Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Two of the most important factors in predicting the success of a business
are:
a. | products and supplies | c. | salon standards and advertising | b. | good visibility and
accessibility | d. | atmosphere
and location |
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2.
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When opening a new business, the location selected should reflect your:
a. | target market | c. | new clients | b. | personal preference | d. | travel time |
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3.
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A written plan that describes a business and foresees projections for the next 5
years is a:
a. | personal budget | c. | business plan | b. | written plan | d. | demographic
analysis |
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4.
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A salon that is owned and operated by an individual is referred to as a:
a. | booth renter | c. | sole proprietorship | b. | chain salon | d. | partnership |
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5.
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The federal agency that requires that the ingredients of cosmetic preparations
be available to employees is:
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6.
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One reason for entering into a partnership agreement is to have:
a. | more clients | c. | capital for investment | b. | unmanageable
debts | d. | many
stockholders |
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7.
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Companies or people that have an ownership interest in a company are:
a. | stockholders | c. | loan officers | b. | designers | d. | entrepreneurs |
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8.
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One of the best ways for a business owner to protect personal assets is:
a. | investing capital | c. | incorporating | b. | selling shares | d. | sharing
responsibilities |
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9.
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A stockholder of a corporation is required to pay unemployment insurance taxes
on:
a. | investments | c. | salary | b. | merchandise | d. | profits |
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10.
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A written agreement with a building owner that outlines the responsibilities for
repairs and expenses is a:
a. | business sale | c. | business plan | b. | noncompete agreement | d. | lease |
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11.
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Malpractice insurance is the responsibility of the:
a. | landlord | c. | employee | b. | stockholder | d. | salon owner |
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12.
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Good business operation requires a simple and efficient:
a. | record system | c. | client base | b. | price list | d. | reception area |
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13.
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Records that include receipts from client services and retail sales should be
listed as:
a. | accurately as possible | c. | expenses | b. | income | d. | commission |
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14.
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Supplies that are used and replaced in the daily business operation are
identified as:
a. | expenses | c. | inventory records | b. | perpetual inventory | d. | consumption
supplies |
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15.
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Supplies and products that are sold to clients are classified as:
a. | retail supplies | c. | upselling supplies | b. | consumable supplies | d. | service
products |
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16.
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Client’s preferences, products used, and personal information should be
recorded on:
a. | treatment cards | c. | service records | b. | the business plan | d. | the sales
invoice |
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17.
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In planning and constructing the physical layout of a salon, it should be
designed for:
a. | esthetic appeal | c. | color schemes | b. | maximum efficiency | d. | expected
depreciation |
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18.
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In order to have a successful business, a top priority in the allocation of
funds is to:
a. | develop an image | c. | meet payroll obligations | b. | interview potential
employees | d. | keep accurate
inventory |
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19.
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The important job of scheduling appointments and greeting clients is generally
the responsibility of the:
a. | manager | c. | practitioner | b. | trainer | d. | receptionist |
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20.
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Newspaper or radio ads and satisfied clients who promote a salon favorably are
all forms of:
a. | marketing | c. | advertising | b. | upselling | d. | retailing |
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