Chapter 17 – Business Practices: Licensing, Employment, Marketing, Professional Development, Resources, Accounting, and Planning

Question 1

Which statement describes an employee?
A. Sets the fee for services
B. Is paid with taxes deducted
C. Has own equipment
D. Determines own hours

Answer 1

Is paid with taxes deducted

Question 2

Which describes an independent contractor and contract labor?
A. Receives payment with taxes deducted
B. Is told how long each massage session will be
C. Is given tools and materials to perform services
D. Provides services without supervision

Answer 2

Provides services without supervision

Question 3

What percentage of income from bartered services is reportable to the IRS?

Answer 3

1

Question 4

Which term means a brief summary of an individual’s education, experiences, and accomplishments related to a particular skill set?
A. Record
B. Assessment
C. Resume
D. Documentation

Answer 4

Resume

Question 5

Malpractice insurance is also known as:
A. professional liability insurance
B. workman compensation insurance
C. term life insurance
D. disability insurance

Answer 5

professional liability insurance

Question 6

Which type of insurance protects service-providing professionals from bearing the full cost of defending against a negligence claim made by a client?
A. General liability
B. Healthcare
C. Professional liability
D. Workman compensation

Answer 6

Professional liability

Question 7

Which aspect of business are self-employed massage practitioners required to pay?
A. Professional liability insurance
B. Accounting services
C. Social Security and Medicare taxes
D. Mileage between home and office

Answer 7

Social Security and Medicare taxes

Question 8

What type of business entity puts the owner at the greatest risk?
A. Corporation
B. General partnership
C. Sole proprietorship
D. Cooperative

Answer 8

Sole proprietorship

Question 9

How would two massage practitioners maintain individual business entities?
A. Obtain separate business phone numbers and websites
B. Maintain two separate appointment calendars
C. Obtain separate accountants and bookkeepers
D. Maintain separate banking accounts and avoid co-mingling funds

Answer 9

Maintain separate banking accounts and avoid co-mingling funds

Question 10

Which aspect of business protects the public by enforcing standards which restrict practice to qualified individuals who have met specific qualifications?
A. Occupational license
B. Sales tax permit
C. Professional liability insurance
D. Professional license

Answer 10

Professional license

Question 11

Which term means dividing geographic areas into regions so a city can restrict the number and types of buildings within the region as well as how these buildings are used?
A. Licensure
B. Distribution
C. Liability
D. Zoning

Answer 11

Zoning

Question 12

Which process is voluntary and involves specialists in a particular field examining and endorsing the qualifications of a professional?
A. State licensure
B. Board certification
C. State registration
D. Board licensure

Answer 12

Board certification

Question 13

Which example is a potential business tax deduction?
A. Home rent
B. Life insurance
C. Office rent
D. Annual vacation

Answer 13

Office rent

Question 14

Sole proprietors or self-employed individuals report profit and losses annually using which tax form?
A. Plan document 5500
B. Schedule C
C. W-2 form
D. SSA-1099

Answer 14

Schedule C

Question 15

Which term means debts or obligations owed by a business entity to a creditor?
A. Depreciation
B. Liabilities
C. Equity
D. Assets

Answer 15

Liabilities

Question 16

A Taxpayer Identification Number is a nine-digit identification number issued by the:
A. Department of Commerce
B. Social Security Administration
C. Internal Revenue Service
D. International Trade Commission

Answer 16

Internal Revenue Service

Question 17

Which business entity is granted a charter by the state and has its own privileges and liabilities distinct from those of its board of directors or its shareholders?
A. Corporation
B. Sole proprietorship
C. General partnership
D. Limited partnership

Answer 17

Corporation

Question 18

Which type of corporation has a limited number of members and corporate taxes are waived and reported by the owners on their individual federal income tax returns?
A. C-corporations
B. S-corporations
C. T-corporations
D. M-corporations

Answer 18

S-corporations

Question 19

What format must you send your tax identification number if it is requested by subpoena? (Ch 10 or 17)
A. XX-3456789
B. 12-XXX6789
C. 12-345XXXX
D. 12-3456789

Answer 19

12-3456789