final test

Question 1

balance sheet

Answer 1

outlines where business stands in terms of:

what it owns

what it owes and how much investment owners have in business

Question 2

income statements

Answer 2

shows sales of a business over period of time

what it costs to conduct business over period of time

how much profit/loss resulted in that time

Question 3

cash flow statements

Answer 3

represents same period of income statement

gives details of cash coming in and out of the business

broken down on a monthly basis

Question 4

projected financial statements

Answer 4

statements Predicting what the financial performance and positions of the business in the future

aka pro forma financial statements or preformance statements (could be a typo)

Question 5

assets

Answer 5

things that are owned and have value

Question 6

fixed asset

Answer 6

buildings

machinery

equipment

Question 7

current asset

Answer 7

cash

inventory

prepaid expenses

Question 8

liabilities

Answer 8

legal debts

money owed by the business

Question 9

current liabilities

Answer 9

debts that you will pay off with in 1 year

Question 10

long term liabilities

Answer 10

debts that will have to be paid off within a period greater than 1 year

Question 11

equity

Answer 11

the amount of calm an individual has on an asset

or measure of individuals wealth

asset+ liability + equity

Question 12

break even

Answer 12

point at which a company starts to make a profit

where sales are sufficient to cover the costs and expenses of the company

Question 13

fixed expense

Answer 13

expenses of a business that tend to remain constant

example rent, utilities, salaries

Question 14

variable expense

Answer 14

Expenses of a business that will fluctuate with sales

example - supplies, delivery, packaging

Question 15

projected cash flow

Answer 15

a statement predicting how money will flow into and out of the business during a given period in the future

aka a cash budget

Question 16

finance section of the business plan section 4

Answer 16

contains financial statements and projected cash flow

Question 17

operations section 3

Answer 17

how will I organize my work

Question 18

inventory control 13

Answer 18

stock management - turn stock once every 6 months

having too much vs not having enough

cabin (back bar)

retail

purchase list

ordering pattern- season, services in demand

organize stock room- product placement

computer software- set minimum

book inventory -1 year

dead inventory (expiry)

discount and bargain baskets

donate

discard - Write off

Question 19

floor plan - things to consider 8

Answer 19

nails near front

10x10 aesthetic rooms

electrical, lighting, water

laundry

washroom

storage

retail waiting area/ reception

staff room

Question 20

traffic flow

Answer 20

zig zag (department store

Question 21

ceilings

Answer 21

over 10ft

painted same colour- directing attention to retail

Question 22

retail tips

Answer 22

first 10 ft into store should be retail

cabinets/shelving no lower than knees

display new items/testers

stock in 3s

Question 23

job description

Answer 23

statement of duties, responsibilities and other issues pertaining to a particular job within a company

Question 24

responsibility

Answer 24

task that employee is obligated to complete

Question 25

autority

Answer 25

specific area within which an employee has the power to make decisions

Question 26

accountability

Answer 26

duties on which an employer judges the performance of an employee

Question 27

leadership

Answer 27

motivational aspects of management that encourages greater productivity from employee

Question 28

hierarchy in salon

Answer 28

1. salon owner 2. bookkeeper 3. hairstylist, aesthetician, nail tech

Question 29

policies and procedures 11

Answer 29

room/table setup order of service/add ons opening/closing salon handling conplaints/returns booking appointments inventory cashing clients out housekeeping telephone/social media uniforms safety regulations

Question 30

golden opportunities

Answer 30

you leave a positive or negative impression every contact has an impact; client enjoys, returns, and recommends

Question 31

8 golden opportunities

Answer 31

1. client decides to take action 2. client physically arrives 3. physics layout of the spa 4. treatment and service execution 5. product sales 6.staff exposure 7. check out time 8. management activities

Question 32

1. client takes action 5

Answer 32

can they pronounce/spell spa name/ is it identifiable is contact info easily found/ clear directions to find you what have they heard do they know what to expect how long does it take to answer/respond- how are they helped, at what tone

Question 33

2. the client physically arrives

Answer 33

is there a sign/number/in directory can you see into salon sufficient parking are they greeted / first impression/ welcomed/ introduced/ offered refreshment/coat do they know where to go once entered/ how long is wait /instructed mood of spa/smell/seating

Question 34

3. physical layout o the spa/salon

Answer 34

what's the first thing they see- clean, colour, decor, empty bottles, dirty glasses clean and sufficient bathrooms crowded clearly defined departments / look like salon

Question 35

4. treatment and service execution

Answer 35

organized work area/setup products cleanliness consultation/home care/expectations/desired results does hair or makeup get messed up is client left unattended/ are they told is tech experienced/client satisfied comfortable temp, noise

Question 36

5. product sales

Answer 36

are you out of stock/can you locate/sufficient stock is product dirty/on shelf too long organized/priced/displayed how often is stock rotated does it look like a business of selling/important info available

Question 37

6. staff exposure

Answer 37

do staff gossip hair/make up/fashion up to date how they dress, skin, nails so they acknowledge clients/friendly/helpful/supportive/knowledgable/genuine unprofessional conversation enjoy job

Question 38

7. checkout time

Answer 38

do you have enough cash to give change/do they know how to use machine/can they make change are prices posted were they rescheduled/is home care suggested/discussed can client find coat and belongings is it crowded was client thanked

Question 39

8. management activities

Answer 39

are staff supplied enough do you take calls while servicing proper training/technical skill/communicationn is there a follow up/listen do you praise staff/ happy to see clients or overlook positive outlook ' do you allow time for planning