Number of VM Processors on Server

Noob question,

So this is the server I'm working with

So it has 8 processors I can use for VMs:

1 is used for the ESXi 5.1 installiation - correct?

the other 7 can be allocated to the 4 VMs that will be running on this server?

so 2, 2, 2, and 1

Told you it was an easy question, I'm still very new to all this so I want to get it right the first time.

Thanks for all the help!!