Business Ownership
If you reach a point in your life when you are ready to become your own boss, you have two options for going into business for yourself: ________ or renting a booth in an existing shop or salon.
a. working part-time
b. owning your own barbershop
c. being an apprentice
d. becoming a salaried employee
b. owning your own barbershop
The owner receives all profits in a ________.
a. publicly held company
b. limited liability company
c. partnership
d. sole proprietorship
d. sole proprietorship
In which section of a business plan do you include the policies that will be followed to ensure that all clients and employees are treated fairly and consistently?
a. organizational plan
b. financial document
c. supporting documents
d. barbershop policies
d. barbershop policies
Renting a booth offers many advantages to a barber, but one thins you will not have that an employee of a barbershop would is ________.
a. paid time off or vacation time
b. a team environment
c. a requirement to comply with IRS obligations
d. the need to have health insurance
a. paid time off or vacation time
When handling a client complaint over the telephone, ________.
a. connect the client directly to the barber who made the mistake
b. respond with self-control, tact, and courtesy
c. do not apologize, as you probably did nothing wrong
d. none of the answers are correct
b. respond with self-control, tact, and courtesy
A ________ is a sweeping picture of the long-term goals for the business, what it is to become, and what it will look like when it gets there.
a. vision statement
b. mission statement
c. business timeline
d. brand identity
a. vision statement
A partnership is when two or more people share ownership, ________.
a. but one person is solely responsible for any losses
b. although not necessarily equally
c. and can raise capital by issuing stock certificates or shares
d. and stockholders invest in the company
b. although not necessarily equally
Identify the insurance that is outside the scope for reducing risk and ensuring protection as business owner:
a. fire
b. theft
c. liability
d. home
d. home
A barbershop's layout should include all of the following except ________.
a. an attractive and comfortable waiting area
b. bright colors
c. sufficient electrical outlets
d. adequate storage areas
b. bright colors
One suggestion to follow when using social media is to ________.
a. use stock images in your postings
b. post once a week so as to not bombard your followers
c. respond to questions or comments
d. use the same password for all social media accounts so you do not forget it
c. respond to questions or comments
When creating a business timeline, what is the time period where additional locations are added or the scope of a successful business is expanded?
a. year 1
b. years 2 to 5
c. years 5 to 10
d. years 11 to 20
In a corporation, stockholders ________.
a. are legally responsible for all business losses
b. participate in day-to-day decision making
c. have an ownership interest in the company
d. none of the answers are correct
c. have an ownership interest in the company
Income is usually classified as receipts from ________.
a. services
b. retail sales
c. services and retail sales
d. advertising
c. services and retail sales
Which interview question will help you determine a potential employee's level of skill?
a. does their image reflect the image of your business?
b. are they able to understand your questions?
c. what can they bring to the organization beyond barbering?
d. do they hop form shop to shop?
c. what can they bring to the organization beyond barbering?
What is the best form of advertising?
a. radio spots
b. social media pages
c. a website
d. satisfied clients
d. satisfied clients
When creating a business timeline, what is the time period where you are tending to the business, its clientele, and its employees?
a. year 1
b. years 2 to 5
c. years 5 to 10
d. years 11 to 20
b. years 2 to 5
A ________ is a form of business organization where an already successful firm enters into a continuing contractual relationship with other businesses operating under the original firm's trade name in exchange for a fee.
a. S corporation
b. franchise
c. LLC
d. non-profit
b. franchise
All of the following are considered expenses except for ________.
a. rent
b. utilities
c. advertising
d. retail sales
d. retail sales
Which civil rights law must an employer be aware of?
a. EEOC
b. ABA
c. HEOP
d. IRS
Your primary goal for your clientele is:
a. attracting new clients
b. stealing from competition
c. selling products to every client
d. maintaining current clients
d. maintaining current clients
Generally speaking, a business plan is more of an agreement with ________.
a. your stakeholders
b. your investors
c. the bank if you take out a loan
d. yourself
d. yourself
In which section of a business plan are the employees and management levels outlined?
a. organizational plan
b. financial document
c. supporting documents
d. barbershop policies
a. organizational plan
Keep a running inventory of all supplies, and classify them according to their ________.
a. use and retail value
b. cost
c. frequency of use
d. brand names
a. use and retail value
The reception area is the site for ________.
a. client consultations
b. financial transactions
c. hair analysis
d. scalp analysis
b. financial transactions
The features associated with a good location include ________.
a. good visibility
b. direct competition nearby
c. scenery
d. proximity to residential neighborhoods
a. good visibility
In which section of a business plan do you include the owner's resume, personal financial information, and legal contracts?
a. organizational plan
b. financial document
c. supporting documents
d. barbershop policies
c. supporting documents
On average, you need to be booked at least ________ percent of the time in order for it to be advantageous to rent a booth.
a. 30
b. 50
c. 70
d. 90
c. 70
When booking appointments over the phone, ________.
a. be fair when making assignments between barbers
b. do not disclose service costs
c. suggest another barber if all of your professionals are booked
d. refer the client to a more experienced barber for all details
a. be fair when making assignments between barbers