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