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Duplicate of Ch.29 Financial Business Skills Flashcards | StudBud
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Duplicate of Ch.29 Financial Business Skills
Duplicate of Ch.29 Financial Business Skills
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35
Answers
1
What is the basic tool that prospective business owners use to help them develop a plan of action and ?
Business plan
Financial strategy
Management plan
Risk assessment plan
2
What is the
MOST
important factor in any business plan?
detailed operations plan
thorough executive summary
comprehensive strategic design and development plan
solid financial management strategy
3
A business earns $1,000 at the end of the day . It cost $600 to deliver and service provided, what is the gross profit?
$1600
$1000
$600
$400
4
What is NOT a way in which computers are commonly used in salons and spas?
performing skin analysis sessions online
controlling inventory
selling gift certificates and products online
maintaining employee schedules
5
What are the four P’s?
professionalism, place, progress, and price
proprietorship, progress, production, and promotion
product ,price, promotion, and place
Professionalism, patience, productivity , and pride
6
What is typically the biggest expense for a business?
supplies
payroll
mortgage or rent
utilities
7
What is NOT a type of insurance generally recommended for salon and spa owners?
disability
malpractice
protection and indemnity
property or casualty
8
What statement about the federal unemployment tax is correct?
Federal 401k investment program
State income tax exemption
Employees are responsible for paying this tax
The program is fully funded by the federal government
9
What form must a person fill out to obtain a social security number?
Form SS-5
Form 940
Form W-4
Form W-2
10
What is NOT one of the ways in which skin care business commonly compensate service providers?
tips
salary
commission
fixed wages
11
What statement about risk management is correct?
Clients are personally liable for any injury they sustain at the salon
The manager is the only salon employee required to be licensed
Operators of skin care businesses are exempt from OSHA guidelines
Salons must adhere to local, state, and federal disinfection guidelines.
12
What term refers to anything that a business owns?
liabilities
equipment
assets
fixtures
13
What term refers to the owner’s interest in the assets of the business after all of the liabilities have been deducted?
liquidity
net worth
gross worth
equity
14
What does payment of the self-employment tax make a sole proprietor eligible for?
Federal 401 k investment program
State income tax exemption
Lower federal unemployment tax rate
Disability benefits
15
What form is used to report the amount of federal, social security , and Medicare taxes withheld by each employee?
Form 941
Form 940
Form W-4
Form 1040
16
What is used to identify a business that maintains employees?
ITIN
EIN
SSN
LLCN
17
When must your federal tax return be filed by if April 15th falls on a Saturday?
Sunday,April 16
Friday, April 14
Monday ,April 17
Saturday, April 15
18
What part of your business plan should be use to develop brand recognition and promote business?
Operations plan
Executive summary
Financial plan
Marketing plan
19
What form is used to report federal estimated tax payments?
940
I-ES
1040-ES
941
20
What term refers to the amount of money you need to invest in your business?
capital
investments
promissory funds
constituency
21
What form is used to verify that an employee is eligible to work in the United States ?
Form SS-4
Form I-9
Form W-4
Form 1040
22
What is NOT one of the three general categories the IRS uses to determine independent contractor status?
Financial control
Relationship between the to parties
Behavioral control
Type of business
23
What statement about small-business loans is correct ?
Only place to obtain a loan to open your business is a traditional bank.
Falling behind on loan payments will not significantly affect the business.
To obtain them, you must qualify as a good credit risk.
They are typically interest - free
24
What terms refers to the point at which all costs are covered and your business begins to earn a profit?
break-even analysis
gross profit
net profit
cash flow
25
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 repaid the balance of the loaned amount plus interest charges
They are paid the entirety of the income from the business .
Awarded ownership of the facility in which the business operates.
26
When are quarterly tax payments due?
April 15, June 15, September 15 and January 15
April 1, June 1, September 1, and January 1
January 1, April 1,July 1 , and October 1
March 15
27
What document is commonly referred to as profit and loss statement?
cash flow statement
risk management plan
break even analysis
income statement
28
What statement about independent contractors is correct?
They have no control over their own fees
Responsible for adhering to laws set forth by their licensing board.
They cannot engage other service providers as independent contractors
There are very strict limitations on how they can conduct business
29
What term refers to a legal document that clearly defines the terms of a loan agreement?
break-even analysis
risk statement
promissory note
income statement
30
You must fill out Form 1099 for any independent contractor to whom you paid more than during the tax year.
$1,800
$2,500
$100
$600
31
What term refers to the standard procedures established by the accounting profession?
standardized principles of public
legal accounting guidelines (LAG)
accounting principles of standard business operations
generally accepted accounting principles(GAAP)
32
What type of tax is an important factor in the sale of gift certificates ?
Social security tax
Corporate dividend tax
State slaes tax
Deferred - income tax
33
What section of your business plan should provide the reader with a complete overview of your entire strategy?
Financial plan
Marketing plan
Executive summary
Operations plan
34
Who should you consult with when developing the plan of action for opening your new business?
Architect
Design specialist
Cosmetic manufacturers representative
Accountant
35
What is NOT something you should do before you decide to open your business or purchase an existing one?
Analyze the competition
Revise your marketing strategy
Examine industry trends
Study econiomic Conditions
