Financial Business Skills
You must fill out Form 1099 for any independent contractor to whom you paid more than
$600 during the tax year
What 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?
Assests
What is NOT one of the three general categories the IRS used to determine independent contractor status?
Behavioral control
What term refers to the point at which all costs are covered and your business begins to earn a profit?
Break-even
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 term refers to the amount of money you need to invest in your business?
Captiol
What type of tax is an important factor in the sale of gift certificates?
Deferred income tac
What does a payment of the self-employed tax make a sole proprietor eligible for?
Disability benefits
What statement about the federal unemployment tax is correct?
EMployers are responsible for paying this tax
What is used to identify a business that maintains employees?
Employer identification number (EIN)
What section of your business plan should provide thereader 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 withhelp and paid for by each employee?
Form 1040
What form is used to report federal estimated tax payments?
Form 1040-ES
What form must a person full out to obtain a social security number?
Form SS-5
What document is commonly referred to as a profit and loss statement?
Income statement
When are quarterly tax payments due?
January 15, April 15, July 15, and October 15
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?
Net worth
WHat is typically the biggest expense for a business?
Payroll
What are the four P's?
Product, price, promotion and place
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 salon and spa owners?
Protection and indemnity
What is NOT something you should do before you decide toopen your own business or purchase an existing one?R
Revise your marketing stretgy
What statement about risk management is correct?
Salons must adhere to all local, state, and federal disinfection guidleines
What is the MOST important factor in any business paln?
Solid financial management stragey
How do venture capitalists benefit from loaning money to start a new business?
They are paid a portion of the income
What statement about independent contractors is correct?
They are responsible for adhering to all laws set forth by their licensing board
What is NOT one of the ways in which skin care businesses commonly compensate service providers?
Tips
What statement about small business loans is correct?
To obtain them, you must qualify as a good credit risk
