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