Chapter 21: The Business of Barbering
Ownership, Marketing, Finance & Business Plans|37 Questions|Board Exam Prep
Vocabulary Matching
Match each numbered term with the correct lettered definition.
Fill in the Blank
Complete each statement with the correct term or phrase.
A plan is a written document that outlines a business goals, strategies, and financial projections
A business owned by one person who bears all liability is called a sole
An LLC combines the liability protection of a corporation with the tax benefits of a
The ongoing costs of operating a business such as rent and utilities are called
is the total income a business earns before expenses are deducted
The amount remaining after all expenses are subtracted from revenue is called
Statistical data about a population that helps identify target markets is called
Professional protects the barbershop from financial losses due to accidents or lawsuits
Multiple Choice
Select the best answer for each board-exam style question.
Which business structure provides the owner with limited personal liability?
A business plan is important because it:
Overhead expenses include all of the following EXCEPT:
When choosing a location for a barbershop, a barber should consider:
Which type of business ownership is the simplest to set up?
The purpose of professional liability insurance is to:
A barbershop target market is best identified through:
Revenue minus expenses equals:
True / False
Write T for True or F for False in the blank.
A sole proprietorship provides limited liability protection to the owner.
A business plan is an essential tool for securing loans and guiding business growth.
An LLC provides liability protection while allowing flexible tax treatment.
Overhead costs include only rent and nothing else.
Demographics help a barbershop owner understand their target market.
A partnership means one person is solely responsible for all business debts.
Professional liability insurance is optional and not recommended for barbershops.
Profit is calculated by subtracting all expenses from total revenue.
Short Answer
Answer each question in 2-3 complete sentences.
Describe the key components of a barbershop business plan and explain why each is important.
Compare and contrast a sole proprietorship, partnership, and LLC, including the advantages and disadvantages of each.
Why is understanding demographics important when choosing a location for a new barbershop?