Salon Business Part 4

A type of business in which stockholders control the ownership is called a:

• corporation
• partnership
• sole proprietorship
• nonprofit organization

A type of ownership in which the owner enters a contract with an established parent company and shares a national name, image, and business formula is called a:

• franchise
• merger
• corporation
• partnership

Another name for an individual salon ownership is:

• independent contractor

• sole proprietorship

• salon partnership
• salon franchise

The type of ownership that assumes the least amount of personal liability for the owner is a:

• franchise

• Sole proprietorship
• Partnership
• Corporation

The advantage of this type of ownership is that you only need to worry about yourself and your area of the salon:

• franchise

• partnership

• booth rental

• sole proprietorship

One way to prevent a lawsuit in the salon would be to:

• Ignore sanitation and hygiene practices.
• never refuse to give a service

• not attempt to treat, diagnose, or cure a disease or illness

• Neglect employee training and development.

​ Supplies used in daily business operations are called (a)   , while supplies sold to clients are called ​ (b)   .

• retail supplies
• consumption supplies
• office supplies

Receipts from sales and services are called:

(a)   , while all money paid out in the salon is called ​ (b)  

• profit
• income
• expenses

• liabilities

• expenses

The largest expense in operating a salon is:

• Advertising
• Rent
• Utilities
• Salaries

No more than what percent of total gross income should be allocated to advertising?