Master Esthetics Chapter 29

Question 1

What is NOT one of the ways in which skin care businesses commonly compensate service providers

Accepted Answer

Tips

Question 2

What term refers to the amount of money you need to invest in your business?

Accepted Answer

capital

Question 3

What is typically the biggest expense for a business?

Accepted Answer

Payroll

Question 4

What does payment of the self-employment tax make a sole proprietor eligible for?

Accepted Answer

Disability benefits

Question 5

What statement about independent contractors is correct?

Accepted Answer

Responsible to follow all laws set by their licensing board

Question 6

What type of tax is an important factor in the sale of gift certificates?

Accepted Answer

Deferred income tax

Question 7

What are the 4 P's

Accepted Answer

product, price, promotion, and place

Question 8

What form is used to report federal estimated tax payments?

Accepted Answer

Form 1040-ES

Question 9

What document is commonly referred to as a profit and loss statement?

Accepted Answer

Income statement

Question 10

Owner's interest in the assets of the business after all of the liabilities have been deducted

Accepted Answer

Net worth

Question 11

What form is used to verify that an employee is eligible to work in the United States?

Accepted Answer

Form I-9

Question 12

What is NOT a way in which computers are commonly used in salons and spas?

Accepted Answer

Performing skin analysis sessions online

Question 13

When are quarterly tax payments due?

Accepted Answer

April 15, June 15, September 15, January 15

Question 14

What part of your business plan should state how to develop brand recognition/promote business?

Accepted Answer

marketing plan

Question 15

What is NOT a type of insurance generally recommended for salon and spa owners?

Accepted Answer

Protection and indemnity

Question 16

You must fill in Form 1099 for indep. contractor whom you paid more than _ during the tax year

Accepted Answer

600

Question 17

What term refers to anything that a business owns?

Accepted Answer

Assets

Question 18

Form used to report the amount of federal, SS & medicare taxes withheld and paid for.

Accepted Answer

Form 941

Question 19

What is the gross profit if you make $1,000 and it costs $600 to deliver the goods and services

Accepted Answer

$1000

Question 20

Who should you consult with when developing the plan of action for opening your new business?

Accepted Answer

accountant

Question 21

What term refers to the point at which all costs are covered and your business begins to profit

Accepted Answer

Break-even analysis

Question 22

What statement about the federal unemployment tax is correct?

Accepted Answer

Employers are responsible for paying this tax

Question 23

What statement about small-business loans is correct?

Accepted Answer

to obtain them, you must qualify as a good credit risk

Question 24

What is NOT something you should do before you open a business or purchase an existing one?

Accepted Answer

revise your marketing strategy

Question 25

NOT one of the three general categories the IRS uses to determine independent contractor status

Accepted Answer

Type of business

Question 26

What section of your business plan should provide a complete overview of your entire strategy?

Accepted Answer

executive summary

Question 27

What's a tool that prospective business owners use to help develop a plan to avoid risk factors

Accepted Answer

business plan

Question 28

What is the MOST important factor in any business plan?

Accepted Answer

solid financial management strategy

Question 29

What term refers to a legal document that clearly defines the terms of a loan agreement?

Accepted Answer

Promissory Note

Question 30

When must your federal tax return be filed by if April 15th falls on a Saturday?

Accepted Answer

Monday, April 17

Question 31

What term refers to the standard procedures established by the accounting profession?

Accepted Answer

Generally accepted accounting principles (GAAP)

Master Esthetics Chapter 29

Questions 31

Master Esthetics Chapter 29

Questions 31