Milady Advanced Esthetics 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 good and services provided what is the gross profit?

1,000

Who should you consult with when developing the plan of action for opening your new business?

Accountant

When are quarterly tax payments due?

April 15, June 15, September 15, and January 15

What term refers to anything that a business owns?

Asset

What term refers to the point at which all costs are covered and your business begins to earn a profit?

Break-even analysis

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?

Capital

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 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

When must your federal tax return be filed by if April 15th falls on a Saturday?

Monday, April 17

What term refers to the owners interests in the assets of the business after all the liabilities have been documented?

Net worth

What is typically the biggest expense for a business?

Payroll

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 statement about risk management is correct?

Salons must adhere to all local, state, and federal disinfection guidelines

How do venture capitalists benefit from loaning money to start a new business?

They are paid a portion of the income from the business

What statement about small business loans is correct?

To obtain them, you must qualify as a good credit risk