stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Advanced Chapter 29 - Financial Business Skills Flashcards | StudBud
Explore
/
Advanced Chapter 29 - Financial Business Skills
Advanced Chapter 29 - Financial Business Skills
35 terms
·
StudBud Administration
·
1 play
Imported from external platform
Flashcards
35 cards
F
Practice quiz
P
Host live
L
Questions
35
Answers
1
What is NOT true about independent contractors, according to the IRS?
they control their own hours
they set their own fees
they pay their own taxes
they cannot accept tips
2
What type of insurance is required by law in all states?
kidnap and ransom
worker's compensation
rent guarantee
casualty
3
What is typically referred to as the "net worth" of a business?
owner's equity
liability
gross profit
cost of goods sold
4
What are insurance companies requiring before issuing insurance for certain adv. skin care or hair removal equipment?
photos of equipment placement
proof of adequate training
guarantee of interested clientele
samples of marketing materials
5
What is a bank representative's main concern when reading a business plan for a salon?
owner's ability to repay loans
services offered at the salon
types of procedures sold at the salon
owner's writing skills
6
What do most businesses strive to maintain?
negative cash flow
high liabilities
positive cash flow
low gross profit
7
What system may NOT be in the best interest of salon owners who wish to build a team based business?
commission only
independent contractor
salary plus commission
salary only
8
What term refers to the transfer of risk to a third party?
break-even
venture capital
liability
insurance
9
What can place your business in serious financial jeopardy?
paying bonuses to top workers
falling behind on loan payments
tying pay increases to profitability
replacing outdated equpment
10
Who is responsible for ensuring every service provider working is licensed by the appropriate state licensing board?
business investors
service provider
business owner
state licensing board representative
11
What is NOT among the steps you should take prior to opening your own business?
analyze the competition
study economic conditions
examining industry trends
make promises about profits
12
What is NOT one of the four P's that you should include in your strategic design?
prices
product
preparation
promotion
13
What is the single MOST important factor in any business plan?
exciting marketing plan
bold mission statement
solid financial strategy
persuasive executive summary
14
What is one of the reassons you should expect to invest personal money in your own business?
to justify filling for bankruptcy if the business falls
to justify paying yourself a large salary from investors' money
to demonstrate that you are willing to take a risk on yourself
to ensure tax deductions that help you hold onto profits
15
What do you need in order to compete in the modern skin care environment?
celebrity endorsements
extensive experience in advertising and marketing
excellent business and financial management skills
billionaire investors
16
What part of a business plan should be written LAST
financial plan
executive summary
marketing plan
mission statements
17
What is NOT an example of an asset?
mission statement
equipment
facial lounges
fixtures
18
What are advertising/direct marketing/personal skills/publicity/public relations/ sales promotions used to develop?
venture capital
personal friendships
brand recognition
employee retention
19
What part of your BP includes a description of your facility/products & services offered w/realistic goals/objectives?
executive summary
strategic plan
mission statement
financial plan
20
What background info does NOT give the reader confidence when it is included in an executive summary?
education
certification
industry experience
personal hobbies
21
What is a viable path toward additional startup resources for those who qualify?
government grants
government contracts
corporate donations
corporate endoresements
22
What organization is the BEST source of information about how tips are taxed?
Internal Revenue Service (IRS)
Small Business Administration (SBA)
Aesthetics International Association (AIA)
American Association for Esthetics (AAE)
23
What is NOT Found in the operations plan section of a business plan?
technology for scheduling appointments
schedule for asles promotions
designation of managerial responsibility
accounting method for the business
24
What should you conduct periodically to ensure public safety?
drug tests for employees
safety checks for the entire facility
credit checks for vendors
background checks of clients
25
What is also referred to as a "profit and loss statement"?
executive summary
balance sheet
financial plan
income statement
26
What is NOT among the new business models that have emerges in the business of skin care during the past two decades?
fitness facilities
wellness centers
medical esthetic practices
massage parlors
27
What information does a private investor hope to derive from reading a business plan?
potential return on investment
job openings
opportunities for discounted services
opportunities for discounted products
28
What is the first rule of prevention in any risk management program?
video monitoring of employees
hiring security personnel
strict adherence to guidelines
asking clients to waive liability
29
Why does starting a business involve a significant degree of risk?
there is no guarantee of a return on your investment
the time you invest in your new business will damage your health
every new business goes through a costly IRS audit in its first year
new businesses are targeted for arson, theft and other crimes
30
What is a lengthy and arduous task that you may be tempted to forgo, but should perform anyway?
building salon equipment
conducting a break-even analysis
conduct door to door marketing
formulating pharmaeuticals
31
What is an expectation that venture capitalists generally have in exchange for investing in a business?
entitlement to free products and services for family and friends
some measure of control over the way a business is conducted
guaranteed payback even if the business fails
the use of their family name as the name of the business
32
What should you ask insurance companies for while you are deciding which company to use?
capital for your business
information about competitors
client referrals
money-back guarantee
33
What is the appropriate action for a business with negative cash flow to take?
speed up purchases of new equipment
temporarily stop paying bills
ask employees to work w/o pay
borrow money to meet expenses
34
How many months of estimated future pay and/or monthly draw should you include in your application for a business loan?
six
36
two
12
35
What are crucial for obtaining loans to purchase equipment or expand your business?
financial skills
marketing skills
investing skills
advertising skills
