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

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

Question 2

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

Accepted Answer

To hold consumer funds for future funeral services

Answer

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

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

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.

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

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

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

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

BMS - Bachelor of Mortuary Science Practice Test

BMS - Bachelor of Mortuary Science Practice Test

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