Cosmetology State Board Prep: Salon
Business And Florida Law Question And
Answer With Verified Solution
Word-of-mouth advertising = -ANSWER The most effective way of building your
clientele
Personal assets = -ANSWER Property you own; house, car, jewelry, etc.
Liabilities = -ANSWER The money you owe.
Net worth = -ANSWER Assets minus Liabilities.
Sole proprietorship = -ANSWER Business owned by one person.
Partnership = -ANSWER Business owned by two or more persons.
Corporation = -ANSWER Legal entity, separate from its shareholders, which is formed
under legal guidelines.
Franchise = -ANSWER An operating agreement in which a fee is paid to a parent
corporation in exchange for fixtures, promotion, advertising, education and management
techniques.
Rental agreement = -ANSWER Lease
Fixed rent = -ANSWER Set dollar amount paid per month to the lessor.
Variable rent = -ANSWER Includes a set dollar amount paid per month plus a
percentage of the total monthly income.
Malpractice insurance = -ANSWER Protects the salon owner from financial loss that
can result from employee negligence while performing hair, nail and skin care services
on salon clients.
Property/premise insurance = -ANSWER Covers the actual salon equipment and
physical location in case of natural disasters, fire, theft or burglary, or accidents
occurring at the business.
Product liability insurance = -ANSWER Protects against financial loss arising because
of injury or damage resulting from the use of a product.
Business And Florida Law Question And
Answer With Verified Solution
Word-of-mouth advertising = -ANSWER The most effective way of building your
clientele
Personal assets = -ANSWER Property you own; house, car, jewelry, etc.
Liabilities = -ANSWER The money you owe.
Net worth = -ANSWER Assets minus Liabilities.
Sole proprietorship = -ANSWER Business owned by one person.
Partnership = -ANSWER Business owned by two or more persons.
Corporation = -ANSWER Legal entity, separate from its shareholders, which is formed
under legal guidelines.
Franchise = -ANSWER An operating agreement in which a fee is paid to a parent
corporation in exchange for fixtures, promotion, advertising, education and management
techniques.
Rental agreement = -ANSWER Lease
Fixed rent = -ANSWER Set dollar amount paid per month to the lessor.
Variable rent = -ANSWER Includes a set dollar amount paid per month plus a
percentage of the total monthly income.
Malpractice insurance = -ANSWER Protects the salon owner from financial loss that
can result from employee negligence while performing hair, nail and skin care services
on salon clients.
Property/premise insurance = -ANSWER Covers the actual salon equipment and
physical location in case of natural disasters, fire, theft or burglary, or accidents
occurring at the business.
Product liability insurance = -ANSWER Protects against financial loss arising because
of injury or damage resulting from the use of a product.
