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Duplicate of Pivot Point Ch 103.4-103.6: Salon/Spa Business- Ownership/Operations Flashcards | StudBud
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Duplicate of Pivot Point Ch 103.4-103.6: Salon/Spa Business- Ownership/Operations
Duplicate of Pivot Point Ch 103.4-103.6: Salon/Spa Business- Ownership/Operations
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1
Esthetics, as a separate profession in the U.S., did not evolve until the late:
1960s
1980s
1950s
1970s
2
If the operating expense is greater than the income, the salon/spa is operating at a(n):
loss
expense
profit
liability
3
Renting or leasing a workstation from a building owner would represent which of the following situations?
corporation
independent contractor
sole proprietorship
partnership
4
A rental agreement is known as a:
loan
lease
liability
W-2
5
An agreement on how things are to be done in the salon/spa so things happen in a uniform way is called:
consistency
accountability
treatment
prebooking
6
What percentage of the total salon/spa expenses generally represents compensation for the salon/spa owner and employees?
0.1
0.75
0.45
0.25
7
Workers' Compensation insurance is not a required for the salon/spa owner.
False
True
8
Patient privacy measures for working in a medi-spa or clinic include all of the following descriptions EXCEPT:
never ask the reason for the medical visit in public
all communication must be made through a compliant electronic platform
have client files accessible to all employees
keep checkout process to 1 person at a time
9
Which form of advertising involves sending postcards or flyers to prospective clients?
involvement in community affairs
direct-mail advertising
social media
word-of-mouth advertising
10
Which of the following statements would offer a solution to procrastination?
saying “Yes” to everyone
having a cluttered workspace
getting less sleep
making a prioritized to-do list
11
How is a task that can be completed within the month ranked when using the ABC prioritizing technique?
Maximum priority
medium priority
high priority
low priority
12
An efficient working space for each esthetician is:
over 300 square feet
120-150 square feet
50-75 square feet
200-300 square feet
13
Treating your client like an important, valued individual is known as:
personalized approach
cooperation
staff synergy
shared accountability
14
A compensation structure that is based on a percentage of the dollar income the esthetician generates from services:
hourly plus commission structure
salary plus commission structure
salary structure
commission structure
15
The tax based on the profits (earnings) of a business is known as:
payroll tax
income tax
sales tax
operating tax
16
Multi-tasking, such as checking emails and web surfing, is okay while the client is masking or under steam.
False
True
17
Tips for treatment-room productivity include all of the following statements EXCEPT:
if unsure how to do a service, getting training
even if running behind, don't ask for help
understanding products used and sold
keeping clean linens in treatment room
18
What kind of rent is a set dollar amount paid per month plus a percentage of the total monthly income?
flexible rent
tentative rent
variable rent
fixed rent
19
Which one of the following items is/are usually the largest expense in operating a salon/spa?
salaries or commissions
supplies
rent
advertisement
20
Which of the following business types is owned by the shareholders and formed under legal guidelines?
corporation
partnership
sole proprietorship
franchise
21
What form does the employer provide that indicates all taxes paid for the past year for each employee?
W-4 form
income tax form
W-2 form
sales tax form
22
What ancient culture was believed to be the first to develop extensive beauty products?
Egypt
China
India
Greece
23
The stock control management checklist often includes all of the following categories EXCEPT:
product recommendations
prediction of client needs
incoming stock
stock rotation
24
Net worth is calculated by subtracting liabilities from:
loan balances
student loans
assets
charge accounts
25
Which of the following items must be reported as employee income?
change given to a client following payment
operating expenses paid by the salon/spa
tips received by an employee
money paid to vendors for products
26
What is the purpose of a handbook for a salon/spa?
features client addresses
lists area restaurants
outlines owner's expectations of employees
presents employee compensation for the past year
27
An operation in which an initial purchase fee plus a monthly service charge is paid to the parent corporation:
corporation
entity
partnership
franchise
28
An account established to save for replacement of equipment is called:
default
depreciation
debt service
cost of doing business
29
What is considered the best form of advertising?
word of mouth
direct mail
print ads
social media
30
What term refers to the atmosphere of one’s surroundings; the feeling of a place; its aura?
aromatherapy
synergy
ambiance
décor
31
Managing calls, informing estheticians when clients arrive and supervising the reception area are duties of:
owner
distributor consultant
manager
front desk associate
32
The determination on whether a specific product should be continued as a retail item is based on the number of:
retail recommendations
turnovers
product samples
targets
33
Who must apply for a state sales tax permit before collecting taxes on products or services sold?
advertisers
employee
salon/spa owner
inventory
34
Procedures in the salon/spa that ensure all products are accounted for is known as:
scheduling
budgeting
inventory control
advertising
35
Beverages, food, magazines and umbrella stands in the salon/spa are examples of:
aromatherapy
comforts
décor
touchables
36
To be granted future loans, it is important to pay loans on time and avoid:
default
taxes
compensation
insurance
37
The esthetician's name, client’s name, service, date and time of the service & clients phone number should be included:
In the appointment book
on the I-9 form
On the federal income tax form
On the state income tax form
38
The type of business ownership in which two or more persons share all costs of the business:
sole proprietorship
franchise
partnership
corporation
39
Products purchased by the salon/spa owner for use during client services and for retailing are known as:
overhead
commissions
inventory
turns
40
An important aspect to remember when managing the financial operations of a salon/spa is to:
ignore economic conditions
avoid organizing a business plan
dismiss advice from an accountant
create a budget
41
A tip for an employee answering the telephone is to answer within how many rings?
3 rings
2 rings
4 rings
1 ring
42
A sole proprietorship is a business owned by:
one person
a franchise
two or more people
a corporation
43
Which of the following concepts creates a harmonious and predictable environment?
ambiance
personalized approach
music and sounds
synergy
44
What is the form called that verifies an employee's identity and authorization to work in the U.S.?
1-19
I-3
1-14
I-9
45
Compliance with all local, state/province and federal rules, regulations and laws is the responsibility of the:
salon/spa employees
former building owner
local authorities
salon/spa owner
46
Before a salon/spa owner can hire employees, they need to apply for a:
Social Insurance Number
Social Security card
driver's license
Federal Employer Identification Number
47
All of the costs incurred in running the salon/spa each day is referred to as:
profit
operating expense
loss
operating loss
48
Which of the following terms refers to all money owed?
financial status
liabilities
assets
net worth
49
All the property you own is called a list of:
debt
assets
finances
liabilities
50
Workers' Compensation insurance is needed to protect the:
employee
salon/spa
customers
inventory
51
Gowns, towels, linens and furniture fabrics are examples of a salon/spa ambiance component known as:
treatments
displays
touchables
benefits
52
When staff members take individual initiative to stay on top of things and to pay attention to detail:
problem-solving
being proactive
cooperation
conflict management
53
The salon/spa exterior, décor, music and sounds, and air and ventilation are all components of:
shared accountability
synergy
ambiance
personalized approach
54
An example of a liability on your financial statement would be:
last week's income
any earned tips
credit card balances
restaurant receipts
55
It takes cooperation, consistency, and shared accountability to create staff synergy.
True
False