Multiple Choice Identify the
choice that best completes the statement or answers the question.
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1.
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Which of the following will be LEAST important in becoming a successful
entrepreneur?
a. | attracting employees to your business | b. | attracting clients to your
business | c. | maintaining loyalty of clients over a long period of time | d. | paying employees a
salary instead of a commission |
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2.
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If you are an owner of a salon, spa, or barbershop, which of the following is
TRUE?
a. | You are guaranteed to have large profits. | b. | You are guaranteed
to have small profits. | c. | There is no guarantee of any
profits. | d. | You are guaranteed to have losses. |
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3.
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Which part of your business plan should include a description of how the
business will run administratively?
a. | vision statement | b. | mission statement | c. | organizational
plan | d. | marketing plan |
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4.
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Which part of your business plan should outline all of the research obtained
regarding the clients your business will target?
a. | vision statement | b. | mission statement | c. | organizational
plan | d. | marketing plan |
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5.
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Which of the following is the MOST important question to ask yourself when
creating your brand identity?
a. | What is my business’s point of difference? | b. | Which employees
should I hire? | c. | Who are my potential customers? | d. | What will my profits be in year
one? |
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6.
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Which of the following is an essential set of benchmarks that, once achieved,
helps you to realize your mission and your vision?
a. | goals | b. | statements | c. | objectives | d. | policies |
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7.
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How long is it MOST likely to take to determine and complete all of the aspects
of starting your business?
a. | 10 years | b. | 1 year | c. | 6
months | d. | 1 month |
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8.
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You will want to base your business location on ______.
a. | proximity to your home | b. | how many cars drive by per hour on
average | c. | your primary clientele and their needs | d. | costs of rent, lease, and
utilities |
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9.
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Why will you need to purchase insurance when you open your own business?
a. | It protects you against malpractice suits. | b. | It protects your
clientele against falls and accidents. | c. | It protects your staff against compensation
loss for sick days. | d. | It protects the general public against auto
mishaps in front of your store. |
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10.
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Which of the following types of business ownership is MOST likely to raise
capital by offering shares of stock to stockholders?
a. | a corporation | b. | a sole proprietorship | c. | a
partnership | d. | a single franchise |
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11.
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A realistic benchmark for the net profit of a salon, spa, or barbershop is
______.
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12.
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If you are interested in booth rental, which of the following states should you
NOT move to?
a. | New York | b. | Pennsylvania | c. | California | d. | Florida |
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13.
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Which of the following is built into most booth rental agreements?
a. | paid vacation | b. | healthcare benefits | c. | free
advertising | d. | self-sufficiency |
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14.
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The only way to guarantee that you will stay in business is to ______.
a. | advertise | b. | take care of your clients | c. | pay yourself
well | d. | research emerging trends |
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15.
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What should be your primary concern when planning and constructing the best
physical layout for the type of business you envision?
a. | your competitor’s layout | b. | stylistic aesthetics | c. | maximum
efficiency | d. | maximum profitability |
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16.
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Your personnel is your ______.
a. | clientele | b. | competition | c. | customer
base | d. | staff |
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17.
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Which of the following is the MOST important reason to create incentives in the
form of money or prizes for your employees?
a. | Incentives are a tax write-off. | b. | Incentives can be in lieu of regular
pay. | c. | Incentives can inspire employees to achieve more. | d. | Incentives are
appreciated by employees and clientele alike. |
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18.
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The key duty of receptionists is ______.
a. | answering the phone | b. | greeting clientele at the
door | c. | booking appointments | d. | assisting stylists with their
work |
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19.
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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?
a. | Politely apologize and tell the client you cannot accommodate
them. | b. | Call the professional and demand that they come in on their day
off. | c. | Suggest other times that the professional is available. | d. | Refer the client to
another business in the neighborhood. |
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20.
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Marketing is the means for ______.
a. | selling and promoting your business | b. | keeping your clientele
satisfied | c. | designing your salon, spa, or barbershop space | d. | recruiting and
hiring your staff |
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21.
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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)?
a. | recommendations or referrals | b. | a convenient location | c. | dissatisfaction with
another service provider | d. | advertisements |
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22.
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The modern version of word of mouth is ______.
a. | television advertising | b. | viral marketing | c. | radio
spots | d. | billboard marketing |
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23.
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Which of the following is the BEST vehicle for others to promote you and your
business via viral marketing?
a. | face-to-face word of mouth | b. | social media | c. | television | d. | email |
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24.
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Which of the following BEST encapsulates promotional efforts that are paid for
and that are directly intended to increase business?
a. | word-of-mouth | b. | social media usage | c. | advertising | d. | viral marketing |
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25.
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What does adding services and retail sales to your service tickets mean for your
business?
a. | additional revenue | b. | additional clientele | c. | additional
advertising | d. | additional risk |
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26.
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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?
a. | because eventually, like all beauty pros, he must become a business
owner | b. | because entrepreneurship is an essential part of his beauty and wellness
career | c. | because his renting a booth is the same as owning his own
business | d. | because it will serve him well in managing his professional finances and business
practices |
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27.
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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?
a. | her vision statement | b. | her mission statement | c. | her marketing
plan | d. | her financial documents |
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28.
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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?
a. | an executive summary | b. | a mission statement | c. | a marketing
plan | d. | an organizational plan |
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29.
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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?
a. | his mission statement | b. | his vision statement | c. | his business
plan | d. | his organizational plan |
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30.
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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?
a. | maintaining a regular and loyal clientele | b. | determining his
business's point of difference | c. | summarizing his projected financial statement
and analyses | d. | outlining his employee and management levels and
responsibilities |
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31.
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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?
a. | choosing a business name | b. | choosing a business
location | c. | determining the feasibility of the business | d. | determining the
long-range goals of the business |
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32.
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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?
a. | sole proprietorship | b. | partnership | c. | franchise | d. | corporation |
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33.
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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?
a. | supplies | b. | salaries | c. | advertising | d. | insurance |
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34.
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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?
a. | “With booth rental, you needn’t worry about keeping records for tax
purposes.” | b. | “With booth rental, you needn’t worry about creating any professional
marketing materials.” | c. | “With booth rental, you needn’t
adhere to state laws or regulations.” | d. | “With booth rental, you needn’t
establish an entire business.” |
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35.
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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?
a. | her landlord | b. | her clientele | c. | her
marketing | d. | her employees |
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36.
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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?
a. | make his payroll obligations a top priority | b. | offer his employees
as many benefits as he can | c. | continuously change and alter his tipping
policy | d. | create incentives for his staff to earn more money |
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37.
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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?
a. | engaging in more social media campaigns | b. | buying expensive
television advertising spots | c. | creating glitzy ad pieces and mailing them out
to the neighborhood | d. | renting more booths or stations to
up-and-coming beauty pros |
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38.
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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?
a. | television spots | b. | direct mail | c. | viral
marketing | d. | newspaper ads |
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39.
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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?
a. | Because a vision statement would give a long-term picture of what the business is to
become. | b. | Because a vision statement would provide an outline of employee and management
levels. | c. | Because a vision statement would outline all of the research obtained regarding
client needs. | d. | Because a vision statement would project financial statements and provide financial
analysis. |
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40.
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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?
a. | Explain that he and his business partner each invested half of the capital to open
the business. | b. | Explain that he alone manages and assumes all of the expenses as well as receiving
all profits. | c. | Explain that he specifically set up his business to be controlled by only a small
number of stockholders. | d. | Explain that he is in charge of his own booth
and only pays the business owner a monthly rental fee. |
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41.
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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?
a. | Tara’s background is more focused on technical skills than education or
training. | b. | Tara has been in the industry for much less time than most of the other candidates,
so is probably more trainable. | c. | Tara responded to most of Yvonne’s
questions in a negative fashion, showing she is not afraid to disagree. | d. | Tara’s image
matches the image of Yvonne’s establishment, not too trendy but just trendy
enough. |
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42.
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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?
a. | loyal clientele | b. | a smart device or computer | c. | a
television | d. | billboards |
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