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Duplicate of Ch.29 Financial Business Skills Flashcards | StudBud
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Duplicate of Ch.29 Financial Business Skills
Duplicate of Ch.29 Financial Business Skills
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1
What part of your business plan should be use to develop brand recognition and promote business?
Operations plan
Financial plan
Marketing plan
Executive summary
2
What section of your business plan should provide the reader with a complete overview of your entire strategy?
Marketing plan
Executive summary
Financial plan
Operations plan
3
What term refers to the standard procedures established by the accounting profession?
accounting principles of standard business operations
legal accounting guidelines (LAG)
generally accepted accounting principles(GAAP)
standardized principles of public
4
What terms refers to the point at which all costs are covered and your business begins to earn a profit?
break-even analysis
gross profit
net profit
cash flow
5
You must fill out Form 1099 for any independent contractor to whom you paid more than during the tax year.
$100
$2,500
$600
$1,800
6
What is NOT a type of insurance generally recommended for salon and spa owners?
property or casualty
disability
protection and indemnity
malpractice
7
When must your federal tax return be filed by if April 15th falls on a Saturday?
Sunday,April 16
Friday, April 14
Saturday, April 15
Monday ,April 17
8
What is NOT one of the three general categories the IRS uses to determine independent contractor status?
Behavioral control
Relationship between the to parties
Type of business
Financial control
9
What term refers to the owner’s interest in the assets of the business after all of the liabilities have been deducted?
gross worth
equity
net worth
liquidity
10
What form is used to verify that an employee is eligible to work in the United States ?
Form W-4
Form 1040
Form SS-4
Form I-9
11
What term refers to a legal document that clearly defines the terms of a loan agreement?
income statement
promissory note
risk statement
break-even analysis
12
What statement about the federal unemployment tax is correct?
The program is fully funded by the federal government
State income tax exemption
Employers are responsible for paying this tax
Federal 401k investment program
13
Who should you consult with when developing the plan of action for opening your new business?
Cosmetic manufacturers representative
Architect
Design specialist
Accountant
14
What type of tax is an important factor in the sale of gift certificates ?
Corporate dividend tax
Social security tax
State slaes tax
Deferred - income tax
15
What document is commonly referred to as profit and loss statement?
cash flow statement
income statement
risk management plan
break even analysis
16
What is used to identify a business that maintains employees?
LLCN
EIN
ITIN
SSN
17
What is NOT a way in which computers are commonly used in salons and spas?
performing skin analysis sessions online
controlling inventory
maintaining employee schedules
selling gift certificates and products online
18
What term refers to the amount of money you need to invest in your business?
investments
capital
constituency
promissory funds
19
A business earns $1,000 at the end of the day . It cost $600 to deliver and service provided, what is the gross profit?
$1600
$600
$1000
$400
20
What is the
MOST
important factor in any business plan?
comprehensive strategic design and development plan
thorough executive summary
detailed operations plan
solid financial management strategy
21
What is NOT something you should do before you decide to open your business or purchase an existing one?
Analyze the competition
Study econiomic Conditions
Revise your marketing strategy
Examine industry trends
22
What is typically the biggest expense for a business?
payroll
utilities
supplies
mortgage or rent
23
What form is used to report the amount of federal, social security , and Medicare taxes withheld by each employee?
Form 1040
Form 940
Form 941
Form W-4
24
What form must a person fill out to obtain a social security number?
Form W-2
Form SS-5
Form W-4
Form 940
25
What statement about risk management is correct?
Salons must adhere to local, state, and federal disinfection guidelines.
Clients are personally liable for any injury they sustain at the salon
The manager is the only salon employee required to be licensed
Operators of skin care businesses are exempt from OSHA guidelines
26
What form is used to report federal estimated tax payments?
I-ES
941
940
1040-ES
27
What is NOT one of the ways in which skin care business commonly compensate service providers?
tips
commission
fixed wages
salary
28
When are quarterly tax payments due?
April 1, June 1, September 1, and January 1
March 15
April 15, June 15, September 15 and January 15
January 1, April 1,July 1 , and October 1
29
What term refers to anything that a business owns?
liabilities
fixtures
equipment
assets
30
What does payment of the self-employment tax make a sole proprietor eligible for?
State income tax exemption
Disability benefits
Federal 401 k investment program
Lower federal unemployment tax rate
31
What statement about small-business loans is correct ?
Only place to obtain a loan to open your business is a traditional bank.
To obtain them, you must qualify as a good credit risk.
They are typically interest - free
Falling behind on loan payments will not significantly affect the business.
32
What statement about independent contractors is correct?
They have no control over their own fees
Responsible for adhering to laws set forth by their licensing board.
There are very strict limitations on how they can conduct business
They cannot engage other service providers as independent contractors
33
How do venture capitalists benefit from loaning money to start a new business?
They are paid the entirety of the income from the business .
They are paid a portion of the income from the business
Awarded ownership of the facility in which the business operates.
They are repaid the balance of the loaned amount plus interest charges
34
What is the basic tool that prospective business owners use to help them develop a plan of action and ?
Business plan
Financial strategy
Management plan
Risk assessment plan
35
What are the four P’s?
product ,price, promotion, and place
Professionalism, patience, productivity , and pride
professionalism, place, progress, and price
proprietorship, progress, production, and promotion
