Esthetics & Business Basics Flashcards
The central company document that the owner and employees use to make decisions is a…
Business plan
The three basic elements of a personal financial statement are…
Assets, liabilities, and net worth
Comprises all the property a person owns.
Assets
Consists of all the money you owe.
Liabilities
Assets minus liabilities equals…
Net worth
A business owned by one person who is in complete control is called a…
Sole proprietorship
A business owned by two or more persons is called a…
Partnership
Which type of business is owned by shareholders?
Corporation
_____ is more of a license for operation than a form of ownership.
Franchise
A financial advisor who can explain in greater depth the types of business ownership and their tax benefits and liabilities.
Accountant
An advisor on borrowing money, signing rental agreements and assuming tax responsibilities is a?
Lawyer
Which expert acts as a link between the manufacturer and the skin care center?
Distributor
The most important factor in opening a skin care business is…
Location
What is the first step in gauging the market need?
Determining how many skin care center are in the area
What measurement per esthetician allows for an efficient working space ?
120-150 square feet
The reservoir of cash that is needed to stay ahead of creditors is…
Operating capital
A reserve of cash that you can draw upon to meet operating expenses if you have a slow month or two is called…
Line of credit
What type of rent allows owners to predict monthly expenses carefully?
Fixed rent
A set dollar amount paid per month plus a percentage of the total monthly income is called…
Variable rent
A policy that protects the skin care center owner from financial loss that can result from an employers negligence.
Malpractice
Insurance is a type of…
Risk management
A policy that covers the actual skin care center equipment and physical location in case of natural disasters, theft, etc.
Property or Premise
A state controlled insurance that is required by law.
Workers compensation
All payments received from clients for services performed and home care products purchased.
Income
Refers to all the costs incurred in the day to day running of the skin care center.
Operating expenses
Utilities, supplies, cost of promotions, postage and races are types of…
Variable costs
An estimate of what you think you will earn in revenues and what you think you will pay out in expenses.
Projection
If the skin care centers income is greater than the operating expenses the skin care center is operating at an…
Prodit
A withholding tax that is a planned savings/retirement fund for every worker in the United States.
Social security
What item does a skin care center owner apply for before collecting tax on products or services sold?
State sales tax permit
A skin care center should keep all records of daily sales and services for at least…
6 months
What type of compensation is based on a percentage of the income an individual esthetician generates?
Commission
