CPC CPC Life Coaching Business & Practice Management 1 — Questions and Answers
Question 1: What is the primary purpose of a coaching agreement or contract with a new client?
- To establish legal liability protections for the coach only
- To outline roles, responsibilities, expectations, and boundaries for both parties (Correct answer)
- To guarantee specific outcomes for the client
- To replace the need for a discovery session
Correct answer: To outline roles, responsibilities, expectations, and boundaries for both parties
A coaching agreement defines mutual expectations, confidentiality terms, session logistics, and the scope of the coaching relationship.
Question 2: Which business structure is most commonly chosen by solo life coaches starting their practice in the US?
- C-Corporation
- S-Corporation
- Sole Proprietorship or Single-Member LLC (Correct answer)
- Non-profit Organization
Correct answer: Sole Proprietorship or Single-Member LLC
Sole proprietorships and single-member LLCs offer simplicity and liability protection, making them popular choices for solo coaching practices.
Question 3: What does a 'discovery session' typically serve in a life coaching practice?
- A paid deep-dive session to resolve a client's core issue
- A free or low-cost introductory session to assess fit between coach and client (Correct answer)
- A session exclusively for intake paperwork
- A mandatory ICF-required session before certification
Correct answer: A free or low-cost introductory session to assess fit between coach and client
A discovery session helps both the coach and prospective client determine whether there is a good fit before committing to a coaching package.
Question 4: Which of the following is the best description of a coaching 'niche'?
- The geographic area where a coach is licensed to practice
- A specialized focus area or target client population a coach serves (Correct answer)
- The price range a coach charges for sessions
- The number of sessions included in a coaching package
Correct answer: A specialized focus area or target client population a coach serves
A niche defines the specific type of client or life challenge a coach specializes in, such as career transitions, executive leadership, or health and wellness.
Question 5: What is the recommended practice regarding session notes in a life coaching business?
- Session notes are never necessary since coaching is not therapy
- Coaches should keep brief notes to track client progress, agreements, and action items (Correct answer)
- Notes must be submitted to an accrediting body after each session
- Detailed clinical notes identical to therapy records are required
Correct answer: Coaches should keep brief notes to track client progress, agreements, and action items
Maintaining concise session notes helps coaches track progress, remember commitments, and prepare for future sessions without over-pathologizing the client.
Question 6: When setting coaching fees, which factor is LEAST relevant?
- Your target client's ability and willingness to pay
- Your experience level and credentials
- The going market rate for coaches in your niche
- The color scheme of your coaching website (Correct answer)
Correct answer: The color scheme of your coaching website
Fee-setting should be informed by market rates, your credentials, and client demographics—not by superficial branding elements like website colors.
CPC CPC Life Coaching Business & Practice Management 1
What is the primary purpose of a coaching agreement or contract with a new client?