CHAPTER 32: THE SALON BUSINESS Flashcards
When gathering accurate financial information for purchasing an existing salon, it is often helpful to consult with a _________.
a. interior designer
b. attorney
c. architect
d. certified public accountant
d. certified public accountant
Another name for an individual owner who determines policies and has the last say in decision making is a _______.
a. business partner
b. stockholder
c. sole proprieter
d. manager
c. sole proprieter
Supplies used in the daily business operation are considered __________.
a. retail supplies
b. consumption supplies
c. consumer supplies
d. inventory supplies
b. consumption supplies
Supplies purchased by a salon that are to be sold to clients are ___________.
a. retail supplies
b. consumption supplies
c. inventory supplies
d. client supplies
a. retail supplies
When planning and constructing the best physical layout for a salon, the primary concern should be _________.
a. color scheme
b. salon furniture
c. salon carpeting
d. maximum efficiency
d. maximum efficiency
It should always be your top priority to meet which of the following financial obligations?
a. utility bills
b. vendor bills
c. payroll
d. rent or motgage
c. payroll
Which of these is considered the very best form of advertising for a salon?
a. radio spots
b. satisfied clients
c. television ads
d. newspaper ads
b. satisfied clients
A _________ is an essential set of benchmarks that, once achieved, helps you realize your mission and your vision.
a. assignment
b. result
c. obligation
d. goal
d. goal
When choosing a location for your business, you should select one that __________.
a. offers easy access
b. has limiting parking
c. is secluded
d. has low traffic
a. offers easy access
What is the minimum number of stockholders allowed for a corporation to exist?
a. zero
b. one
c. two
d. three
b. one
If you operate your salon in a building that you own, it is not necessary to purchase which of the following types of insurance?
a. liability insurance
b. malpractice insurance
c. renter’s insurance
d. burglary insurance
c. renter’s insurance
Which of these terms refers to your staff or employees?
a. personnel
b. constituents
c. clients
d. creditors
a. personnel
Human resources does not cover which of the following concerns?
a. what you can and cannot say when hiring someone
b. what you must do when firing someone
c. what you should do when you need to increase sales
d. how you manage your employees
c. what you should do when you need to increase sales
Booking appointments is primarily whose job?
a. the cosmetologist’s
b. the client’s
c. the manager’s
d. the receptionist’s
d. the receptionist’s
The first goal of every business should be to __________.
a. maintain current clients
b. attract new clients
c. compensate employees fairly
d. upgrade existing equipment
a. maintain current clients
Which part of a business plan outlines employees and management levels and describes how the business will be run administratively?
a. financial documents
b. organizational plan
c. vision statement
d. mission statement
b. organizational plan
Which part of a business plan summarizes your plan and states your objectives?
a. salon policies
b. marketing plan
c. mission statement
d. executive summary
d. executive summary
Which part of a business plan include projected financial statements, actual statements, and financial statement analysis?
a. organizational plan
b. vision statement
c. financial documents
d. salon policies
c. financial documents
Which part of the business plan ensures that all clients and employees are treated fairly and consistently?
a. salon policies
b. financial documents
c. executive summary
d. organizational plan
a. salon policies
Which part of a business plan is a long-term picture of what the business is to become and what it will look like when it gets there?
a. vision statement
b. mission statement
c. salon policies
d. marketing plan
a. vision statement
Which part of a business plan outlines all of the research obtained regarding the clients your business will target and their needs, wants, and habits?
a. organizational plan
b. financial documents
c. marketing plan
d. executive summary
c. marketing plan
Which part of a business plan includes the owner’s resume, personal financial information, legal contracts, and any other agreements?
a. executive summary
b. salon policies
c. financial documents
d. supporting documents
d. supporting documents
Which part of a business plan is a description of the key strategic influences of the business?
a. vision statement
b. mission statement
c. supporting documents
d. marketing plan
b. mission statement
An agreement to buy an established salon does not typically include which of the following?
a. an analysis of future maintenance costs
b. a signed statement of inventory and its value
c. a financial audit
d. confirmation of the identity of the owner
a. an analysis of future maintenance costs
Costs to create even a small salon in an existing space can range from _________ per square foot.
a. 5-15$
b. 20-35$
c. 30-80$
d. 75-125$
d. 75-125$
A form of business in which a firm that is already successful enters into a continuing contractual relationship with other businesses is ___________.
a. a sole proprietorship
b. a corporation
c. a franchise
d. a partnership
c. a franchise
Smooth business management depends on sufficient investment capital as well as _________.
a. adequate business procedures
b. excellent customer service delivery
c. minimal computer skills
d. personnel with only basic training
b. excellent customer service delivery
Someone who is trained to do everything from recording sales and payroll to generating a profit-and-loss statement is ____________.
a. a full-charge bookkeeper
b. a financial director
c. a receptionist
d. a manager
a. a full-charge bookkeeper
For a cosmetologist who has a large, steady clientele and who does not have to rely on the salon’s general clientele to keep busy, ____________ may be a desirable situation.
a. a franchise
b. an S corporation
c. a limited liability company
d. booth rental
d. booth rental
With each call, a gracious, appropriate response will help build ______.
a. teamwork
b. a quiet atmosphere
c. the salon’s reputation
d. the salon’s energy level
c. the salon’s reputation
