Advanced Skin Chapter 29 Financial Business Skills
If a business takes in $1,000 at the end of the day and it cost $600 to deliver the goods and services provided, what is the gross profit?
$1,000
You must fill out form 1099 for any independent contractor to whom you paid more than _____ during the tax year.
$600
When are quarterly tax payments due?
April 15, June 15th, September 15th, and January 15th
What is the basic tool that prospective business owners use to help them develop a plan of action and avoid many risk factors?
Business plan
What does payment of the self-employment tax make a sole proprietor eligible for?
Disability benefits
What is used to identify a business that maintains employees?
Employer identification number (EIN)
What statement about the federal unemployment tax is correct?
Employers are responsible for paying taxes
What form is used to report federal estimated tax payment?
Form 1040-ES
what form is used to verify that an employee is eligible to work in the united states?
Form i-9
When must your federal tax return be filled by is April 15th falls on a Saturday?
Monday, April 17th
What are the four Ps?
Product, Price, Place, Promotion
What statements about independent contractors is correct?
They are responsible for adhering to all laws set forth by their licensing board
Who should you consult with when developing the plan of action for opening your new business?
accountant
what term refers to anything that a business owns?
assets
what term refers to the point at which all cost are covered and your business begins to ern a profit?
break even analysis
what terms refers to the amount of money you need to invest in your business?
capital
What type of tax is an important factor in the sale of gift certificates?
deferred income tax
What section of your business plan should provide the reader with a complete overview of your entire strategy?
executive summary
What form is used to report the amount of federal, social security, and Medicare taxes withheld and paid for by each employee?
form 941
What form must a person fill out to obtain a social security number?
form SS-5
what term refers to the standard procedures established by the accounting profession?
generally accepted accounting principles (GAAP)
what document is commonly referred to as a profit and loss statement?
income statement
what part of your business plan should discuss the methods you will use to develop brand recognition and promote business?
marketing plan
what term refers to the owner's interest in the assets of the business after all of the liabilities have been deducted?
new worth
What is typically the biggest expense for business?
payroll
What is NOT a way in which computers are commonly used in salons and spas?
preforming skin analysis sessions online
what term refers to a legal document that clearly defines the terms of a loan agreement?
promissory note
what is not a type of insurance generally recommended for salons and spa owners?
protection and indemnity
What is NOT something you should do before you decide to open your own business or purchase an existing one?
revise your marketing strategy
what statement about risk management is correct?
salons must adhere to all local, state, and federal disinfection guidelines
what is the most important factor in any business plan?
solid financial management strategy
how to venture capitalists benefits from loaning money to start a new business?
they are paid a portion of the income from the business
What is NOT one of the ways in which skin care business commonly compensate services providers?
tips
what statement about small-business loans is correct?
to obtain them, you must qualify as a good credit risk
What is NOT one of the three general categories the IRS uses to determine independent contractor staus?
type of business
