BMS Bachelor of Mortuary Science Funeral Home Business Management Questions and Answers Flashcards

Which financial statement provides a snapshot of a funeral home's assets, liabilities, and owner's equity at a specific point in time?

Answer: Balance sheet

A balance sheet reports a business's financial position at a specific date, listing assets, liabilities, and owner's equity.

What is the primary purpose of a preneed funeral trust account?

Answer: To hold consumer funds for future funeral services

Preneed trust accounts hold funds paid by consumers in advance for funeral services to be provided at a future date.

Under FTC regulations, what must a funeral home provide to any person who inquires in person about funeral arrangements?

Answer: A General Price List

The FTC Funeral Rule requires funeral homes to provide a written General Price List to anyone who inquires in person about funeral goods or services.

Which marketing strategy involves a funeral home partnering with hospice organizations, churches, and community groups to generate referrals?

Answer: Community-based relationship marketing

Community-based relationship marketing builds referral networks through partnerships with hospice programs, religious organizations, and civic groups.

What does the term 'at-need arrangement' refer to in funeral home operations?

Answer: Planning funeral services at the time of death

An at-need arrangement is made at or near the time of death, as opposed to preneed planning done in advance.

Which type of business insurance protects a funeral home against claims of professional negligence or errors in embalming and preparation?

Answer: Professional liability (errors and omissions) insurance

Professional liability insurance, also called errors and omissions insurance, covers claims arising from professional negligence in services such as embalming.