Beauty Business Basic Beauty Business 2

Question 1

What is the primary purpose of a business plan for a new beauty salon?

Accepted Answer

To secure financing and guide operations

Answer

A business plan outlines financial projections, target market, and operational strategy, which is essential for securing loans and guiding day-to-day decisions.

Question 2

Which federal agency requires beauty businesses to follow workplace safety regulations?

Accepted Answer

OSHA

Answer

The Occupational Safety and Health Administration (OSHA) sets and enforces standards for safe working conditions in beauty establishments.

Question 3

What does the term 'retail backbar' refer to in a salon business context?

Accepted Answer

Professional products used during services

Answer

Backbar products are professional-grade items used by stylists during services and are not typically sold to walk-in customers.

Question 4

Which pricing strategy involves setting service prices just below a round number, such as $49 instead of $50?

Accepted Answer

Charm pricing

Answer

Charm pricing uses prices ending in 9 or 99 to create a perception of better value in the customer's mind.

Question 5

What is the most common legal structure chosen by independent beauty professionals starting out?

Accepted Answer

Sole proprietorship

Answer

Most independent beauty professionals begin as sole proprietors because it is the simplest and least expensive business structure to establish.

Beauty Business Practice Test

Beauty Business Practice Test

Beauty Business Basic Beauty Business 2