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