Chapter 32 - The Salon Business Flashcards
Another name for an individual owner with complete control of a business is: A. Business partner B. Stockholder C. Sole proprietor D. Manager
C. Sole proprietor
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 with the intention of selling these products 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 these financial obligations? A. Utility bills B. Vendor bills C. Payroll D. Rent or mortgage
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(n) \_\_\_\_\_\_\_\_\_ is a benchmark 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 limited 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. 0 B. 1 C. 2 D. 3
B. 1
If you operate your salon in a building that you own, it is recommended that you purchase all BUT which of these types of insurance? A. Liability insurance B. Malpractice insurance C. Renters insurance D. Burglary insurance
C. Renters insurance
Which of these terms refers to you staff or employees? A. Personnel B. Constituents C. Clients D. Creditors
A. Personnel
Human resources covers all BUT 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 B. The client C. The manager D. The receptionist
D. The receptionist
The first goal of every business should be to: A. Maintain current clients B. Attract new clients C. Compensate employees fairly D. Upgrading existing equipment
A. Maintain current clients
When preparing your business plan, it is helpful to consult with an \_\_\_\_\_\_\_ to prepare your financial documents. A. Interior designer B. Attorney C. Architect D. Accountant
D. Accountant
Which part of a business plan outlines management levels and describes how the business will be run?
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 includes projected financial statements, actual statements and financial statements?
a. organizational plan
b. vision statement
c. financial statement
d. salon policies
c. financial statement
Which part of a 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 plan
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 should include all BUT which of the following?
a. an agreement on the future maintenance costs
b. disclosure of the conditions of the facility
c. a formal or informal employee agreement
d. confirmation of the identity of the owner
a. an agreement on the 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 business plan is a legally binding document.
T or F
False
Typically, salon owners continue to work on hair while they manage their business.
T or F
True
A long-term picture of what the business is to become and what it will look like when it gets there is part of the executive summary,
T or F
False
In addition to start-up costs for creating your salon, you’ll need financing for operational expenses.
T or F
True
A stockholder of a corporation is required to pay unemployment insurance taxes on:
a. investments
b. merchandise
c. salary
d. profits
c. salary
Supplies that are used and replaced in the daily business operation are identified as:
a. expenses
b. perpetual expenses
c. inventory records
d. consumption supplies
d. consumption supplies
When opening a new business, the location selected should reflect your:
a. primary clientele
b. personal preference
c. new clients
d. travel time
a. primary clientele
One of the best ways for a business owner to attract personal assets is:
a. investing capital
b. selling shares
c. incorporating
d. sharing responsibilities
c. incorporating
The federal agency that requires that the ingredients of cosmetic preparations be available to employees is:
a. FDA
b. MSDS
c. FBI
d. OSHA
d. OSHA
A written plan that describes a business and foresees projections for the next 5 years is a:
a. personal budget
b. written plan
c. business plan
d. demographic analysis
c. business plan
A written agreement with a building owner that outlines the responsibilities for repairs and expenses is a:
a. business sale
b. non-compete agreement
c. business plan
d. lease
d. lease
Money to invest in a business.
a. demographics
b. chair rental
c. capital
d. personnel
c. capital
Information about a specific population.
a. demographics
b. chair rental
c. capital
d. personnel
a. demographics
Renting a booth or a station in a salon.
a. demographics
b. chair rental
c. capital
d. personnel
b. chair rental
Staff or employees.
a. demographics
b. chair rental
c. capital
d. personnel
d. personnel
