Cosmetology Test Business and Career Management

Question 1

What document outlines an employee's job duties, responsibilities, and performance expectations in a salon?

Accepted Answer

Job description

Answer

Employee handbook

Answer

W-2 form

Answer

Payroll register

Question 2

Which business ownership structure offers the most personal liability protection for a salon owner?

Accepted Answer

Limited Liability Company (LLC)

Answer

Sole proprietorship

Answer

General partnership

Answer

Independent contractor agreement

Question 3

What is the primary purpose of a Material Safety Data Sheet (SDS/MSDS) in a salon?

Accepted Answer

To provide hazard and safe-handling information for chemical products

Answer

To track client appointment history

Answer

To document employee payroll deductions

Answer

To record daily retail sales totals

Question 4

A cosmetologist who rents a booth in a salon and keeps all their own income is classified as a:

Accepted Answer

Independent contractor

Answer

Salaried employee

Answer

Commission-based employee

Answer

Apprentice

Question 5

Which of the following is the best way to retain existing salon clients?

Accepted Answer

Providing consistent quality service and personalized follow-up

Answer

Offering the lowest prices in the area

Answer

Advertising heavily on social media

Answer

Hiring the most staff possible

Question 6

What does the term 'net income' mean for a salon business?

Accepted Answer

Revenue remaining after all expenses are deducted

Answer

Total revenue before any expenses

Answer

The owner's personal draw from the business

Answer

Total payroll costs for all employees