ESB Review: Part 4

You run a small lawncare service and are deciding whether to build your own website or have a website design company build the site. What type of analysis is needed to make the best decision possible? (Choose three)

• Buy or build

• Training employees with the knowledge to consistently deliver the service.

• Focus group

• Creating an effective demonstration of your service for potential customers.

• Value engineering

A new product tester at a company reads that all testing must be done in adherence with OSHA regulations? Which two aspects of business operations fall under OSHA? (Choose two)

• Safety requirements

• Government regulations

• Functional requirements

• Technical requirements

Which are two characteristics of fulfillment centers that differ from direct distribution? (Choose two)

• Fulfilment centers pack and ship for a manufacturer.

• Warehousing is a primary role.

• The manufacturer controls all aspects of distribution.

• Inventory is created on-demand rather than stored.

• A fulfillment center is a zero level channel.

A barber charges $20.00 per haircut. The total cost for running his home-based business is $4,000.00 per month, which includes his salary of $3,000 per month. The minimum number of haircuts he must do to cover all of these expenses and his salary is 200 per month. The barber wants to increase his salary to $4,000 per month, making his total monthly expenses $5,000. What is the minimum price he must charge for each of the 200 haircuts so he can cover this increased salary?

• $30

• $20

• $15

• $25

Which expense is a variable cost?

• Monthly rent on a store

• Hourly wages for an office employee

• Weekly advertisement picture in a journal

• Insurance payments

You have a handyman services business. You have the following financial information for the month: Initial cash balance: $1,500 Projected revenue based on existing clients: $2,500 Gas: $100 Equipment maintenance fees: $300 Truck payment: $400 Payroll: $3,000 Insurance: $120 What is your projected ending cash balance for the month?

• $80

• $3920

• ($1420)

• $4,000

Which two are benefits of using Angel investors to help start a business? (Choose two)

• Angels do not share in the profits of the business.

• Angel investors typically do not expect to be paid until the business begins making money.

• Angels often accept a lower return on investment compared to other sources of equity capital.

• Angels have no equity in the business.

money that has already been spent and which cannot be recovered.

• Opportunity cost

• Sunk cost

• Out-of-pocket cost

• Book cost

The fixed cost is a cost that does not change with an increase or decrease in output

• True

• False

the actual expenditure of funds on factors like material, rent, wages, etc.

• opportunity cost

• outlay cost

• sunk cost

• implicit cost