Ch 22 - The Skin Care Business

Question 1

When should you confirm that you are in compliance with all local, state, and federal regulations in order to avoid the risk of violations

Answer 1

Before opening your salon

Question 2

Why should you contact local authorities after confirming your ability to own and operate a salon

Answer 2

To investigate necessary business licenses and regulations

Question 3

Whose assistance should you seek out if you do not understand your obligations as a business owner

Answer 3

Attorney and accountant

Question 4

What does OSHA oversee

Answer 4

Workplace safety

Question 5

What is the purpose of a noncomplete clause within an agreement to buy an established salon

Answer 5

To ensure the seller does not go on to offer similar services to the same market

Question 6

What procedures should be spelled out in a security checklist

Answer 6

Opening and closing procedure

Question 7

What is a good approach for a business owner to have regarding lapses in insurance coverage

Answer 7

Coverage should never lapse

Question 8

What key information is supplied by accurate daily reports

Answer 8

Gross income and cost of operations

Question 9

When answering the phone, how can you clients know you are eager to serve them

Answer 9

By answering in a sincere, welcoming tone of voice

Question 10

What should you REFRAIN from doing when using the phone

Answer 10

Chewing gum

Question 11

What is the correct term for the money needed to invest in a business

Answer 11

Capital

Question 12

What are consumption supplies

Answer 12

Supplies used to conduct daily business operation

Question 13

What are retail supplies

Answer 13

Item available for sale to clients

Question 14

What is NOT a characteristic of a corporation

Answer 14

Ownership limited to one individual

Question 15

What is the term for the particular identifying characteristics of an area or population including age, sex, or ethnicity

Answer 15

Demographics

Question 16

What is an employee manual

Answer 16

Handbook or guide containing data about salon operations

Question 17

What is an example of a fixed cost

Answer 17

Rent

Question 18

What BEST describes a partnership

Answer 18

Multiple people sharing ownership of a business

Question 19

What term refer to employees that work for you

Answer 19

Personnel

Question 20

What is the PRIMARY purpose if creating a procedural guide

Answer 20

Standardizing operations

Question 21

What is profit

Answer 21

Money left after expenses are subtracted from revenues

Question 22

What is the MAIN goal of public relations

Answer 22

Achieving a certain desired behavior

Question 23

What is revenue

Answer 23

Income generated from selling products and services

Question 24

Who generally pays for the utilities an esthetician uses in a booth rental arrangement

Answer 24

Esthetician

Question 25

What is a business plan

Answer 25

Strategy for understanding key elements in developing business

Question 26

What should you do 24 to 48 hours before an appointment with a client

Answer 26

Confirm the appointment with the client by phone

Question 27

What should you do when leaving phone messages

Answer 27

Address the client by name

Question 28

What is true of the front desk in a salon of spa

Answer 28

It is the center of business operation in the salon

Question 29

What do you gain through education

Answer 29

Knowledge you need to operate a profitable business

Question 30

When should you become familiar with the basic business principle of accounting

Answer 30

Before you open your business

Question 31

What business type requires the proprietor to bear losses alone

Answer 31

Sole proprietorship

Question 32

What sort of person might thrive by operating a sole proprietorship

Answer 32

Independent self motivated individual who likes to be in charge

Question 33

What is a characteristic of someone who might thrive in a partnership

Answer 33

Enjoys the security of working with others

Question 34

When should you learn as much as possible about a prospective partners ethics and philosophies

Answer 34

Before entering into any binding agreement

Question 35

What is one of the effects of incorporating

Answer 35

Helps to protect personal assets

Question 36

What does a corporation accomplish by issuing stock certificates or shares

Answer 36

Raising capital

Question 37

What is a sole proprietorship

Answer 37

Business owned by one person

Question 38

What is the term for business expenses that fluctuate

Answer 38

Variable costs

Question 39

What is the right approach for conflicts involving employees

Answer 39

Responding quickly and diplomatically

Question 40

What do employees typically regard as the leader of the team in the salon

Answer 40

Manager

Question 41

What aspect of employee relations includes active listening

Answer 41

Positive communication

Question 42

What is an employers TOP financial priority

Answer 42

Payroll

Question 43

What costs should you cover for employees to the best of your financial ability

Answer 43

Benefits

Question 44

What happens when stockholders buy additional shares of stock

Answer 44

They increase their ownership interest in the corporation

Question 45

What type of business is managed by a board of directors

Answer 45

Corporation

Question 46

Why should you require the services of a competent lawyer and tax accountant if you want to form a corporation

Answer 46

To ensure compliance with complex state rules and regulations

Question 47

What is a benefit of renting a booth or space within an established salon

Answer 47

You gain experience by running a business on a small scale

Question 48

What are two of the MOST important factors when choosing the location of your salon

Answer 48

Visibility and accessibility

Question 49

What is the term for location a business close to other business that offer different products or services

Answer 49

One stop shopping

Question 50

Why is parking a critical element in attracting business

Answer 50

Safety and convenience are important marketing features

Question 51

What is a function of the federal agency called the Small Business Administration (SBA)

Answer 51

Helping small businesses succeed

Question 52

What is true of financial management

Answer 52

It is the cornerstone of a successful business plan

Question 53

What helps you to forecast (make predictions) about your business

Answer 53

Being familiar with specific costs related to running the business

Question 54

What should your dispensary feature in addition to ease of mobility

Answer 54

Adequate storage space

Question 55

What evokes a professional ambiance in the salon

Answer 55

Style of the salon

Question 56

What do you communicate to your employees by setting clear goals and objectives and by acting consistently

Answer 56

That you are a person if your word

Question 57

What is the term for items you might offer your employees such as tickets to educational conferences

Answer 57

Incentives

Question 58

How quickly should you answer the phone in a professional setting

Answer 58

Within three rings

Question 59

What should you do after asking a caller for permission to put the caller of hold

Answer 59

Allow enough time for a response

Question 60

What is the protocol for missed calls in a professional setting

Answer 60

Check messages often and respond as quickly as possible