Ch 22 - The Skin Care Business Flashcards

1
Q

When should you confirm that you are in compliance with all local, state, and federal regulations in order to avoid the risk of violations

A

Before opening your salon

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2
Q

Why should you contact local authorities after confirming your ability to own and operate a salon

A

To investigate necessary business licenses and regulations

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3
Q

Whose assistance should you seek out if you do not understand your obligations as a business owner

A

Attorney and accountant

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4
Q

What does OSHA oversee

A

Workplace safety

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5
Q

What is the purpose of a noncomplete clause within an agreement to buy an established salon

A

To ensure the seller does not go on to offer similar services to the same market

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6
Q

What procedures should be spelled out in a security checklist

A

Opening and closing procedure

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7
Q

What is a good approach for a business owner to have regarding lapses in insurance coverage

A

Coverage should never lapse

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8
Q

What key information is supplied by accurate daily reports

A

Gross income and cost of operations

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9
Q

When answering the phone, how can you clients know you are eager to serve them

A

By answering in a sincere, welcoming tone of voice

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10
Q

What should you REFRAIN from doing when using the phone

A

Chewing gum

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11
Q

What is the correct term for the money needed to invest in a business

A

Capital

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12
Q

What are consumption supplies

A

Supplies used to conduct daily business operation

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13
Q

What are retail supplies

A

Item available for sale to clients

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14
Q

What is NOT a characteristic of a corporation

A

Ownership limited to one individual

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15
Q

What is the term for the particular identifying characteristics of an area or population including age, sex, or ethnicity

A

Demographics

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16
Q

What is an employee manual

A

Handbook or guide containing data about salon operations

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17
Q

What is an example of a fixed cost

A

Rent

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18
Q

What BEST describes a partnership

A

Multiple people sharing ownership of a business

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19
Q

What term refer to employees that work for you

A

Personnel

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20
Q

What is the PRIMARY purpose if creating a procedural guide

A

Standardizing operations

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21
Q

What is profit

A

Money left after expenses are subtracted from revenues

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22
Q

What is the MAIN goal of public relations

A

Achieving a certain desired behavior

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23
Q

What is revenue

A

Income generated from selling products and services

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24
Q

Who generally pays for the utilities an esthetician uses in a booth rental arrangement

A

Esthetician

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25
Q

What is a business plan

A

Strategy for understanding key elements in developing business

26
Q

What should you do 24 to 48 hours before an appointment with a client

A

Confirm the appointment with the client by phone

27
Q

What should you do when leaving phone messages

A

Address the client by name

28
Q

What is true of the front desk in a salon of spa

A

It is the center of business operation in the salon

29
Q

What do you gain through education

A

Knowledge you need to operate a profitable business

30
Q

When should you become familiar with the basic business principle of accounting

A

Before you open your business

31
Q

What business type requires the proprietor to bear losses alone

A

Sole proprietorship

32
Q

What sort of person might thrive by operating a sole proprietorship

A

Independent self motivated individual who likes to be in charge

33
Q

What is a characteristic of someone who might thrive in a partnership

A

Enjoys the security of working with others

34
Q

When should you learn as much as possible about a prospective partners ethics and philosophies

A

Before entering into any binding agreement

35
Q

What is one of the effects of incorporating

A

Helps to protect personal assets

36
Q

What does a corporation accomplish by issuing stock certificates or shares

A

Raising capital

37
Q

What is a sole proprietorship

A

Business owned by one person

38
Q

What is the term for business expenses that fluctuate

A

Variable costs

39
Q

What is the right approach for conflicts involving employees

A

Responding quickly and diplomatically

40
Q

What do employees typically regard as the leader of the team in the salon

A

Manager

41
Q

What aspect of employee relations includes active listening

A

Positive communication

42
Q

What is an employers TOP financial priority

A

Payroll

43
Q

What costs should you cover for employees to the best of your financial ability

A

Benefits

44
Q

What happens when stockholders buy additional shares of stock

A

They increase their ownership interest in the corporation

45
Q

What type of business is managed by a board of directors

A

Corporation

46
Q

Why should you require the services of a competent lawyer and tax accountant if you want to form a corporation

A

To ensure compliance with complex state rules and regulations

47
Q

What is a benefit of renting a booth or space within an established salon

A

You gain experience by running a business on a small scale

48
Q

What are two of the MOST important factors when choosing the location of your salon

A

Visibility and accessibility

49
Q

What is the term for location a business close to other business that offer different products or services

A

One stop shopping

50
Q

Why is parking a critical element in attracting business

A

Safety and convenience are important marketing features

51
Q

What is a function of the federal agency called the Small Business Administration (SBA)

A

Helping small businesses succeed

52
Q

What is true of financial management

A

It is the cornerstone of a successful business plan

53
Q

What helps you to forecast (make predictions) about your business

A

Being familiar with specific costs related to running the business

54
Q

What should your dispensary feature in addition to ease of mobility

A

Adequate storage space

55
Q

What evokes a professional ambiance in the salon

A

Style of the salon

56
Q

What do you communicate to your employees by setting clear goals and objectives and by acting consistently

A

That you are a person if your word

57
Q

What is the term for items you might offer your employees such as tickets to educational conferences

A

Incentives

58
Q

How quickly should you answer the phone in a professional setting

A

Within three rings

59
Q

What should you do after asking a caller for permission to put the caller of hold

A

Allow enough time for a response

60
Q

What is the protocol for missed calls in a professional setting

A

Check messages often and respond as quickly as possible