Esthetics & Business Basics

Question 1

The central company document that the owner and employees use to make decisions is a…

Answer 1

Business plan

Question 2

The three basic elements of a personal financial statement are…

Answer 2

Assets, liabilities, and net worth

Question 3

Comprises all the property a person owns.

Answer 3

Assets

Question 4

Consists of all the money you owe.

Answer 4

Liabilities

Question 5

Assets minus liabilities equals…

Answer 5

Net worth

Question 6

A business owned by one person who is in complete control is called a…

Answer 6

Sole proprietorship

Question 7

A business owned by two or more persons is called a…

Answer 7

Partnership

Question 8

Which type of business is owned by shareholders?

Answer 8

Corporation

Question 9

_____ is more of a license for operation than a form of ownership.

Answer 9

Franchise

Question 10

A financial advisor who can explain in greater depth the types of business ownership and their tax benefits and liabilities.

Answer 10

Accountant

Question 11

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

Answer 11

Lawyer

Question 12

Which expert acts as a link between the manufacturer and the skin care center?

Answer 12

Distributor

Question 13

The most important factor in opening a skin care business is…

Answer 13

Location

Question 14

What is the first step in gauging the market need?

Answer 14

Determining how many skin care center are in the area

Question 15

What measurement per esthetician allows for an efficient working space ?

Answer 15

120-150 square feet

Question 16

The reservoir of cash that is needed to stay ahead of creditors is…

Answer 16

Operating capital

Question 17

A reserve of cash that you can draw upon to meet operating expenses if you have a slow month or two is called…

Answer 17

Line of credit

Question 18

What type of rent allows owners to predict monthly expenses carefully?

Answer 18

Fixed rent

Question 19

A set dollar amount paid per month plus a percentage of the total monthly income is called…

Answer 19

Variable rent

Question 20

A policy that protects the skin care center owner from financial loss that can result from an employers negligence.

Answer 20

Malpractice

Question 21

Insurance is a type of…

Answer 21

Risk management

Question 22

A policy that covers the actual skin care center equipment and physical location in case of natural disasters, theft, etc.

Answer 22

Property or Premise

Question 23

A state controlled insurance that is required by law.

Answer 23

Workers compensation

Question 24

All payments received from clients for services performed and home care products purchased.

Answer 24

Income

Question 25

Refers to all the costs incurred in the day to day running of the skin care center.

Answer 25

Operating expenses

Question 26

Utilities, supplies, cost of promotions, postage and races are types of...

Answer 26

Variable costs

Question 27

An estimate of what you think you will earn in revenues and what you think you will pay out in expenses.

Answer 27

Projection

Question 28

If the skin care centers income is greater than the operating expenses the skin care center is operating at an...

Answer 28

Prodit

Question 29

A withholding tax that is a planned savings/retirement fund for every worker in the United States.

Answer 29

Social security

Question 30

What item does a skin care center owner apply for before collecting tax on products or services sold?

Answer 30

State sales tax permit

Question 31

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

Answer 31

6 months

Question 32

What type of compensation is based on a percentage of the income an individual esthetician generates?

Answer 32

Commission