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milady esthetics > ch 22 - the skin care business > Flashcards

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
b. during your first week of business
c. during your first month of business
d. during your first year of business

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 request favorable write-ups in local tourism guides
b. to investigate necessary business licenses and regulations
c. to request public financial support
d. to win favor by offering free services to local authorities

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. marketing specialists and architect
b. architect and accountant
c. attorney and accountant
d. marketing specialists and attorney

A

attorney and accountant

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4
Q

what does OSHA oversee

a. efficacy of skin care products
b. compliance with tax regulations
c. product advertising
d. workplace safety

A

workplace safety

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5
Q

what is the purpose of a noncompete 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
b. to ensure the salon has no existing competitors
c. to void the deal if anyone opens a competing salon within a year
d. to ensure the buyer will not terminate any current employees

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 procedures
b. client-consultation procedures
c. facial and waxing procedures
d. greeting and welcoming procedures

A

opening and closing procedures

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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
b. occasional lapses are not a big deal
c. coverage is typically unnecessary
d. insurance should only be purchased when there is a problem

A

coverage should never lapse

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8
Q

what key information is supplied by accurate daily reports

a. future marketing opportunities
b. client satisfaction rates
c. product efficacy fluctuations
d. gross income and cost of operations

A

gross income and cost of operations

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9
Q

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

a. by rushing them off the phone as fast as possible, because time is money
b. by telling them questions can only be answered via in-person service
c. by offering to send an esthetician to their home for the first service
d. by answering in a sincere, welcoming tone of voice

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. being fully attentive to the caller
b. chewing gum
c. actively listening to the caller
d. projecting a positive attitude

A

chewing gum

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11
Q

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

a. collateral
b. lucre
c. down payment
d. capital

A

capital

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12
Q

what are consumption supplies

a. supplies used in the lunchroom
b. supplies used to conduct daily business operations
c. items available for sale to clients
d. supplies used to build the physical plant or a salon, like lumber

A

supplies used to conduct daily business operations

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13
Q

what are retail supplies

a. supplies used in the reception area
b. supplies used to conduct daily business operations
c. items available for sale to clients
d. record-keeping tools like blank sales slips and rolls of receipt paper

A

items available for sale to clients

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14
Q

what is NOT a characteristic of a corporation

a. shared ownership
b. involvement of stockholders
c. ownership limited to one individual
d. ownership limited to one individual

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, such as the specific size, age, sex, or ethnicity of it’s residents

a. demographics
b. quotas
c. marketing strategies
d. criteria

A

demographics

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16
Q

what is an employee manual

a. handbook or guide containing data about salon operations
b. brochure listing businesses with which the salon has professional relationships
c. list of paid holidays and days the salon will close early
d. handout with names and contact information or all employees

A

handbook or guide containing data about salon operations

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17
Q

what is an example of a fixed cost

a. advertising budget
b. plumbing repair cost
c. air-conditioning repair cost
d. rent

A

rent

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18
Q

what BEST describes a partnership

a. multiple stockholders sharing ownership of a business
b. one person owning a business and another person serving as manager
c. one person starting a business and then selling it to another person
d. multiple people sharing ownership of a business

A

multiple people sharing ownership of a business

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19
Q

what term refers to the employees that work for you

a. vendors
b. clients
c. personnel
d. constituents

A

personnel

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20
Q

what is the PRIMARY purpose of creating a procedural guide

a. standardizing operations
b. establishing disciplinary policies
c. weeding out bad employees
d. relieving managers of responsibility

A

standardizing operations

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21
Q

what is profit

a. total amount of expenses plus revenues
b. money left after expenses are subtracted from revenues
c. all salon income prior to expenses
d. salaries minus tips

A

money left after expenses are subtracted from revenues

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22
Q

what is the MAIN goal of public relations

a. gaining more personal friends
b. achieving a certain desired behavior
c. attracting potential new employees
d. distracting the public from crimes

A

achieving a certain desired behavior

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23
Q

what is revenue

a. income generated from selling products and services
b. amount spent on purchasing products that will be sold to clients
c. total amount of all expenses for which the salon is liable
d. portion of income set aside for taxes

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 agreement

a. esthetician
b. financing company
c. stockholders
d. clients

A

esthetician

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25
Q

what is a business plan

a. document outlining a company’s beliefs and goals
b. strategy for understanding key elements in developing business
c. handouts given to employees explaining company policies
d. checklist explaining how procedures are followed

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
b. prepare your workstation by laying out needed products and supplies
c. turn on the towel warmer and insert fresh linens
d. wash your hands to ensure cleanliness during the treatment

A

confirm the appointment with the client by phone

27
Q

what should you do when leaving phone messages

a. remind the client to bring enough money to pay for services
b. address the client by name
c. leave a thorough description of all services you expect
d. pretend to be the salon manager

A

address the client by name

28
Q

what is true or the front desk in a salon or spa

a. few customers will have direct interaction with the front desk
b. only the manager needs to know how the front desk operates
c. it is the center of business operations in the salon
d. every esthetician takes a turn working at the front desk

A

it is the center of business operations in the salon

29
Q

what do you gain through education

a. compassion for dealing with employees’ problems
b. patience for waiting out slow periods in business
c. inspiration you need for inventing a successful product
d. knowledge you need to operate a profitable business

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
b. during your first week in business
c. during your first month in business
d. during your first year in business

A

before you open your business

31
Q

what business type requires the proprietor to bear losses alone

a. limited liability corporation
b. sole proprietorship
c. partnership
d. corporation

A

sole proprietorship

32
Q

what sort of perish might thrive by operating a sole proprietorship

a. collaborative peridot who enjoys bouncing ideas off others
b. independent, self-motivated individual who likes to be in charge
c. risk-averse person who does not mind sharing profits
d. quiet person who feels uncomfortable giving orders

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. prefers to do everything instead of delegating tasks
b. wants to keep all profits instead of sharing them
c. worries about the risks associated with assuming liability
d. enjoys the security of working with others

A

enjoys the security of working with others

34
Q

when should you learn as much as possible about a prospective partner’s ethics and philosophies

a. before entering into any binding agreement
b. before discussing the possibility of going into business together
c. during the first year of business, so you can see how the person works
d. after spending your capital on equipment and other necessities

A

before entering into any binding agreement

35
Q

what is one of the effects of incorporating

a. eliminates the need to pay any type of taxes
b. requires all investors to be actively involved in managing the company
c. eliminates the need to obtain government recognition of the business
d. helps to protect personal assets

A

helps to protect personal assets

36
Q

what does a corporation accomplish by issuing stock certificates or shares

a. adding members to the board of directors
b. raising capital
c. eliminating corporate liability
d. diversifying corporate investments

A

raising capital

37
Q

what is a sole proprietorship

a. business owned by one person
b. business owned by two or more people
c. business owned by stockholders
d. local business that is part of a larger national chain

A

business owned by one person

38
Q

what is the term for business expenses that fluctuate

a. fixed costs
b. marketing costs
c. utility costs
d. variable costs

A

variable costs

39
Q

what is the right approach for conflicts involving employees

a. letting employees work out their own problems
b. responding quickly and diplomatically
c. immediately firing any employee involved in a conflict
d. immediately sending the employee home to “cool off”

A

responding quickly and diplomatically

40
Q

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

a. client
b. receptionist
c. manager
d. most experienced esthetician

A

manager

41
Q

what aspect of employee relations includes active listening

a. negative surveillance
b. positive surveillance
c. negative communication
d. positive communication

A

positive communication

42
Q

what is an employer’s TOP financial priority

a. payroll
b. utilities
c. rent or mortgage
d. product vendors

A

payroll

43
Q

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

a. transportation
b. meals
c. benefits
d. leisure activities

A

benefits

44
Q

what happens when stockholders buy additional shares of stock

a. they diminish the overall value of the corporation
b. they increase their salaries
c. their voting power remains unchanged
d. they increase their ownership interest in the corporation

A

they increase their ownership interest in the corporation

45
Q

what type of business is managed by a board of directors

a. sole proprietorship
b. corporation
c. partnership
d. booth rental

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
b. in order to establish tax shelters in which you can hide income
c. to protect yourself since most companies get sued often
d. because every business needs a full-time lawyer and tax accountant

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. booth rental exposes you to every possible business situation
b. you gain experience by running a business on a small scale
c. if you succeed in booth rental, you will succeed in anything you try
d. booth renters usually end up buying the salon after a short period

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. product pricing and quality of service
b. visibility and accessibility
c. distance from the bank and age of the building
d. size of the building and quality of its fixtures

A

visibility and accessibility

49
Q

what is the term for locating a business close to other businesses that offer different products and/or services

a. one-stop shopping
b. cluster retailing
c. group marketing
d. demographic geography

A

one-stop shopping

50
Q

why is parking a critical element in attracting business

a. because employee convenience is always your first priority
b. safety and convenience are important marketing features
c. you won’t enjoy work if you have to park a long distance away
d. only people who drive are likely to seek out salon services

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. ensuring workplace safety
b. ensuring compliance with employment laws
c. performing workplace inspections
d. helping small business succeed

A

helping small business succeed

52
Q

what is true of financial management

a. it is your accountant’s responsibility, not yours
b. it is the cornerstone of a successful business plan
c. no one expects every business owner to know how to manage money
d. it is the cornerstone of a successful employee handbook

A

it is the cornerstone of a successful business plan

53
Q

what helps you learn how to forecast (make predictions) about your business

a. achieving five or more years of consistent profitability
b. maintaining a staff of five or more for at lest one year
c. becoming familiar with the financial affairs of your competitors
d. becoming familiar with specific costs related to running the business

A

becoming familiar with specific costs related to running the business

54
Q

what should your dispensary feature in addition to ease of mobility

a. soothing paint colors on the wall
b. high-fashion furniture
c. adequate storage space
d. fluorescent lighting

A

adequate storage space

55
Q

what evokes a professional ambiance in the salon

a. clientele of the salon
b. style of the salon
c. neighborhood in which the salon operates
d. popularity of 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 boring and predictable
b. that you don’t want their input
c. that you are a person of your word
d. that you will be quick to punish

A

that you are a person of your word

57
Q

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

a. widgets
b. revenues
c. tips
d. incentives

A

incentives

58
Q

how quickly should you answer the phone in a professional setting

a. during the first ring
b. after about one minute of ringing
c. you should send all calls to voicemail
d. within three rings

A

within three rings

59
Q

what should you do after asking a caller for permission to put the caller on hold

a. immediately put the caller on hold
b. allow enough time for a response
c. shout to the person in the salon with whom the caller needs to speak
d. warn the caller that he or she might be on hold for a long time

A

allow enough time for a response

60
Q

what is the protocol for missed calls in a professional setting

a. every call to a business must be answered immediately
b. check messages often and respond as quickly as possible
c. returning these calls is unnecessary because the person will call back
d. returning calls within a week is sufficiently professional

A

check messages often and respond as quickly as possible

milady esthetics (46 decks)

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