ESB CERTIFICATION EXAM REVIEW
QUESTIONS AND ANSWERS
James runs a restaurant with a starting cash balance of $5,000, $30,000 in sales,
$2,000 in utilities, $6,000 in loans, and $4,000 in marketing. What is James'
ending cash balance? - ANSWER: $24,800
Shelly owns a car dealership. She just received a supply of Teslas, paid $70,000
for each one, and hopes to profit 25%. What should her sale price be? - Answer:
$87,500.
TRUE OR FALSE: Mortgage payments are long-term liabilities. ANSWER:
True
Equipment is considered a long-term asset.
ROI is computed as... - ANSWER Net Profit / Cost of Investment X 100
The Run Rate is calculated by... - ANSWER: Current revenue for one month
multiplied by 12.
Michelle owns a bakeshop. Her total revenue at the end of last month was
$6,000. What is Michelle's run rate? - ANSWER: $72,000
Which of the following is a variable expense? - ANSWER Commission
payments.
Anthony operates a bicycle business. His monthly expenses are $2,750.00.
Every bike costs $275.00. How many bicycles does he need to sell to break
even? - ANSWER 10.
How does an entrepreneur determine his or her selling price? - ANSWER:
Selling price = cost x desired profit margin plus cost.
, TRUE OR FALSE: Equity = Assets + Liabilities - Answer: False
________ is the owner's leftover value after deducting all liabilities. -
ANSWER Equity
Peter owns a barbershop. His entire monthly expenses are $3,500.00. He
charges $15.00 per haircut. How many haircuts must his shop perform to break
even? - ANSWER 234.
True or False: Fixed costs vary according on manufacturing volume. - Answer:
False
Which two sorts of information can be seen on a profit and loss statement? -
ANSWER: Revenue/Expenses
TRUE OR FALSE: The Customer Retention Rate is the percentage of existing
customers who continue to be clients after a particular time period. Your client
retention rate might assist you better understand what makes customers stay
with your organization. - Answer: True.
TRUE OR FALSE: The customer retention rate might also indicate chances to
improve customer service. - Answer: True.
TRUE OR FALSE: Customer Acquisition refers to bringing in new consumers
or influencing individuals to buy your products.
At which stage of the sales process would you handle client concerns? -
ANSWER Objection.
In which step of the sales process would a customer decide to make a purchase?
ANSWER: Closing
At which stage of the sales process would a potential customer be identified? -
ANSWER Prospecting
What are the disadvantages of being a sole proprietor? - ANSWER: Unlimited
liability.
QUESTIONS AND ANSWERS
James runs a restaurant with a starting cash balance of $5,000, $30,000 in sales,
$2,000 in utilities, $6,000 in loans, and $4,000 in marketing. What is James'
ending cash balance? - ANSWER: $24,800
Shelly owns a car dealership. She just received a supply of Teslas, paid $70,000
for each one, and hopes to profit 25%. What should her sale price be? - Answer:
$87,500.
TRUE OR FALSE: Mortgage payments are long-term liabilities. ANSWER:
True
Equipment is considered a long-term asset.
ROI is computed as... - ANSWER Net Profit / Cost of Investment X 100
The Run Rate is calculated by... - ANSWER: Current revenue for one month
multiplied by 12.
Michelle owns a bakeshop. Her total revenue at the end of last month was
$6,000. What is Michelle's run rate? - ANSWER: $72,000
Which of the following is a variable expense? - ANSWER Commission
payments.
Anthony operates a bicycle business. His monthly expenses are $2,750.00.
Every bike costs $275.00. How many bicycles does he need to sell to break
even? - ANSWER 10.
How does an entrepreneur determine his or her selling price? - ANSWER:
Selling price = cost x desired profit margin plus cost.
, TRUE OR FALSE: Equity = Assets + Liabilities - Answer: False
________ is the owner's leftover value after deducting all liabilities. -
ANSWER Equity
Peter owns a barbershop. His entire monthly expenses are $3,500.00. He
charges $15.00 per haircut. How many haircuts must his shop perform to break
even? - ANSWER 234.
True or False: Fixed costs vary according on manufacturing volume. - Answer:
False
Which two sorts of information can be seen on a profit and loss statement? -
ANSWER: Revenue/Expenses
TRUE OR FALSE: The Customer Retention Rate is the percentage of existing
customers who continue to be clients after a particular time period. Your client
retention rate might assist you better understand what makes customers stay
with your organization. - Answer: True.
TRUE OR FALSE: The customer retention rate might also indicate chances to
improve customer service. - Answer: True.
TRUE OR FALSE: Customer Acquisition refers to bringing in new consumers
or influencing individuals to buy your products.
At which stage of the sales process would you handle client concerns? -
ANSWER Objection.
In which step of the sales process would a customer decide to make a purchase?
ANSWER: Closing
At which stage of the sales process would a potential customer be identified? -
ANSWER Prospecting
What are the disadvantages of being a sole proprietor? - ANSWER: Unlimited
liability.
