Page 1 of 5
ESB Exam Study Guide with Complete Solutions (Verified)
Acquisition Cost - : Answer✔️✔️-the cost of obtaining data that you don't have
Contingency costs - : Answer✔️✔️-amount of money included to cover potential events
that are not specifically accounted for in a cost estimate
Variable Cost - : Answer✔️✔️-a cost that rises or falls depending on how much is
produced
fixed costs - : Answer✔️✔️-costs that do not vary with production or sales level
pro forma - : Answer✔️✔️-financial statement
Small Business Administration (SBA) - : Answer✔️✔️-government agency that helps
small business owners develop business plans and obtain financing
Limited Liability Company (LLC) - : Answer✔️✔️-a form of business ownership that offers
both limited liability to its owners and flexible tax treatment
S cooperation - : Answer✔️✔️-a small business entity that is created under state laws
liquid assets - : Answer✔️✔️-cash and items that can be quickly converted to cash
Assets - : Answer✔️✔️-resources owned by a business
dividend - : Answer✔️✔️-The portion of corporate profits paid out to stockholders
1
Page
1
, Page 2 of 5
liability - : Answer✔️✔️-An amount owed by a business
Net Income - : Answer✔️✔️-the difference between total revenue and total expenses
when total revenue is greater
shareholder - : Answer✔️✔️-Individual who owns part of a corporation
account payable - : Answer✔️✔️-money owed for products and services purchased on
credit
Accounts Receivable - : Answer✔️✔️-Amounts to be received in the future due to the sale
of goods or services
Angel Investors - : Answer✔️✔️-individuals who invest in start-up companies with high
growth potential in exchange for a share of ownership
Bonds - : Answer✔️✔️-Certificates of debt that carry a promise to buy back the bonds at
a higher price
Capital/Equity - : Answer✔️✔️-Funds contributed by investors to a business.
capital expenditures - : Answer✔️✔️-Expenditures on equipment the business will use for
many years.
equity capital - : Answer✔️✔️-money that a business gets from its owners in order to
operate
fiscal year - : Answer✔️✔️-A fiscal period consisting of 12 consecutive months.
Crowdfunding - : Answer✔️✔️-using social networking to appeal to potential investors
2
Page
2
ESB Exam Study Guide with Complete Solutions (Verified)
Acquisition Cost - : Answer✔️✔️-the cost of obtaining data that you don't have
Contingency costs - : Answer✔️✔️-amount of money included to cover potential events
that are not specifically accounted for in a cost estimate
Variable Cost - : Answer✔️✔️-a cost that rises or falls depending on how much is
produced
fixed costs - : Answer✔️✔️-costs that do not vary with production or sales level
pro forma - : Answer✔️✔️-financial statement
Small Business Administration (SBA) - : Answer✔️✔️-government agency that helps
small business owners develop business plans and obtain financing
Limited Liability Company (LLC) - : Answer✔️✔️-a form of business ownership that offers
both limited liability to its owners and flexible tax treatment
S cooperation - : Answer✔️✔️-a small business entity that is created under state laws
liquid assets - : Answer✔️✔️-cash and items that can be quickly converted to cash
Assets - : Answer✔️✔️-resources owned by a business
dividend - : Answer✔️✔️-The portion of corporate profits paid out to stockholders
1
Page
1
, Page 2 of 5
liability - : Answer✔️✔️-An amount owed by a business
Net Income - : Answer✔️✔️-the difference between total revenue and total expenses
when total revenue is greater
shareholder - : Answer✔️✔️-Individual who owns part of a corporation
account payable - : Answer✔️✔️-money owed for products and services purchased on
credit
Accounts Receivable - : Answer✔️✔️-Amounts to be received in the future due to the sale
of goods or services
Angel Investors - : Answer✔️✔️-individuals who invest in start-up companies with high
growth potential in exchange for a share of ownership
Bonds - : Answer✔️✔️-Certificates of debt that carry a promise to buy back the bonds at
a higher price
Capital/Equity - : Answer✔️✔️-Funds contributed by investors to a business.
capital expenditures - : Answer✔️✔️-Expenditures on equipment the business will use for
many years.
equity capital - : Answer✔️✔️-money that a business gets from its owners in order to
operate
fiscal year - : Answer✔️✔️-A fiscal period consisting of 12 consecutive months.
Crowdfunding - : Answer✔️✔️-using social networking to appeal to potential investors
2
Page
2
