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Milady Advanced Esthetics Chapter 29 Financial Business Skills Flashcards | StudBud
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Milady Advanced Esthetics Chapter 29 Financial Business Skills
Milady Advanced Esthetics Chapter 29 Financial Business Skills
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1
What statement about independent contractors is correct?
They have no control over their own fees
They cannot engage other service providers as independent contractors
They're very strict limitations on how they can conduct business
They're responsible for adhering to all laws set by their licensing board
2
What term refers to the amount of money you need to invest in your business?
promissory funds
investments
constituency
capital
3
What part of your business plan should discuss the methods you'll use to develop brand recognition & promote business?
operations plan
financial plan
executive summary
marketing plan
4
What form is used to report federal estimated tax payments?
Form 940
Form I-ES
Form 941
Form 1040-ES
5
Which of these is an example of a venture capitalist?
a bank that loans money to a new business owner
a person who goes to a bank for a loan
a person who invests money in another person’s new business
a person who decides to start a new business
6
What term refers to anything that a business owns?
equipment
assets
liabilities
fixtures
7
What is
NOT
one of the ways in which skin care businesses commonly compensate service providers?
tips
fixed wages
commission
salary
8
What term refers to the standard procedures establishes by the accounting profession?
accounting principles of standard business operations (APSBO)
standardized principles of public accounting (SPPA)
generally accepted accounting principles (GAAP)
legal accounting guidelines (LAG)
9
Who should you consult with when developing the plan of action for opening your new business?
accountant
architect
design specialist
cosmetic manufacturer's representative
10
What document is commonly referred to as a profit and loss statement?
cash flow statement
break-even analysis
income statement
risk management plan
11
What does payment of the self-employment tax make a sole proprietor eligible for?
disability benefits
state income tax exemption
federal 401(k) investment program
lower federal unemployment tax rate
12
What statement about small-business loans is correct?
The only place to obtain a loan for your business is a traditional bank
They are typically interest-free
Falling behind on loan payments will not significantly affect the business
To obtain them, you must qualify as a good credit risk
13
What term refers to the owner's interest in the assets of the business after all of the liabilities have been deducted?
gross worth
equity
liquidity
net worth
14
What is
NOT
a way in which computers are commonly used in salons and spas?
performing skin analysis sessions online
maintaining employee schedules
selling a gift certificates and products online
controlling inventory
15
What is the definition of “liabilities”?
clients who are injured in the salon or spa
anything a business owns
none of the above
amount of debt or money that is owed
16
When are quarterly tax payments due?
January 15, April 15, July 15, and October 15
April 15, June 15, September 15, and January 15
April 1, June 1, September 1, and January 1
January 1, April 1, July 1, October 1
17
What is
NOT
a type of insurance generally recommended for salon and spa owners?
malpractice
protection and indemnity
disability
property or casualty
18
What is used to identify a business that maintains employees
employer identification number (EIN)
individual tax identification number (ITIN)
limited liability corporation number (LLCN)
Social security number (SSN)
19
What form is used to verify that an employee is eligible to work in the U.S
Form I-9
Form 1040
Form W-4
Form SS-4
20
How do venture capitalists benefit from loaning money to start a new business?
They are awarded ownership of the facility in which a business operates
They are paid a portion of the income from the business
They're paid the entirety of the income from the business for a set period
They are repaid the balance of the loaned amount plus interest charges
21
You must fill out Form 1099 for any independent contractor to whom you paid more than ___ during the tax year.
$600
$1,800
$2,500
$100
22
What form must a person fill out to obtain a social security number?
form W-2
form W-4
form 940
form SS-5
23
What term refers to a legal document that clearly defines the terms of a loan agreement?
promissory note
risk statement
break-even analysis
income statement
24
When must your federal tax return be filed by if April 15th falls on a Saturday?
Sunday, April 16
Monday, April 17
Saturday, April 15
Friday, April 14
25
What form is used to report the amount of federal, social security, & Medicare taxes withheld & paid by each employee?
Form W-4
Form 940
Form 941
Form 1040
26
What term refers to the point at which all costs are covered and your business begins to earn a profit?
gross profit
cash flow
break-even analysis
net profit
27
If a business takes in $1,000 at the end of the day & it cost $600 to deliver the services, what is the gross profit?
$400
$1,600
$600
$1,000
28
What is the
MOST
important factor in any business plan?
thorough executive summary
comprehensive strategic design and development plan
solid financial management strategy
detailed operations plan
29
The term ___ refers to the chance of incuring some type of harm, damage or loss.
Capital
Risk
Investment
Business plan
30
What is NOT one of the three general categories the IRS uses to determine independent contractor status?
behavioral control
type of business
relationship between the two parties
financial control
31
What is the tool that prospective business owners use to help them develop a plan of action to avoid many risk factors?
financial strategy
management plan
business plan
risk assessment plan
32
Why is insurance important for a business owner?
It is the best protection against business casualties
it is only needed in flood zones
it pays for supplies & expenses
it is not necessary for the small business owner
33
What statement about the federal unemployment tax is correct?
Employers are responsible for paying this tax
The program is fully funded by the federal government
Employees are responsible for paying this tax
Employers and employees are both required to contribute to this tax
34
What type of tax is an important factor in the sale of gift certificates?
deferred income tax
corporate dividend tax
state sales tax
social securtiy tax
35
What does SBA stand for?
Small Business Advisors
Smart Business Activists
Small Business Administration
Steady Business Administration
36
What are the four Ps?
professionalism, patience, productivity, and pride
proprietorship, progress, production, and promotion
product, price, promotion, and place
professionalism, place, progress, and price
37
What is typically the biggest expense for a business?
utilities
supplies
payroll
mortgage or rent
38
What statement about risk management is correct?
Operators of skin care businesses are exempt from OSHA guidelines
Clients are personally liable for any injury they sustain at the salon
The manager is the only salon employee required to be licensed
Salons must adhere to local, state, and federal disinfection guidelines
39
What is
NOT
something you should do before you decide to open your own business or purchase an existing one?
analyze the competition
revise your marketing strategy
examine industry trends
study economic conditions
40
What section of your business plan should provide the reader with a complete overview of your entire strategy?
financial plan
executive summary
operations plan
marketing plan
