Ch 6 Salon Business

Question 1

Which type of insurance protects the salon owner from financial loss due to employee negligence

Accepted Answer

malpractice

Question 2

Payments received from clients for services performed & retail products purchased is known as:

Accepted Answer

income

Question 3

Compliance with all state, federal rules, regulations and laws is the responsibility of the:

Accepted Answer

salon owner

Question 4

The tax based on the profits of a business is known as:

Accepted Answer

income tax

Question 5

The tax based on the profits of a business is known as:

Accepted Answer

income tax

Question 6

To be granted future loans, it is important to pay loans on time and avoid:

Accepted Answer

default

Question 7

One should keep all records of daily sales and services for:

Accepted Answer

5 to 7 years

Question 8

The term given for selling products for client home care is:

Accepted Answer

retailing

Question 9

The government agency that would audit your business records is the:

Accepted Answer

IRS

Question 10

Renting or leasing a workstation from a building owner would represent which of the following:

Accepted Answer

independant contractor

Question 11

What amount of commision will a salon owner usually pay an employee for retail sales?

Accepted Answer

8% to 15%

Question 12

Which of the following terms refers to all money owed?

Accepted Answer

liabilities

Question 13

Location is the most important factor in choosing:

Accepted Answer

a salon

Question 14

A business owned by one person is called:

Accepted Answer

sole propietorship

Question 15

The type of business ownership in which 2 or more ppl. share all costs of owning & operating is

Accepted Answer

partnership

Question 16

What is generally considered the best form of advertising?

Accepted Answer

word of mouth

Question 17

The salon owner is responsible for collecting and paying sales tax how often?

Accepted Answer

monthly or quarterly

Questions 17