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Milady Advanced Esthetics Chapter 29 Financial Business Skills Flashcards | StudBud
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Milady Advanced Esthetics Chapter 29 Financial Business Skills
Milady Advanced Esthetics Chapter 29 Financial Business Skills
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1
When are quarterly tax payments due?
April 15, June 15, September 15, and January 15
January 1, April 1, July 1, October 1
April 1, June 1, September 1, and January 1
January 15, April 15, July 15, and October 15
2
What is the definition of “liabilities”?
clients who are injured in the salon or spa
anything a business owns
amount of debt or money that is owed
none of the above
3
What term refers to the standard procedures establishes by the accounting profession?
standardized principles of public accounting (SPPA)
legal accounting guidelines (LAG)
generally accepted accounting principles (GAAP)
accounting principles of standard business operations (APSBO)
4
What statement about the federal unemployment tax is correct?
The program is fully funded by the federal government
Employees are responsible for paying this tax
Employers and employees are both required to contribute to this tax
Employers are responsible for paying this tax
5
What is
NOT
one of the ways in which skin care businesses commonly compensate service providers?
commission
tips
fixed wages
salary
6
What term refers to the owner's interest in the assets of the business after all of the liabilities have been deducted?
liquidity
gross worth
equity
net worth
7
What term refers to the amount of money you need to invest in your business?
promissory funds
capital
investments
constituency
8
What form is used to report federal estimated tax payments?
Form 940
Form 941
Form 1040-ES
Form I-ES
9
If a business takes in $1,000 at the end of the day & it cost $600 to deliver the services, what is the gross profit?
$600
$400
$1,600
$1,000
10
What does payment of the self-employment tax make a sole proprietor eligible for?
state income tax exemption
federal 401(k) investment program
lower federal unemployment tax rate
disability benefits
11
What form must a person fill out to obtain a social security number?
form W-2
form W-4
form SS-5
form 940
12
When must your federal tax return be filed by if April 15th falls on a Saturday?
Saturday, April 15
Friday, April 14
Monday, April 17
Sunday, April 16
13
What are the four Ps?
proprietorship, progress, production, and promotion
professionalism, patience, productivity, and pride
product, price, promotion, and place
professionalism, place, progress, and price
14
What is
NOT
a type of insurance generally recommended for salon and spa owners?
property or casualty
disability
malpractice
protection and indemnity
15
What section of your business plan should provide the reader with a complete overview of your entire strategy?
financial plan
marketing plan
executive summary
operations plan
16
What is typically the biggest expense for a business?
mortgage or rent
payroll
supplies
utilities
17
What is the tool that prospective business owners use to help them develop a plan of action to avoid many risk factors?
financial strategy
management plan
business plan
risk assessment plan
18
What statement about small-business loans is correct?
Falling behind on loan payments will not significantly affect the business
The only place to obtain a loan for your business is a traditional bank
To obtain them, you must qualify as a good credit risk
They are typically interest-free
19
What does SBA stand for?
Small Business Administration
Steady Business Administration
Small Business Advisors
Smart Business Activists
20
What statement about risk management is correct?
Clients are personally liable for any injury they sustain at the salon
Operators of skin care businesses are exempt from OSHA guidelines
The manager is the only salon employee required to be licensed
Salons must adhere to local, state, and federal disinfection guidelines
21
What term refers to a legal document that clearly defines the terms of a loan agreement?
promissory note
risk statement
break-even analysis
income statement
22
What is the
MOST
important factor in any business plan?
solid financial management strategy
detailed operations plan
comprehensive strategic design and development plan
thorough executive summary
23
What statement about independent contractors is correct?
They're responsible for adhering to all laws set by their licensing board
They have no control over their own fees
They cannot engage other service providers as independent contractors
They're very strict limitations on how they can conduct business
24
What type of tax is an important factor in the sale of gift certificates?
social securtiy tax
state sales tax
deferred income tax
corporate dividend tax
25
What form is used to verify that an employee is eligible to work in the U.S
Form 1040
Form SS-4
Form W-4
Form I-9
26
The term ___ refers to the chance of incuring some type of harm, damage or loss.
Capital
Risk
Investment
Business plan
27
How do venture capitalists benefit from loaning money to start a new business?
They are awarded ownership of the facility in which a business operates
They are repaid the balance of the loaned amount plus interest charges
They are paid a portion of the income from the business
They're paid the entirety of the income from the business for a set period
28
What term refers to the point at which all costs are covered and your business begins to earn a profit?
net profit
cash flow
break-even analysis
gross profit
29
What is used to identify a business that maintains employees
Social security number (SSN)
employer identification number (EIN)
limited liability corporation number (LLCN)
individual tax identification number (ITIN)
30
What is
NOT
a way in which computers are commonly used in salons and spas?
controlling inventory
maintaining employee schedules
selling a gift certificates and products online
performing skin analysis sessions online
31
Who should you consult with when developing the plan of action for opening your new business?
accountant
cosmetic manufacturer's representative
architect
design specialist
32
Which of these is an example of a venture capitalist?
a person who decides to start a new business
a person who invests money in another person’s new business
a person who goes to a bank for a loan
a bank that loans money to a new business owner
33
What part of your business plan should discuss the methods you'll use to develop brand recognition & promote business?
financial plan
operations plan
executive summary
marketing plan
34
What term refers to anything that a business owns?
liabilities
fixtures
assets
equipment
35
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
36
What is NOT one of the three general categories the IRS uses to determine independent contractor status?
financial control
relationship between the two parties
behavioral control
type of business
37
What document is commonly referred to as a profit and loss statement?
cash flow statement
risk management plan
break-even analysis
income statement
38
What is
NOT
something you should do before you decide to open your own business or purchase an existing one?
study economic conditions
analyze the competition
revise your marketing strategy
examine industry trends
39
Why is insurance important for a business owner?
it is only needed in flood zones
it is not necessary for the small business owner
It is the best protection against business casualties
it pays for supplies & expenses
40
What form is used to report the amount of federal, social security, & Medicare taxes withheld & paid by each employee?
Form 1040
Form 941
Form 940
Form W-4
