer -Separation of Duties
The owner of a gourmet chocolate shop creates treats that have unique flavors derived from
cocoa grown only in specific regions of the world. On which segment of the supply chain should
the owner focus? - Answer -Between the gourmet chocolate shop and the base chocolate
suppliers
A new dog grooming business is setting milestones that will determine if it is successful or not.
The owner has decided the business will be considered successful when it starts to make a
profit. Which milestone will measure profitability? - Answer -When revenue exceeds the break-
even point
A mobile lunch truck is introducing a new seasonal salad. Which group of people would be the
most likely to purchase this new salad? - Answer -Employees who work at nearby businesses
A consultant wants to use a form of personal communication to market his services to
businesses during a conference. Which form of communication should be used? - Answer -
Networking
3|Page
