15. ACE Chapter 17 & 18 - Lesson 18 Quiz

In which section of a business plan should a personal trainer identify the operating model and how it is different or unique when compared to other training studios in the area?

Business description

Which of the following business structures has double taxation as one of its primary disadvantages?

C-Corporation

Which of the follwing standards has been used when a plaintiff is prevented from receiving remuneration following an injury due to the fact that he was found to have played a minor role in his own injury?

Contributory negligence

A trainer receives a bonus for meeting performance objectives on a quarterly basis. Is this personal trainer more likely a direct employee or an independent contractor?

Direct employee

Most buying decisions, particularly when it comes to service businesses like personal training, are financially driven.

FALSE

When training in a client's home, a personal trainer must use recordings produced specifically for use in fitness facilities or risk being in violation of copyright law.

FALSE

When working in a general partnership with a family member, it is a good idea to operate the business as a 50-50 partnership so that both partners have an equal say in how the business is run

FALSE

Having friends or family members pay you directly for personal-training services instead of processing those fees through the fitness facility is a good way to supplement your income.

FLASE

A company experiences a yearly loss and one of the parners uses that loss to offset profits from another business. This is an example of ___________.

Flow-through taxation

Two personal trainers are working in the same market, one as a direct employee and one as an independent contractor. Which one is more likely to be earning a higher per session training fee?

Independent contractor

Which of the following activities falls outside a personal trainer's scopeof practice?

Providing progressive exercise prescriptions

Which type of corporation is most typically used by personal-training businesses?

Subchapter S-corporations

An umbrella liability policy provides added coverage for all of the other insurance that a person may have in place.

TRUE

Small-group personal training provides financial benefits to both the trainer and client.

TRUE

Which of the following is NOT one of the key components of the marketing plan portion of the business plan?

The barriers of entry into the business

Whic of the following is an ADVANTAGE of working as an independent contractor?

The facility allows the trainer to establish all training fees.

Which of the following is a DISADVANTAGE of working as a direct employee?

The personal trainer likely has to work an established miniumum number of hours.

What is the BEST response if a prospective client is unable to adjust his or her schedule to fit into the time that the trainer has available.

The trainer should refer this client to another trainer working in the facility

When evaluating the risk of injury associated with a particular activity, a personal trainer finds that the frequency of occurence is low or seldom, and the severity of injury is cateforized as high or vital. What is the BEST course of action?

Transfer

Which of the following is NOT one of the potential benefits of a sole proprietorship?

a corporate veil shields the owner from losses