CFP CFP Business & Financial Management

Question 1

A personal trainer setting up an independent fitness business should primarily use which business structure to limit personal liability?

Accepted Answer

Limited Liability Company (LLC)

Answer

Sole proprietorship

Answer

General partnership

Answer

Informal agreement

Question 2

Which financial document gives a certified fitness professional the best snapshot of monthly profitability?

Accepted Answer

Income statement (Profit & Loss)

Answer

Balance sheet

Answer

Cash flow statement

Answer

Accounts receivable report

Question 3

A CFP wants to price sessions to cover costs and achieve a 30% profit margin. If total monthly costs are $3,000 and they plan 100 sessions per month, what is the minimum price per session?

Accepted Answer

$43

Answer

$30

Answer

$39

Answer

$52

Question 4

Which type of insurance is MOST important for a self-employed certified fitness professional to carry?

Accepted Answer

Professional liability (E&O) insurance

Answer

Life insurance

Answer

Property insurance

Answer

Unemployment insurance

Question 5

A fitness professional tracks that 20% of clients leave within the first 3 months. Which metric best describes this problem?

Accepted Answer

Client retention rate / churn rate

Answer

Net Promoter Score

Answer

Client acquisition cost

Answer

Session utilization rate

Question 6

What is the primary purpose of a client service agreement (contract) in a personal training business?

Accepted Answer

To define the scope of services, payment terms, and liability waivers

Answer

To increase session prices automatically

Answer

To replace the need for professional liability insurance

Answer

To guarantee client weight loss results