Ch. 3: Business Basics Flashcards
The central company document that the owner and employees use to make decisions is a ___.
business plan
An exit plan, market potential and origin of company are elements of what?
business plan
What are the three basic elements of a personal financial statement?
assets, liabilities and net worth
Assets minus liabilities equals ___ ___.
net worth
A type of business ownership owned by one person who is in complete control of the business is a ___ ___.
sole proprietorship
Which type of business is owned by shareholders or members who have funds invested in the company?
corporation
An adviser on borrowing money, signing rental agreements and assuming tax responsibilities is a(n) ___.
lawyer
What is the most important factor to consider when opening a skin care business?
location
How many square feet allows for an efficient working space for each esthetician?
120 to 150 square feet
Which insurance policy is state-controlled and required by law?
workers’ compensation
What is the name given to all payments received from clients for services performed and home care products purchased?
income
Which operating expense is paid on the profits of a business?
income tax
What type of compensation is based on a percentage of the dollar income an individual esthetician generates by serving clients?
commission
A procedure used in the skin care center to ensure that products are accounted for from the time they are added to the inventory until they are sold or used is called ___ ___.
inventory control
What is the best determining factor upon which to establish service prices for your skin care center?
results of a market survey conducted in your area
