Salon Business: Career Management and Financial Basics

Salon Business Question Which of these descriptions is NOT a guideline to be used when creating a resume? a. list awards and special recognition b. show prior employment information c. provide at least eight pages of information d. write the resume in a brief and concise manner Which of the following interview questions is illegal for an employer to ask? a. When were you born? b. What is your strongest technical area? c. How would you describe your people skills? d. How would someone describe your personal characteristics? The least important factor in deciding whether to accept a position is: a. the location b. the size of the salon c. the salary and benefits d. the success of the salon One of the most effective techniques in building a clientele: a. run behind to show salon is busy b. give out business cards to potential clients c. point out weaknesses of other stylists to clients d. promote services that aren't available in the salon Making a future appointment with a client while they are still in the salon is an effective tool for building a clientele and is referred to as: a. prebooking b. pressuring c. retailing d. networking An important aspect to remember when managing money is to: a. create a budget b. ignore ecomonic conditions c. complete a performance review d. buy equipment by getting loans Which of the following terms refers to all money owed? a. assets b. liabilities c. net worth d. financial status Net worth is calculated by subtracting liabilities from which of the following? a. assets b. student loans c. loan balances d. charge accounts The type of business ownership in which two or more persons share all costs of opening, operating and maintaining the business is a: a. franchise b. partnership c. corporation d. sole proprietorship Which of the following business types is owned by the shareholders and formed under legal guidelines? a. franchise b. partnership c. corporation d. proprietorship All of the following items should be important requirements in the process of salon planning EXCEPT: a. location b. market need c. cost of necessary improvements d. the distance from the Social Security office Compliance with all local, state/province and federal rules, regulations and laws is the responsibility of the: a. stylists b. salon owner c. local authorities d. former building owner The ideal salon arrangement has an efficient traffic pattern providing: a. 80 sq. ft. per stylist b. a remote reception area c. the most steps for the client and stylist to travel d. the least steps for the client and stylist to travel To be granted future loans, it is important to pay loans on time and avoid: a. taxes b. default c. insurance d. compensation Which type of insurance protects the salon owner from financial loss due to an employee's negligence? a. premise b. malpractice c. Social Security d. product liability U. S. Social Security and Canadian Pension taxes are planned savings/retirement funds and the money is collected by the: a. city council b. state government c. county government d. U. S. and Canadian governments Which of the following items must be reported to the IRS as employee income? a. tips received by an employee b. money paid to vendors for products c. operating expenses paid by the salon d. change given to a client following payment The tax based on the profits (earnings) of a business is known as: a. sales tax b. payroll tax c. income tax d. operating tax All payments received from clients for services performed and home care products purchased is known as: a. taxes b. income c. expenses d. compensation Renting or leasing a styling station from a building owner would represent which of the following situations: a. partnership b. corporation c. sole proprietorship d. independent contractor Keep all records of daily sales and services for: a. 2 to 4 years b. 5 to 7 years c. 10 to 12 years d. 14 to 16 years What percentage of the total salon expenses generally represents compensation for the salon owner and employees? a. 10% b. 25% c. 50% d. 75% Answer c. provide at least eight pages of information a. When were you born? b. the size of the salon b. give out business cards to potential clients a. prebooking a. create a budget b. liabilities a. assets b. partnership c. corporation d. the distance from the Social Security office b. salon owner d. the least steps for the client and stylist to travel b. default b. malpractice d. U. S. and Canadian governments a. tips received by an employee c. income tax b. income d. independent contractor b. 5 to 7 years c. 50% A stylist earning additinal payment over and above the normal paycheck would be receiving what type of compensation? a. salary b. pension c. insurance d. salary plus commission What is generally considered the best form of advertising? a. television b. billboards c. pamphlets d. word of mouth Which form of advertising involves sending postcards or flyers to potential customers? a. direct mail advertising b. TV and radio advertising c. word-of-mouth advertising d. involvement in community affairs Which of the following is vital in order to allow close management of products purchased for retailing in the salon? a. receptionist b. appointment book c. inventory control system d. employee compensation In many cases, the first person to greet a client is the: a. stylist b. owner c. manager d. receptionist The stylist's name, scheduled service, client's name, date and client's phone number should all be included in the: a. I-9 form b. appointment book c. state income tax form d. federal income tax form The term given for selling products for client home care is: a. retailing b. networking c. scheduling d. warehousing To become an asset to any salon staff the stylist should do all of the following EXCEPT: a. listen to clients b. offer sound advice c. make negative comments d. communicate professionally d. salary plus commission d. word of mouth a. direct mail advertising c. inventory control system d. receptionist b. appointment book a. retailing c. make negative comments