ESB Review 1

Subtracting liabilities from assets calculates equity. A company’s balance sheet shows assets, liabilities, and equity.

Mallory owns an auto repair shop. She has $12,000 in cash, $8,000 in inventory, a $4,000 credit card balance, and $3,500 in long-term debt. What is Mallory’s equity?

A _______________ is a licensed business that has established operations, products or services, and branding. This business requires more money upfront but has less risk involved

• franchise

• partnership

• corporation

• restaurant

Dividing total expenses by sales price calculates a break-even point.

Chuck owns a pizza shop. He only sells large pizzas and charges $18 per pizza. His total monthly cost is $2,600. How many pizzas does Chuck have to sell to break even each month?

Entrepreneurs are willing to take on new opportunities and unknown __________ to grow their businesses rapidly.

Is best for international businesses, have limited liability, and are double taxed.

• General or Limited Partnership

• C Corporation

• S Corporation

• Sole Proprietorship or Partnership

• Limited Liability Corporation

A marketing method that uses customized newsletters to engage with customers is __________. [Marketing Platforms and Marketing Methods]

Subtracting the cost of investment from the value of investment calculates net profit. Dividing net profit by the cost of investment, then multiplying the result by 100 calculates ROI.

Tina sells cookies. What is Tina’s ROI?

a. Production cost: $7.65/box of cookies

b. Selling price: $12/boxes of cookies

Sarah runs a large toy store. Last year they acquired 5,000 new customers. Her company spent $30,000 in marketing costs and $15,000 in sales costs. What was Sarah’s CAC?

The four segments of sales data are ____________, geographical, demographic, and psychographic. [Market Reactions and Sales Data]

An example of an ______________ risk is a natural disaster. [Entrepreneurship Risks and Benefits]