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Salon Business
The Business
| Question | Answer |
|---|---|
| In a booth rental (also called chair rental) arrangement, the stylist is responsible for all the following except: A. clientele B. accounting C. supplies D. mortgage payments | D. mortgage payments |
| Booth rental (or chair rental) is different from salon ownership in that with booth rental: A. the initial investment is larger B. you carry your own insurance C. you do not have to keep records D. overhead is slightly higher | B. you carry your own insurance |
| When selecting the location for a salon, you should consider: A. the direct competition B. the hair services you will offer C. the number of staff to hire D. your personal policies | A. the direct competition |
| Information about size, average income, and buying habits of the population is called: A. a charter B. a census C. a business plan D. demographics | D. demographics |
| Before you seek financing to open a salon, you must first develop a: A. color scheme B. business plan C. charter D. brochure | B. business plan |
| Building renovations and business codes are regulated by: A. local regulations B. federal laws C. state or province laws D. the department of licensing | A. local regulations |
| Social security is covered under: A. local laws B. state or province laws C. federal laws D. county laws | C. federal laws |
| Salon owners purchase insurance policies to protect themselves against: A. loss of employees B. malpractice lawsuits C. loss of clients D. increases in rent | B. malpractice lawsuits |
| A salon that is owned by stockholders and has a state charter is a/an: A. partnership B. individual ownership C. corporation D. joint ownership | C. corporation |
| The type of ownership that subjects the owner to the most limited personal loss is the: A. individual ownership B. corporation C. partnership D. co-ownership | B. corporation |
| If two people own a salon together, that type of ownership is a/an: A. partnership B. individual ownership C. chain salon D. corporation | A. partnership |
| If you lease a space for your salon, the lease should specify who is responsible for: A. employee benefits B. repairs C. income taxes D. advertising | B. repairs |
| Before you open a business, you need to determine how much capital you wil need to run it for at least the first: A. two years B. six months C. five years D. one year | A. two years |
| Quality control means that every time clients come to the salon they can expect: A. the same stylist B. consistently high standards C. the same products used D. a different haircut | B. consistently high standards |
| Receipts from services and retail sales are classified as: A. income B. client records C. expenses D. outgo | A. income |
| For the average salon, the net profit is about ___ of the total gross income: A. 85 % B. 25 % C. 20 % D. 15 % | D. 15 % |
| Information about which products are selling well and which ones are not can be seen in the salon's: A. inventory records B. petty cash book C. consumption records D. service records | A. inventory records |
| Major purchases of supplies should be made: A. when they are needed B. when suppliers offer special prices C. after tax time D. before filing income taxes | B. when suppliers offer special prices |
| For satisfactory client service, it is essential that the salon have good plumbing and: A. public transportation B. office space C. parking facilities D. lighting | D. lighting |
| Guidelines that require that the ingredients of cosmetic preparations be displayed prominently for clients are put out by: A. state or province boards B. the department of education C. OSHA D. the EPA | C. OSHA |
| The best form of advertising is: A. a neon sign B. satisfied clients C. a newspaper ad D. window displays | B. satisfied clients |
| Closer contact is made with potential clients by using: A. direct mail advertising B. newspaper advertising C. radio advertising D. yellow pages advertising | A. direct mail advertising |
| The largest expense item in operating a salon is: A. supplies B. rent C. salaries D. advertising | C. salaries |
| The "quarterback" of the salon is the: A. stylist B. receptionist C. shampoo person D. manager | B. receptionist |
| An accurate reflection of what is taking place in the salon at a given time can be seen in: A. an income tax return B. its business plan C. yearly records D. the appointment book | D. the appointment book |
| Salon and individual licenses are covered by: A. state or province laws B. federal laws C. local laws D. county laws | A. state or province laws |
| When booking an appointment by telephone in the salon, you should: A. give most clients to an established stylist B. be familiar with all services and products C. give most clients to a new stylist D. use a pencil in case of cancellations | B. be familiar with all services and products |
| When listening to a client's complaint, it is important to avoid: A. interrupting B. apologizing C. being sympathetic D. promising free service | A. interrupting |
| Client records should be kept: A. in the dispensary B. in the office C. at your station D. at a central location | D. at a central location |
| The approximate % of a salon's budget spent on salaries is: A. 25 B. 75 C. 50 D. 35 | C. 50 |
| Products that are sold to clients are: A. consumption supplies B. stock supplies C. wholesale supplies D. retail supplies | D. retail supplies |
| Local, state or province, and federal tax laws require a busines to maintain: A. an advertising budget B. proper business records C. a parking area D. a dress code for employees | B. proper business records |
| In order to maintain an accurate and efficient control of supplies, it is necessary to have an organized: A. service record B. security system C. inventory system D. purchase system | C. inventory system |
| Salon supplies that are used in the daily business operation are called: A. retail supplies B. wholesale supplies C. inventory D. consumption supplies | D. consumption supplies |
| Payroll books and canceled checks should be retained for: A. seven months B. seven years C. ten years D. one year | B. seven years |
| In the allotment of funds, the top priority should always be: A. suppliers B. insurance C. employees D. rent | C. employees |
| Guidelines for becoming an effective manager include: A. sharing information B. letting employees learn on their own C. delaying feedback D. doubting employees intentions | A. sharing information |
| Advertising should be concentrated around: A. your personal schedule B. the holidays C. newspaper schedules D. slow periods | D. slow periods |
| In general, your advertising budget should not be greater than ___ of your total gross (before taxes) income. A. 3 % B. 1 % C. 10 % D.5 % | A. 3 % |
| An important point to keep in mind when retailing is to recommend to clients: A. what works best for you B. the more expensive products C. everything in a product line D. what is in their best interest | D. what is in their best interest |
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hodges900
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