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
Which pricing strategy involves offering a service at a lower introductory price to attract new clients, then gradually raising prices?
Answer: Penetration pricing
Penetration pricing uses low initial prices to quickly build a client base before moving to standard or higher price points.
What does OSHA require salon owners to maintain regarding chemical products used in services?
Answer: Safety Data Sheets (SDS) accessible to all employees for every chemical product
OSHA's Hazard Communication Standard requires employers to have Safety Data Sheets on file and accessible for every hazardous chemical used in the workplace.
A salon wants to increase retail sales. Which approach is most effective for stylists?
Answer: Recommending specific products during the service and explaining the personal benefit to that client
Personalized product recommendations made during the service—when clients see results firsthand—are far more effective than passive display or blanket discounts.
What is the purpose of a non-compete clause in a salon employment contract?
Answer: To restrict a departing employee from working for competing salons or soliciting clients within a defined area and time frame
A non-compete clause protects the salon's business interests by limiting where and how a former employee can work or solicit clients after leaving.
What does 'break-even analysis' help a salon owner determine?
Answer: The exact point at which total revenue equals total costs, with no profit or loss
Break-even analysis identifies the minimum revenue or number of services needed to cover all costs before the salon starts generating profit.
Which action is considered an unfair business practice under US consumer protection laws?
Answer: Advertising a service at one price and then charging a higher price at the point of sale without disclosure
Bait-and-switch pricing—advertising one price and charging another without prior disclosure—violates FTC consumer protection regulations.
A salon owner wants to expand by opening a second location. Which financial consideration is most critical before proceeding?
Answer: Whether the existing salon generates consistent enough profit to fund or support the new location
Expansion should only be pursued when the primary location demonstrates stable profitability, ensuring the business can absorb startup costs and operational risks of a second site.