ESB Test 3 pool Questions with accurate answers. 100% Accurate. Rated A The owner of a mobile food truck plans to

Document Content and Description Below

ESB Test 3 pool Questions with accurate answers. 100% Accurate. Rated A The 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? - ✔✔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? - ✔✔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 ? - ✔✔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? - ✔✔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? - ✔✔$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)? - ✔✔$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 ? - ✔✔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 ? - ✔✔harvesting Businesses accept many forms of payment in exchange for goods and services. Match the form of payment with its definition. - ✔✔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 - ✔✔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? - ✔✔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. - ✔✔SBA What is the primary advantage of the General Partnership versus a Sole Proprietorship? - ✔✔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 startup 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? - ✔✔29,700 identify why maintaining strong ethics practices for a business is a good idea from a legal standpoint - ✔✔to avoid potential lawsuits A new business owner needs some advice and mentoring about operating her business Where should she go for help? - ✔✔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 commute to the nearest grocery store. He thinks he could serve their needs by opening a country store there, and notices a real estate listing for an old residence that might be the perfect site. Which of the following will he need to obtain before proceeding? - ✔✔variance Marcus runs a business designing large outdoor fountains . A new client has requested a project that would require $6,500 to produce . Even though his loan request was rejected by the bank, he still wishes to be the sole business owner and does not want to sell shares to raise capital for the project. He also does not want to lose this new customer . What would be the ideal route to pursue these funds ? - ✔✔request an advance payment from the customer The partners of an awning repair shop are assessing the amount of money needed to start a business at a new location. The partners have calculated that the business will generate more than enough revenue to cover monthly expenses after its second month in operation Start- up expenses are estimated as: Equipment lease (monthly): $ 3,000 Materials and supplies (monthly): $20,000 Licensing (annual but must be paid upfront in a lump sum): $200 Payroll (monthly ): $12,000 Advertising (monthly ): $ 1,000 Operating expenses (monthly insurance , utilities and rent): $ 2,000 One-time Security Deposit for electricity: $1,000 Contingency ( to cover 10 % of start -up investment ) What is the amount of start-up capital the partners will need to open the new awning repair business ? - ✔✔$84,920 Match the business legal structure to its unique characteristic - ✔✔sole proprietorship- easy to setup, unlimited liability general or limited partnership - terminates upon death of a partner c corporation- double taxed, but best for international businesses s corporation - similar to C corporation but taxed at a lower rate nonprofit organization- owned by one one pays no us [Show More]

Last updated: 2 years ago

Preview 1 out of 8 pages