ESB certification vocabulary Questions and
Answers 100% Correct | Updated 2024
Break Even Formula - ANSWER To calculate the break-even point in units use the formula: Break-Even
point (units) = Fixed Costs ÷ (Sales price per unit - Variable costs per unit) or in sales dollars using the
formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.
Driving Sales - ANSWER the largest automotive marketing resource and car dealer social network,
providing industry best practices and more
Inventory Loan - ANSWER The loan is collateralized by the inventory it is used to purchase.
Operating Loan - ANSWER (also called a line of credit) is a short-term, flexible loan that a business can
use as needed to borrow up to a pre-set amount of money.To ensure it will be repaid, the bank will often
include a claim on the company's inventory and accounts receivable as part of the loan agreement.
Tenacious - ANSWER tending to keep a firm hold of something; clinging or adhering closely
Competency - ANSWER a set of particular abilities and knowledge that sets a company apart from its
competitors.
Non-Profit Organization - ANSWER organization is a group organized for purposes other than
generating profit and in which no part of the organization's income is distributed to its members,
directors, or officers.
Storefront - ANSWER Store exterior which reflects on the image of the business
Tax Liability - ANSWER the total amount of tax debt owed by an individual, corporation, or other
entity to a taxing authority like the Internal Revenue Service (IRS).
Demographic - ANSWER the collection and analysis of broad characteristics about groups of people
and populations.
Answers 100% Correct | Updated 2024
Break Even Formula - ANSWER To calculate the break-even point in units use the formula: Break-Even
point (units) = Fixed Costs ÷ (Sales price per unit - Variable costs per unit) or in sales dollars using the
formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.
Driving Sales - ANSWER the largest automotive marketing resource and car dealer social network,
providing industry best practices and more
Inventory Loan - ANSWER The loan is collateralized by the inventory it is used to purchase.
Operating Loan - ANSWER (also called a line of credit) is a short-term, flexible loan that a business can
use as needed to borrow up to a pre-set amount of money.To ensure it will be repaid, the bank will often
include a claim on the company's inventory and accounts receivable as part of the loan agreement.
Tenacious - ANSWER tending to keep a firm hold of something; clinging or adhering closely
Competency - ANSWER a set of particular abilities and knowledge that sets a company apart from its
competitors.
Non-Profit Organization - ANSWER organization is a group organized for purposes other than
generating profit and in which no part of the organization's income is distributed to its members,
directors, or officers.
Storefront - ANSWER Store exterior which reflects on the image of the business
Tax Liability - ANSWER the total amount of tax debt owed by an individual, corporation, or other
entity to a taxing authority like the Internal Revenue Service (IRS).
Demographic - ANSWER the collection and analysis of broad characteristics about groups of people
and populations.
