a.       Overhead expense

b.      Net income

c.       Gross income

d.      Disbursement

2.       Advertising to a specific segment of the population is known as:

a.       Word-of-mouth advertising

b.      Target marketing

c.       Mission statement

d.      Reciprocity

3.       Which of the following is not a deductible expense for a home massage business?

a.       Office computer

b.      Office copy machine

c.       Car insurance

d.      Massage table

4.       Which is considered the best type of advertising and it is the least expensive?

a.       Television commercial

b.      Direct mailing

c.       Telemarketing

d.      Word-of-mouth

5.       The most important factor to success of a massage business is usually which of the following?

a.       Location of business

b.      Employee courtesy

c.       Gross income

d.      Advertising

6.       All of the following are true regarding the location of a massage and bodywork business except:

a.       It should be close to public transportation

b.      It should have enough parking spaces

c.       Smaller massage practices should be located near other businesses to attract more clients

d.      The appearance of the massage practice is not important.  Therefore, an unkempt massage practice can fit in anywhere.

7.       When a massage practitioner shifts unresolved feelings and past events towards a client, this is known as ___________.

a.       Transference

b.      Counter-transference

c.       Anxiety

d.      Denial

8.       Gross sales minus taxes and expenses is referred to as:

a.       Net income

b.      Gross income

c.       Overhead income

d.      Reciprocity

9.       Net earnings, bottom line, and net profit are all synonymous with:

a.       Gross income

b.      Net income

c.       Overhead income

d.      Overhead expense

10.   The total costs for beginning a massage business is called:

a.       Start-up cost

b.      Marketing

c.       Management

d.      Mission statement

11.   Which tax form is filed by an independent contractor?

a.       1040

b.      Schedule C

c.       1099

d.      W-2

12.   All of the following are types of insurance recommended for a massage therapist who owns a massage business except:

a.       Fire

b.      Theft

c.       Malpractice

d.      Life

13.   Which of the following is not true regarding a self-employed individual?

a.       Must pay a self-employment tax in addition to federal taxes

b.      Can pay estimated quarterly tax on a 1040 ES form

c.       Is usually required to pay taxes to the IRS on a quarterly basis based on estimated income

d.      Has a standard federal tax rate of 35% which is not based on net income

14.   Which of the following is false about partnerships?

a.       Each partner files his or own individual taxes.

b.      Each partner shares equal responsibility for the business profits and losses

c.       A partnership can be more than 2 entities.

d.      A partnership must file a 1099 form.

15.   A W-2 tax form is most appropriate for which of the following?

a.       Independent contractor

b.      Employee of a business

c.       Sole proprietor

d.      Corporation

16.   Client files must be maintained by a massage or bodywork practitioner for a minimum time frame of:

a.       1 year

b.      2 years

c.       3 years

d.      4 years

17.   Consent for massage and bodywork must be given by a legal guardian or parent when the client is:

a.       Under 18 years of age

b.      Under 21 years of age

c.       Between the ages of 16 and 21

d.      Under 15 but not needed when client is over 15 years of age

18.   According to standards of practice in the massage profession, what is the minimum amount of time elapsed that a massage therapist can have a romantic relationship with a client after the client-therapist relationship has ended?

a.       After treating a client, the therapist can never have a relationship with the client even years after the client-therapist relationship has ended

b.      1 month

c.       6 months

d.      2 years

19.   What is the minimum amount of time a massage and bodywork business practice should keep their tax reports according to the standards of practice?

a.       6 months

b.      4 years

c.       10 years

d.      25 years

20.   All of the following are considered overhead except:

a.       Office rent

b.      Office telephone

c.       Office electricity

d.      Gasoline expense to and from work

21.   Following proper accounting procedures fall under which section of the standards of practice that is utilized in the massage profession?

a.       Professionalism

b.      Boundaries & roles

c.       Business practices

d.      Sexual misconduct prevention

22.   Filing state, local and federal taxes are found in what portion of the standards of practice for the massage profession?

a.       Confidentiality

b.      Boundaries & roles

c.       Business practices

d.      Professionalism

23.   Issues regarding taxes is found in the business practices and __________ of the standards of practice for the massage profession.

a.       Ethical and legal requirements

b.      Sexual misconduct prevention

c.       Confidentiality

d.      Professionalism

24.   Which of the following is not found on a balance sheet?

a.       Personal property

b.      Total assets

c.       Auto loans

d.      Mission statement

25.   Which of the following consists of a list of your assets and a list of your liabilities?

a.       Balance sheet

b.      Brochure

c.       Bank account statement

d.      Deduction

26.   Which of the following is not considered a start-up cost?

a.       Malpractice insurance

b.      Garbage disposal

c.       Equipment

d.      Your personal apartment rent

27.   One’s financial net worth can be attained through the use of a ____________.

a.       Budget

b.      Business banking account

c.       Balance sheet

d.      Business plan

28.   Student loans, margin accounts, auto loans and total debts are found on the liability portion of a ____________.

a.       Balance sheet

b.      Life insurance policy

c.       Corporate account

d.      Credential

29.   Which of the following is not part of a business plan?

a.       Mission statement

b.      Start-up costs

c.       Billing

d.      Burnout

30.   A massage practice owned by a sole proprietor makes $125,000 in client fees and services in one year.  After taxes and expenses, the net income is $25,000.  What is the actual gross income?

a.       Cannot be determined by the above information

b.      $125,000

c.       $25,000

d.      $100,000

31.   Which of the following is not true regarding a sole proprietor?

a.       Files a schedule C

b.      Simplest business arrangement for tax purposes

c.       Self-employment tax is in effect

d.      Can draw a salary for federal income tax reasons

32.   The tax consequences of a sole proprietorship are most similar to which of the following?

a.       S corporation

b.      Corporation

c.       Partnership

d.      Unemployed person

33.   When applying for a bank loan for a massage practice, which should not be included as part of your proposal to the bank?

a.       Area demographics of your place of business

b.      Start-up costs

c.       Mission statement

d.      Your significant other’s career

34.   A specific age, location, income and belief system of a person or persons might be more apt to use your professional services.  To maximize profits, it is wise to advertise to this type of ______.

a.       Target media

b.      Media

c.       Disbursement

d.      Word-of-mouth

35.   Severe physical or emotional exhaustion from overworking in a job or business with stress is most closely related to:

a.       Anxiety

b.      Depression

c.       Motivation

d.      Burnout

36.   One’s inner drive or incentive to achieve a goal or task is considered:

a.       Burnout

b.      Motivation

c.       Success

d.      Reciprocity

37.   Doing a press release for a local charity can increase walk-in clients to your massage practice.  Which of the following should be on the top line when sending a press release in order to increase the chances it will be published?

a.       Title of press release

b.      Who, what, when and why

c.       Media alert

d.      Date

38.   Which is not included in a press release?

a.       For immediate release

b.      Who, what, where

c.       What, where, when, how

d.      Advertisement

39.   How is a press release properly ended at the bottom of the page?

a.       Three pound signs centered at the bottom of the page

b.      Sign your name at the bottom

c.       Date

d.      Time of press release

40.   In a press release, to increase the chances that it will be published ___________ should be put under the words “media  alert”.

a.       The number 30

b.      Date

c.       For immediate release

d.      The weather

41.   A sole proprietor of a massage business collects $93,000 in total sales. The bottom line is $22,000.  The rent is $1,200 per month.  What is the gross income?

a.       $71,000

b.      $93,000

c.       $22,000

d.      $14,400

42.   Which is not true of an independent contractor?

a.       Must file own taxes

b.      Automatically has medical insurance paid by the business that uses his or her services

c.       Business who hires them avoids paying for the independent contractor’s unemployment insurance

d.      Business who hires them avoids paying any benefits such as sick days and vacation days to the independent contractor

43.   How many owners can a sole proprietorship legally have?

a.       1

b.      2 or more

c.       3

d.      4

44.   Which is an advantage of a sole proprietorship?

a.       There is more than one owner

b.      Dividend income gets taxed

c.       Funds can be withdrawn from the business during any time

d.      Sometimes must pass through probate court if owner becomes deceased

45.   Which type of advertising is quite effective but most expensive?

a.       Direct mail

b.      Newspaper ad

c.       Television ad

d.      Word-of-mouth

46.   Accounts receivable, general and accounts payable are types of ________, whivh are used to keep track of business transactions.

a.       Ledgers

b.      Leases

c.       Budgets

d.      Income

47.   Expenses in a massage business are also known as types of:

a.       Gross income

b.      Disbursements

c.       Client fees

d.      Assets

48.   The landlord in a lease is referred to as the ___________

a.       Lessor

b.      Lessee

c.       Ledger

d.      Operator

49.   The tenant in a lease is referred to as the _____________.

a.       Lessor

b.      Lessee

c.       Lawyer

d.      Operator

50.   A triple net lease requires the tenant to pay certain expenses in one monthly payment.  All of the following are included in a triple net lease except:

a.       Taxes

b.      Insurance

c.       Rent

d.      Marketing costs

51.   All of the following are reasons to keep good client records except:

a.       In cases of liability

b.      In case of an IRS audit

c.       Helps to keep up with condition of client

d.      To maintain professional boundaries with client

52.   Which of the following is not a type of overhead in a massage business?

a.       Electricity

b.      Rent

c.       Cleaning supplies

d.      Massage therapist’s lunch