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ESB Exam Study Guide with Complete Solutions Verified 2025
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ESB Exam Study Guide with CompleteSolutions Verified 2025
A beekeeper is analyzing the cash flow for his business for the prior year. What was the
ending inventory value? - ANSWER-$6,500
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
A business is legally structured as C corporation. What are the tax implications for this
structure? - ANSWER-The corporation pays taxes and each of the share holders pays
taxes
A business owner is applying for a loan with a bank. The bank uses a standard credit
application form that asks the business owner about her personal income, bank
accounts, credit cards, current balances outstanding, whether she rents or owns her
house and other personal information. Which three are factors that affect credit scores?
- ANSWER-Payment history on existing loans
Amounts owed on existing loans
Types of credit already in use by the applicant
A business owner sells ownership to a retirement fund for the employees - ANSWER-
Employee Stock Ownership Plan (ESOP)
A carpenter builds and remodels residential decks. Classify the carpenter's cost
according to how each cost acts in connection with the number of decks built and
remodeled. - ANSWER-Variable cost- Building permits paid by the carpenter for new
and remodeled decks
Fixed cost- Professional license fee to sit for the state builders' exam
Variable Cost- Travel to the residences of customers to build and remodel decks
Variable Cost- Woods for building and remodeling decks
A carpenter wants to start his own business building custom cabinets. Unfortunately, he
has no business training and needs assistance writing a business plan, finding funding,
and obtaining general advice. Which agency should the carpenter utilize? - ANSWER-
SBA
, A chef is considering opening a restaurant and wants to identify the benefits and
drawbacks of various business opportunities. - ANSWER-Buy a franchise: Benefit:
branding success Drawback: pays a royalty
Start a new business: Benefit: build your own way Drawback: riskiness
Buy an existing business Benefit: has customers Drawback: expensive
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
A child daycare center needs to identify a value of proposition that will help parents feel
secure about using their services. Which two initiatives meets this objective? -
ANSWER-Providing live web cams parents can access from the Internet by using a
secure logon. Offering a list of references from other parents
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
A DJ notices the number of customers attending her Saturday night dances is
decreasing. What should the DJ do to create more loyal repeat customers? - ANSWER-
Create a Facebook page about the dances and make changes based on customer
comments/ suggestions
A family owns a tractor sales and supply store. Over the past decade sales of large
tractors and implements have decreased as many of the old farms in the community
have sold and been subdivided into smaller residential hobby farms. Given the facts
provided, which action would be most likely to increase the sustainability of the
business? - ANSWER-Add a line of small lawn and garden tractors
A farmer providing custom farming and tractor services averages averages $1,000 per
day in revenue with a gross profit margin of $40. How many prospects should the
farmer have in their active clients listing at all times at a minimum? - ANSWER-20
A fitness trainer in a neighborhood is trying to add new consumers who have recently
moved into the neighborhood. What is effective for attracting new customers? -
ANSWER-Promotional Discount
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
A fitness trainer wants to create a legal structure that will help protect her from lawsuits.
She will have no partners or employees. - ANSWER-Limited Liability Company
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