Examen
ESB Test 3 questions with Accurate Answers
Exam of 7 pages for the course esb at esb (ESB Test 3)
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ESB Test 3The owner of a mobile food truck plans to sell tacos , hamburgers, and other foods to
employees in a large office complex . Before opening his business , the owner will most
likely need to obtain which of the following documents from each employee to verify
they have completed a course in food handling safety? - answer certificate
The owner of a pet supply store wants to expand her business and by boarding animals.
She has designed plans to add a 30^ prime *60^ prime kennel onto the back of her
retail buildingShe has checked the zoning and discovered a kennel would be allowed on
her property What will she need to obtain before adding the kennel? - answer permit
A sprinkler system company opens a new location in a suburb that has endured a long
history of poorly installed water and irrigation systems. What would be the most
effective way for this company to gain the trust of the neighborhood ? - answer
advertise a 72-hour rapid response time for all repairs
The owner of a gas station on one side of town wants to retire and offers to sell the
station to a competitor located on the other side of town. The competitor agrees to cash
out the seller, merge the two businesses, and continue operating both locations. This is
an example of which exit strategy? - answer harvesting
Meredith is starting a cleaning business with a 3-year loan of $10,000, at a 5%
compound annual interest rate. Assuming the loan is not paid back in full until the end of
the 3-year term, how much will she owe at the end of her loan? - answer $11,576.25
An individual starts a babysitting business with a loan of $1,000. The loan is for 2 years
at a 5COMPOUND interest rate. How much will the individual owe by the end of the
loan assuming nothing is paid until the end of the 2 year term (future value of loan)? -
answer $1,102.5
A welding shop owner rents space in a building and needs a \$5,000 in supplies to
complete a large project for a new customer. The bank has turned down a personal loan
request. The welding shop owner does not want to share ownership of the business by
selling equity shares to raise the funds needed for these supplies. What is the most
practical source of funding for the materials needed to complete this customers job ? -
answer Asking for an advance payment from the customer whose large order is the
reason the materials are needed
A retiring hardware shop owner offers to sell his store to a competitor located on the
south end of town. The competitor agrees to cash out the seller, merge the two
, businesses , and continue operating both locations. Which exit strategy is this an
example of ? - answer harvesting
Businesses accept many forms of payment in exchange for goods and services. Match
the form of payment with its definition. - answer cash - Government backed currency
line of credit - A loan to purchase now and pay later
check - payable note used by account owner to pay debt
debit card - electronic deduction from existing account
Which two groups benefit most from a well-written business plan? (Choose two -
answer investors
business owner
An entrepreneur wants to become the sole proprietor of a sandwich shop. She has no
experience operating a retail business, but has great recipes for unique sandwiches and
has tested her recipes with friends and relatives who claim they are fabulous! She
applies for a business loan from a bank. The bank has a standard 40\% debt ratio. The
entrepreneur estimates her expenses will be $4,000 per month. She estimates the
sandwich shop will have an income of $8,000 per month. Based on the estimates
provided by the entrepreneur, will the bank approve her loan? - answer no, because
her debt ratio is too high
Identify the agency that solely focuses on uniting mentors with business owners to offer
them free advice on how to operate their business. - answer SBA
What is the primary advantage of the General Partnership versus a Sole Proprietorship?
- answer more than one person is responsible for financial backing
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 time will be $18,000. The beekeeper has raised some of the money and
asks a bank to loan the remaining start up capital needed. The bank asks the
beekeeper to complete a form with the following information: A. Estimated Start -Up
Expenditures : B. Contingency Amount (10% of A): C. Start-Up Capital (A + B) : D.
Required Cash Reserve (50% of C): E. Total Financing Required (C + D) : What is Total
Financing Required by the beekeeper? - answer 29,700
identify why maintaining strong ethics practices for a business is a good idea from a
legal standpoint - answer to avoid potential lawsuits
A new business owner needs some advice and mentoring about operating her business
Where should she go for help? - answer SCORE
Heinrich lives in a county of spread-out rural communities. For one community located
on the county line, he realized residents there must endure a 90- minute round-trip
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