Foundations Test Bank Ch 10

Which of the following will be LEAST important in becoming a successful entrepreneur?

If you are an owner of a salon, spa, or barbershop, which of the following is TRUE?

Which part of your business plan should include a description of how the business will run administratively?

Which part of your business plan should outline all of the research obtained regarding the clients your
business will target?

Which of the following is the MOST important question to ask yourself when creating your brand identity?

Which of the following is an essential set of benchmarks that, once achieved, helps you to realize your
mission and your vision?

How long is it MOST likely to take to determine and complete all of the aspects of starting your business?

You will want to base your business location on ______.

Why will you need to purchase insurance when you open your own business?

Which of the following types of business ownership is MOST likely to raise capital by offering shares of
stock to stockholders?

A realistic benchmark for the net profit of a salon, spa, or barbershop is ______.

If you are interested in booth rental, which of the following states should you NOT move to?

Which of the following is built into most booth rental agreements?

The only way to guarantee that you will stay in business is to ______.

What should be your primary concern when planning and constructing the best physical layout for the type of
business you envision?

Your personnel is your ______.

Which of the following is the MOST important reason to create incentives in the form of money or prizes for
your employees?

The key duty of receptionists is ______.

What should be done if a client calls to book an appointment with a particular professional on a particular
day and time, but that professional is off that day?

Marketing is the means for ______.

Which of the following is NOT one of the top three ways that clients find a service provider, according to the
Professional Beauty Association (PBA)?

The modern version of word of mouth is ______.

Which of the following is the BEST vehicle for others to promote you and your business via viral marketing?

Which of the following BEST encapsulates promotional efforts that are paid for and that are directly
intended to increase business?

What does adding services and retail sales to your service tickets mean for your business?

Xavier’s instructor has told him repeatedly that in addition to the artistic aspects of the beauty industry, he
should also have a keen business knowledge of it. Why did Xavier’s instructor give him this advice?

Ursula is working on a description of the key strategic influences of her business, including the varied
services she will offer and the high quality she expects those services to provide. What, exactly, is Ursula
working on?

Because there has been much confusion at Henry’s establishment in the past few months over who should be
doing what and why, he has asked his assistant to prepare an outline of employee and management levels and
responsibilities and a thorough description of how the business should run when all of the individuals
perform according to the outline. What will Henry’s assistant be creating?

Orlando has been working day and night to open his own business. Two nights ago, he completed his
executive summary. Last night, he worked on his financial documents. And today and this evening, he’s been
working on his supporting documents. Over the past several days, which of the following has Orlando been
preparing?

Jamal is the proud owner of a newly opened establishment in the downtown area of his community. He has
been hard at work these past few weeks in an effort to create his business’s brand identity. Which of the
following will Jamal want to focus on the MOST in those efforts?

Maura, a beauty professional at a very popular and trendy downtown establishment, has been considering
taking the leap and opening her own business. If she does everything in the right order, which of the
following will be her first objective toward achieving her goal of becoming a business owner?

Kendra is considering opening her own full-service establishment. She has just begun taking preliminary
steps in that direction. What she knows for certain at this early stage is that she wants to be in charge of
making her own rules and is more than responsible enough to meet all of the duties and obligations of
running a business. Which of the following business models would MOST likely be best for Kendra?

Javier owns and runs one of the hottest beauty businesses in Manhattan. His clientele includes lots of actors,
actresses, and leading, high-power businesspeople. Javier’s establishment services hundreds of clients every
week. Which of the following is MOST likely Javier’s biggest expense every month?

Pedro’s friend Juanita has just asked him about the booth rental business he has operated for more than three
years. Specifically, Juanita has asked him what advantages there are with booth rental. Which of the
following is Pedro MOST likely to tell Juanita?

Since Samantha started her business three years ago, there have been constant, nagging issues with her
personnel. She is almost to the point where she is considering getting out of the beauty and wellness business
altogether. Which of the following is Samantha having problems with?

Samuel takes pride in running his business efficiently, effectively, and with the best interests of not only his
clientele but also his employees in mind. Because of this, his business has been very successful for him. And,
with this success, he always tries to share the profits and wealth with those who work so hard for him. With
this in mind, which of the following is Samuel LEAST likely to do?

Gwen’s business growth has been at a standstill for months. Her establishment does see its fair share of
regular clients, so she has been able to pay the bills, but little new business has come in, and she is worried
about the future. Her assistant manager, Darlene, has been trying to convince Gwen to engage in more viral
marketing. If she is to do so, what will this MOST likely mean?

Laura is the proud owner and operator of a new beauty business. Because she has just opened her doors, she
has a very small budget for getting the word out about her new establishment. Given her financial constraints,
which of the following is likely to be Laura’s BEST way to market her new business?

David needs advice from his friend and mentor, Raul. They went to beauty school together and worked at the
same location as beauty pros for five years. Each has always wanted to open his own professional,
full-service establishment. However, while David’s business is still a mere idea and dream, with any concrete
plans at a standstill, Raul’s has been open and flourishing for more than two years. So, when David finally
calls Raul to ask his advice, why does Raul tell David that he must come up with a thorough vision
statement?

Wilson is in disbelief. He cannot believe that his longtime friend Umberto has opened up his own business
after all these years servicing clients. “Maybe you’ve arranged some other business structure to make it
work? Because I cannot believe you are a sole proprietor,” says Wilson to Umberto. How can Umberto
demonstrate to Wilson that he is, in fact, the sole proprietor of his establishment?

Yvonne has just spent the better part of her week interviewing beauty professionals to fill the position
vacated when Stacey left to start her own business. Yvonne knows it will be very difficult to replace Stacey
because she was one of the most accomplished beauty pros. However, she is determined to do so. One
candidate among all others, Tara, did stand out over the course of the week, so Yvonne is probably going to
choose to hire her. If Yvonne adheres to the recommendation within the text, why is she likely going to hire
Tara over all of the other candidates?

Franco is trying to convince his business partner, Vicky, that they should be using viral marketing at their
business to get the word out more effectively and increase clientele. Vicky is not so sure; she prefers the
old-fashioned methods of mail advertisements, occasional radio spots, and word of mouth. “Exactly!”
exclaimed Franco when Vicky told him about her feelings. “We need to use good old word of mouth, just in
a less old-fashioned way!” Which of the following could be effectively added to the old-fashioned word of
mouth that would MOST likely make it viral marketing in Franco’s eyes?