Business Management Flashcards
7 cards from real CHS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business Management flashcards as text
What is the main advantage of using salon management software (e.g., Vagaro, Mindbody)?
Answer: It streamlines booking, client records, inventory, and financial reporting in one system
Salon management software integrates scheduling, client history, product inventory, and reporting to reduce administrative time and improve organization.
A salon wants to build a referral program. Which incentive structure is most effective?
Answer: Rewarding the referring client immediately when the new client books their first appointment
Immediate rewards for the referring client reinforce the behavior right away and motivate continued referrals.
What does 'shrinkage' refer to in salon inventory management?
Answer: Product loss due to theft, damage, or improper use that reduces sellable inventory
Shrinkage in retail and salon inventory refers to unplanned loss of products through theft, employee misuse, spillage, or expiration.
Which insurance type is most critical for a salon owner to protect against client injury claims on the premises?
Answer: General liability insurance
General liability insurance covers third-party bodily injury and property damage claims, such as a client slipping in the salon.
How does a salon's 'average ticket' metric help with business planning?
Answer: It measures the average amount spent per client visit, guiding upsell and pricing strategies
Average ticket (average transaction value) helps owners identify opportunities to increase revenue per visit through add-on services or retail sales.
A new salon owner is writing a business plan. What does the 'market analysis' section primarily address?
Answer: The target customer demographic, local competition, and demand for services in the area
Market analysis examines who your potential clients are, what competitors exist nearby, and whether sufficient demand supports your business concept.
Which practice helps ensure accurate financial records in a salon?
Answer: Keeping business and personal finances completely separate
Maintaining separate business and personal accounts makes bookkeeping accurate, simplifies tax preparation, and protects personal assets.