Basic Beauty Business Flashcards
6 cards from real Beauty Business practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Basic Beauty Business flashcards as text
What type of insurance protects a beauty business if a client has an allergic reaction to a product used during a service?
Answer: Professional liability insurance
Professional liability (malpractice) insurance covers claims arising from services rendered, including adverse reactions to products.
Which marketing metric tracks how much a beauty business spends to acquire each new client?
Answer: Customer acquisition cost
Customer acquisition cost (CAC) divides total marketing spend by the number of new clients gained in that period.
What is booth rental in the context of a beauty salon?
Answer: A stylist rents a station and operates as an independent contractor
Booth rental is an arrangement where a licensed professional rents a workstation in an established salon and runs their own independent business.
Which document outlines the terms of service, cancellation policies, and payment expectations between a beauty business and its clients?
Answer: Service agreement or client contract
A service agreement or client contract formalizes policies such as cancellations, refunds, and payment terms to protect both the business and the client.
What does 'inventory turnover' indicate for a beauty supply retail section?
Answer: How quickly products sell and are replaced
Inventory turnover measures how many times stock is sold and replenished over a period, indicating sales efficiency.
Under IRS guidelines, which expense is typically tax-deductible for a self-employed beauty professional?
Answer: Continuing education courses related to the profession
The IRS allows self-employed professionals to deduct education expenses that maintain or improve skills required in their current trade.