CMT Business Operations & Ethics Flashcards

Why should a mobile repair business maintain a written inventory management system?

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.

What does a limited liability company (LLC) structure provide to a mobile repair shop owner?

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.

A technician notices a colleague billing customers for unnecessary screen protector installations. The correct response is to:

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.

What is the primary purpose of a repair shop's service Level Agreement (SLA)?

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.

When sourcing replacement parts, which consideration is MOST important from an ethical standpoint?

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.

What is a bench fee in mobile device repair?

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.