Beauty Business Financial Management and Pricing 5

Question 1

What is the purpose of a salon budget?

Accepted Answer

To plan and control income and spending

Answer

A budget plans expected income and controls spending to reach financial goals.

Question 2

A stylist processes a $75 service with a credit card that charges a 3% fee. How much is the processing fee?

Accepted Answer

$2.25

Answer

3% of $75 is $2.25.

Question 3

Which metric measures how quickly a salon sells and replaces its retail stock?

Accepted Answer

Inventory turnover

Answer

Inventory turnover shows how often stock is sold and restocked over a period.

Question 4

Raising service prices too aggressively without added value most likely risks:

Accepted Answer

Losing price-sensitive clients

Answer

Sharp price hikes without perceived value can drive away price-sensitive clients.

Question 5

A key benefit of accepting online booking with deposits is that it:

Accepted Answer

Reduces lost revenue from missed appointments

Answer

Requiring deposits reduces revenue lost to no-shows and last-minute cancellations.

Beauty Business Practice Test