BMS BMS Bachelor of Mortuary Science Funeral Home Business Management Questions and Answers 2

Question 1

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

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Statement of retained earnings

Question 2

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

Accepted Answer

To hold consumer funds for future funeral services

Answer

To pay employee salaries in advance

Answer

To cover the funeral home's insurance premiums

Answer

To finance facility renovations

Question 3

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

Accepted Answer

A General Price List

Answer

A certified copy of the business license

Answer

A list of all employees and their qualifications

Answer

An itemized receipt from the last service performed

Question 4

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

Accepted Answer

Community-based relationship marketing

Answer

Direct mail advertising

Answer

Television media buying

Answer

Cold-call telemarketing

Question 5

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

Accepted Answer

Planning funeral services at the time of death

Answer

A preneed contract signed five years in advance

Answer

An annual maintenance agreement for the facility

Answer

A bulk purchasing contract with casket suppliers

Question 6

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

Accepted Answer

Professional liability (errors and omissions) insurance

Answer

General liability insurance

Answer

Workers' compensation insurance

Answer

Property insurance