NCBTMB Business and Practice Management 3 — Questions and Answers
Question 1: A massage therapist operating as a sole proprietor must report business income on which IRS form?
- Form W-2
- Schedule C (Form 1040) (Correct answer)
- Form 1099-NEC
- Form 941
Correct answer: Schedule C (Form 1040)
Sole proprietors report business profit and loss on Schedule C, which is filed with their personal Form 1040.
Question 2: Which element is MOST critical when writing a professional bio for a massage therapy website?
- Listing every continuing education course taken
- Highlighting credentials, specialties, and the therapist's approach to care (Correct answer)
- Including personal hobbies to build relatability
- Describing the history of massage therapy in detail
Correct answer: Highlighting credentials, specialties, and the therapist's approach to care
A professional bio should clearly communicate credentials, areas of specialty, and the therapist's treatment philosophy to attract ideal clients.
Question 3: What is the primary purpose of malpractice (professional liability) insurance for a massage therapist?
- To cover the cost of equipment repair
- To protect against claims of negligence or harm arising from professional services (Correct answer)
- To reimburse clients for missed appointments
- To satisfy local business license requirements
Correct answer: To protect against claims of negligence or harm arising from professional services
Malpractice insurance protects the therapist financially if a client claims injury or negligence resulting from treatment.
Question 4: A therapist notices that a longtime client's health history form is several years old and contains no recent updates. The BEST course of action is to:
- Continue treatment since the client knows to mention changes
- Have the client complete a new or updated intake form before the next session (Correct answer)
- Add a note to the SOAP record and proceed
- Request the client's physician records instead
Correct answer: Have the client complete a new or updated intake form before the next session
Health histories should be reviewed and updated regularly to capture changes in medications, conditions, or contraindications.
Question 5: When setting service fees, a massage therapist should consider all of the following EXCEPT:
- Local market rates for comparable services
- Overhead costs such as rent, supplies, and insurance
- Personal financial goals and income needs
- The client's household income (Correct answer)
Correct answer: The client's household income
Fee setting should reflect market rates, overhead, and financial goals — a client's personal income is not an appropriate pricing factor.
Question 6: Which of the following is an example of an ethical marketing practice for a massage therapist?
- Claiming to diagnose or cure medical conditions in advertisements
- Using client testimonials without obtaining written permission
- Accurately describing services and credentials in all promotional materials (Correct answer)
- Offering guarantees of specific treatment outcomes
Correct answer: Accurately describing services and credentials in all promotional materials
Ethical marketing requires honest, accurate representation of services and credentials without making unsubstantiated medical claims.
Question 7: A massage therapist must file quarterly estimated taxes when:
- They earn any income from massage services
- They expect to owe at least $1,000 in federal taxes for the year (Correct answer)
- Their gross revenue exceeds $50,000 annually
- They operate in more than one state
Correct answer: They expect to owe at least $1,000 in federal taxes for the year
The IRS requires quarterly estimated tax payments when a self-employed person expects to owe $1,000 or more in taxes for the year.
NCBTMB Business and Practice Management 3
A massage therapist operating as a sole proprietor must report business income on which IRS form?