MILADY COSMETOLOGY SALON
BUSINESS EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. What is the primary purpose of a business plan?
A. To determine salon decor
B. To serve as a guide for making business decisions
C. To apply for licensure
D. To hire new employees
A business plan outlines goals, strategies, and financial forecasts, guiding
business operations.
2. What is a booth rental agreement?
A. A long-term loan
B. A contract for product distribution
C. A rental contract between a stylist and salon owner
D. An insurance policy
, A booth rental agreement is a legal document allowing independent stylists to
rent space in a salon.
3. What type of salon ownership involves a single person owning the entire
business?
A. Sole proprietorship
B. Partnership
C. Franchise
D. Corporation
A sole proprietorship is owned and operated by one person.
4. Which of the following is a disadvantage of a partnership?
A. Shared responsibilities
B. Combined skills and knowledge
C. Disagreements between partners
D. Simplified taxes
Partnerships may suffer from conflicts between owners, impacting business
operations.
5. Which document tracks income and expenses?
A. Employee handbook
B. Financial statement
C. Inventory list
D. Client record
A financial statement provides an overview of business earnings and
expenditures.
BUSINESS EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. What is the primary purpose of a business plan?
A. To determine salon decor
B. To serve as a guide for making business decisions
C. To apply for licensure
D. To hire new employees
A business plan outlines goals, strategies, and financial forecasts, guiding
business operations.
2. What is a booth rental agreement?
A. A long-term loan
B. A contract for product distribution
C. A rental contract between a stylist and salon owner
D. An insurance policy
, A booth rental agreement is a legal document allowing independent stylists to
rent space in a salon.
3. What type of salon ownership involves a single person owning the entire
business?
A. Sole proprietorship
B. Partnership
C. Franchise
D. Corporation
A sole proprietorship is owned and operated by one person.
4. Which of the following is a disadvantage of a partnership?
A. Shared responsibilities
B. Combined skills and knowledge
C. Disagreements between partners
D. Simplified taxes
Partnerships may suffer from conflicts between owners, impacting business
operations.
5. Which document tracks income and expenses?
A. Employee handbook
B. Financial statement
C. Inventory list
D. Client record
A financial statement provides an overview of business earnings and
expenditures.
