ESB Certification Exam Review
Michelle owns a bakery shop. Her revenue at the end of last month was $6,000. What is Michelle's run rate?
$72,000
Shelly owns a car dealership. She just received a shipment of teslas and paid $70,000 for each one and wants to make 25%. What should her selling price be?
$87,500
David's company acquired 1,000 new customers last year. He spent $500 in marketing and $400 in sales costs. What was David's CAC?
.9
Anthony owns a bike shop. His monthly cost is $2,750.00. Each bike costs $275.00. How many bikes does he have to sell to break even?
10
Peter owns a barber shop. His total monthly cost is $3,500.00. He charges $15.00 per hair cut. How many hair cuts must his shop perform to break-even?
234
A business selling products or services directly to consumers is a ...
B2C
James owns a restaurant with beginning cash balance of $5,000, $30,000 in sales, $2,000 in utilities, $6,000 in loans and $4,000 in marketing. What is James ending cash balance?
$24,800
What market segment anticipates a customer's needs?
Behavioral
The type of business that is best for international business even with being double taxed is a ______
C Corp
What type of organization stores and ship products for businesses?
Distribution and fulfillment centers
________ is the owner's remaining value after all liabilities have been deducted.
Equity
During which phase might an owner decide to sell their ownership in a company?
Exit
TRUE OF FALSE: Equity = Assets + Liabilities
False
TRUE OR FALSE: Fixed Costs change depending on the volume of production.
False
What type of business is best for a single owner seeking low risk?
LLC
ROI is calculated by ...
Net Profit / Cost of Investment X 100
Gillian works for a tech company and designed a new type of mousepad to use with a gaming console. Which intellectual property would best property would best protect Gillian's design?
Patent
Which protects an invention from being copied?
Patent
A focus group was formed to provide opinions for a target market. What type of data is being collected from the focus group?
Primary data
In which step of the sales process would a potential customer be identified?
Prospecting
The 5 elements of the design thinking process are empathize, define, ideate, ______ and ______
Prototype and Test
What market segment shows how a customer views the world?
Psychographic
Which 2 types of information may be found on a profit and loss statement?
Revenue / Expenses
What type of business is best for a company that seeks a lower tax rate and prevents the company from being double-taxed?
S Corp
Which of the following are for-profit with limited liability?
S Corp
What marketing methods is the most cost effective?
Social Media
Which of the following vote on the management of the company?
Stockholders
Which are internal in a SWOT analysis?
Strengths / Weaknesses
Michelle sells banana bread in her bakery. Which of the following would best protect Michelle's banana bread recipe?
Trade Secret
TRUE OR FALSE: A distribution channel is a method used to get a product from the manufacturer to the end-use
True
TRUE OR FALSE: Customer Acquisition refers to bringing in new customers - or convincing people to buy your products
True
TRUE OR FALSE: Customer Retention Rate can also signal opportunities to improve customer service
True
TRUE OR FALSE: Customer Retention Rate is the percentage of existing customers who remain customers after a given period. Your customer retention rate can help you better understand what keeps customers with your company.
True
TRUE OR FALSE: Mortgage Payments are Long Term Liabilities
True
What is a disadvantage of being a sole proprietor?
Unlimited Liability
Equipment is considered ...
a long term asset
Ella owns a tumbling gym. She complied a list of nearby competitors. What type of business would be an indirect competitor? a. gymnastic training center b. cheerleading gym c. trampoline park
trampoline park
A wholesaler purchases products, commonly in bulk, from the manufacturer and then turns around and sells the products to retailers who then sell the products to the end-users. Which indirect distribution level is this?
two level
A home remodeling business wants to identify customer segments to target its services .What method would target homeowners who respond to promotional discounts?
behavioral
The ______ is the amount of revenue required to cover expenses
break - even point
Alan just started a technology business. he is advertising online and trying to gain customers. He just finished working with his first client. In which business life cycle stage is Alan in?
existence
Which is more cost effective: getting new customers or keeping existing customers
keeping existing customers
The owner of a housecleaning business wants to target customers for its services. Which method would target homeowners with busy lifestyles that don't have time to clean it themselves?
psychographic
How does an entrepreneur determine his / her selling price?
selling price = cost X desired profit margin + cost
In which step of the sales process would a customer decide to make a purchase
Closing
Run Rate is calculated by ...
Current Revenue for one month X 12
What do investors use to determine the cost of getting new customers?
Customer Acquisition Costs
A competitor with a business that sells different products or services but is similar enough to be competitive is a / an ...
Indirect competitor
What type of agreements are signed by employees, agreeing not to share trade secrets?
Non Disclosure Agreement
In which step of the sales process would you address customer concerns?
Objection
What marketing method is the most expensive?
Television
Which of the following is a variable expense?
commission payments
Distribution and fulfillment centers are both ________ distribution channels
indirect
