Location is the most important factor in:

opening a salon business

What amount of commission will a salon owner usually pay an employee for the retail sales of home care products:

8% to 15%

Which of the following buisness types is owned by the shareholders and formed under legal guidelines:

Corporation

A stylist earning additional payment over and above the normal paycheck would be receving what type of compensation:

Salary plus commission

Which of the following ways can a cosmetologist use to develop a sucessful relationship with the client?

Determine the client's needs

Which type of insurance protects the salon owner from financial loss due to an employee's negligence?

Malpractice

To become an asset to any salon staff, the stylist should do all of the following EXCEPT:

Make negative comments

Net worth is caculated by subtracting liabilities from which of the following:

Assets

All payments received from clients for services perfomed and home care products purchased is known as:

Income

What is generally considered the best form of advertising:

Word of mouth

All of the following items should be important requirements in the process of salon planning EXCEPT:

The distance from the Social Security Office

In many cases, the first person to greet a client is the:

Receptionist

What percentage of total salon expenses generally represents compensation for the salon owner and employees:

50%

Compliance with all local, state/province and federal rules, regulations and laws is the responsibility of the:

Salon Owner

The tax based on the profits (earnings) if a business is known as:

Income Tax

Which method is considered to be the most effective way of building your clientele:

Referrals

The ideal salon arrangement has an efficient traffic pattern providing:

The least steps for the client and stylists to travel

The term given for selling products for client home care is:

Retailing

U.S. Social Security and Canadian Pension taxes are planned savings/retirement funds, and the money is collected by the:

U.S. and Canadian Goverments

Which of the following terms refers to all money owed:

Liabilites

Which form of advertising involves sending postcards or flyers potential customers:

Direct mail advertising

Which of the following is NOT a method you can use to start your job search:

Ask your teacher to find a job for you

To be granted future loans, it is important to pay loans on time and avoid:

Default

Keep all records of daily sales and services:

5 to 7 years

Which of these descriptions is NOT a guideline to be used when creating a resume:

provide at least eight pages of information

Which of the following is reported to the IRS as employee income:

tips recieve by an employee

A business owned by one person is called a (n):

sole proprietorship

Renting or leasing a styling station from a building owner would represent which of the following situations:

independent contractor

Job features such as paid holidays, health insurance, and a retirement plan offered by the workplace are known as:

benefits

which of the following is viatal in order to allow close management of products purchased for retailing in the salon:

inventory control system

The salon owner is responsible for collecting and paying sales tax how often:

monthyly or quarterly

Which of the following interview questions is illegal for an employer to ask for the purpose of discrimination:

when were you born

The type of business ownership in which two or more person share all costs of opening operatings and maintaing the business is a:

partnership

An example of a liability on your financial statment would be:

money you owe on a credit card

The government agency that would audit you business' record keeping is the:

IRS

The stylists name, scheduled service, clients name, date and clients phone nuber should all be included in the:

appointment books

ONe of the most effective techniques in building a clientele is to:

Give out business cards to potential clients

Which of the following is NOT a skill or ability a salon owner should possess to ensure success:

having the salon employees handle all unusal or difficult client situations.

Making a future appointment with a client while he or she is still in the salon is an effective tool for building a clientele and is referred to as:

prebooking the client

The least important factor in deciding wheater to accept a position is:

the size of the salon

A rental agreement is also known as a lease:

True

The emotional buyer bases his or her purchases on personal reasons than facts:

True

A set income given to an employee on a weekly or monthly basis is known as salary:

True

Sending out promotional literature advertising your salon is considered to be the most effective way to build clientele:

False

Creating a radio ad is the best form of advertising for your salon:

False

The W-2 form is supplied by the mployer to indicate all the taxes the employee has paid for the past year:

True

Treating your clients with the same respect and concern you would like them to treat you is a key to developing a successful stylist-client relationship:

True

If the operating expense is greater than the income, the salon is operating at a profit:

False

In many cases, the first person to greet the client is the owner of the salon:

False

The primary duty of the receptionist is to provide scalp massages for the clients:

False

Income minus profit equals expenses:

True

The features of a products can inclue the products appearance, the aroma or a specific ingredient:

True

An insurance agent sets up the salons basic bookeeping system and other financial task related to the salon:

False

Salaries or commissions are usually your largest expenses in operating a salon:

False

Rent

Workers Compensation is controlled by the state to provide insurance to any employee injured while on the job.

True

What the product will do to improve the condition of a clients hair or skin is known as the products features:

False

When a percentage of a salons monthly income plus a set dollar amount are paid each month, this refers to a fixed rent:

False

A salon owner must apply for a state sales tax ______ before collecting tax on products or services sold:

permit

The four types of business ownership are sole proprietorship, partnership, ________ and ________

Coporation, franchise

When a client recommends a cosmetologist to his or her friends, increasing the client base, this type of recommendation is known as a(n):

Referals

The type of buyer that wants to save money at all costs and is more interested in the price of a products is the _________ buyer:

Bargain

The money in your checking and savings accounts, IRAs, stocks and bonds are all considered to be your total:

assets

A salon owner that pays a set dollar amount each month to a building lessor is paying a(n) _____  rent

Fixed

A customer that did not call ahead to make an appointment, but comes into the salon seeking a service, is called a(n) ______-______ client

Walk In

This type of insurance that helps cover the costs of any salon equipment or the physical location itself in case of a fire or theft is known as premise or ________ insurance:

property

The item that offers an employee a brief summary of who you are and what qualities you would bring to the salon is called a (n) :

Cover Letter

An employee that recieve income based on a percentage of the dollar income of total clients serviced is being paid on a (n) ___structure

commission

the financial sucess of a salone will be achieved when the salons income is greater than its:

operating expenses

income minus expenses equal:

Profit

An operating agreement in which a business functions under a parent corporation in exchange for promotion, advertising and management is a (n):

Franchise