ESB Test 3
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? - ✔ ✔ 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? - ✔ ✔ 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 ? - ✔ ✔ 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? - ✔
✔ 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? - ✔ ✔ $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)? - ✔ ✔ $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 ? - ✔ ✔ 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 ? - ✔ ✔ harvesting
Businesses accept many forms of payment in exchange for goods and services. Match the form of
payment with its definition. - ✔ ✔ cash - Government backed currency
line of credit - A loan to purchase now and pay later
check - payable note used by account owner to pay debt
debit card - electronic deduction from existing account
Which two groups benefit most from a well-written business plan? (Choose two - ✔ ✔ investors
business owner
An entrepreneur wants to become the sole proprietor of a sandwich shop. She has no experience
operating a retail business, but has great recipes for unique sandwiches and has tested her recipes with
friends and relatives who claim they are fabulous! She applies for a business loan from a bank. The bank
has a standard 40\% debt ratio. The entrepreneur estimates her expenses will be $4,000 per month. She
estimates the sandwich shop will have an income of $8,000 per month. Based on the estimates provided
by the entrepreneur, will the bank approve her loan? - ✔ ✔ no, because her debt ratio is too high
Identify the agency that solely focuses on uniting mentors with business owners to offer them free
advice on how to operate their business. - ✔ ✔ SBA
What is the primary advantage of the General Partnership versus a Sole Proprietorship? - ✔ ✔ more
than one person is responsible for financial backing
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? - ✔ ✔ 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? - ✔ ✔ 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 ? - ✔ ✔ 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? - ✔
✔ 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? - ✔ ✔ $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)? - ✔ ✔ $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 ? - ✔ ✔ 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 ? - ✔ ✔ harvesting
Businesses accept many forms of payment in exchange for goods and services. Match the form of
payment with its definition. - ✔ ✔ cash - Government backed currency
line of credit - A loan to purchase now and pay later
check - payable note used by account owner to pay debt
debit card - electronic deduction from existing account
Which two groups benefit most from a well-written business plan? (Choose two - ✔ ✔ investors
business owner
An entrepreneur wants to become the sole proprietor of a sandwich shop. She has no experience
operating a retail business, but has great recipes for unique sandwiches and has tested her recipes with
friends and relatives who claim they are fabulous! She applies for a business loan from a bank. The bank
has a standard 40\% debt ratio. The entrepreneur estimates her expenses will be $4,000 per month. She
estimates the sandwich shop will have an income of $8,000 per month. Based on the estimates provided
by the entrepreneur, will the bank approve her loan? - ✔ ✔ no, because her debt ratio is too high
Identify the agency that solely focuses on uniting mentors with business owners to offer them free
advice on how to operate their business. - ✔ ✔ SBA
What is the primary advantage of the General Partnership versus a Sole Proprietorship? - ✔ ✔ more
than one person is responsible for financial backing
