Chapter 3 Business Basics

Which type of business is owned by shareholders or members who have funds invested in the company?

A skin care center should keep all records of daily sales and services for at least 6 years.

An advisor on borrowing money, signing rental agreements and assuming tax responsibilities is a stockholder.

The central company document that the owner and employee use to make decisions is a business plan.

Insurance is a type of risk management.

All cost incurred in the day to day running of the skin care center are called operating expenses.

Which of the following categories generally accounts for 50% of the expenses for a skin care center?

A middleman who maintains contracts to see professional products or equipment, acting as a link between the manufacturer

What type of compensation is based on a % of the dollar income an individual esthetician generates by serving clients?

Of the following descriptions, which does NOT-represent a way an employee an be paid?

Which of the following statements best describe the order in which to count back change to a client?

Which of the following is a typical commission rate for an employee to receive when selling retail to a client ?

What is the. Are given to all payments received from clients for services performed and home care products purchased?

Unhappy clients often don’t complain, they just don’t return.

A type of business ownership owned by one person who is in complete control of the business is a:

Which advisor travels within a territory to sell products and equipment to skin care centers?

The most selective and efficient form of advertising for a local business is considered to be:

The most effective form of advertising is often word of mouth.

Determining how many other skin care centers and estheticians are in the area is the first step in gauging the:

Which of the following terms defines salaries or commissions for yourself and your employees including payroll taxes?

The reservoir of cash that is needed to stay ahead of creditors is called:

If the skin care centers income is greater than the operating expenses, the skin care center is operating at a(n):