Business Management Flashcards
7 cards from real CPS 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 does 'accounts receivable' represent in a grooming salon's financial records?
Answer: Money clients still owe the salon for completed services
Accounts receivable refers to money owed to the business by clients who have received services but have not yet paid.
Which business structure offers the owner personal liability protection while still being relatively simple to set up?
Answer: Limited liability company (LLC)
An LLC separates the owner's personal assets from business liabilities, providing legal protection while requiring less formality than a corporation.
A grooming salon charges $65 for a full groom and spends $20 in variable costs per appointment. What is the contribution margin per groom?
Answer: $45
Contribution margin equals revenue minus variable costs; $65 − $20 = $45, which goes toward covering fixed costs and profit.
What is a key benefit of building a loyalty rewards program for grooming clients?
Answer: It increases client retention and repeat booking frequency
Loyalty programs incentivize clients to return regularly and book more often, increasing customer lifetime value and reducing churn.
Which document should a grooming salon require before performing services on a new client's pet?
Answer: A signed service agreement or intake form with liability waiver
A signed intake form and liability waiver documents the owner's consent, pet's health history, and protects the business from certain legal claims.
How does a grooming salon benefit from maintaining a detailed client database?
Answer: It allows targeted marketing and personalized service reminders
A client database enables the salon to send appointment reminders, personalized promotions, and service history notes, improving retention and communication.
What is the purpose of a profit and loss (P&L) statement for a grooming business?
Answer: To summarize revenues, costs, and expenses over a period to show net profit or loss
A P&L statement provides a financial summary showing whether the business earned more than it spent over a given time period.