Milady The Beauty Business P2 Chapt 10

Jamal is the proud owner of a newly opened establishment in the downtown area of his community. He has been hard at work these past few weeks in an effort to create his business's brand identity. Which of the following will Jamal want to focus on the MOST in those efforts?

• determining his business's point of difference

• summarizing his projected financial statement and analyses

• maintaining a regular and loyal clientele

• outlining his employee and management levels and responsibilities

Laura is the proud owner and operator of a new beauty business. Because she has just opened her doors, she has a very small budget for getting the word out about her new establishment. Given her financial constraints, which of the following is likely to be Laura’s BEST way to market her new business?

• newspaper ads

• viral marketing

• direct mail

• television spots

Kendra is considering opening her own full-service establishment. She has just begun taking preliminary steps in that direction. What she knows for certain at this early stage is that she wants to be in charge of making her own rules and is more than responsible enough to meet all of the duties and obligations of running a business. Which of the following business models would MOST likely be best for Kendra?

• sole proprietorship

• partnership

• corporation

• franchise

David needs advice from Heidi and Patrick, trusted friends. They want to help David get together and advertised at the same location as David's new shop. Each has always wanted to go down professionally, full-time, but each is working alone. Heidi and David's business is two miles west of each other, and only one operates as a restaurant. Patrick has been on and found funding for more than ten years. When David finally calls for his two extra advisors, who should David trust the most to come up with a thorough vision statement?

• Because a vision statement would outline all of the research obtained regarding client needs.

• Because a vision statement would give a long-term picture of what the business is to become.

• Because a vision statement would project financial statements and provide financial analysis.

• Because a vision statement would provide an outline of employee and management levels.

The only way to guarantee that you will stay in business is to ______.

• take care of your clients

• pay yourself well

• research emerging trends

• Read about it in books

Maura, a beauty professional at a very popular and trendy downtown establishment, has been considering taking the leap and opening her own business. If she does everything in the right order, which of the following will be her first objective toward achieving her goal of becoming a business owner?

• determining the feasibility of the business

• determining the feasibility of the business

• choosing a business location

• determining the long-range goals of the business

Gwen’s business growth has been at a standstill for months. Her establishment does see its fair share of regular clients, so she has been able to pay the bills, but little new business has come in, and she is worried about the future. Her assistant manager, Darlene, has been trying to convince Gwen to engage in more viral marketing. If she is to do so, what will this MOST likely mean?

• engaging in more social media campaigns

• renting more booths or stations to up-and-coming beauty pros

• buying expensive television advertising spots

• creating glitzy ad pieces and mailing them out to the neighborhood

A realistic benchmark for the net profit of a salon, spa, or barbershop is ______.

• 15%

• 50%

• 5%

• 50%

Wilson is in disbelief. He cannot believe that his longtime friend Umberto has opened up his own business after all these years servicing clients. “Maybe you’ve arranged some other business structure to make it work? Because I cannot believe you are a sole proprietor,” says Wilson to Umberto. How can Umberto demonstrate to Wilson that he is, in fact, the sole proprietor of his establishment?

• Explain that he alone manages and assumes all of the expenses as well as receiving all profits.

• Explain that he specifically set up his shop to be controlled by only a small number of stockholders.

• Explain that he and his business partner each invested half of the capital to open the business.

• Explain that he is in charge of his own booth and only pays the business owner a monthly rental fee.

Ursula is working on a description of the key strategic influences of her business, including the varied services she will offer and the high quality she expects those services to provide. What, exactly, is Ursula working on?

• her mission statement

• her financial documents

• her vision statement

• her marketing plan