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Chapter 29: Financial Business Skills Flashcards | StudBud
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Chapter 29: Financial Business Skills
Chapter 29: Financial Business Skills
29 terms
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Business Skills
Flashcards
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Answers
1
What statement about small-business loans is correct?
They are typically interst free
To obtain them, you must qualify as a good credit risk
The only place to obtain a business loan is a bank
Falling behind on loan payments will not affect the business
2
What is the most important factor in any business plan?
solid financial management strategy
detailed operations plan
comprehensive strategic design & developement plan
thorough executie summary
3
What is
NOT
on of the 3 general categories IRS uses to determine independent contractors?
relationship between the two parties
type of business
Financial control
behavioral control
4
What form must a person fill out to obtain a social security number?
SS-5
940
W-2
W-4
5
What is
NOT
one of the ways that skin care businesses commonly compensate service providers?
fixed wages
tips
commission
salary
6
What is NOT something you should do before you decide to open your own business?
examine industry trends
analyze the competition
revise your marketing strategy
study economic conditions
7
What term applies to anything that a business owns?
fixtures
liabilities
assets
equipment
8
What is typically the biggest expense for a business?
supplies
utilities
mortgage or rent
payroll
9
What term refers to a legal document that clearly defines the terms of a loan agreement?
break-even analysis
income statement
risk statement
promissary note
10
When must your federal tax return be filed by if April 15 falls on a Saturday?
Sunday April 16
Monday April 17
Saturday April 15
Friday April 14
11
If a business takes in $1000 in 1 day, and it costs $600 to deliver, what is the gross profit?
$1600
$400
$600
$1000
12
You must file a 1099 for any independent contractor who you paid more than ____ during the year
$100
$2500
$600
$1800
13
What statement about risk management is correct?
Salons must adhere to state, local, and federal guidelines
Clients are liable for any injury they sustain at the salon
Managers are the only spa employee required to be licensed
Operators of skin care business are exempt from OSHA
14
What is used to identify a business that maintains employees?
Individual Tax Identification Number (ITIN)
Limited Liability Corporation Number (LLCN)
Social Security Number (SSN)
Employee Identification Number (EIN)
15
What term refers to the point where all costs are covered & your business begins to earn profit
break-even analysis
net profit
Cash flow
Fross profit
16
What document is commonly referred to as a profit and loss statement?
risk management plan
cash flow statement
break-even analysis
income statement
17
What type of tax is an important factor in the sale of gift certificates?
corporate dividend tax
Social security tax
State sales tax
deferred income tax
18
What are the 4 P's?
Product, Price, Promotion, Place
Propietorship, Progress, Production, Promotion
Professionalism, Place, Progress, Price
Professionalism, Patience, Productivity, Pride
19
What statement about Independent Contractors is correct?
they must adhere to all their licensing board laws
they cannot engage other independent contractors
they have no control over their own fees
There are strict limitations on how they conduct business
20
What is NOT a type of insurance generally recommended for salon and spa owners?
Malpractice
disability
Property or casuality
Protection and indemnity
21
What term refers to the amount of money you need to invest in your business?
promissary funds
investments
constituency
capital
22
What part of your business plan will discuss how you will develop your brand & your business
Financial Plan
Marketing Plan
Executive Summary
Operations Plan
23
What section of your business plan should provide a complete overview of your strategy?
Marketing plan
Executive summary
Financial plan
Operations plan
24
What is a basic tool that prospective business owners use to help them develop a plan of action
management plan
business plan
risk assessment plan
financial strategy
25
What is NOT a way that computers are normally used in a spa?
selling gift certificates
performing skin analysis sessions online
controlling inventory
maintaining employee schedules
26
What form is used to report federal estimated tax payments?
1040-ES
940
941
1-ES
27
How do venture capitalists benefit from loaning money to start a new business?
They are paid a portion of the income from the business
They are paid all income from the business for a set time
They gain ownership of where the business operates
They are reapid the balance of the loan plus interest
28
What does payment of self employment tax, make a sole proprietor eligible for?
state income tax exemption
lower federal unemployment tax rate
federal 401k investment program
disability benefits
29
Who should you consult with when developing the plan of action for opening your business?
architect
accountant
cosmetic manufacturers representative
design specialist
