Salon Business, Tax, and Career Fundamentals

Question 1

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

Accepted Answer

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

Question 2

The tax based on the profits (earnings) of a business is known as:sales taxpayroll taxincome taxoperating tax

Accepted Answer

Income tax.The tax based on the profits (earnings) of a business is known as income tax.

Question 3

All of the following items should be important requirements in the process of salon planning EXCEPT:locationmarket needcost of necessary improvementsthe distance from the Social Security office

Accepted Answer

The distance from the Social Security office.The location, market need and cost of necessary improvements are important factors in the process of salon planning.

Question 4

The least important factor in deciding whether to accept a position is:the locationthe size of the salonthe salary and benefitsthe success of the salon

Accepted Answer

The size of the salon.The least important factor in deciding whether to accept a position is the size of the salon.

Question 5

To become an asset to any salon staff, the designer should do all of the following EXCEPT:listen to clientsoffer sound advicemake negative commentscommunicate professionally

Accepted Answer

Make negative comments.To become a valuable asset to any salon staff the designer should listen to clients, offer sound advice and communicate professionally.

Question 6

The salon owner is responsible for collecting and paying sales tax how often?dailytwice a daymonthly or quarterlyannually or semi-annually

Accepted Answer

Monthly or quarterly.The salon owner is responsible for collecting and paying the sales tax to the state on a monthly or quarterly basis.

Question 7

Which of the following is NOT a method you can use to start your job search?
mail out resumes
call or visit salons you'd like to work at
ask your teacher to find a job for you
check the classifieds in your local paper

Accepted Answer

Ask your teacher to find a job for you.Mailing out resumes, calling or visiting salons that impress you or checking the classified section of your local paper are a few ways to help you search for a job.

Question 8

Which of the following is vital in order to allow close management of products purchased for retailing in the salon?receptionistappointment bookinventory control systememployee compensation

Accepted Answer

Inventory control system.An inventory control system is vital in order to allow close management of products purchased for retailing in the salon.

Question 9

Which of the following business types is owned by the shareholders and formed under legal guidelines?franchisepartnershipcorporationproprietorship

Accepted Answer

Corporation.A corporation is owned by the shareholders and is formed under legal guidelines.

Question 10

The ideal salon arrangement has an efficient traffic pattern providing:
80 sq. feet per designer
a remote reception area
the most steps for the client and designers to travel
the least steps for the client and designers to travel

Accepted Answer

The least steps for the client and designers to travel.The ideal salon arrangement has an efficient traffic pattern providing the least steps for the client and designer to travel.

Question 11

Which of the following terms refers to all money owed?assetsliabilitiesnet worthfinancial status

Accepted Answer

Liabilities.All money owed is referred to as liabilities.

Question 12

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

Accepted Answer

Sole proprietorship.A sole proprietorship is a business owned by one person who is in complete control of the business.

Question 13

Which form of advertising involves sending postcards or flyers to potential customers?direct mail advertisingTV and radio advertisingword-of-mouth advertisinginvolvement in community affairs

Accepted Answer

Direct mail advertising.Direct mail advertising involves sending postcards or flyers to potential customers.

Question 14

Which of the following interview questions is illegal for an employer to ask for the purpose of discrimination?
When were you born?
What is your strongest technical area?
How would you describe your people skills?
How would someone describe your personal characteristics?

Accepted Answer

When were you born?In the United States, illegal interview questions are those that discriminate based on age, color, race and gender.

Question 15

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

Accepted Answer

Receptionist.In many cases, the first person to greet a client is the receptionist.

Question 16

Compliance with all local, state/province and federal rules, regulations and laws is the responsibility of the:designerssalon ownerlocal authoritiesformer building owner

Accepted Answer

Salon owner.Compliance with all local, state/province and federal rules, regulations and laws is the responsibility of the salon owner.

Question 17

Which of the following ways can a salon professional use to develop a successful relationship with the client?
determine the client's needs
avoid offering the client any additional services
cancel prebookings on your client often
decide for your client which look or design is best

Accepted Answer

Determine your clients needs.A key to a successful client relationship is determining your client's needs.

Question 18

An example of a liability on your financial statement would be:last week's incomerestaurant receiptsany earned tipsmoney you owe on a credit card

Accepted Answer

Money you owe on a credit card.Any outstanding loan balances on your assets, bills from credit cards or charge accounts are liabilities.

Question 19

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

Accepted Answer

Income.All payments received from clients for services performed and home care products purchased is known as income.

Question 20

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

Accepted Answer

Benefits.Paid holidays, bonuses, insurance benefits and a retirement plan are all job benefits a workplace can offer an employee.

Term	Definition
U.S. Social Security and Canadian Pension taxes are planned savings/retirement funds, and the money is collected by the: city council state government county government U.S. and Canadian governments	U.S and Canadian governments. U.S. Social Security and Canadian Pension taxes are planned savings/retirement funds and the money is collected by the U.S. and Canadian governments.
The tax based on the profits (earnings) of a business is known as: sales tax payroll tax income tax operating tax	Income tax. The tax based on the profits (earnings) of a business is known as income tax.
All of the following items should be important requirements in the process of salon planning EXCEPT: location market need cost of necessary improvements the distance from the Social Security office	The distance from the Social Security office. The location, market need and cost of necessary improvements are important factors in the process of salon planning.
The least important factor in deciding whether to accept a position is: the location the size of the salon the salary and benefits the success of the salon	The size of the salon. The least important factor in deciding whether to accept a position is the size of the salon.
To become an asset to any salon staff, the designer should do all of the following EXCEPT: listen to clients offer sound advice make negative comments communicate professionally	Make negative comments. To become a valuable asset to any salon staff the designer should listen to clients, offer sound advice and communicate professionally.
The salon owner is responsible for collecting and paying sales tax how often? daily twice a day monthly or quarterly annually or semi-annually	Monthly or quarterly. The salon owner is responsible for collecting and paying the sales tax to the state on a monthly or quarterly basis.
Which of the following is NOT a method you can use to start your job search? mail out resumes call or visit salons you'd like to work at ask your teacher to find a job for you check the classifieds in your local paper	Ask your teacher to find a job for you. Mailing out resumes, calling or visiting salons that impress you or checking the classified section of your local paper are a few ways to help you search for a job.
Which of the following is vital in order to allow close management of products purchased for retailing in the salon? receptionist appointment book inventory control system employee compensation	Inventory control system. An inventory control system is vital in order to allow close management of products purchased for retailing in the salon.
Which of the following business types is owned by the shareholders and formed under legal guidelines? franchise partnership corporation proprietorship	Corporation. A corporation is owned by the shareholders and is formed under legal guidelines.
The ideal salon arrangement has an efficient traffic pattern providing: 80 sq. feet per designer a remote reception area the most steps for the client and designers to travel the least steps for the client and designers to travel	The least steps for the client and designers to travel. The ideal salon arrangement has an efficient traffic pattern providing the least steps for the client and designer to travel.
Which of the following terms refers to all money owed? assets liabilities net worth financial status	Liabilities. All money owed is referred to as liabilities.
A business owned by one person is called a(n): corporation franchise partnership sole proprietorship	Sole proprietorship. A sole proprietorship is a business owned by one person who is in complete control of the business.
Which form of advertising involves sending postcards or flyers to potential customers? direct mail advertising TV and radio advertising word-of-mouth advertising involvement in community affairs	Direct mail advertising. Direct mail advertising involves sending postcards or flyers to potential customers.
Which of the following interview questions is illegal for an employer to ask for the purpose of discrimination? When were you born? What is your strongest technical area? How would you describe your people skills? How would someone describe your personal characteristics?	When were you born? In the United States, illegal interview questions are those that discriminate based on age, color, race and gender.
In many cases, the first person to greet a client is the: owner designer manager receptionist	Receptionist. In many cases, the first person to greet a client is the receptionist.
Compliance with all local, state/province and federal rules, regulations and laws is the responsibility of the: designers salon owner local authorities former building owner	Salon owner. Compliance with all local, state/province and federal rules, regulations and laws is the responsibility of the salon owner.
Which of the following ways can a salon professional use to develop a successful relationship with the client? determine the client's needs avoid offering the client any additional services cancel prebookings on your client often decide for your client which look or design is best	Determine your clients needs. A key to a successful client relationship is determining your client's needs.
An example of a liability on your financial statement would be: last week's income restaurant receipts any earned tips money you owe on a credit card	Money you owe on a credit card. Any outstanding loan balances on your assets, bills from credit cards or charge accounts are liabilities.
All payments received from clients for services performed and home care products purchased is known as: taxes income expenses compensation	Income. All payments received from clients for services performed and home care products purchased is known as income.
Job features such as paid holidays, health insurance and a retirement plan offered by the workplace are known as: benefits bonuses commission referrals	Benefits. Paid holidays, bonuses, insurance benefits and a retirement plan are all job benefits a workplace can offer an employee.
Net worth is calculated by subtracting liabilities from which of the following? assets student loans loan balances charge accounts	Assets. Net worth is calculated by subtracting liabilities from assets.
Which of the following is NOT a skill or ability a salon owner should possess to ensure success? the ability to maintain a budget ability to set realistic business goals having the salon employees handle all unusual or difficult client situations recognize skills and techniques and hire staff accordingly	Having the salon employees handle all unusual or difficult client situations. A successful salon owner should communicate with the public, not only in ordinary situations, but also in unusual or difficult instances.
To be granted future loans, it is important to pay loans on time and avoid: taxes default insurance compensation	Default. To be granted future loans it is important to pay loans on time and avoid default.
The term given for selling products for client home care is: retailing networking scheduling warehousing	Retailing. The term given for selling products for client home care is retailing.
Which type of insurance protects the salon owner from financial loss due to an employee's negligence? premise malpractice Social Security product liability	Malpractice. Malpractice insurance protects the salon owner from financial loss due to an employee's negligence.
Location is the most important factor in: choosing a lawyer choosing a salon choosing a distributor opening a salon business	Opening a salon business. The most important factor in opening a salon business is location.
A designer earning additional payment over and above the normal paycheck would be receiving what type of compensation? salary pension commission salary plus commission	Salary plus commission. Receiving a steady paycheck and additional payment for additional clientele is referred to as salary plus commission.
What percentage of the total salon expenses generally represents compensation for the salon owner and employees? 10% 25% 50% 75%	50%. Compensation for the salon owner and employees generally represents 50% of salon expenses.
The government agency that would audit your business' record keeping is the: EPA IRS OSHA MSDS	IRS. If you are audited by the IRS, these records are proof of your income.
Which method is considered to be the most effective way of building your clientele? referrals prebooking word-of-mouth advertising providing unexceptional service	Word-of-mouth. Word-of-mouth advertising is probably the most effective way of building your clientele.
Which of these descriptions is NOT a guideline to be used when creating a resume? list awards and special recognition show prior employment information provide at least eight pages of information write the resume in a brief and concise manner	Provide at least eight pages of information. resume should describe prior employment, special awards and be written in a brief and concise manner.
What amount of commission will a salon owner usually pay an employee for the retail sales of home care products? 1% to 3% 4% to 6% 8% to 15% 20% to 25%	8% to 15%. Many salons pay a commission ranging from 8% to 15% of the designer's total retail sales of salon products.
Renting or leasing a workstation from a building owner would represent which of the following situations: partnership corporation sole proprietorship independent contractor	Independent contractor. A designer renting or leasing a workstation from a building owner is referred to as an independent contractor.
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 pressuring the client retailing to the client networking with the client	Prebooking the client. Prebooking a client while he or she is still in the salon is an effective tool for building success by retaining a client base.
The designer's name, scheduled service, client's name, date and client's phone number should all be included in the: I-9 form appointment book state income tax form federal income tax form	Appointment book. The designer's name, scheduled service, client's name, date and client's phone number should all be included in the appointment book.
Keep all records of daily sales and services for: 2 to 4 years 5 to 7 years 10 to 12 years 14 to 16 years	5 to 7 years. Keep all records of daily sales for 5 to 7 years.
One of the most effective techniques in building a clientele is to: run behind to show the salon is busy give out business cards to potential clients promote services that aren't available in the salon point out weaknesses of other designers to clients	Give out business cards to potential clients. One of the most effective techniques for building clientele is to give out business cards to potential clients.
What is generally considered the best form of advertising? television billboards pamphlets word of mouth	Word of mouth. Generally the best form of advertising is word of mouth.
Which of the following items is reported to the IRS as employee income? tips received by an employee money paid to vendors for products operating expenses paid by the salon change given to a client following payment	Tips received by an employee. Tips received by an employee must be reported to the IRS as employee income.
The type of business ownership in which two or more persons share all costs of opening, operating and maintaining the business is a: franchise partnership corporation sole proprietorship	Partnership. A partnership is a business in which two or more persons share all costs of opening, operating and maintaining the business.
Income minus profit equals expenses. True False	False. Income minus expenses equals profit.
An insurance agent sets up the salon's basic bookkeeping system and other financial tasks related to the salon. True False	False. An accountant evaluates the salon's rental agreement, sets up a basic bookkeeping system and records the salon's tax payments.
Treating your clients with the same respect and concern you would like them to treat you is a key to developing a successful designer-client relationship. True False	True. Treat your clients with the same respect and concern you would like them to exhibit toward you.
The W-2 form is supplied by the employer to indicate all the taxes the employee has paid for the past year. True False	True. The salon owner must provide a W-2 form for each employee. The W-2 form will indicate all taxes paid for the past year.
A rental agreement is also known as a lease. True False	True. A rental agreement is also known as a lease.
Sending out promotional literature advertising your salon is considered to be the most effective way to build your clientele. True False	False. Word-of-mouth advertising is probably the most effective way of building your clientele.
Salaries or commissions are usually your largest expenses in operating a salon. True False	True. Salaries or commission for you and your employees usually account for half of your operating expenses.
A set income given to an employee on a weekly or monthly basis is known as salary. True False	True. A salary structure is a compensation system that guarantees a set income on a weekly or monthly basis.
Worker's Compensation is controlled by the state to provide insurance to any employee injured while on the job. True False	Worker's compensation. Worker's Compensation is a state-controlled insurance required by law to cover any expense resulting from an injury to an employee.
When a percentage of a salon's monthly income plus a set dollar amount are paid each month, this refers to a fixed rent. True False	False. A variable rent includes a set dollar amount paid per month plus a percentage of the total monthly income.
The features of a product can include the product's appearance, the aroma or a specific ingredient. True False	True. Features of a product are its characteristics, which might include the size of the container, the aroma or a specific ingredient.
If the operating expense is greater than the income, the salon is operating at a profit. True False	False. If the operating expenses are greater than the income, then the salon is operating at a loss.
The primary duty of the receptionist to provide scalp massages for the clients. True False	False. The primary duties of the receptionist include scheduling appointments, managing incoming and outgoing call and informing designers of arrivals in the salon.
In many cases, the first person to greet the client is the owner of the salon. True False	False. In many cases, the first person to greet a client is the receptionist.
The emotional buyer bases his or her purchases on personal reasons than facts. True False	True. The emotional buyer bases purchases on personal reasons than facts.
Creating a radio ad is the best form of advertising for your salon. True False	False. The best form of advertising is word of mouth.
What the product will do to improve the condition of a client's hair or skin is known as the product's features. True False	False. Benefits of a product are things that the product will do to enhance the appearance or improve the condition of the client's hair, skin or nails.

Salon Business, Tax, and Career Fundamentals

Flash Cards

Spaced Repetition

Take Quiz

U.S. Social Security and Canadian Pension taxes are planned savings/retirement funds, and the money is collected by the:
city council
state government
county government
U.S. and Canadian governments

Key Terms

Related Flashcard Decks

Study Tips

Company

Explore

Study Tools