Lesson 23: Legal Responsibilities and Business Strategies

Question 1

What structures do for-profit businesses typically operate under?

Answer 1

• sole proprietorship
• partnership
• corporation

Question 2

What is a sole proprietorship?

Answer 2

It is a business owned and operated by one person.

Question 3

How does a sole proprietorship exsist?

Answer 3

As long as the owner operates the business and profits from the business belong to the owner.

Question 4

In a sole proprietorship, there is no ________ ____ that shields the actions of the business from the personal responsibility of the owner.

Answer 4

corporate veil

Question 5

When an owner of a sole proprietorship conducts business under a different company name, does the personal responsilibty of them (being the owner) still reside on them?

Answer 5

Yes

Question 6

What are the cons of a sole proprietorship PT business?

Answer 6

• no corporate veil to protect you from personal responsibility/fees
• incoming revenue can be decreased if you take time off
• if any lawsuit should occur, the financial loss is far greater and can cause you to sell assets

Question 7

What is the definition of a partnership business?

Answer 7

When two or more people agree to operate a business, share profits/losses.

Question 8

Partnerships can be created without filing paperwork, why should you file these documents though?

Answer 8

Any partnership should have legal documents to establish the rules of operation that outlines the structure of authority, partners’ rights, expected performance/contributions from each party, buy-out clauses, income distribution and responsibility for debts.

It basically protects each partner’s finances and job.

Question 9

What should be included in a partnership rules of operation legal document?

Answer 9

It should outline and clearly define:

• structure for authority
• partners’ rights
• buy-out clauses
• income distribution
• expected performance and contributions from each partner
• responsibility for debts

Question 10

In extreme cases, the lack of a partnership agreement can result in what?

Answer 10

The courts requiring the business to be dissolved to settle financial disputes

Question 11

Partnership paperwork should be designed to address any eventuality, what is an example of one?

Answer 11

Potential death or incapacity of one of the partners.

Question 12

What is a general partnership?

Answer 12

The joining or 2 or more individuals to own and operate a business.

Question 13

Why will most attorneys advise against a 50-50 partnership split?

Answer 13

Because this can result in a stalemate because neither partner can institute policy without the other’s permission as business decisions must be approved by a majority of 50.1%.

Question 14

Why can a disproportionate ownership in a partnership cause issues?

Answer 14

Because the minority partner ultimately cannot make decisions without permission from the other and may not want to invest as much as they get less profit/income.

Question 15

What is the difference between an express partnership and an implied partnership?

Answer 15

An express partnership is created and recognized by a contract whereas an implied partnership is created and recognized by the judicial system without a contract necessarily.

Question 16

What is an implied partnership?

Answer 16

One that is created and recognized through the judicial system as the individuals act as partners but don’t necessarily have a binding contract.

Such as opening a business bank account together or co-signing a loan.

Question 17

What is an express partnership?

Answer 17

One that is created and recognized by the parties signing a contract.

Question 18

In some cases, minority partners may be personally liable for a greater share of the companies’ liabilities than their % of ownership - why?

Answer 18

If their partner files for bankruptcy, the minority partner may be required to cover the financial obligation of the insolvent general partner even if they own 45%.

Question 19

Why do some partnerships involve limited patners?

Answer 19

Limited partners are only liable for their direct financial contribution so this protects the partner from covering financial obligations should their partner pull out.

Question 20

What do limited partners not gain in a partnership?

Answer 20

Any formal managerial input regarding the operations of the business.

Question 21

Why has it proven to have issues in a partnership where one partner is the ‘hands on’ person and the other is the ‘office/admin’ person?

Answer 21

Because it creates problems where one partner maybe doesn’t fully value/appreciate the other partner’s input/work.

Question 22

When/why does a partnership end?

Answer 22

When a partner dies, becomes bankrupt, the other partner engages in any illegal activity or if the court rules a partner as being medically incapacitated. It can also occur when the company is not making money and all parties wish to dissolve the partnership.

Question 23

If a business is not making any money, what could happen for the partnership?

Answer 23

The partnership is dissolved unless one or more partners have different opinions on the financial future of the company.

A resolution must be met between all parties - these may include court intervention to determine dissolving of the partnership or compensation for one’s exit.

Question 24

What is flow-through taxation?

Answer 24

When financial profits and losses flow from the business directly to the investors. The business does not pay any taxes, rather, the profits are taxed on the investors’ individual tax return and losses can be used by investors to offset other personal income.

Question 25

Why is flow-through taxation good for sole proprietorships/partnerships?

Answer 25

Because it means that you pay lower tax and can offset your tax with another personal income to avoid business loss.

Question 26

What are corporations designed to do?

Answer 26

Create a ‘separate’ entity from the investors and operators of a business.

Question 27

How does the corporate veil work between investors/operators in a corporation?

Answer 27

In a corporation, investors own shares and must not act as owners therefore lowering their personal liability.

Operators of the business and investors must share separate existences in the company.

Question 28

What is an example of an investor in a corporation piercing the corporate veil?

Answer 28

By mixing their personal checking account with that of the corporation, this can be seen by court as acting as the corporation and increases their personal liability potentials for any corporate debt/judgements.

Question 29

How is forming and maintaining a corporation more burdensome than a sole proprietorship or partnership?

Answer 29

Because corporations are formed and registered in the office of the secretary of state as opposed to just an agreement between the partners.

Question 30

What secretary of state must a corporation register in?

Answer 30

The one in which they operate.

If however, they operate in many states, they must determine the best state for short and long-term operation.

Question 31

What must be done to register a corporation in a state?

Answer 31

• must select a name that is not previously registered in the desired state
• appropriate notice of incorporation forms must be completed
• fees paid
• registered agent must be present

Question 32

Who is a registered agent?

Answer 32

The contact person in the event that a lawsuit is filed against the corporation.

Question 33

Once the incorporation is complete, what is the corporation recognised as?

Answer 33

a distinct legal entity

Question 34

What happens once the corporation is recognised as a distinct legal entity?

Answer 34

The shareholders will elect a board of directors who will hire the executive management team. If there are few shareholders, the investors may fill the corporate positions.

Question 35

What annual paperwork must be filed once a company is established?

Answer 35

Operational paperwork, tax returns that are appropriate to the local, state and federal governments.

Question 36

What are the main corporate structures?

Answer 36

• subchapter S-corporation
• limited liability companies
• limited liability partnerships
• C-corporations

Question 37

What is the main financial advantage of subchapter S-corporations?

Answer 37

Profits flow through the business to the shareholders and are taxed as ordinary income.

Question 38

Which of the corporate structures are most typically used by PT businesses that do not operate as a sole proprietorship or partnership?

Answer 38

Subchapter S-Corporations

Question 39

What are 2 pros to Subchapter S-Corporations?

Answer 39

• shareholders are shielded from personal liability by the corporate veil
• S-corps can own subsidiaries that operate independently which shields them from liability

Question 40

What are 3 cons to Subchapter S-Corporations?

Answer 40

• must be based in the US
• can only have a total of 100 investors that must be from the US
• can only issue one form of stock so every share must have the same voting rights/dividend allotments

Question 41

What is the definition of an Subchapter S-Corporation?

Answer 41

A type of corporation that meets specific Internal Revenue Code requirements. The requirements give a corporation with 100 shareholders or less the benefit of incorporation while being taxed as a partnership.

Question 42

What is the difference between LLC/LLP and S-corps?

Answer 42

An S-Corp requires extensive paperwork whereas LLCs and LLPs can be established by filing simple paperwork in the state where the LLC/LLP will initially operate.

There are also no national standards regarding the operation of LLCs or LLPs.

Question 43

Why is it likely that LLC/Ps will become the preferred operating structure for PTs?

Answer 43

Because they combine the limited liability and flow-through taxation of the S-Corp but with easier creation and operation requirements.

Question 44

What is the difference between a C-Corp and S-Corp in tax payments?

Answer 44

A C-corp is taxed as a company first and then any profits remaining may be provided to shareholders whereas in an S-corp, the profits flow through the business to the shareholders before being taxed as ordinary income.

Question 45

What are C-corps thought to provide double taxation?

Answer 45

Because the company is taxed first, then the shareholders are paid the remaining profits before they are taxed individually on their dividends. Therefore, they essentially pay double tax.

Question 46

What is the difference between a C-corp and an S-corp in terms of shareholders?

Answer 46

Unlike an S-Corp, C-Corps have no limits on the number of potential shareholders, can also issue different classifications of stock and stock can be sold to foreign nationals/institutional investors.

Question 47

Why do profitable companies operated as partnerships, LLCs or S-Corps elect to change their classification to a C-Corp?

Answer 47

Because ‘going public’ can enable the owner/s to generate a large amount of money.

Question 48

What is a possible negative to already established companies changing their classification to a C-Corp?

Answer 48

It can allow investors to take a significant stake in the operation of the company and can often lead to prominent founders of the company being ‘forced out.’

This happens when one person/group owns 50.1% of the stock and therefore has the majority of power to set policies.

Question 49

Why when a company goes public does no one owner retain more than 50.1% of the stock?

Answer 49

Because that one owner would therefore hold the majority of the business which means they can make executive decisions and policies.

Question 50

What can a consultation with an attorney who specializes in business operations assist with?

Answer 50

Reducing potential liability and mitigating potential tax payments.

Question 51

What are advantages and disadvantages of a sole proprietorship?

Answer 51

Pros -
easily created/managed and flow through taxation

Cons -
personal liability and raising capital

Question 52

What are advantages and disadvantages of a partnership?

Answer 52

Pros -
easily created and flow through taxation

Cons -
potential management disputes and personal liability (except limited partners)

Question 53

What are advantages and disadvantages of an S-Corp?

Answer 53

Pros -
flow through taxations and limited liability

Cons -
limited number of potential investors and costs of formation/operation

Question 54

What are advantages and disadvantages of an LLC/LLP?

Answer 54

Pros -
flow through taxations and limited liability

Cons -
undefined operating standards in states

Question 55

What are advantages and disadvantages of C-Corps?

Answer 55

Pros -
limited liability and unlimited number of investors

Cons -
cost of formation/operation and double taxation

Question 56

What does LLC and LLP stand for?

Answer 56

Limited Liability Companies and Limited Liability Partnerships

Question 57

What is a Franchise Operation Business Model?

Answer 57

A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business’s (franchisor) proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business’s name.

Question 58

What is the franchising model based on?

Answer 58

The principle that local business owners will have greater success connecting their facilities to the local communities and more commitment to making them successful if they have an ownership stake in the business.

Question 59

What can a franchisee purchase?

Answer 59

A specific location or the rights to open a number of locations for a specific market.

Question 60

Owning and operating a franchise provides some of the advantages of both an?

Answer 60

independent operation and a multiple-facility operation

Question 61

What is the individual franchisee upfront cost that most franchise operations will change?

Answer 61

up to £25,000 plus annual fees of a % of revenue earned from the business

Question 62

What costs are involved in owning a franchise?

Answer 62

• cost of purchasing operational and retail products through franchisor’s business structure
• annual feels of a % of revenue earned from the business

Question 63

What are 5 advantages to owning and operating a franchise?

Answer 63

• obtaining the rights to a recognized brand name that will assist the PT in creating a strong presence in a specific market
• access to business/operating systems created by the franchiser (e.g equipment layouts, discounts on equipment purchases, marketing info)
• access to national advertising programs and the ability to share costs associated with marketing/brand identity with other franchise owners
• ability to control the business as long as the requirements of the parent franchise company are met
• franchisers that will provide training/advice on all aspects of marketing/operating the business as it is in their best interest for all individuals to be successful

Question 64

What are the disadvantages of owning/operating a franchise?

Answer 64

• upfront costs and ongoing costs to maintain the association with the parent brand
• annual costs of maintaining the franchise (such as necessary purchases through the franchise system)
• association with a particular brand which could drawback if other franchisees perform badly or unethically
• following the franchise’s operating model which could limit the franchisee’s ability to adapt to changing market forces

Question 65

What is the difference between an employee and independent contractor?

Answer 65

Employees regularly work for their employer whilst independent contractors are typically hired on a short-term basis to perform a specific task or series of tasks.

Once the specific task is complete, ICs are paid and no longer needed.

Question 66

What are employers responsible for in terms of their employee?

Answer 66

• training and supervising them
• maintaining records regarding their work
• withholding and matching the employees Federal Insurance Contributions Act taxes for Social Security and Medicare

Question 67

What does an employer usually cover for their employee?

Answer 67

Unemployment coverage, workers’ compensation coverage and medical benefits.

Question 68

What work details typically differentiate an independent contractor from an employee?

Answer 68

If schedules are created that require specific materials to be utilized and an overseeing of procedures then it will typically be seen as an employee.

Question 69

What payment details typically differentiate an independent contractor from an employee?

Answer 69

Regularly scheduled payments typically indicate employment whilst payment by the ‘job’ indicates independent contractors.

Question 70

What training/retraining details typically differentiate an independent contractor from an employee?

Answer 70

An IC will require no training or additional training from the hiring agency.

Question 71

What equipment details typically differentiate an independent contractor from an employee?

Answer 71

ICs will typically provide their own equipment.

Question 72

How does a person’s ‘number of clients’ typically differentiate an independent contractor from an employee?

Answer 72

Employees typically work for one employer whereas an IC will have multiple clients.

Question 73

How does someones nature of work typically differentiate an independent contractor from an employee?

Answer 73

If the work provided is integral to the core function of the business then they are deemed an employee. In addition, if the work is typically performed by ICs then the courts will utilize that in their determination.

Question 74

How does ‘intention of the parties’ typically differentiate an independent contractor from an employee?

Answer 74

The intent of the parties is a factor in defining an IC and employee.

If the intent is to work scheduled hours, they are more likely deemed an employee.

Question 75

What are 8 areas that courts will look at when investigating a potential status dispute?

Answer 75

• work details
• payment
• length of relationship
• training/retraining
• equipment
• number of clients
• nature of work
• intention of parties

Question 76

How does someones ‘length of relationship’ typically differentiate an independent contractor from an employee?

Answer 76

ICs are typically hired for short amounts of time opposed to employees.

Question 77

A PT that is an independent contractor that works in a fitness center should be able to?

Answer 77

• choose when/where to work
• charge variable fees for different situations
• begin working without extensive guidance
• maintain autonomy in training decision

Question 78

Why can it often be better to be a PT at a gym?

Answer 78

Because you are gaining more security being an employee of a fitness facility as opposed to an IC with more personal/financial risk.

Question 79

What elements are necessary to creating a binding contract?

Answer 79

• an offer and acceptance with a mutual agreement of terms
• consideration (an exchange of valuable items i.e money for service)
• legality (acceptance under the law)
• ability of the parties to enter into a contract with respect to legal age and mental capacity

Question 80

Why is an oral contract deemed dangerous?

Answer 80

Because oral contract disputes may require legal intervention in which case the conflicting stories may be settled in a courtroom without sufficient evidence to support the trainer’s account of what transpired.

Question 81

Some trainers use scheduling as a form of contract, why should a written contract be established instead?

Answer 81

To account for rescheduling, bounced checks, agreements to follow instructions and adhere to proper techniques, confidentiality, termination of agreement.

Question 82

What will be signed as a component of the initial contract?

Answer 82

A waiver

Question 83

When should a PT insist upon a written contract not only with clients but fitness centers, vendors and other entities in which they work?

Answer 83

Every time they conduct new business/services.

Question 84

When does the statute of frauds require there be a written contract for the agreement to be valid?

Answer 84

In any case where the agreement involves real estate, goods or services worth $500 + or requires 1+ years to complete.

Question 85

When will the courts not intervene in a potential oral contract dispute?

Answer 85

When the contract violates the statute of frauds as it will invalidate the agreement.

Question 86

What is the difference between an act of omission and an act of commission?

Answer 86

An act of omission would be a PT failing to act such as not spotting their client whereas an act of commission would be acting inappropriately such as failing to suitably make a program for someone with back injuries.

Question 87

To substantiate a charge of negligence in court, what 4 elements must the plaintiff establish?

Answer 87

• the defendant had a duty to protect the plaintiff from injury
• the defendant failed to uphold the standard of care necessary to perform that duty
• damage or injury to the plaintiff occured
• the damage or injury was caused by the defendants breach of duty

Question 88

What is proximate causation?

Answer 88

In law, a proximate cause is an event sufficiently related to an injury that the courts deem the event to be the cause of that injury.

Question 89

What does vicarious liability/respondeat superior refer to?

Answer 89

This is a concept that states employers are responsible for the employment actions of their employees.

Aka if their employee acts negligently then the employer and employee are liable for court cases.

Question 90

What is an exculpatory clause used for?

Answer 90

a contract provision that relieves one party of liability if damages are caused during the execution of the contract.

e.g signing a waiver before boxing that says you will not sue should you break your nose during

Question 91

Why should a PT utilize their own waiver in addition to the one signed at a fitness facility before working with a client?

Answer 91

Because the original waiver may not extend to the PT if they do not immediately work at the centre and the client may try to sue. It is extra protection.

Question 92

What must a client understand before signing a waiver?

Answer 92

The nature of the activities and potential risks of injuries they may sustain during.

Question 93

What is classified as gross negligence?

Answer 93

An action that demonstrates recklessness or a willful disregard for the safety of others, this occurs when someone deliberately acts in a manner that extends beyond the scope of employment or fails to meet the accepted standard of care.

Question 94

If a PT removed a safety screw from a bench, what is this classified as and would the waiver protect them from legal inference?

Answer 94

This is an example of gross negligence because it deliberately places danger upon their client. The waiver would not protect them.

Question 95

The use of proper waivers protects the PT from lawsuits that arise from what type of injuries?

Answer 95

Ones that are typically sustained during exercise (e.g sprained ankle) as well as injuries due to mistakes the trainer makes during training.

Question 96

What is classified as contributory negligence?

Answer 96

When the plaintiff in a lawsuit is deemed to have played a role in the injury and is prevented from receiving any remuneration (money).

Question 97

If a client fails to tell you that the sole of their shoe is broken and slips during a session, what type of negligence is this?

Answer 97

contributory negligence

Question 98

What is comparative negligence?

Answer 98

When several parties are involved so the damage is split between who is at fault.

Question 99

If a client fails to tell you that the sole of their shoe is broken and slips during a squat you were not properly spotting - what might the court deem this? What would the result of this be?

Answer 99

They would deem it as comparative negligence and may give 40% blame to the client and 60% to you - meaning you would pay 60% of the damage costs.

Question 100

What 3 forms should be filled out before a PT begins the first exercise session with a new client?

Answer 100

• agreement to participate
• informed consent
• waivers

Question 101

What is an agreement to participate form designed to do?

Answer 101

Protect the PT from a client claiming to be unaware of the potential risks of physical activity.

Question 102

What type of form is more typical for class settings as opposed to 1-1?

Answer 102

agreement to participate

Question 103

What should an agreement to participate form outline?

Answer 103

• potential risks to be encountered
• nature of activity
• expected behaviour of participant (as they may need to follow instructions)

Question 104

Why do some attorneys suggest you do not train anyone until they have been verified by a basic health examination?

Answer 104

Because whilst PTs know how to start safely and slowly, they cannot evaluate a client’s overall health in the way a doctor can.

Question 105

Why is it useful to know if a client has health insurance?

Answer 105

To know that they’re covered but also so that you can provide this info if anything should happen.

Question 106

What is an informed consent form?

Answer 106

A form that shows the client’s acknowledgment that they have been specifically informed about the risks associated with the engaged activity.

Question 107

What are 5 headings that could be used in an informed consent form?

Answer 107

1. purpose and explanation of test
2. risks
3. benefits to be expected and alternatives available to the exercise testing procedure
4. confidentiality and use of information
5. inquiries and freedom of consent

Question 108

What is a inherent risk?

Answer 108

A risk that can occur through normal participation in the stated activity and can only be avoided by declining to participate.

Question 109

What 2 forms would protect a PT from any injuries due to inherent risks?

Answer 109

an agreement to participate and informed consent as these both show the potential risks/injuries of the activity that may happen even if proper technique is fulfilled.

Question 110

How long should a PT retain the paperwork/forms on file with a new client?

Answer 110

Until the statute of limitations has elapsed although some say you should keep them forever to avoid any negative impact should any laws change.

Question 111

What is the statute of limitations?

Answer 111

The time allotted to sue for damages.

Question 112

What should an inspection of environment consider?

Answer 112

• different floor surfaces are designed for different activities
• is there sufficient free space available to protect the client from others and from hurting themselves on equipment?
• is the lighting functional and sufficient for chosen exercises?
• is the heating and air con functional?
• are there bathrooms/water stations near?

Question 113

If you have inspected the training environment and found an area to be dangerous, notified the management and found they have done nothing about it. Why are you still partially liable for any injury sustained due to the danger of this area?

Answer 113

Because you still trained the client in the unsafe area despite having told management.

Question 114

What are 2 examples that would cause a court to rule against you for a client sustaining an injury whilst training outdoors?

Answer 114

If the weather was predicted as dangerous or if they had never ran the trail before and you did not walk them through it.

Question 115

An acceptable exercise routine in 24C / 75F may not be acceptable in ___ C/F or ___ C/F.

Answer 115

35 C / 95 F or 2 C / 35 F

Question 116

Why should homemade equipment be avoided in a fitness facility?

Answer 116

Because designing and manufacturing equipment is not considered part of being a PT and it will not meet the standard of safety/design.

Question 117

What should a PT do if they deem a piece of equipment as unsafe?

Answer 117

The PT should immediately remove the equipment from the training area or disable it from further use if it is not removable.

Question 118

What would be a conservative legal stance of using client’s equipment?

Answer 118

Avoid using a client’s equipment.

Question 119

What should you do if you notice a client’s own equipment is faulty/needs repair?

Answer 119

Inform the client that the equipment needs repair, suggest they call the company to replace any broken piece and conduct sessions without using this piece of equipment.

Question 120

What non-exercise equipment should PT’s take note of before training a client?

Answer 120

Proper footwear and clothing is worn.

Question 121

Failure to stop a client from exercising with improper shoes may be deemed as?

Answer 121

endorsment of a bad practice

Question 122

What is the difference between general and specific supervision?

Answer 122

General supervision involves overseeing a group of people such as a class whereas specific supervision is overseeing a PT session.

Question 123

How do you safely use specific supervision when working with 2 clients in a session?

Answer 123

Whilst providing specific supervision to one client such as spotting their squat, the other client should rest or perform an activity that requires only general supervision such as stretching/cardio.

Question 124

In terms of giving instruction, when will a PT be deemed negligent?

Answer 124

If they fail to demonstrate a movement or give proper instructions regarding use of the equipment and the client is injured.

Question 125

advocating dangerous or controversial exercises puts the trainer at risk for?

Answer 125

a successful lawsuit if a client is injured

Question 126

What safety guidelines should a PT always adhere to in the conduct of their activities to avoid any legal action?

Answer 126

• ensure that all sessions are well-planned, appropriate and documented
• communicate and enforce all safety rules for equipment use
• ensure equipment meets/exceeds all industry standards
• inspect all equipment prior to use and document adherence to maintenance schedules
• never allow unsupervised activity during a PT session
• limit participation to those under contract (no friends/family can join without signing forms)
• clearly warn clients about specific risks of planned activities
• only select activities within defined scope of practice + appropriate expertise
• ensure all clients wear necessary protective equipment
• review emergency plan
• stay up to date with education/certifications

Question 127

Why should a PT not use their client’s health history form to recommend treatment?

Answer 127

They could be accused of practicing medicine without a license.

Question 128

When may trainers administer fitness assessments?

Answer 128

When the tests are recognized by a professional organization as appropriate for the intended use and are within the trainer’s scope of qualification/training.

Question 129

When does giving advice/referring supplements/clothing etc to a client become a liability?

Answer 129

When you tell them to do something opposed to just offering personal opinion.

E.g telling a client that a certain food contains high amounts of vitamins/minerals versus telling them to eat more of the specific food

Question 130

What are the most reputable insurance carriers?

Answer 130

One that have a national affiliation, are licensed, have strong financial backing, have a reinsurer and no bad claims against them by the Better Business Bureau.

Question 131

What is a reinsurer?

Answer 131

corporate policy that ensures policy holder’s claims will b met even if the business collapses.

Question 132

what type of insurance do PTs need to secure?

Answer 132

Professional liability insurance that is specifically designed to cover the health and fitness industry.

Question 133

What should a PT’s insurance cover?

Answer 133

personal injuries that can occur as a result of a training session and injuries to clients including medical expenses and other compensation such as lost wages from not being able to work/loss of job.

Question 134

How much coverage does ACE recommend you retain in insurance?

Answer 134

at least $1 million as medical expenses are very costly.

Question 135

What is the difference in insurance policy’s for PTs in a gym facility vs home?

Answer 135

PTs that will use their own home or a client’s must ensure that their insurance includes a specific insurance rider that will cover those activities.

Question 136

What is the difference in insurance policy’s for PTs that own their facility?

Answer 136

insurance should cover potential problems with the facility as well as instruction/supervision of the trainer.

Question 137

What is an umbrella liability policy?

Answer 137

This type of policy adds coverage for all of the other insurances (e.g auto, home, professional liability)

Question 138

Who should secure product liability insurance?

Answer 138

Trainers that sell products in case the product fails to perform properly - especially those that own and operate fitness centers.

Question 139

Who should look to invest in keyman insurance?

Answer 139

PTs that form partnerships or corporations that may suffer significant financial loss should one important person die/become ill.

Question 140

What is a keyman insurance policy designed to do?

Answer 140

compensate the business for the loss of a person who performs a unique and valuable function.

Question 141

Why is it critical that independent contractors working for fitness facilities maintain adequate insurance coverage?

Answer 141

Because in the case of any legal action/lawsuit, the center’s legal representatives would likely try to separate the facility from the PT.

Question 142

What is one important aspect of insurance?

Answer 142

To obligate the insurance carrier to pay in the event of a loss.

Question 143

What is a key provision of an insurance policy?

Answer 143

That the company will pay even if the trainer fails to provide a service.

E.g if someone injures themselves and the trainer doesn’t provide first aid, insurance should still cover their protection.

Question 144

When ‘failure to render’ or ‘omission’ is not specified, what does the insurance policy cover?

Answer 144

It covers the trainer only if the services provided were inadequate or improper.

Question 145

What clause should a trainer look for in their policy?

Answer 145

One that states:

‘we will have the right and duty to defend any suit seeking damages under this policy even if the allegations are groundless, false or fraudulent and may make such investigation/settlement of any claim/suit deemed expedient.’

Basically ensure the policy covers you at all costs.

Question 146

Why are the best insurance policies ones that cover the cost of a legal defense and any claims awarded?

Answer 146

Because these will cover all of the trial fees as well as the awarded damages.

Question 147

What liabilities are often excluded in a fitness professionals insurance policy?

Answer 147

• abuse
• molestation
• cancer (resulting from tanning)
• libel/slander

Question 148

What should trainers inquire regarding bodily coverage in a policy?

Answer 148

If it covers mental stress as part of bodily coverage.

Question 149

Why should trainers look to include prior-acts coverage?

Answer 149

In the case that a prior act/client tries to come forward against them, the policy will only cover them with this added coverage.

Question 150

What issues are related to the claims-made basis of a policy?

Answer 150

Claims that occur before the policy and after the policy expires that therefore excludes coverage.

Question 151

What does an extended reporting endorsement ensure?

Answer 151

That any claims made in the future for injuries during the policy period will be covered even if the policy is cancelled.

Question 152

Why are marketing activities important to consider when joining fitness facilities?

Answer 152

Because even if you are the best PT, if the fitness facility has unethical behaviour online/offline, you can become associated with it and it can dampen your work and reputation.

Question 153

What 3 groups in America license music for commercial use?

Answer 153

• American Society of Composers, Authors and Publishers
• Broadcast Music Inc
• Society of European Stage Authors and Composers

Question 154

What 5 steps should be included in a risk management protocol?

Answer 154

• risk identification
• risk evaluation
• selection of an approach for managing each risk (avoidance, transfer, reduction, retention)
• implementation
• evaluation

Question 155

What are the 4 approaches that a PT can decide between when managing a risk?

Answer 155

1. Avoidance - removing possible danger/injury by eliminating activity
2. Transfer - moving the risk to others via waiver, insurance policies
3. Reduction - modifying risks by removing part of the activity
4. Retention - retaining low impact risks and avoiding high impact ones as complete removal of exercise can halt the health benefits

Question 156

PTs that provide training sessions to individuals and/or groups in clients homes or outdoor setting should check with their current insurance providers to see if they are covered for training in these settings or if they need to add a _________ _________ ______ policy to their current professional liability insurance.

Answer 156

specific insurance rider

Question 157

A personal trainer needs to be able to match their desire for helping clients improve their lives through exercise with the ability to quickly establish ______ with them.

Answer 157

rapport

Question 158

How is a trainer usually paid in the direct-employee model in a facility?

Answer 158

Usually paid one rate when working a scheduled shift on the fitness floor and a higher fee when working with a client as a PT.

Question 159

The pay rate for delivering a PT session can range anywhere from ___ to ___% of what the client pays the club or training studio.

Answer 159

40 - 70%

Question 160

What is the first consideration prior to committing to a fitness facility as a PT?

Answer 160

Establishing if their clientele is the same as your desired clientele and if their clients have disposable income for paying for trainer sessions.

Question 161

What are some considerations before commiting to a fitness facility as a PT? (9)

Answer 161

• does their clientele match my desired clientele?
• is it conveniently located for me commuting?
• is it located in an area that gets steady traffic throughout the day?
• what are the busiest times during the day so I can work around them
• does the company have a good reputation and share my values?
• does the facility require specific education/standardized method or protocol for me to work there?
• are there any production expectations/sales quota?
• other revenue-making options such as class training?
• do they require I sell dietary supplements or nutritional products

Question 162

Why is it important to consider whether a fitness facility requires you to sell nutritional/dietary/fitness products before joining as a PT?

Answer 162

As this can place you in legal jeopardy and violation of ACE Code of Ethics

Question 163

What are the advantages of the direct-employee model? (10)

Answer 163

• employer pays cost of marketing to new members
• employer pays for equipment + expenses
• many employers provide benefits ie. healthcare, paid vacation, pension
• some provide education opportunities at no cost to you
• employer is required to submit all taxes on behalf of you which is beneficial for future car/home loans
• employes often check with all employees re fitness facility layout/business changes
• promotion opportunities
• clients travel to the facility
• extra income via group classes which can introduce new clients
• many facilities allow small group sessions which generate you more income in the same time frame

Question 164

What are the disadvantages of the direct-employee model? (4)

Answer 164

• you have to conform to uniform and professional standards of the club
• the competitive per-session fees offered may still be lower than what you would offer independently
• likely required to meet min. number of hours worked each week
• potentially experience a high-pressure sales environment at the start of their PT job to meet employer sales goal

Question 165

When working under the direct-employee model, should a PT still market their own business?

Answer 165

Yes because whilst they work for a facility, they are still their own business as they can take on different clients from others

Question 166

What is the difference between a direct-employee model and an independent-contractor model?

Answer 166

A direct-employee model is when the PT works at the facility as both as a PT and employee that works scheduled shifts.

An independent contractor model is when a PT contracts their services (only as a PT) to a facility by either paying a monthly fee or per-client fee in return for using the facility.

Question 167

What are the operational differences between a direct-employee model and independent-contractor model?

Answer 167

In a direct-employee model, you are not responsible for any equipment, marketing or rent fees and receive benefits such as healthcare, paid time off, pension scheme.

In an independent-contractor model you receive none of these benefits and are responsible for renting spaces, marketing to new clients and operational costs.

Question 168

What considerations need to be made before deciding to be an independent contractor? (5)

Answer 168

• what facility will be used to train clients?
• if you are to work in client’s homes, what are the proximity of clients to each other? Is there enough market?
• what type of marketing expenses are required?
• what health-screening forms and liability waivers will be used to protect financial assets against litigation?
• what assistance is needed for an accountant/lawyer in setting up a business plan/financial/tax records?

Question 169

What are the advantages of the independent-contractor model? (3)

Answer 169

• PT is able to establish fees for training services based on experience and what the market will pay
• opportunity to move around different facilities
• option to establish own financial goals

Question 170

What are the disadvantages of the independent-contractor model?

Answer 170

• PT has to maintain business records and pay taxes accordingly
• responsible for all marketing costs
• no control over operation of facility you are renting
• travelling around which takes away from paid time and possibility of being late due to traffic

Question 171

Why can beginning as a PT under the direct-employee model establish a good and rewarding foundation?

Answer 171

Because often employers will train the PT in marketing their services and constant training of skills which will set you up for success.

Some employers also offer community projects which can raise public awareness of the PT.

Question 172

When first working with a client, a PT should?

Answer 172

Take the time to conduct an assessment to evaluate the client’s health risk factors and have them perform some standardized tests to determine their current level of fitness.

Question 173

What will a comprehensive business plan serve as when starting a business?

Answer 173

An operating guide for achieving specific objectives (i.e yearly income, number of clients)

Question 174

What are the 6 components of a business plan?

Answer 174

• executive summary
• business description
• marketing plan
• operational plan
• risk analysis
• decision making criteria

Question 175

What is an executive summary?

Answer 175

a brief outline of the business and an overview of how the business fills a need within the marketplace.

Question 176

What does a well written executive summary include?

Answer 176

• business concept (service it provides, target market, competitive advantage)
• financial info (start up cost for 1st year, source of capital for initial expenses, return on investment)
• current business position (owners experience in the industry, specific legal structure of business)
• major achievements (awards, testimonials)

Question 177

What should the business description component of a business plan include?

Answer 177

This should provide the details for the business as outlined in the executive summary but in further detail including the mission statement, business model, current status of the market, how the business fills a need within the mark and the management team.

Question 178

What should be included when describing the business in a plan?

Answer 178

• identify the operating model and its difference/uniqueness when compared to other studios/businesses
• describe the fitness industry specific to the local market including present financial situation and future growth
• details on numbers and locations of competitors, how many employees the have and number of clients
• list management team, their knowledge/skills/experience

Question 179

What is the purpose of the business description section in a business plan?

Answer 179

To provide information about the structure of the business, the market it will serve and the people that will run it.

Potential investors/lenders will want to see this information before deciding whether to provide capital.

Question 180

What does the marketing plan section in a business plan specify?

Answer 180

How the business plans for prospective clients to become paying clients through marketing and campaigns.

Question 181

What is marketing defined as?

Answer 181

The process of promoting a service by communicating the features, advantages and benefits to potential clients.

Question 182

What will an effective marketing campaign communicate?

Answer 182

• how a specific product/service meets the needs of a potential client and enhance their life
• the benefits of working with an ACE certified PT

Question 183

What will an effective marketing plan outline?

Answer 183

• list the details on the demographics for the area around the training business
• what the demand is for this service
• specific type/brand of training services that are offered in the business
• plan for communicating the benefits of personal training to potential clients

Question 184

How does identifying a target audience help in building a full schedule?

Answer 184

Identifying a target audience that can benefit from your services helps to develop a plan to communicate with those specific audiences and what time of the day they are most available.

Question 185

What does the operational plan of a business plan outline?

Answer 185

It describes how the business will operate including organizational charts that identify key decision makers and the employee responsibilities for executing those decisions.

Question 186

What 4 risk categories are there in risk analysis for a business plan?

Answer 186

• barriers to entry (start up costs)
• financial (access to capital required to start/expand business)
• competitive (others in the market competing for the same customers)
• staffing (issues associated with managing employees, budgeting for consistent payroll)

Question 187

A SWOT analysis is a simple tool for conducting a risk assessment, what does it stand for?

Answer 187

Strengths
Weaknesses
Opportunities
Threats

Question 188

How do you perform a basic SWOT analysis?

Answer 188

Simply divide a piece of paper into 4 squares and label each strength, weakness, opportunities and threats. Under each heading, list all potential notes that fits in each category.

E.g strengths could be competitive advantages of the business such as location, brand name, education of the PT

Question 189

What does the decision-making criteria of a business plan include?

Answer 189

a detailed cost-benefit analysis that demonstrates the financial benefits of operating the business outweigh the financial risks involved with establishing operations.
It should highlight the specifics about the business plan that prove it will be a successful business venture.

Question 190

What will a well-written plan present by the end?

Answer 190

A weel-written plan will present all of the components of the business in a way that the final section is simply a conclusion summarizing how the business will be a profitable venture.

Question 191

What does a brand represent?

Answer 191

what a service or product stands for and its value to potential customers/clients.

Question 192

What should a trainer use the business planning process for?

Answer 192

To develop their brand identity for their service.

Question 193

What is an important step in establishing an almost immediate emotional connection with a client?

Answer 193

Creating a brand to define the values and quality of the personal training service that a client can expect

Question 194

What are the benefits of establishing/developing a distinct brand?

Answer 194

A brand establishes an instantly recognizable value for the product or service being sold. Developing a distinct brand establishes a unique identity that effectively communicates the benefits of working with an ACE PT.

Question 195

Why is a strong brand identity important?

Answer 195

Because many people choose a specific brand because of a certain image the brand projects.

Question 196

What becomes a target demographic/prospective customer base of the training business?

Answer 196

Once you establish the clients that will need your services and who would be most interested and able to afford the expenses of a PT - then you have your demographic.

Question 197

Once deciding your business model (direct-employee/independent-contractor) you must identify some specific fitness goals that appeal to your prospective clients, what are some examples? (5)

Answer 197

• helping clients lose weight
• post-rehab strength training
• functional training to improve movement skills
• resistance training for muscular development
• sports conditioning for performance enhancement

Question 198

What are some examples of types of clients who might be interested in working with a PT that a trainer can use to begin building a brand identity? (7)

Answer 198

• new health club members looking to learn the basics
• brides preparing for their wedding days
• 50+ adults looking to improve quality of life
• new mums wanting to lose pregnancy weight
• those preparing for an adventure vacation
• competitive amateur athletes such as runners, golders, cyclists
• high school athletes seeking performance enhancement

Question 199

What can a trainer combine their strengths with to create a brand identity?

Answer 199

They can combine their strengths with research about the target demographic to create a vision statement for their service.

Question 200

What is the trick to a vision statement/brand identity?

Answer 200

It should be simple and clearly communicate what the intended customer can expect to receive from the service.

Question 201

There are a number of ways to market to prospective clients, what is an important thing to identify when deciding how to market?

Answer 201

Identifying the most cost-effective method that will have the greatest reach.

Question 202

Why would offering a complimentary fitness assessment/training session prove to be a good marketing strategy?

Answer 202

Because it allows the potential client to experience the benefits of training services before making a commitment and investing in a package of sessions.

Question 203

What should an initial (complimentary) training session accomplish with a client/prospective?

Answer 203

It should:

• collect info about them to screen for health risks and design an exercise program for both their needs and goals (i.e muscular imbalance and weight loss)
• give the prospect an opportunity to experience a specific brand of training so they can understand how working with a trainer will help them safely achieve their goals

Question 204

Why should a trainer try to engage with as many club members on the floor as they can?

Answer 204

Because people will become more familiar with them which builds rapport based on trust and communication. All members should be seen as prospective clients too.

Question 205

What should be on a business card?

Answer 205

• name
• title
• contact info (email/phone)
• website if application
• one line describing brand of training

Question 206

What can be included in a testimonial book/page?

Answer 206

• personal biography about you as a trainer and person
• success stories from satisfied clients (with written permission)
• progress pics
• descriptions + pics of clients who the trainer has helped achieve goals
• pics of clients in wedding dresses/athletic uniform/tuxedos etc

Question 207

When writing thank you notes to client, what guidelines should you follow?

Answer 207

• have an upbeat/positive tone
• mention client’s goals and explain the goals are the basis of the program
• stay professional and maintain the client-trainer relationship

Question 208

Why is making brand t-shirts a good marketing idea?

Answer 208

Because you can reward clients with a free t-shirt, or people can purchase them and people will ask them about the trainer when wearing them.

Question 209

What are good reasons that a PT should maintain an online presence?

Answer 209

• connect and engage with current and potential clients
• get discovered by others searching for your specific services
• create an active and persuasive community around the practice
• promote content such as webinars, health tips, articles
• generate leads for the practice

Question 210

Why are fitness apps/sites useful for clients and trainers?

Answer 210

It allows information to easily transfer from the client to PT without necessarily being in the same room.

Info such as HR, activity, meal logs, body weight, BP, sleep habits.

It allows PTs to keep clients accountable between appointments and for real-time immediate feedback and encouragement for daily behaviours.

Question 211

What are 5 reasons for using connected health tools (e.g apps) for delivering web-based health/wellness and fitness interventions?

Answer 211

• reduced delivery costs
• convenience to users
• timeliness
• reduction of stigma
• reduction of time-based isolation barriers

Question 212

Why should trainers try to connect clients with friends, family/other clients to create an electronic bond?

Answer 212

Because this has shown to impact motivation and behavioural change.

Question 213

What are 2 electronic tracking tools that empower users to collect and share exercise, nutrition and sleep data?

Answer 213

• body media

- fitbit

Question 214

What are 2 in-depth nutrition apps that are modern, comprehensive diet services that help users track and monitor food intake while displaying a robust nutritional analysis based on personalized guidelines?

Answer 214

• my net diary

- foodzy

Question 215

What is a sleep monitoring system users can track their personal health data with from their own home?

Answer 215

withings

Question 216

What 2 health info portals allow for health data to be collected, monitored and shared not only with the client but other members of the client’s healthcare team?

Answer 216

• microsoft health vault

- run keeper

Question 217

How does creating an adherence program help PTs market their services?

Answer 217

This system can be used whereby a client that doesn’t cancel any sessions during the training package/program becomes eligible for an additional session at no charge or receives a free item of the trainer’s brand.

Question 218

What can an orientation program be used for?

Answer 218

The trainer can set specific times to use for new members to be provided with a brief overview on how the club works and how to use equipment.

Question 219

Why would a trainer set up an education program?

Answer 219

This can be used to cover specific aspects of exercise programming and can allow the trainer to ‘touch’ more prospects.

Possible topics could be a 30 min education seminar on safe running or techniques for exercising whilst traveling.

Question 220

What are 3 examples of complementary relationships/services a PT can offer related to health and wellness facilities?

Answer 220

• in a health club, they can run front desk or become group fitness instructor
• outside a club, they can work with other health and wellness service providers such as sport coaches, dietitians
• trainers can offer to run a conditioning program for local fundraising runs/walks

Question 221

What are 3 social benefits to a small group/semi-private training session?

Answer 221

• dissociation: an exerciser’s attentional focus is diverted away from the unpleasant sensations by engaging with others
• enhance self-efficacy through receiving compliments and support from others with similar goals
• stimulus control through reminders from the group and trainer to attend the session

Question 222

What are the 2 basic markets from which a trainer can attract small-group clients?

Answer 222

• current clients referral

- potential new clients

Question 223

What is a good marketing strategy to gain referrals from existing clients?

Answer 223

offer a reward for successful referrals

Question 224

What is a good marketing strategy for small group programs for new clients?

Answer 224

By making it a specific limited term program such as a “core performance blast” for 4-6 weeks or a “strength for seniors” for 4-6 weeks

Question 225

What are some limitations involved in small group training sessions?

Answer 225

• clients who are dissimilar in their conditioning levels
• clients that require constant individual attention
• scheduling conflicts

Question 226

What are the overall benefits to small group training?

Answer 226

• financial benefits as more money in the same amount of time
• social benefits which can push motivation/self-efficacy amongst clients
• client referrals for new prospects

Question 227

How should a PT create a retention plan for keeping new clients?

Answer 227

Have them understand that progress takes time and create a long-term exercise program on the concept of periodization.

Question 228

What should a periodized plan identify?

Answer 228

• the specific goals of the client
• the time of year they want to ‘peak’
• the phases the plan should be broken into as to vary intensity and so the client is progressing as each phases intensifies

Question 229

A new client invests in 20 training sessions at the beginning of January committing to 2 sessions a week with the goal of losing weight and toning up. You discover they own a beach house and they want to look good in bikini season which begins Memorial Day Weekend. The client has previously tried and quit programs because it was too difficult to find the time, what will your plan look like?

Answer 229

The 20 sessions they have bought will last till the start of March, to start with, I could structure 8 weeks (16 workouts) to focus on posture and a base level of aerobic fitness. Start with a lower level of intensity in the stability and mobility phase (phase 1) to allow them to gradually adapt to the stress of exercise whilst improving tonic muscles responsible for posture and respiration.
This should help her avoid injuries and develop a positive relationship with exercise.
As they approach the 8 week/16th workout, I should move into the movement-training phase (phase 2) with more challenging cardiovascular exercise and changing exercise selection, intensity, reps, sets and intervals so they experience the difference from increased intensity.
The client will have moved into the action phase of the Transtheoretical model of Behavioural Change and will likely feel good results and want to continue for another 20 sessions (10 weeks) to get her to memorial day weekend.

Question 230

What 7 factors do you need to consider before starting a personal-training business?

Answer 230

• the level of experience that the potential business owner has in the fitness industry
• the level of self-motivation
• the ability to create and execute a business plan
• the size of the proposed business
• the location of the proposed business
• the cost of running the proposed business
• the structure of the proposed business

Question 231

What professional(s) services should are important parts of the process in starting a business?

Answer 231

• attorney
• accountant
• web developer/graphic design
• insurance broker
• real estate broker
• contractors

Question 232

What can the right attorney help you with when starting a business?

Answer 232

Providing advice and guidance for structuring an effective business that adheres to all state and local regulations.

Question 233

Why should you get an accountant when starting a business?

Answer 233

This can help structure cash-flow and financial management systems for the needs of a business.

Question 234

Why is an accountant critical when working as a sole proprietor?

Answer 234

an accountant will help with learning what expenses and costs can be deducted as part of normal business operations.

Question 235

Why is it recommended you work with a web developer/graphic designer when starting a business?

Answer 235

This will help establish a unique and appealing brand logo that will represent the business and become instantly identifiable to prospective clients.

It will also help set up the ability to collect PT fees via your website which is useful.

Question 236

Why should you work with an insurance broker?

Answer 236

It’s important to have the right insurance coverage for any and all potential losses/damages before starting a business so working with an insurance broker will be the most effect way to develop and structure a portfolio with necessary levels of protection.

Question 237

Why should you work with a real estate broker when setting up a business?

Answer 237

Because a commercial real estate specialist can help find the optimal location for a successful studio/center by determining the neighbourhoods with highest disposable income, parking space, showers etc.

They can also help negotiate lease terms including having the landlord properly prepare and build out the space for the potential business’ needs.

Question 238

Why should you establish good relationships with different contractors when starting a business?

Answer 238

Because this means the facility will run smoother and repairs will take less time which can be a serious issue for members.

Having a network of the right professionals who can address any situation is critical for keeping a business open, operational and profitable.

Question 239

Why is it important to establish budget and revenue goals for yourself?

Answer 239

Because once expenses are identified it allows you to determine your session/hourly rate as an independent trainer or the number of sessions you need as a direct-employee.

Question 240

What is the first step to establishing a personal budget?

Answer 240

List all monthly expenses such as rent, transport, utilities and variables like food, entertainment and professional development

Question 241

Once expenses are identified in a budget, what is the next step?

Answer 241

Determining the number of training sessions required to achieve revenue as a direct-employee or session/hour rate as an independent contractor.

Question 242

A trainer’s monthly expenses are £2800 and they charge £25 per session. How many sessions must be conducted every month to hit this? How did you calculate?

Answer 242

112

1. 2800 / 25 = 112 sessions every month

Question 243

A trainer’s annual income goal is £50,000 which comes to £1000 per week with 2 weeks vacation. How many sessions must they do per week to make this when charging £40 per session?

Answer 243

25 per week

1. 1000 / 40 = 25 p week

Question 244

What does closing ratio refer to and how is calculated?

Answer 244

The success rate of a sals person in making a presentation to a prospective customer and actually having the customer make a purchase to complete the sale.

It is a measure of the number of sales made divided by the number of presentations given.

Question 245

What is the primary goal of a business?

Answer 245

To generate cash flow and produce a profit.

Question 246

What is the velvet rope principle?

Answer 246

Creating a sense that certain places or services are more scarce to make others perceive them as more attractive and valuable.

i.e setting strict time frames on PT work hours so clients adhere to them

Question 247

A PTs schedule should allow time for what activities?

Answer 247

• working with clients
• client management such as paperwork, preparing/collecting invoices, developing programs, follow-up calls, scheduling
• prospecting new clients
• developing marketing/advertising materials
• personal exercise
• personal time/home life to allow balance
• other job duties such as travel, working a shift as a direct-employee, cleaning your own studio

Question 248

What are generally the most popular times people train with PTs?

Answer 248

• 5AM to 9
• Noon to 2PM
• 4PM to 8PM

Question 249

what is the difference between a salesperson and a sales professional?

Answer 249

A salesperson is someone that sees a customer as a dollar sign whereas a sales professional is someone than helps the consumer make an informed decision to meet their need/goal, educates them on their different options and how they would benefit from a service.

Question 250

a leader can be defined as?

Answer 250

one who changes people’s attitudes and behaviours

Question 251

What are 7 basic rules to selling?

Answer 251

• say it in terms of what the customer wants/needs/understands
• gather personal info and learn how to use it
• build friendships
• build a relationship ‘shield’ that no competitor can pierce
• establish common ground
• gain confidence
• have fun/be funny

Question 252

true or false, prospective clients will think with logic but act on emotion?

Answer 252

true

Question 253

What is empathy?

Answer 253

the ability to understand the thoughts and feelings of another person

Question 254

What are 6 ways to earn someone’s immediate respect and trust?

Answer 254

• become genuinely interested in others
• smile
• remember their name
• be a good listener and encourage others to talk about themselves
• talk in terms of other people’s interests
• make the other person feel important and do it sinerely

Question 255

a trainer needs to identify the _______ needs behind the decision of starting an exercise program.

Answer 255

emotional

Question 256

After identifying your client’s emotional needs to starting an exercise program, what must you make sure future convos direct to?

Answer 256

future conversations should direct towards achieving the desired results and building a positive mindset towards exercise

Question 257

A new client states they find it difficult to stay committed to an exercise program and it frustrates them, what would your response as a sales professional be?

Answer 257

I understand how difficult it has been to stay committed to an exercise program. You have expressed a feeling of frustration at not achieving your goals and I can relate. However, if we work together, I think you will find having someone encourage you and hold you accountable for your goals will help you adhere to your program.

Question 258

What 4 basic questions move a prospective client to a paying client?

Answer 258

• did you enjoy the workout?
• would you like to continue to experience the benefits of working with a trainer?
• do you have the ability to invest in yourself by purchasing a package of training sessions?
• when would you like to schedule our next appointment?

Question 259

What questions can you ask that focus on the client’s needs?

Answer 259

• you have told me your goals, how long have you had these goals?
• why is it so important you achieve these goals?
• what has kept you from achieving these goals?
• from what you have told me, I think I can help you work toward meeting these goals. Would you like that?

Question 260

Why is it better to sell training programs as opposed to just sessions?

Answer 260

because a client knows the end goal of a training program and will adhere to it more whereas selling just sessions may not have a specific end goal

Question 261

What are some training programs you could offer? (4)

Answer 261

• performance enhancement
• weight loss
• event prep such as vacation
• post-rehabilitation

Question 262

True or false, a corporate veil shields the owner from losses in a sole proprietorship?

Answer 262

false

Question 263

When working in a general partnership with a family member, should the business operate on a 50-50 partnership?

Answer 263

no as this can result in a stalemate because neither partner can make decisions without permission from the other

Question 264

Which type of corporation is most typically used by PT businesses?

Answer 264

Subchapter S-Corps

Question 265

True or false, an umbrella policy provides added coverage for all of the other insurance that a person has?

Answer 265

true

Question 266

When training clients in their own, do you have to use recording produced specifically for fitness facilities?

Answer 266

No because when training clients in their home you can have the client provide music and therefore, they are using recordings for private, non-commercial enjoyment

Question 267

When evaluating the risk of injury associated with a particular activity, a personal trainer finds that the frequency of occurrence is low or seldom, and the severity of injury is categorized as high or vital. What is the BEST course of action?

• reduce
• transfer
• avoid

Answer 267

transfer the risk which involves moving the risk to others through waivers/insurance policies