Chapter 32 - The Salon Business Flashcards Preview

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Flashcards in Chapter 32 - The Salon Business Deck (40):
1

Another name for an individual owner with complete control of a business is:
A. Business partner
B. Stockholder
C. Sole proprietor
D. Manager

C. Sole proprietor

2

Supplies used in the daily business operation are considered:
A. Retail supplies
B. Consumption supplies
C. Consumer supplies
D. Inventory supplies

B. Consumption supplies

3

Supplies purchased by a salon with the intention of selling these products to clients are:
A. Retail supplies
B. Consumption supplies
C. Inventory supplies
D. Client supplies

A. Retail supplies

4

When planning and constructing the best physical layout for a salon, the primary concern should be:
A. Color scheme
B. Salon furniture
C. Salon carpeting
D. Maximum efficiency

D. Maximum efficiency

5

It should always be your top priority to meet which of these financial obligations?
A. Utility bills
B. Vendor bills
C. Payroll
D. Rent or mortgage

C. Payroll

6

Which of these is considered the very best form of advertising for a salon?
A. Radio spots
B. Satisfied clients
C. Television ads
D. Newspaper ads

B. Satisfied clients

7

A(n) _________ is a benchmark that, once achieved, helps you realize your mission and your vision.
A. Assignment
B. Result
C. Obligation
D. Goal

D. Goal

8

When choosing a location for your business, you should select one that:
A. Offers easy access
B. Has limited parking
C. Is secluded
D. Has low traffic

A. Offers easy access

9

What is the minimum number of stockholders allowed for a corporation to exist?
A. 0
B. 1
C. 2
D. 3

B. 1

10

If you operate your salon in a building that you own, it is recommended that you purchase all BUT which of these types of insurance?
A. Liability insurance
B. Malpractice insurance
C. Renters insurance
D. Burglary insurance

C. Renters insurance

11

Which of these terms refers to you staff or employees?
A. Personnel
B. Constituents
C. Clients
D. Creditors

A. Personnel

12

Human resources covers all BUT which of the following concerns?
A. What you can and cannot say when hiring someone
B. What you must do when firing someone
C. What you should do when you need to increase sales
D. How you manage your employees

C. What you should do when you need to increase sales

13

Booking appointments is primarily whose job?
A. The cosmetologist
B. The client
C. The manager
D. The receptionist

D. The receptionist

14

The first goal of every business should be to:
A. Maintain current clients
B. Attract new clients
C. Compensate employees fairly
D. Upgrading existing equipment

A. Maintain current clients

15

When preparing your business plan, it is helpful to consult with an _______ to prepare your financial documents.
A. Interior designer
B. Attorney
C. Architect
D. Accountant

D. Accountant

16

Which part of a business plan outlines management levels and describes how the business will be run?
a. financial documents
b. organizational plan
c. vision statement
d. mission statement

b. organizational plan

17

Which part of a business plan summarizes your plan and states your objectives?
a. salon policies
b. marketing plan
c. mission statement
d. executive summary

d. executive summary

18

Which part of a business plan includes projected financial statements, actual statements and financial statements?
a. organizational plan
b. vision statement
c. financial statement
d. salon policies

c. financial statement

19

Which part of a business plan ensures that all clients and employees are treated fairly and consistently?
a. salon policies
b. financial documents
c. executive summary
d. organizational plan

a. salon policies

20

Which part of a business plan is a long-term picture of what the business is to become and what it will look like when it gets there?
a. vision statement
b. mission statement
c. salon policies
d. marketing plan

a. vision statement

21

Which part of a business plan outlines all of the research obtained regarding the clients your business will target and their needs, wants and habits?
a. organizational plan
b. financial plan
c. marketing plan
d. executive summary

c. marketing plan

22

Which part of a business plan includes the owner's resume, personal financial information, legal contracts and any other agreements?
a. executive summary
b. salon policies
c. financial documents
d. supporting documents

d. supporting documents

23

Which part of a business plan is a description of the key strategic influences of the business?
a. vision statement
b. mission statement
c. supporting documents
d. marketing plan

b. mission statement

24

An agreement to buy an established salon should include all BUT which of the following?
a. an agreement on the future maintenance costs
b. disclosure of the conditions of the facility
c. a formal or informal employee agreement
d. confirmation of the identity of the owner

a. an agreement on the future maintenance costs

25

Costs to create even a small salon in an existing space can range from _________ per square foot.
a. $5-$15
b. $20-$35
c. $30-$80
d. $75-$125

d. $75-$125

26

A business plan is a legally binding document.
T or F

False

27

Typically, salon owners continue to work on hair while they manage their business.
T or F

True

28

A long-term picture of what the business is to become and what it will look like when it gets there is part of the executive summary,
T or F

False

29

In addition to start-up costs for creating your salon, you'll need financing for operational expenses.
T or F

True

30

A stockholder of a corporation is required to pay unemployment insurance taxes on:
a. investments
b. merchandise
c. salary
d. profits

c. salary

31

Supplies that are used and replaced in the daily business operation are identified as:
a. expenses
b. perpetual expenses
c. inventory records
d. consumption supplies

d. consumption supplies

32

When opening a new business, the location selected should reflect your:
a. primary clientele
b. personal preference
c. new clients
d. travel time

a. primary clientele

33

One of the best ways for a business owner to attract personal assets is:
a. investing capital
b. selling shares
c. incorporating
d. sharing responsibilities

c. incorporating

34

The federal agency that requires that the ingredients of cosmetic preparations be available to employees is:
a. FDA
b. MSDS
c. FBI
d. OSHA

d. OSHA

35

A written plan that describes a business and foresees projections for the next 5 years is a:
a. personal budget
b. written plan
c. business plan
d. demographic analysis

c. business plan

36

A written agreement with a building owner that outlines the responsibilities for repairs and expenses is a:
a. business sale
b. non-compete agreement
c. business plan
d. lease

d. lease

37

Money to invest in a business.
a. demographics
b. chair rental
c. capital
d. personnel

c. capital

38

Information about a specific population.
a. demographics
b. chair rental
c. capital
d. personnel

a. demographics

39

Renting a booth or a station in a salon.
a. demographics
b. chair rental
c. capital
d. personnel

b. chair rental

40

Staff or employees.
a. demographics
b. chair rental
c. capital
d. personnel

d. personnel