Beauty Business Basic Beauty Business 2

Question 1

What is the primary purpose of a business plan for a new beauty salon?

Accepted Answer

To secure financing and guide operations

Answer

To set employee dress codes

Answer

To design the salon logo

Answer

To choose paint colors for the interior

Question 2

Which federal agency requires beauty businesses to follow workplace safety regulations?

Accepted Answer

OSHA

Answer

FDA

Answer

FTC

Answer

EPA

Question 3

What does the term 'retail backbar' refer to in a salon business context?

Accepted Answer

Professional products used during services

Answer

Products sold directly to clients

Answer

The reception desk area

Answer

Storage for cleaning supplies

Question 4

Which pricing strategy involves setting service prices just below a round number, such as $49 instead of $50?

Accepted Answer

Charm pricing

Answer

Premium pricing

Answer

Bundle pricing

Answer

Cost-plus pricing

Question 5

What is the most common legal structure chosen by independent beauty professionals starting out?

Accepted Answer

Sole proprietorship

Answer

C corporation

Answer

Limited partnership

Answer

Nonprofit organization

Question 6

In a beauty business, what does 'client retention rate' measure?

Accepted Answer

The percentage of clients who return for repeat services

Answer

The number of new clients gained per month

Answer

The average tip amount per service

Answer

The number of services performed daily