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