Cosmetology State Board Prep: Salon
Business and Florida Law 2024/2025
Exam All Answers and Illustrations
Given
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
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
, 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.
Unemployment insurance = - 🧠ANSWER ✔✔Required by federal law for all
qualified employers.
Worker's compensation = - 🧠ANSWER ✔✔State-controlled insurance
required by law.
Social security = - 🧠ANSWER ✔✔Planned savings/retirement fund for
every worker in the United States.
Profit = - 🧠ANSWER ✔✔Income minus Expenses
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
Business and Florida Law 2024/2025
Exam All Answers and Illustrations
Given
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
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
, 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.
Unemployment insurance = - 🧠ANSWER ✔✔Required by federal law for all
qualified employers.
Worker's compensation = - 🧠ANSWER ✔✔State-controlled insurance
required by law.
Social security = - 🧠ANSWER ✔✔Planned savings/retirement fund for
every worker in the United States.
Profit = - 🧠ANSWER ✔✔Income minus Expenses
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
