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How to Start and Manage A Counseling Business -- A Guide for Churches, Ministers and Professionals
by Kathie Erwin, Ph.D.
© 1993.
(Word, Inc: Dallas, TX). All rights reserved.

[Answer 14 of 20 questions correctly to receive 14 hours of Continuing Education credit.]
Chapter 1: The Three-Rs of a Counseling Practice (p 1-7)
1. A primary reason why sixty-four percent of businesses fail is
a. economic factors.
b. business debts.
c. insufficient capital.
d. lack of managerial experience.

Chapter 2: Developing Your Business Plan (p 8-21)
2. In defining the target client population, the counselor should
a. counsel clients outside the target population in order to quickly build
    up a practice.
b. be prepared to counsel any type of client who needs counseling.
c. counsel clients outside the target population in order to gain broader
    experience.
d. make appropriate referrals to competent counselors outside the
    target population.

Chapter 3: Structuring Your Counseling Practice (p 22-38)
3. In a new partnership, the most common method of funding a buy-sell
agreement is with

a. a loan.
b. equipment.
c. life insurance.
d. property.

4. The simplest and least expensive form of business organization
for a new counselor is
a. a sole-shareholder corporation.
b. a sole proprietorship.
c. a partnership.
d. a multi-shareholder corporation.

Chapter 4: The Church-Linked Counseling Practice (p 39-56)
5. A nonprofit corporation
a. is usually small and struggles financially.
b. answers to shareholders.
c. has capital stock.
d. permanently dedicates its assets to an exempt purpose.

Chapter 5: The People Behind Your Business (p 57-74)
6. Which is the most affordable source of counseling malpractice insurance?
a. a professional counselor organization.
b. a local independent insurance agent.
c. your auto insurance company.
d. your homeowner’s insurance company.

7. For smaller counseling businesses, the author recommends the
best way for counselors to never be out of touch with their clients is
a. a telephone answering machine with a recorded message.
b. having telephone calls forwarded to the counselor’s private residence.
c. a 24-hour answering service and an alphanumeric pager.
d. voice mail.

Chapter 6: How to Maximize Impact with Minimal Cost (p 75-100)

8. A well-done press release is
a. double-spaced with wide margins.
b. no more than two pages in length.
c. printed on pastel-colored paper.
d. printed in computerized cursive type.

9. An excellent resource for writing and designing counseling
brochures is
a. The Small Business Handbook by Irving Burstiner.
b. Effective Public Relations by Scott Cutlip and Allen Center.
c. Print That Works by Elizabeth Adler.
d. The Publicity Process by Christine Friesleben Goff

10. For those counselors who lack confidence in public speaking,
the author recommends
a. hiring a professional speaker as a substitute.
b. publishing a newsletter instead.
c. reading an inspirational book about public speaking.
d. contacting Toastmasters International.

Chapter 7: Budgeting Your Finances and Your Time (p 101-124)
11. Cash reserves for a new counseling business can come from
a. keeping your present job and counseling part-time with another
    counselor or group.
b. enlisting your entire family’s cooperation to reduce nonessential
    expenses.
c. a monthly savings made up of a family emergency fund and a
    business savings fund.
d. all of the above.

12. A counselor’s disability losses should be covered by
a. social security disability income.
b. disability income insurance coverage for “any occupation.”
c. disability income insurance coverage for “own-occupation.”
d. an umbrella insurance policy.

Chapter 8: Identifying Sources of Income (p 125-146)
13. To increase the likelihood of insurance reimbursement, the
counselor should
a. verify coverage by calling the client’s insurance company before
    the first session.
b. verify the percentage of reimbursement and the client’s copayment.
c. submit accurately completed claim forms including justifiable
    diagnostic codes.
d. all of the above.

14. A counselor who charges $100 for a test that sells for $15 in a test catalog
a. should be reported to the American Psychological Association.
b. is earning $85/hour.
c. is charging for the time it takes to administer, score and interpret the
    test results.
d. has received extensive training and certification in test administration.

Chapter 9: Business Tax Issues (p 147-166)
15. With regard to tax planning, counselors
a. should pay as many bills as allowable with before-tax dollars.
b. do not need to waste time becoming familiar with the tax rules.
c. can make major purchases any time without effecting their tax
    obligation.
d. should rely upon their accountant to reduce taxes.

16. According to the Internal Revenue Service, independent contractors
a. do not pay for their own business and travel expenses.
b. must work for one client at a time, not several.
c. are paid by the hour or week.
d. set their own work schedule.

Chapter 10: Business Ethics for Counseling (p 167-186)

17. The main reason why many states require licensure or certification
for counselors is
a. to enable the counselor to charge higher fees.
b. to protect the public from untrained counselors.
c. to fulfill a requirement of the Internal Revenue Service.
d. to make a profit through licensure and certification renewal fees.

18. According to the author, the only legal and ethically acceptable diagnosis is the one that is
a. accurate.
b. reimbursable.
c. selective.
d. helpful to the client.

Chapter 11: Finding a Referral Source (p 187-203)

19. Which does the author NOT recommend when sending a written thank-you card to a referral source?
a. using the phrase “thank you for the referral.”
b. using the phrase “thank you for referring the couple for marriage
    counseling.”
c. using the client’s name.
d. using the phrase “thank you for referring the individual for counseling.”

Epilogue: Working the Plan (p 204-207)
20. “The point of diminishing returns” is
a. when counseling is no longer enjoyable to the counselor.
b. when expanding one’s counseling business does not increase
    profitability or productivity.
c. when managed care companies continue to decrease counselors’
    reimbursements.
d. none of the above.

ANSWER SHEET

Title Credit Hrs. Price
How to Start and Manage A Counseling Business -- A Guide for Churches, Ministers and Professionals (14 credit hours) $140
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