Salon Business and Financial Fundamentals

Pivot Point ch 6 Question 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) When a client recommends a salon professional to his or her friends, increasing the client base, this type of recommendation is known as a(n) _____________. The money in your checking and savings accounts, IRAs, stocks and bonds are all considered to be your total ____________. An operating agreement in which a business functions under a parent corporation in exchange for promotion, advertising and management is a(n) _____________. The four types of business ownership are sole proprietorship, partnership, ______________ and ________________. A salon owner that pays a set dollar amount each month to a building lessor is paying a(n) ____________ rent. The 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. A salon owner must apply for a state sales tax _____________ before collecting tax on products or services sold. The financial success of a salon will be achieved when the salon's income is greater than its ______________ ______________. Income minus expenses equal ___________. An employee that receives income based on a percentage of the dollar income of total clients serviced is being paid on a(n) _______________ structure. A customer that did not call ahead to make an appointment, but comes into the salon seeking a service, is called a(n) ___________-____________ client. The type of buyer that wants to save money at all costs and is more interested in the price of a product is the ______________ buyer. The term given for selling products for client home care is: The designer's name, scheduled service, client's name, date and client's phone number should all be included in the: In many cases, the first person to greet a client is the: What amount of commission will a salon owner usually pay an employee for the retail sales of home care products? Which of the following is vital in order to allow close management of products purchased for retailing in the salon? Which form of advertising involves sending postcards or flyers to potential customers? What is generally considered the best form of advertising? A designer earning additional payment over and above the normal paycheck would be receiving what type of compensation? What percentage of the total salon expenses generally represents compensation for the salon owner and employees? The government agency that would audit your business' record keeping is the: Keep all records of daily sales and services for: Renting or leasing a workstation from a building owner would represent which of the following situations: All payments received from clients for services performed and home care products purchased is known as: The tax based on the profits (earnings) of a business is known as: The salon owner is responsible for collecting and paying sales tax how often? Which of the following items is reported to the IRS as employee income? U.S. Social Security and Canadian Pension taxes are planned savings/retirement funds, and the money is collected by the: Answer cover letter referral assets franchise corporation, franchise fixed property permit operating expense profit commission walk-in bargain Retailing appointment book receptionist 8% to 15% inventory control system direct mail advertising word of mouth salary plus commission 50 IRS 5 to 7 years independent contractor income income tax monthly or quarterly tips received by an employee U.S. and Canadian governments Which type of insurance protects the salon owner from financial loss due to an employee's negligence? To be granted future loans, it is important to pay loans on time and avoid: The ideal salon arrangement has an efficient traffic pattern providing: Compliance with all local, state/province and federal rules, regulations and laws is the responsibility of the: Location is the most important factor in: Which of the following business types is owned by the shareholders and formed under legal guidelines? The type of business ownership in which two or more persons share all costs of opening, operating and maintaining the business is a: A business owned by one person is called a(n): Net worth is calculated by subtracting liabilities from which of the following? Which of the following terms refers to all money owed? Which of the following ways can a salon professional use to develop a successful relationship with the client? 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: One of the most effective techniques in building a clientele is to: Which method is considered to be the most effective way of building your clientele? Job features such as paid holidays, health insurance and a retirement plan offered by the workplace are known as: The least important factor in deciding whether to accept a position is: malpractice default the least steps for the client and designers to travel salon owner opening a salon business corporation partnership sole proprietorship assets liabilities determine the client's needs prebooking the client give out business cards word-of-mouth benefits the size of the salon