Ch 32

Question 1

During which period of your business timeline should you focus on tending to the business, its clientele, and its employees to grow and expand the business so that it is profitable?

a. From years two to five
b. From years five to ten
c. From years 11 to 20
d. From years 20 onward

Answer 1

a. From years two to five

Question 2

During which period of your business timeline should you focus on adding more locations, expanding the scope of the business (for example, adding spa services), or constructing a larger space?

a. From years two to five
b. From years five to ten
c. From years 11 to 20
d. From years 20 onward

Answer 2

b. From years five to ten

Question 3

During which period of your business timeline might you move from being a working cosmetologist into a full-time manager of the overall business and to begin planning for your eventual retirement?

a. From years two to five
b. From years five to ten
c. From years 11 to 20
d. From years 20 onward

Answer 3

c. From years 11 to 20

Question 4

When opening a new business, the location selected should reflect your _____.

a. primary clientele
b. personal preferences
c. commute time
d. future goals

Answer 4

a. primary clientele

Question 5

What is a written plan that describes a business and foresees projections for the next five years?

a. Personal budget
b. Employee report
c. Business plan
d. Demographic analysis

Answer 5

c. Business plan

Question 6

What federal agency requires that the ingredients of cosmetic preparations be available to employees?

a. FDA
b. MSDS
c. FBI
d. OSHA

Answer 6

d. OSHA

Question 7

Information about the ingredients in cosmetic preparations and other products are included in a(n) _____.

a. DoL
b. OSHA
c. SDS
d. FDA

Answer 7

c. SDS

Question 8

A salon that is owned and operated by an individual is referred to as a(n) _____.

a. booth rental
b. chain salon
c. individual ownership
d. partnership

Answer 8

c. individual ownership

Question 9

An individual who determines policies, has the last say in decision making, assumes expenses, receives profits, and bears all losses is the _____.

a. sole proprietor
b. partner
c. corporate proprietor
d. stockholder

Answer 9

a. sole proprietor

Question 10

One reason for entering into a partnership agreement is to have _____.

a. more clients
b. consolidated debt
c. capital for investment
d. many stockholders

Answer 10

c. capital for investment

Question 11

What is one of the best ways for a business owner to protect personal assets?

a. Investing capital
b. Selling shares
c. Incorporating
d. Sharing responsibilities

Answer 11

c. Incorporating

Question 12

Which business structure saves you money in taxes, provides greater business flexibility, and makes raising capital easier? a. Sole proprietorship

b. Partnership
c. Corporation
d. Conglomerate

Answer 12

c. Corporation

Question 13

A stockholder of a corporation is required to pay unemployment insurance taxes on his/her _____.

a. investments
b. merchandise
c. salary
d. profits

Answer 13

c. salary

Question 14

Which section of a business plan includes a long-term picture of what the business is to become and what it will look like when it gets there?

a. Mission statement
b. Vision statement
c. Goals and objectives
d. Organizational plan

Answer 14

b. Vision statement

Question 15

Which section of the business plan provides a description of the key strategic influences of the business, such as the market it will serve, the kinds of services it will offer, and the quality of those services?

a. Mission statement
b. Vision statement
c. Goals and objectives
d. Organizational plan

Answer 15

a. Mission statement

Question 16

Which section of the business plan describes the administrative structure of the business?

a. Mission statement
b. Vision statement
c. Goals and objectives
d. Organizational plan

Answer 16

d. Organizational plan

Question 17

What is a written agreement with a building owner that outlines the responsibilities for repairs and expenses?

a. Business sale
b. Non-compete agreement
c. Business plan
d. Lease

Answer 17

d. Lease

Question 18

Good business operations require a simple and efficient _____.

a. record system
b. price list
c. social network
d. reception area

Answer 18

a. record system

Question 19

Supplies that are used and replaced in the daily business operation are identified as _____.

a. expenses
b. perpetual inventory
c. inventory records
d. consumption supplies

Answer 19

d. consumption supplies

Question 20

What should be the primary concern when planning and constructing the physical layout of a salon?

a. Aesthetic appeal
b. Maximum efficiency
c. Color schemes
d. Expected depreciation

Answer 20

b. Maximum efficiency

Question 21

In order to have a successful business, a top priority in the allotment of funds is to _____.

a. develop an image
b. interview potential employees
c. meet payroll obligations
d. keep accurate inventory

Answer 21

c. meet payroll obligations

Question 22

The important job of booking appointments and greeting clients is generally the responsibility of the _____.

a. manager
b. trainer
c. practitioner
d. receptionist

Answer 22

d. receptionist

Question 23

The first and last person who has contact with a client visiting the salon is typically the _____.

a. receptionist
b. manager
c. stylist
d. cleaner

Answer 23

a. receptionist

Question 24

Which promotion method is an example of social media?

a. Bulletin boards at community centers
b. Photo sharing sites such as Instagram
c. Advertising supplements in local papers
d. Distributing flyers at events such as bridal shows

Answer 24

b. Photo sharing sites such as Instagram

Question 25

Newspaper or radio ads and charitable events can best be described as forms of _____.

a. branding
b. upselling
c. advertising
d. educating

Answer 25

c. advertising