Test Questions

Question 1

Unless you are at least _____ percent booked all the time, it may not be advantageous to rent a booth.

Answer 1

70

Question 2

A salon’s financial success depends in large part on all of the following EXCEPT:

Answer 2

Cold calling

Question 3

A long-term picture of what the business will become and what it will look like when it gets there is a:

Answer 3

Vision statement

Question 4

On a business timeline, expansion of services and locations would take place between the _____ years of operation.

Answer 4

5th and 10th

Question 5

A _____ is a written description of your business as you see it today and as you foresee it in the next five years.

Answer 5

Business plan

Question 6

How many visits does it typically take for a new client to become a loyal current client?

Answer 6

3

Question 7

If your company sets up an agreement with Awesome Salon to open your own salon that operates under the Awesome Salon name and logo, your new salon is considered a:

Answer 7

Franchise

Question 8

When operating a salon, your largest expense each month will be your:

Answer 8

Employee payroll

Question 9

For the booth renter, Social Security taxes are:

Answer 9

double that of an employee

Question 10

When using social media to promote the salon, you should:

Answer 10

get clients’ permission before using their images in your posts

Question 11

Supplies that are used in the daily business operation are:

Answer 11

consumption supplies

Question 12

Which of the following should be included in the Supporting Documents section of a business plan?

Answer 12

Owners resume

Question 13

When drawing up a lease to rent a building for your salon, you should secure all of the following EXCEPT an:

Answer 13

agreement stating that the landlord will hold all insurance policies

Question 14

When using the telephone, you should NOT:

Answer 14

make calls in a busy area of the salon

Question 15

When interviewing potential employees, you should always look for people who:

Answer 15

have a professional appearance

Question 16

When operating your own salon, you should:

Answer 16

follow the same rules that you set for your employees

Question 17

When you are purchasing an existing salon and there is a transfer of a mortgage, the _____ should initiate an investigation to determine whether there are defaults in the payments of debts.

Answer 17

Buyer

Question 18

The key duty of the receptionist is:

Answer 18

Booking appointments

Question 19

If you choose to buy an established salon, you should seek professional assistance from a(n):

Answer 19

accountant and business lawyer

Question 20

If you purchase shares in a corporation, you are a:

Answer 20

Stockholder

Question 21

A _____ is a benchmark that, once achieved, helps you to realize your mission and your vision.

Answer 21

Goal

Question 22

A mission statement does NOT:

Answer 22

list the company’s specific rules or regulations

Question 23

In a corporation, you:

Answer 23

incur more costs setting up the business than you would setting up a partnership

Question 24

You do NOT need which type of insurance for your salon?

Answer 24

deposit insurance

Question 25

One reason for going into a partnership arrangement is to have:

Answer 25

more capital for investment

Question 26

The rules and regulations adopted by a salon to ensure that all clients and associates are treated fairly and consistently are called:

Answer 26

salon policies

Question 27

A business structure in which two or more people share ownership is a:

Answer 27

partnership

Question 28

Records that are used to note client personal and contact information and preferences are called:

Answer 28

service records

Question 29

Costs to create even a small salon in an existing space can range from _____ per square foot.

Answer 29

$75 to $125

Question 30

The business plan should include projected income and overhead expenses for a period of:

Answer 30

5 years

Question 31

Which agency requires that information about ingredients of cosmetic preparations be available to employees?

Answer 31

OSHA

Question 32

Supplies that are purchased to be sold to clients are called:

Answer 32

Retail supplies

Question 33

The best form of advertising is:

Answer 33

satisfied clients

Question 34

When creating your brand identity, you should ask each of the following questions, EXCEPT:

Answer 34

Where will you be located?

Question 35

The primary concern when planning the physical layout of your salon should be:

Answer 35

maximum efficiency

Question 36

In the allotment of funds, the top priority should be to meet your _____ obligations.

Answer 36

Payroll

Question 37

The type of owner who assumes expenses, receives profits, and bears all losses of the business is a:

Answer 37

sole proprietor

Question 38

Smooth business management depends on all of the following factors EXCEPT:

Answer 38

competition between management and employees

Question 39

Which part of a salon is considered the nerve center?

Answer 39

reception area

Question 40

A _____ is someone who is trained to do everything from recording sales and payroll to generating a profit-and-loss statement.

Answer 40

full-charge bookkeeper

Question 41

In what part of a business plan should you state your objectives?

Answer 41

Executive Summary

Question 42

It takes most new salons about _____ to begin operating at full capacity.

Answer 42

6 months

Question 43

Money to invest in a business is called:

Answer 43

Capital

Question 44

Administrative plans for your business are found in which part of a business plan?

Answer 44

Organizational Plan