Cosmetology – business skills – Flashcards
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This is an individual owner and the manager of the business who determines policies and has the last say in decision making. Also, assumes expenses, receives profits and bears all losses.
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sole proprietor
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This is a business structure where two or more people share ownership, although not necessarily equally.
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partnership
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This is money that can be invested in a business and/or used to help run a business.
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capital
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This is an ownership structure controlled by one or more stockholders.
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corporation
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This is one of the best ways that a business owner can protect his or her personal assets. i.e. saving money on taxes, greater business flexibility, raising capital easier, limiting personal financial liability
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Incorporating
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This is a form of business organization in which a firm that is already successful enters into a continuing contractual relationship with other businesses operating under the franchisor's trade name in exchange for a fee.
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franchise ownership
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This is information that business plan should include.
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executive summary (states your objectives and plans), vision statement, mission statement, organization plan, marketing plan, financial documents, supporting documents and salon policies.
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What is an "S" corporation?
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Small business corporation
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What is an "LLC" corporation?
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Limited Liability Company
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Good business operations require a simple and efficient what?
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record system
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Proper bookkeeping methods include keeping an accurate record of what?
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all income and expenses
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Expenses usually include what for a salon?
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rent, utilities, insurance, salaries, advertising, equipment and repairs.
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What is the highest cost when operating/owning a salon?
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salaries and commissions (Including pay roll taxes) 53.5 % of total grow income
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Keeping purchase records help you to establish what for the year?
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the net worth of your business at the end of the year
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Supplies that are to be used in the salon are known as ...
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consumption supplies
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The only way to gurarantee that you will stay in business and have a prosperous salon is to take excellent care of what?
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your clients
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This is crucial to the smooth operation of your salon.
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salon layout
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Costs to create even a small salon in an existing space can range around how much?
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$75 - 125.00 per square foot
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What will determine the amount of staff you will need for a salon?
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the size of your salon.
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When interviewing potential employees, what should you consider?
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level of skill, personal grooming, image as it relates to the salon, overall attitude and communication skills.
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All employers must be familiar with various civil rights laws, including what?
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Equal Employment Opportunity Commission regulations, and the American Disabilities Act.
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These are the most important elements of running a successful salon.
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quality and pricing
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One of the most important duties the receptionist has is what?
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booking appointments
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A receptionist must have what three qualities?
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appearance that conveys your salon's image, knowledge of the various services offered and unlimited patience with both clients and salon personnel
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True or false: An important part of the business is handled over the telephone.
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true
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True or false: Incoming phone calls are the lifeline of a salon.
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True
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Should you speak to a client on the phone with another client standing nearby?
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no, put them on hold.
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As a general rule, your advertising budget should not exceed what?
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3% of your gross income
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True or false: In regards to recruiting new business, the first goal of every business is to maintain current clients.
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True
