Test Questions Flashcards
Unless you are at least _____ percent booked all the time, it may not be advantageous to rent a booth.
70
A salon’s financial success depends in large part on all of the following EXCEPT:
Cold calling
A long-term picture of what the business will become and what it will look like when it gets there is a:
Vision statement
On a business timeline, expansion of services and locations would take place between the _____ years of operation.
5th and 10th
A _____ is a written description of your business as you see it today and as you foresee it in the next five years.
Business plan
How many visits does it typically take for a new client to become a loyal current client?
3
If your company sets up an agreement with Awesome Salon to open your own salon that operates under the Awesome Salon name and logo, your new salon is considered a:
Franchise
When operating a salon, your largest expense each month will be your:
Employee payroll
For the booth renter, Social Security taxes are:
double that of an employee
When using social media to promote the salon, you should:
get clients’ permission before using their images in your posts
Supplies that are used in the daily business operation are:
consumption supplies
Which of the following should be included in the Supporting Documents section of a business plan?
Owners resume
When drawing up a lease to rent a building for your salon, you should secure all of the following EXCEPT an:
agreement stating that the landlord will hold all insurance policies
When using the telephone, you should NOT:
make calls in a busy area of the salon
When interviewing potential employees, you should always look for people who:
have a professional appearance
When operating your own salon, you should:
follow the same rules that you set for your employees
When you are purchasing an existing salon and there is a transfer of a mortgage, the _____ should initiate an investigation to determine whether there are defaults in the payments of debts.
Buyer
The key duty of the receptionist is:
Booking appointments
If you choose to buy an established salon, you should seek professional assistance from a(n):
accountant and business lawyer
If you purchase shares in a corporation, you are a:
Stockholder
A _____ is a benchmark that, once achieved, helps you to realize your mission and your vision.
Goal
A mission statement does NOT:
list the company’s specific rules or regulations
In a corporation, you:
incur more costs setting up the business than you would setting up a partnership
You do NOT need which type of insurance for your salon?
deposit insurance
One reason for going into a partnership arrangement is to have:
more capital for investment
The rules and regulations adopted by a salon to ensure that all clients and associates are treated fairly and consistently are called:
salon policies
A business structure in which two or more people share ownership is a:
partnership
Records that are used to note client personal and contact information and preferences are called:
service records
Costs to create even a small salon in an existing space can range from _____ per square foot.
$75 to $125
The business plan should include projected income and overhead expenses for a period of:
5 years
Which agency requires that information about ingredients of cosmetic preparations be available to employees?
OSHA
Supplies that are purchased to be sold to clients are called:
Retail supplies
The best form of advertising is:
satisfied clients
When creating your brand identity, you should ask each of the following questions, EXCEPT:
Where will you be located?
The primary concern when planning the physical layout of your salon should be:
maximum efficiency
In the allotment of funds, the top priority should be to meet your _____ obligations.
Payroll
The type of owner who assumes expenses, receives profits, and bears all losses of the business is a:
sole proprietor
Smooth business management depends on all of the following factors EXCEPT:
competition between management and employees
Which part of a salon is considered the nerve center?
reception area
A _____ is someone who is trained to do everything from recording sales and payroll to generating a profit-and-loss statement.
full-charge bookkeeper
In what part of a business plan should you state your objectives?
Executive Summary
It takes most new salons about _____ to begin operating at full capacity.
6 months
Money to invest in a business is called:
Capital
Administrative plans for your business are found in which part of a business plan?
Organizational Plan
