CME CME Business & Professional Practice 2 — Questions and Answers
Question 1: Continuing education (CE) requirements for electrology license renewal are determined by:
- The SCMHR nationally
- Each individual state's licensing board (Correct answer)
- The American Electrology Association only
- The US Department of Health and Human Services
Correct answer: Each individual state's licensing board
CE requirements vary by state and are set by each state's licensing board; electrologists must follow the specific rules of the state(s) where they hold a license.
Question 2: Which business metric directly measures the average amount a client spends per visit?
- Client retention rate
- Average transaction value (ATV) (Correct answer)
- Gross profit margin
- Break-even point
Correct answer: Average transaction value (ATV)
Average transaction value (ATV) is calculated by dividing total revenue by the number of transactions, reflecting how much each client spends per visit.
Question 3: Under HIPAA, a client's treatment records kept by an electrology practice are considered:
- Public health data
- Protected Health Information (PHI) (Correct answer)
- Publicly accessible documents
- Business property with no privacy requirements
Correct answer: Protected Health Information (PHI)
Client treatment records containing identifiable health information are Protected Health Information (PHI) under HIPAA and must be stored and shared with strict privacy safeguards.
Question 4: When setting service prices, an electrologist should consider all of the following EXCEPT:
- Overhead costs (rent, utilities, supplies)
- Local market rates and competition
- Client's household income level (Correct answer)
- Desired profit margin
Correct answer: Client's household income level
Pricing should be based on costs, market rates, and profit goals — not individual clients' income, which would constitute discriminatory pricing.
Question 5: A no-show or last-minute cancellation policy is primarily implemented to:
- Punish clients who are disorganized
- Protect the practice's revenue for reserved appointment time (Correct answer)
- Comply with state licensing requirements
- Meet OSHA scheduling standards
Correct answer: Protect the practice's revenue for reserved appointment time
Cancellation policies compensate the practice for time that cannot be resold when a client fails to appear or cancels without adequate notice.
Question 6: Which form of digital marketing is most effective for showcasing before-and-after results for an electrology practice?
- Pay-per-click text ads
- Email newsletters with text only
- Social media photo and video content (Correct answer)
- Podcast sponsorships
Correct answer: Social media photo and video content
Visual platforms like Instagram and TikTok allow electrologists to display before-and-after photos and treatment videos, which are highly persuasive for prospective clients.
CME CME Business & Professional Practice 2
Continuing education (CE) requirements for electrology license renewal are determined by: