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Business Basics
Business Basics
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Questions
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Answers
1
The type of salon/spa that uses a set business plan provided by a parent company is a _____________.
Chain salon/spa
Independent contractor
Booth renter
Business proposal
2
A set income given to an employee on a weekly or monthly basis is known as :
Stock
Salary
Commission
Booth rent
3
Employment benefits, such as holiday pay, are considered a part of an employees regular salary or wages.
False
True
4
All of the costs incurred in running the salon/spa each day is referred to as :
Operating expense
Operating loss
Loss
Profit
5
If you don’t waste time or salon/spa resources, you are demonstrating that your work ethic has a quality of ______.
Procrastination
Efficiency
Laziness
Time management
6
All the property you own is called a list of _________.
Assets
Debt
Liabilities
Finances
7
Before a salon/spa owner hire employees, they need to apply for :
Federal employer identification number
Drivers license
Social security card
Social insurance number
8
The tax based on the profits (earnings) of a business is known as _________ tax.
State
Property
Income
Federal
9
Showing up on time and ready for work shows dependability.
False
True
10
The emotional buyer type bases their purchases on :
Brand new products
Personal reasons
Facts
Price
11
An important aspect to remember when managing the financial operations of a salon/spa is to create a _______.
Payment reminder
Budget
Online presence
Bank account
12
To be granted future loans, it is important to pay loans on time and avoid _______.
Default
Debt
Penalties
Fees
13
Paid holidays, bonuses and insurance are all examples of _________.
Job benefits
Employee contract
Job security
Sign on bonus
14
Workers’ Compensation Insurance is not required for the salon/spa owner.
True
False
15
Before an interview begins, you might be asked to fill out a _______.
Resume
W-2
Cover Letter
Application
16
Who can decide if a goal is realistic ??
You
Your tutor
Your family
Your friends
17
Turnings $70 ticket into an $80 ticket is an example of _________.
Upselling
Target marketing
Demographics
client profile
18
4 main areas to consider for employment in the esthetics industry are service, management, sales & education.
False
True
19
A sole proprietorship is a business owned by one person.
True
False
20
A brief written account of personal, educational and professional qualifications and experience is known as a _______.
Resume
Application
Cover Letter
W-2
21
Treating your client like an important, valued individual is known as :
Shared accountability
Cooperation
Personalized approach
Staff synergy
22
In many cases, the 1st person to greet a client as they arrive is the :
Front Desk Associate
Owner
Distributor Consultant
Manager
23
Which of the following strategies works to involve the client when reccommending products ?
State the price
Know what the promotions are
Give reasons why to buy the product
Let the client hold, smell or sample the product
24
Which buyer type wants to save money at all costs and isn’t interested in quality of product as price ?
Bargain
Ready
Stubborn
Logical
25
Which of the following terms refers to all money owed ?
Financial status
Liabilities
Assets
Net worth
26
A set dollar amount of rent to be paid each month to the lessor is called :
Flexible rent
Variable rent
Fixed rent
Tentative rent
27
Document that introduces you and why you’d like to be employed with a salon/spa is called a _____.
Resume
W-2
Cover letter
Application
28
The renting of a space, suite or booth by an individual on a monthly basis is referred to as an independent contractor.
False
True
29
An agreement on how things are done in a salon/spa so things happen in a uniform way is called :
Accountability
Consistency
Prebooking
Treatment
30
An effective strategy to encourage repeat business from a client is to :
Avoid sending thank you cards
Provide exceptional service
Limit your work hours
Have a negative approach to clients