ESB Certification Vocabulary Test with
Complete Solutions
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.
Behavioral - ANSWER-divides consumers according to behavior patterns as they
interact with a company
Complete Solutions
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.
Behavioral - ANSWER-divides consumers according to behavior patterns as they
interact with a company
