ESB QUESTIONS AND ANSWERS 100% CORRECT
Acquisition Cost
Costs incurred by a business for property or equipment.
Angel Investor
An investor who is willing to wait for payback until a business starts showing a profit. This investor will often accept a lower return on investment than will a ...
Acquisition Cost - answer Costs incurred by a business for property or equipment.
Angel Investor - answer An investor who is willing to wait for payback until a
business starts showing a profit. This investor will often accept a lower return on
investment than will a regular investor.
Asset - answer A tangible item a business owns. This can include office furniture and
fixtures, vehicles, and inventory.
Balance Sheet - answer A document which compares assets to liabilities plus
owner's equity.
Benefits - answer A business term which often refers to items provided to employees
in addition to standard compensation. These items can include but are not limited to
medical insurance, pensions, or even stock portfolios.
Brand Recognition - answer The level of familiarity one has with a brand of item,
service, or business.
Break-Even Point - answer The point in which a business' revenue matches with
expenses over a given time period.
Budget - answer The amount of money a business plans on spending during a given
time period.
Business Milestone - answer A point in a business' life where a manager or other
administrative employee designates an achieved goal or standard in time. This term can
be relative to the business and its owners.
Business Opportunity - answer A situation an entrepreneur analyzes and evaluates
to see if starting a sustainable, profitable business is feasible.
Business Plan - answer A document which addresses the concept, customers, and
capital for business.
Business Sustainability - answer A term used to describe what can be done to
increase a business' profitability over the long term and keep the company fresh and
competitive.
, C Corporation - answer A type of business which is good for international business.
Cash - answer A government-backed currency used for payments.
Cash Balance - answer The amount of cash on-hand a business has at any given
time.
Cash Flow - answer An analysis and categorization of incoming and outgoing cash
during a given time period.
Chamber of Commerce - answer A local agency with information on participating
local businesses.
Check - answer A written note instructing the dispersal of funds.
Collateral - answer Tangible goods a business puts for risk in exchange for a loan.
Communication - answer The means of connection between people, such as
businesses and customers, whereby information is exchanged.
Compensation - answer A monetary amount given to employees in return for their
work in a business.
Compound Interest - answer An interest calculation that accrues the interest
percentage for each year of a loan.
Confidentially Agreement - answer A signed agreement that states an entity will not
disclose information agreed upon by all parties in an arrangement. These are drawn up
to protect against disclosures that would cause a business harm.
Consultation - answer A type of meeting between a professional and a potential
customer where a service is discussed.
Contingency Amount - answer The amount of extra money needed to start a
business after the true amount of money needed has been calculated.
Copyright - answer A form of protection individuals can implement to protect their
intellectual property. Copyright is designated for print, music, film, and various other
forms of creative licenses.
Corporate Structure - answer A business term which refers to how a company is
organized in order to accomplish its objectives. It also dictates who controls and runs
the company.
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