CMT CMT Business Operations & Ethics 2 — Questions and Answers
Question 1: Why should a mobile repair business maintain a written inventory management system?
- To track parts usage, cost of goods, and ensure accurate billing and reordering (Correct answer)
- To comply with FCC regulations only
- To prevent technicians from taking breaks
- To automate customer communication
Correct answer: To track parts usage, cost of goods, and ensure accurate billing and reordering
Accurate inventory records control costs, prevent shrinkage, and ensure billing accuracy.
Question 2: What does a limited liability company (LLC) structure provide to a mobile repair shop owner?
- Separation of personal assets from business liabilities in most legal actions (Correct answer)
- Unlimited protection from all lawsuits
- Tax-exempt status automatically
- The ability to hire unlimited employees without payroll taxes
Correct answer: Separation of personal assets from business liabilities in most legal actions
An LLC creates a legal barrier between personal and business assets, limiting personal financial exposure.
Question 3: A technician notices a colleague billing customers for unnecessary screen protector installations. The correct response is to:
- Report the behavior to management or the shop owner, as it constitutes fraud (Correct answer)
- Ignore it since it is not your responsibility
- Do the same to stay competitive
- Warn customers yourself directly
Correct answer: Report the behavior to management or the shop owner, as it constitutes fraud
Fraudulent billing by colleagues must be escalated through proper channels to protect the business and customers.
Question 4: What is the primary purpose of a repair shop's service Level Agreement (SLA)?
- To define the expected turnaround time and quality standards the shop commits to meeting (Correct answer)
- To limit customer refunds
- To describe the history of the business
- To outline employee benefits
Correct answer: To define the expected turnaround time and quality standards the shop commits to meeting
An SLA sets measurable service standards that both the shop and customer can reference for accountability.
Question 5: When sourcing replacement parts, which consideration is MOST important from an ethical standpoint?
- Using quality parts that are appropriate for the device and disclosing part type (OEM vs. third-party) to the customer (Correct answer)
- Using the cheapest parts available to maximize profit
- Only using parts from one supplier regardless of quality
- Using counterfeit OEM-branded parts to save money
Correct answer: Using quality parts that are appropriate for the device and disclosing part type (OEM vs. third-party) to the customer
Disclosing part origin respects customer autonomy and is a fundamental ethical obligation.
Question 6: What is a bench fee in mobile device repair?
- A diagnostic charge applied when a device is evaluated but the customer declines the repair (Correct answer)
- A fee charged per repair bench used per day
- A monthly subscription fee for parts suppliers
- The cost of a technician's workbench
Correct answer: A diagnostic charge applied when a device is evaluated but the customer declines the repair
Bench fees compensate the shop for diagnostic labor when the customer does not proceed with a paid repair.
CMT CMT Business Operations & Ethics 2
Why should a mobile repair business maintain a written inventory management system?