Business and Practice Management Flashcards

A client signs a release of liability waiver before receiving a deep tissue massage. This waiver primarily:

Answer: May reduce but does not eliminate the therapist's legal liability

Waivers can reduce liability exposure but do not protect a therapist from claims of gross negligence or failure to meet the standard of care.

Which of the following describes a key difference between a mission statement and a business plan?

Answer: A mission statement articulates core purpose and values; a business plan outlines goals, strategies, and finances

A mission statement defines why a business exists and its values, while a business plan details operational strategies, goals, and financial projections.

What is the primary reason a massage therapist should keep client records confidential?

Answer: To honor ethical and legal obligations protecting client privacy

Client confidentiality is both an ethical duty and, where HIPAA applies, a legal requirement protecting sensitive personal health information.

A therapist who performs massage in a state other than where she is primarily licensed should FIRST:

Answer: Verify whether the other state requires a separate massage therapy license

Massage therapy licensure is state-specific, so practicing in another state typically requires obtaining that state's license.

Which type of expense is generally considered a deductible business expense for a self-employed massage therapist?

Answer: Continuing education courses directly related to massage therapy practice

Continuing education directly related to maintaining or improving professional skills is a legitimate, deductible business expense.

A new client is unhappy with their massage and demands a refund. The therapist has a posted no-refund policy. The MOST professional response is to:

Answer: Listen to the client's concerns and offer a resolution such as a complimentary session

Listening to the concern and offering a reasonable resolution, such as a complimentary session, balances client satisfaction with business policy.

Why is it important for a massage therapist to track business expenses throughout the year rather than reconstructing them at tax time?

Answer: Accurate ongoing records prevent missed deductions and support audit defense

Year-round tracking ensures no deductions are missed and provides documentation if the IRS audits the return.