Chapter 32 Theory Review

Name:

Instructions: Answer each question using information from your readings and lessons as a guide.

1. You have no future plans to own your own business. Why is it still important for you to understand the rules of business that affect salons?

______

2. In a booth rental arrangement, a practitioner generally does what?

a) ______

b) ______

c) ______

d) ______

3. What are the obligations of renting a booth?

a) ______

b) ______

c) ______

d) ______

e) ______

f) ______

g) ______

h) ______

i) ______

j) ______

k) ______

l) ______

m) ______

4. How is a mission statement different from a vision statement? ______

5. Why is the name you choose for your salon important?

1) ______

2) ______

3) ______

6. List the basic factors to carefully consider when opening a salon.

a) ______

b) ______

c) ______

d) ______

e) ______

f) ______

g) ______

h) ______

7. What should be included in your business plan?

a) ______

b) ______

c) ______

d) ______

e) ______

8. Describe a business that is owned by a sole proprietor. ______

______

9. Describe a partnership. ______

______

10. Describe a business owned by a corporation. ______

______

11. What is a franchise? ______

12. List the eight parts of a business plan.

a) ______

b) ______

c) ______

d) ______

e) ______

f) ______

g) ______

h) ______

13. If you choose to purchase an existing salon, what should your agreement to purchase include?

a) ______

b) ______

c) ______

d) ______

e) ______

f) ______

g) ______

h) ______

i) ______

14. A lease should specify the following:

a) ______

b) ______

c) ______

15. What can you do to protect your salon against fire, theft, and lawsuits?

a) ______

b) ______

c) ______

d) ______

e) ______

16. Smooth business management depends on the following factors:

a) ______

b) ______

c) ______

d) ______

e) ______

f) ______

g) ______

h) ______

17. When interviewing potential employees, consider the following:

a) ______

b) ______

c) ______

d) ______

e) ______

18. What are some ways you can share your success with your staff?

a) ______

b) ______

c) ______

d) ______

e) ______

f) ______

g) ______

19. A receptionist must have the following qualities:

a) ______

b) ______

c) ______

20. When using the telephone you should:

a) ______

b) ______

c) ______

d) ______

21. A practitioner is not available at the time a client requests. How can you handle this situation?

a) ______

b) ______

c) ______

22. What kind of advertising venues are available to salons?

a) ______

b) ______

c) ______

d) ______

e) ______

f) ______

g) ______

h) ______

i) ______

j) ______

k) ______

l) ______

m) ______