Foundations ch 10

Question 1

The kinds of services your business will offer and the quality of those services is found in what part of the business plan?

vision statement
mission statement
marketing plan
organizational plan

Answer 1

vision statement
mission statement*
marketing plan
organizational plan

Question 2

Which of the following is the best form of advertising?

giveaway promotional items
television ads
satisfied clients
social media

Answer 2

giveaway promotional items
television ads
satisfied clients*
social media

Question 3

Which of the following is an ownership structure controlled by one more stockholders?

franchise
corporation
sole proprietor
partnership

Answer 3

franchise
corporation*
sole proprietor
partnership

Question 4

A _________ is a written description of your business as you see it today and as you foresee it in the next five years.

brand identity
benchmark
business plan
written argument

Answer 4

brand identity
benchmark
business plan*
written argument

Question 5

In a business plan, owner’s resume and personal financial information would be found in the __________.

vision statement
supporting documents
financial documents
executive summary

Answer 5

vision statement
supporting documents*
financial documents
executive summary

Question 6

The first goal of every business should be to __________.

retail more products
maintain current clients
cross promote more services
upsell more clients

Answer 6

retail more products
maintain current clients*
cross promote more services
upsell more clients

Question 7

In how many states is booth rental allowed?

0
48
25
50

Answer 7

0
48*
25
50

Question 8

Salon, spa, and barbershop owners have no guarantee of __________.

profits
personnel
support
credit

Answer 8

profits*
personnel
support
credit

Question 9

An advertising budget should not exceed ________ percent of your gross income.

1
3
20
6

Answer 9

1
3*
20
6

Question 10

It takes most new shops ________ to begin operating at full capacity.

one year
three months
six months
two years

Answer 10

one year
three months
six months*
two years

Question 11

What business time period would be appropriate for adding more locations or expanding the scope of the business?

years 11 to 20
years 2 to 5
years 1 to 3
years 5 to 10

Answer 11

years 11 to 20
years 2 to 5
years 1 to 3
years 5 to 10*

Question 12

Unless you are at least ________ percent booked all of the time, it may not be advantageous to rent a booth.

50
20
90
70

Answer 12

50
20
90
70*

Question 13

One reason for going into a partnership arrangement is to ___________.

have help running your operation
have a known name and brand recognition
maintain a corporate status
have the last say in decision making

Answer 13

have help running your operation*
have a known name and brand recognition
maintain a corporate status
have the last say in decision making

Question 14

Owning your own business or renting a booth in an existing salon, spa, or barbershop requires __________.

community outreach
familiarity with building codes
a business partnership
a strong line of credit

Answer 14

community outreach
familiarity with building codes
a business partnership
a strong line of credit*

Question 15

What should be the primary concern when constructing the best physical layout for a salon, spa, or barbershop?

maximum efficiency
cost
retail sales
decor

Answer 15

maximum efficiency*
cost
retail sales
decor

Question 16

Someone who is trained to do everything from recording sales and payroll to generating a profit-and-loss statement is called a(n) __________.

business manager
stockholder
full-charge bookkeeper
accountant

Answer 16

business manager
stockholder
full-charge bookkeeper*
accountant

Question 17

A _________ is a guide to the actions of the organization.

goal
mission statement
vision statement
business plan

Answer 17

goal
mission statement*
vision statement
business plan

Question 18

________ supplies are used in daily business operations.

Service
Consumption
Retail
Merchandise

Answer 18

Service
Consumption*
Retail
Merchandise

Question 19

One of the requirements for a partnership arrangement is ___________.

promoting, protecting, and furthering the interests of businesses in a community
trust
paying unemployment insurance taxes
having stockholders

Answer 19

promoting, protecting, and furthering the interests of businesses in a community
trust*
paying unemployment insurance taxes
having stockholders

Question 20

Which of the following is considered a salon, spa, or barbershop’s nerve center

reception area
break room
booth spaces
retail area

Answer 20

reception area*
break room
booth spaces
retail area