Name:     ID: 
 
    Email: 

business

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 1. 
What is the first step in developing a business?
a.
Acquiring space to run your business
b.
Hiring employees
c.
Creating a business plan
d.
Purchasing equipment and supplies
 

 2. 
Identifying a(n) _____ is a short general statement of the main focus of the business.
a.
purpose
b.
mission statement
c.
goals
d.
strategic plan
 

 3. 
A(n) _____ is a theme that is derived from your dreams and ideas. Clarifying this allows you to direct your energies.
a.
purpose
b.
goals
c.
mission statement
d.
strategic plan
 

 4. 
All of the following are disadvantages of running your massage practice out of your home EXCEPT _____.
a.
your privacy is restricted
b.
you must keep your home/office clean and sanitary
c.
you maintain a quiet, professional atmosphere
d.
it is economical
 

 5. 
As a(n) _____, you are the individual owner and carry all expenses, obligations, liabilities, and assets.
a.
corporation
b.
partnership
c.
sole proprietor
d.
all of the above
 

 6. 
In a _____, stockholders share in profits but are not legally responsible for the actions of the business.
a.
sole proprietorship
b.
partnership
c.
corporation
d.
all of the above
 

 7. 
In a _____ business, the profits and losses from the business are divided among the owners and recorded on their individual income tax returns.
a.
partnership
b.
corporation
c.
limited liability company
d.
none of the above
 

 8. 
When selecting a location for your business, you need to consider all of the following EXCEPT _____.
a.
location
b.
condition of the space
c.
cost per square foot
d.
all of the above
 

 9. 
If purchasing an already established business, all of the following should be taken into account EXCEPT _____.
a.
what magazines the practice subscribes to
b.
does the business have a good reputation
c.
why the present owner is selling
d.
all of the above
 

 10. 
A(n) _____ is required if the business name is different from the owner’s name.
a.
employer’s identification number
b.
provider’s number
c.
fictitious name statement
d.
business license
 

 11. 
A(n) _____ is required if you sell products or if your services are taxed. Not all states require this.
a.
business license
b.
employer identification number
c.
sales tax permit
d.
zoning permit
 

 12. 
A(n) _____ is a federal tax identification number issued to businesses and used on all tax-related forms.
a.
business license
b.
massage license
c.
provider’s number
d.
employer’s identification number
 

 13. 
_____ insurance covers fixtures, furniture, equipment, products, and supplies. If you rent or lease a space, the landlord may carry this insurance.
a.
Liability
b.
Fire and theft
c.
Automobile
d.
Disability
 

 14. 
_____ insurance is required if you have employees. It covers the medical costs for employees it they are injured on the job.
a.
Liability
b.
Medical/health
c.
Disability
d.
Worker’s compensation
 

 15. 
_____ covers the cost of injuries and litigation resulting from injuries sustained on your property.
a.
Liability
b.
Disability
c.
Fire and theft
d.
Worker’s compensation
 

 16. 
You should keep all bank statements, reconciliations, and canceled checks in your files a minimum of _____ years as proof of expenditures.
a.
1
b.
2
c.
3
d.
5
 

 17. 
The _____ is a summary of all cash receipts or invoices.
a.
income ledger
b.
disbursement ledger
c.
depreciation ledger
d.
accounts payable ledger
 

 18. 
An expenditure that is not considered an expense on your business ledger is _____.
a.
bank fees
b.
license and permits
c.
the owner’s expense
d.
refunds for services or products
 

 19. 
_____ is a record of moneys owed to you by other persons or businesses.
a.
Assets
b.
Accounts receivable
c.
Business receipts
d.
Accounts payable
 

 20. 
Items and equipment purchased to be used in your business for an extended period of time (more than a year) are considered business _____.
a.
expenses
b.
assets
c.
inventory
d.
receipts
 

 21. 
All business-related travel should be recorded in a(n) _____.
a.
income statement
b.
inventory list
c.
depreciation list
d.
mileage log
 

 22. 
The _____ is one of the most important document for organizing a successful and prosperous business.
a.
mileage log
b.
appointment book
c.
check register
d.
petty cash fund
 

 23. 
All tax returns of a business should be kept for at least _____ years.
a.
3
b.
7
c.
10
d.
indefinitely
 

 24. 
If you have a net annual income of more than _____, you must file federal income tax forms.
a.
$600
b.
$1000
c.
$2000
d.
$5000
 

 25. 
If you are a sole proprietorship business, you must file a Schedule C and a Schedule _____ along with your federal income tax.
a.
Da
b.
Qi
c.
SE
d.
None of the above
 

 26. 
Your marketing needs will be determined by all of the following EXCEPT _____.
a.
the amount of time or money you can afford
b.
the name of your business
c.
your target market
d.
the size of your practice
 

 27. 
To estimate you self-employment tax, you should consider which one of the following?
a.
Estimated tax is approximately one-fourth of the previous year’s income tax.
b.
Estimated tax is approximately one-half of the previous year’s income tax.
c.
Estimated tax is approximately one-fourth of your projected income for the next year.
d.
Estimated tax is approximately one-half of your projected income for the next year.
 

 28. 
Which one of the following is the best method for determining your target market?
a.
Sending mass mail surveys to members of your community.
b.
Advertising on the Internet and seeing what types of clients call for appointments.
c.
Calling a colleague and asking his opinion on who your target market should be.
d.
Assessing your client files to determine who is presently using your services and what they have in common.
 

 29. 
All of the following are pieces of information that should be included on all of your promotional materials EXCEPT _____.
a.
your name
b.
your business address
c.
your educational background
d.
your business phone number
 

 30. 
Which one of the following is the most appropriate section to advertise in the Yellow Pages of your local telephone directory.
a.
Masseuse
b.
Sensual massage
c.
Massage - Therapeutic
d.
None of the above
 



 
Submit          Reset Help