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Worksheetshospitality
Total questions: 150
Worksheet time: 1hrs 15mins
A front desk representative warmly greets a guest checking in. The representative asks about the guest’s travels and makes eye contact while using the computer. Which key to good service is the representative demonstrating?
a. Hire good people.
Don’t forget who you are.
Respond in a timely manner.
a. Handle moments of truth correctly.
1. Hospitality is defined as meeting customers’ needs in a way that
a. makes them want to spend more money.
a. expedites the service transaction.
a. requires the least amount of effort.
a. meets their expectations.
1. When it comes to judging the quality of service, whose expectations are most important?
a. The owner of the business
a. The staff member’s supervisor
a. The person receiving the service
a. The staff member providing the service
When applied to hotels and restaurants, what does the term capacity constrained mean?
a. The number of customers they can serve is limited by variables such as the amount of equipment and staff they have.
Their ability to grow is restricted because of the customer’s role in production.
a. The capacity to operate is dependent on competitive demand.
They can accommodate whatever level of demand occurs
1. How isa service business different from a manufacturing business?
Services can be inspected for quality before they are “consumed” by customers
Production and consumption are completely separate
Other customers are part of the service product
Customers never see the service “factory.”
1. Since hospitality services are produced when customers are present, which factor plays an important role?
a. Time
a. Supply chain
a. Raw materials
a. Production equipment
1. What are two components of a strategic service vision?
a. Setting goals and determining objectives
a. Quantifying demand and managing demand
a. Establishing standards and operational controls
Targeting a market segment and focusing on a service strategy
Which of Disney’s Five Keys is its highest priority?
a. Show
a. Safety
a. Courtesy
b. Efficiency
1. What is the purpose of a SWOT analysis?
It looks at a company’s ability to meet financial obligations
It helps companies assess how well they handle moments of truth
It helps companies assess how well they are serving their markets
a. It helps companies determine whether they have the capacity to provide parts to an assembly line.
Which strategy does a business follow if it offers the same amount of capacity no matter how high the demand
a. Service
a. Level-capacity
a. Chased-demand
a. Capacity-constrained
What has transformed the way we live and travel more than anything else since 1945
a. The growth of the world’s population
a. The growth of technological advancements
a. Changes in the global distribution of wealth
a. Increased peace and security between nations
In the decades ahead, which trend is likely to present both opportunities and challenges for the tourism industry
The global population is becoming older
Seasonality is becoming less important in travel
Tourists have less leisure time than in the past
Younger travelers are becoming more affluent
How do industry analysts calculate the indirect benefits of tourism
By using the multiplier effect
a. By using demographic information
a. By comparing annual growth of tourism industries
a. By categorizing tourists into groups based on spending patterns
1. What long-term impact is the COVID-19 pandemic likely to have on the travel and tourism industry?
a. Revenues will continue to decline.
a. Seasonality will become more important.
a. Businesses that make up the industry will become more diverse.
a. Greater emphasis will be placed onresponsible travel practices.
1. How do travel and tourism businesses have a symbiotic relationship?
Their industry is built upon a network of business-to-business relationships.
a. If a business provides services to tourists, it is not likely to provide them to local residents.
Most travel and tourism businesses are owned and operated by the same parent companies
If one travel and tourism business providesbad service, it can reflect poorly on other travel and tourism businesses
What is the main reason why most people travel
a. To find purpose
a. To see new places
a. To gather information
To enjoy life with passion
Which travel destination is most likely to benefit from people traveling for cultural purposes?
An eco-lodge in Costa Rica
a. A medieval cathedral in Italy
a. A major resort in the Caribbean
a. A national park in the United States
1. Psychographic research could been used to identify which trend in the tourism industry?
The average tourist is older now that they were in past decades
People are spending more money on travel, even those with lower incomes
Bleisure” travelers capitalize on opportunities to extend business trips for leisure.
Gen Z travelers value uniqueness and technological conveniences in their travels
1. After defining the scope of a project, what should travel and tourism planners do next?
Determine who will be involved in developing the plan
Create a master plan to determine how the land will be used
Analyze the market, the competition, and the available labor force
a. Establish a timetable and decide which stages will be short- and long-term.
Why issustainable tourism developmentimportant in the modern travel and tourism industry
Sustainable development is important for the industry to prosper
Campaigns designed to attract international visitors must address ecotourism
Tourism has historically beenthe most culturally destructive force in most places
Sustainable development is particularly important to older travelers with more purchasing power
Which person would be best suited for a career in the hospitality industry?
a. Someone who thrives on pressure and manages stress well
Someone who needs a Monday through Friday schedule
a. Someone who prefers repetitive and predictable tasks
a. Someone who likes to work alone
Which is a trait of someone with good human literacy skills?
They enjoy working with machines as well as with people
They can think creatively and lean towards entrepreneurship
They are good at analyzing information and comparing figures
They like to work with their hands and to learn how things work.
In addition to hotels, opportunities exist in whichlodging operations?
Airlines
a. Healthcare
a. Country clubs
a. Retirement communities
1. What is an advantage of starting a career at an independent hotel instead of a large chain hotel?
Independent hotels are more welcoming toward creativity and innovation.
There are more opportunities for advancement within independent hotels
1. Which best describes the role of the controller at a hotel?
They conduct sales programs and makes sales calls on prospects for business
They recommend room-rate strategies based on demand and market conditions
They are in charge of budgeting, scheduling, and hiring and training
They oversee the accounting department and all its functions
1. A foodservice entrepreneur wants to start a business with minimal capital. What is their best option?
a. A mobile caterer
a. A contracted operation
a. A fast-casual restaurant
a. A quick service franchise
Which is an example of a retail-host restaurant
a. A concession stand in a bowling alley
a. A deckside café and bar on a cruise ship
a. A restaurant near the golf course of a country club
a. An ice cream parlor sharing space with a drugstore
A foodservice entrepreneur wants to open their own restaurant. According to the U.S. Small Business Administration, what should be their first step
Write a business plan
Finance the business
a. Get a tax identification number.
a. Understand employer responsibilities.
An entry-level employee aspires to become an assistant manager at a large chain restaurant.In which role should they start
a. Host
a. Sous chef
a. Prep cook
a. Dishwasher
1. What should a job seeker do after interviewing for a position?
Send the interviewer a follow-up thank-you note
Encourage the interviewer to make them an offer soon
Conduct research to learn as much about the company as possible
Call the interviewer to let them know whether they are still interested
Most businesses in the restaurant industry fall within which two categories
a. On-site and off-site preparation services
a. Full-service and limited-service restaurants
a. Managed and independent foodservice companies
a. Commercial and noncommercial restaurant services
1. What characteristic distinguishes fast-casual restaurants from other types of food businesses?
a. Menus that change frequently and can be easily customized
a. A commitment to quality service and nutritional menu choices
a. A focus on quality ingredients as well as speed and affordability
a. Pre-sold services that allow businesses to pre-define their profits
Why do many corporations and large businesses provide foodservice facilities for employees?
If their employees cannot enjoy meals at work, their productivity may be impacted
Quality foodservice is the leading incentive for recruiting skilled employees
These facilities give companies the opportunity to earn extra profits
They are required by federal law to provide food for employees
Which trend has presented opportunities for the retail-host segment of the restaurant industry
Americans are eating more take-out food
Cloud-based point-of-sale systems are now widely used
Universities have shifted frommeal plans to à la carte options
Ghost kitchens have made it easier to enter the restaurant business
What distinguishes managed services from noncommercial restaurant services
Managed services are profit oriented
Managed services provide full-service offerings
Managed services offer food from well-known brands
Managed services can have multiple restaurant concepts
What is one of the main challenges of starting a restaurant
a. Finding equipment
a. Finding a location
a. Staying in business
a. Acquiring special skills
What is the most likely reason a restaurant may fail in its first year
a. Lack of experienced employees
a. Lack of business knowledge
a. Lack of special skills
a. Lack of equipment
What should be included in a restaurant’s proposed concept
a. A capital investment budget
a. Data to back up site selection
A study that determines the potential success of the restaurant
a. The products the restaurant will offer and the manner in which they will bepresented
1. A restaurant owner chooses a location. They do not realize that the restaurant will be on a one-way street. Which factor has the owner overlooked?
a. Visibility
a. Availability
a. Affordability
a. Accessibility
Why is it important to do a feasibility study before opening a restaurant
To determine whether the restaurant will be successful
a. To identify legal barriers to opening the restaurant
To identify potential competitors in the industry
a. To establish the restaurant’s concept
A restaurant wants to reinforce its commitment to sustainability and hyperlocal ingredients. Which elements would be best for its ambience
a. Furnituremade from upcycled materials and edible gardens
a. Low countertops and brightly colored décor
a. Nautical colors and decoration
a. Modern furnishings and fabric
What is a basic rule when creating a restaurant menu
Make nutrition the main priority
Use a variety of recipes that can be easily changed
Serve menu items that will challenge the chef’s abilities
Know what the guests expect and give them what they want
How can restaurant owners usemenus to provide extra incentives for customers
a. By offering fixed menus
a. By offering specialty menus
a. By matching menu items to staff abilitya. By matching menu items to staff ability
a. By matching menus to a restaurant’s ambience
1. What should be the main goal when establishing menu prices?
a. To match the ambience of a restaurant to menu prices
a. To make guests feel like they are getting a good deal
a. To match the prices of competitors
a. To bring in sufficient revenue
1. How can a computer system assist with back-of-the-house operations?
a. By alerting when tables are free
a. By helping chefs plan seasonal menus
a. By helping manage labor and scheduling
By automating much of the food prep process
1. How does a cash flow statement help measure the worth of a restaurant?
It forecasts expenses and profits
It provides a snapshot of a restaurant's financial position at a specific point in time.
It summarizes revenues, expenses, and resulting net income or loss over a specific period
It allows owners and stakeholders to understand how cash is being used within the business
What happensduring the receivingpoint in the food cost control cycle
a. Ensuring that the items delivered are those ordered and of good quality
a. Governing the transfer of food from storage to production or service areas
a. Ensuring that what comes out of the kitchen is served, recorded, and paid for
a. Using total expected business by meal period to determine purchasing needs
1. A restaurant uses standard recipes to control food costs and make sure its guests have a consistent experience. Which point of the food cost control cycle does this describe?
a. Issuing
a. Producing
a. Purchasing
a. Forecasting
1. What two quantities are needed to compute food cost percentage?
a. Total cost of food and selling price
a. Beginning inventory and food purchases
a. Beginning inventory and closing inventory
Total cost of food and amount of food consumed
A restaurant serves a steak entrée priced at $23.00 and a fish entrée priced at $18.00. If the fish entrée is the more profitable of the two and the steak entrée has a food cost percentage of 40%, what is the maximum food cost percentage for the fish entrée?
a. Less than 15%
Between 15% and 25%
a. Between 25% and 35%
a. Greater than 35%
1. What development has allowed independent hotels to benefit from the resources of larger brands?
a. Soft brands
a. Timeshares
a. Boutique hotels
a. Select-service hotels
1. Which has been a hotel industry trend of the late twentieth and early twenty-first century?
a. Chain differentiation
a. Pampering the hotel guest
a. Emphasis on sustainability
a. Quality-assurance programs
1. Which type of traveler may require accommodations with limited cooking facilities and more living space?
a. Airline-related guests
a. Regional getaway guest
a. Long-term stay/relocation guest
Government and military traveler
1. Which statement describes center-city hotels?
They are usually independent hotels
They are usually located in historic urban buildings.
They are less likely to have parking facilities than other types of hotels
They have some of the highest occupancy rates in the lodging industry
1. Which type of hotel became more prevalent in the United States with the popularity of automobiles?
a. Airport hotels
a. Resort hotels
a. Highway hotels
a. Center-city hotels
1. Which traveler would most likely choose an economy hotel?
a. A traveler looking for upscale, personalized service.
a. A traveler on a tight budget who needs few amenities.
a. An executive who wants to hold meetings in their suite.
a. A traveler who wants high-quality technology features in their guestroom.
1. What type of hotelfeatures contemporary design and unique services?
a. All-suite hotel
a. Lifestyle hotel
a. Boutique hotel
a. Condominium hotel
What criteria must be met for a facility to be classified as a conference center?
It must have a minimum of 100 guestrooms
It must be accessible to major market areas
It must earn at least 40 percent of its total sales from conferences
It must earn at least 60 percent of its total sales from conferences
What is the first critical decision affecting a hotel’s eventual success
Choosing the site where the hotel will be built
Deciding which facilities and services it will offer
a. Determining a target audience for the hotel’s guest base
a. Deciding on how the hotel’s construction will be financed
1. The demand analysis section of a feasibility study should answer which question?
Which facilities and services will be proposed
Who will the guests be and where will they come from
What is the size and nature of the market as it currently exists
What is the reputation of the area where the hotel will be located
How are revenue centers different from cost centers
They are overseen by the general manager of the hotel
They support the function of departments that generate revenue
They are made up of employees who do not serve the public directly
They generate revenue through the sale of services or products to guests
Which describes a hotel’s rooms department
A front office manager oversees the department
It usually generates the most revenuefor a hotel
Its tasks vary greatly depending on the size of the hotel
It usually generates less revenue than the food and beverage department
Which best describes the European Plan
The room rate includes no meals
The room rate includes all major meals
The room rate includes a continental breakfast
The room rate includes two meals, usually breakfast and dinner
Which food and beverage option would be most appropriate for a luxury hotel
a. A five-star steak house
a. A fast-casual restaurant
a. A family dining restaurant
a. A counter-service restaurant
1. Which hotel department would be responsible for organizing familiarization (fam) tours?
a. Human resources department
a. Sales and marketing department
a. Telecommunications department
a. Property operation and maintenance department
What must a hotel do to comply with the Americans with Disabilities Act
Install at least three pool lifts per pool
Equip all meeting rooms with listening systems
Allow emotional support animals to stay at the hotel
Designate at least 10 percent of parking spaces as accessible
Which would show that a hotel’s control systems need improvement
A budget deviation is not recognized for a long period of time
Errors are made by front desk personnel and food servers
Guestroom occupancy levels are low over one weekend
Staffing levels are adjusted to meet a payroll goal
What are costs that relate to the entire hotel and not to one specific department
Liabilities
Nonoperating expenses
a. Departmental expenses
Undistributed operating expenses
Why are quality controls important for a hotel
a. To ensure loyalty from the hotel’s guests
a. To ensure consistency in the hotel’s service
a. To make sure financial goals are being attained
a. To give the hotel an advantage over competitors
How does aglobal distribution system (GDS) provide service to hotel guests
It sends cost information to guest folios
It handles guest check-in and check-out
It passes rates for hotels along to travel sites
It verifies a hotel guest’s room number when they want to make a purchase
Which describes private clubs
They first appeared in Europe in the eighteenth century
There are fewer than a thousand private clubs in the United States
Almost all private clubs are owned and managed by larger companies
They are based on recreational, social, fraternal, or professional interests
Which is a club classification that the Club Management Association of America (CMAA) uses
Yacht
Social
Tennis
Fraternal
Why are country clubs typically located in suburban or rural areas
Most people who want to belong to clubs live in these areas
Members view them as retreats from city life
Cities no longer have room for clubs
They need a large amount of land
How are equity clubs different from corporate or developer clubs
Their members are not directly involved in operating the club
They transfer any profits they make to their founder members
They are nonprofit and formed for the enjoyment of their members
They are formed for reasons other than bringing together people of like interests
Who does the club manager normally report to in an equity club’s organization
a. Club owners
a. Club members
a. Board of directors
a. Chief operating officer
1. Which club manager duty requires using conceptual skills?
a. Performing annual audits
a. Handling employee policies
a. Conducting performance reviews
a. Interpreting data using statistical tools
How is the career of a club manager different from the career of a hotel manager
Advancement as a club manager is more likely to require mobility
Club managers tend to be less loyal to their employers and guests
Most club managers began working for their clubs as hourly employees
Club managers have less authority and fewer duties than hotel managers
What is the largest source of revenue for most private clubs
a. Activity fees
a. Assessments
a. Membership dues
a. Food and beverage sales
What is the largest expense category incurred by both country clubs and city clubs
a. Payroll costs
a. Insurance costs
a. Real estate taxes
a. Food and beverage costs
Why have private clubs tended to be slow in adopting new technology
They have budgetary constraints
Their members tend not to be technology savvy
They do not have the organizational needs of hotels
a. There are few software programs that are tailor-made for clubs.
How does the Events Industry Council (EIC) define a meeting
a. An event with an exhibit component
a. An event composed of several different yet related functions
a. An organized occasion, such as a convention, exhibition, or gala dinner
a. An event where the primary activity of participants is to attend educational and/or business sessions
Which is true about association meetings
Most associations host one large national convention every year
Marketing is important to recruit attendees for association meetings
Expertise in an association’s purpose is required to plan its meetings
Associations always pay an association management company (AMC) to plan meetings
1. Which types of meeting includes everything from financial reviews to strategic planning sessions?
a. Sales meeting
a. Product launch
a. Training seminar
a. Management meeting
An event is held to exhibit products in the agriculture industry. It is not open to the general public. What type of event is this
a. Stockholders meeting
a. Consumer show
a. Special event
a. Trade show
Why were meetings and events traditionally held in hotels
Hotels hadsleeping accommodations for attendees
Hotels were the only venues that offered foodservice
Hotels charges for individual services, providing flexibility
Hotels could accommodate meetings and events of all sizes
1. What is the best definition of a supplier?
A planner who works as an independent contractor
a. A company that researches potential markets and provides maps
A professional who promotes the status and credibility of the meeting profession
a. A company that provides facilities, products, or services that a meeting planner needs
What is the most important consideration for a planner when choosing a meeting site
a. The meeting’s objectives
a. The length of the meeting
a. The budget for the meeting
a. The number of people attending
1. What type of event might be considered a force majeure event?
a. An inability to pay vendors
a. A keynote speaker’s absence
a. A wildfire that affects a venue
a. A mistake in booking the meeting time
What should a well-organized meeting planner do on the day of a meeting
Assess whether the venue has enough parking
Show up as the meeting begins and leave as soon as it ends
Check invoices from hotels, restaurants, and other facilities
Ensure that hotels are prepared for delegates and that transportation is in place
What event professional looks at an organization’s overall marketing plan when creating an event
a. Event designer
a. Exhibits manager
a. Marketing manager
a. Meeting coordinator
How did early transatlantic voyages try to make travel more comfortable for passengers
a. By building ships with double metal hulls
a. By stopping at as many ports as possible
a. By making the ships go as fast as possible
By building ships with large, spacious cabins
What event led to the introduction of “tourist class” cabins on transatlantic passenger ships
The beginning of the Great Depression
a. The prohibition of alcohol in the United States
a. The first nonstop airline flights across the Atlantic Ocean
a. The end of the United States’ open-door immigration policy
The modern cruise industry was born during which decade
a. The 1940s
a. The 1950s
a. The 1960s
a. The 1970s
What did Carnival Cruise Lines offer that changed the public’s perception of cruising
a. Exciting destinations and excursions
a. Fun onboard activities for people of all ages
a. Restaurants with exclusive dining experiences
a. Luxuries such as butler service and onboard spas
According to the Cruise Lines International Association, which is the largest market segment of cruise lines
a. The luxury cruise segment
a. The “specialty” lines segment
a. The premium cruise segment
a. The contemporary/value segment
Who is responsible for a cruise ship’s operation and the safety of all aboard
a. The captain
a. The controller
a. The chief officer
a. The general manager
What is one of the duties of a cruise ship’s purser
a. Selling and coordinating shore excursions
a. Handling complaints and managing guest accounts
a. Directing food, beverage, and housekeeping services
a. Ensuring that all national and international laws are followed
1. How is food and beverage service on a cruise ship different from service at a land-based resort?
Safety, sanitation, and health are the most important considerations
Hours are shorter because there are more employees and shifts
Standardized menus are not used, which creates more variety
The department is more involved with calculating food costs
What determines the laws under which a cruise ship operates
a. The country where the ship is registered
a. The country from which the ship embarked
a. The nationalities of the employees onboard
a. The place where the ship was manufactured
Which environmental practice must cruise ships follow to meet international, national, and local regulations
Disposing of water and garbage responsibly
a. Installing advanced water treatment systems
a. Plugging in and turning off ship engines in ports
a. Using cleaner fuels such as liquefied natural gas
Which state legalized gambling during the Great Depression as a means of economic recovery
a. Nevada
a. Louisiana
a. New Jersey
a. West Virginia
By 1997, six states allowed which type of gambling
a. Gambling in clubs
a. Riverboat gambling
a. Gambling in casinos at racetracks
a. Gambling on Native American reservations
What is the world’s largest international casino gambling destination
Macau
a. Las Vegas
a. Monte Carlo
a. Atlantic City
1. How did the advent of mega-casino resorts change the Las Vegas hotel industry?
Gambling now accounts for a smaller percentage of hotel revenue
Average room rates have been lowered to encourage more gambling
Shopping arcade sales now account for the largest percentage of hotel revenue
Meetings and conventions nowaccount for the largest percentage of hotel revenue.
In most large Las Vegas hotels, the vice president of hotel operations oversees which
a. Operations for the entire hotel
a. Operations for both the hotel and casino
a. The rooms department and hotel services
a. Controls, credit, and the management of cash
Why are casino hotels more labor-intensive than other types of hotels
They operate 24 hours a day
They offer elaborate excursions
They provide more entertainment and food services
They deal with more customer and employee dishonesty
From a casino’s point of view, which is the most profitable game
a. Craps
a. Blackjack
a. Slot machines
a. Three-card poker
Which is a duty of a croupier in a casino
a. Managing larger groups of tables
a. Paying the winning bets of players
a. Identifying players who are not following rules
a. Resolving disputes between players and dealers
Which is the core market for most casinos
Grind players
a. Low-end players
a. High-end players
a. Middle-range players
Which is an example of an accounting control a casino might use
a. An electronic surveillance camera on a casino floor
a. A formula that calculates expected profitability by game
a. An on-site inspector who monitors players’ transactions
a. A rule that dictates the types of games permitted at the casino
Which is a reason managersmust be good communicators
Managers are charged with resolving conflicts with and between employees
Decisions about a department’s goals and objectives are made by the manager
Standards against which to measure performance are established by the manager
Managers must analyze and assign work for which their department is responsible
A manager organizes a training to reinforce best practices for a process. Which task is the manager performing
a. Motivating
a. Setting objectives
a. Developing people
a. Measuring performance
A manager introduces a method during employee evaluations that ends up being unsuccessful. They acknowledge this and get rid of it for the following year’s evaluations. Which leadership strategy does the manager show
a. Meaning through communication
a. Trust through positioning
a. Attention through vision
a. Self-development
Which is a leading reason for high employee turnover in the hospitality industry
Employees are generally unmotivated
Opportunities for advancement are often limited
Employees can easily find better opportunities elsewhere
Younger workers have higher expectations for employers
What did the Occupational Safety and Health Act of 1970 establish
It established laws concerning overtime
It protected the rights of people with disabilities
It spelled out what constitutes safe working conditions
It banned discrimination on the basis of race, gender, or religion
Why must hotels and restaurants define their jobs
a. To better choose benefits packages
a. To motivate employees so that they will stay with the company
a. To accurately match an applicant’s skills with the requirements of the job
a. To ensure guest satisfaction and business success through high productivity
Why is consumer-based pricing a realistic method of price setting
It determines fixed expenses and gross profit margin
It accounts for all four basic responsibilities of marketing
It considers what customers want and what they will pay for it
It allows businesses to offer better prices than their competitors
1. What is the benefit of using a revenue management program?
It sets pricing based on competitors
It helps a business operate to capacity in off seasons
It allows businesses to adjust prices based on demand
It coordinates consistent messaging about an organization
What is the result of a successful public relations campaign
A company experiences higher productivity
A company uses more sustainable practices
People have a positive impression of a product or service
The relationship between a company and its employees is improved.
How is publicity different from public relations
Its goal is to improve a company’s relationship with the government
Its goal is to improve a company’s relationship with its employees
Its messaging is produced and transmitted by the media
Its messaging is produced by a hotel or restaurant only
What does a franchisor grant a franchisee the right to do
Conduct business according to the franchisor’s guidelines
Operate multiple units in several areas
Operate exclusively in a territory
Advertise for the franchisor
How is a business format franchise different from a trade-name franchise
The franchisee can only be a quick service restaurant
The franchisee’s business takes on the identity of the supplier
The franchisee is allowed to sell a product line provided by the supplier
The franchisee has an ongoing business relationship with the franchisor
How did I.M. Singer & Company contribute to franchising
It allowed sewing stores to sell its machines
It convinced entrepreneurs to invest in their stores
It built a large retail chain and then sold each location
It developed a network of dealers that sold its products exclusively
Which company pioneered business format franchising
a. Coca-Cola
a. McDonald’s
a. General Motors
a. Howard Johnson Company
In addition to initiation fees, which fees are always charged to franchisees
a. Royalty fees
a. Training fees
a. Territory fees
a. Recruiting fees
Why are franchisors required to give franchisees a Franchise Disclosure Document (FDD)?
To clarify any requirements they will need to meet
a. To outline all the fees they will be expected to pay
a. To make them aware of potential risks involved
a. To ensure they know all the franchise’s rules
What is the main reason most franchisees purchase a franchise
a. To be their own boss
a. To advance their career
a. To be financially independent
a. To make a long-term investment
What is one major advantage of owning a franchise
Franchisees are not restricted by contracts
Franchisees can choose which products and services they offer
Franchisees benefit from economies of scale when purchasing supplies
Franchisees can count on receiving high-quality training from franchisors
What is a common issue that strains franchisor–franchisee relations
a. Inadequate training
a. Unpaid royalty charges
a. Lack of equipment assistance
a. Unwanted products or procedures
What new markets have franchisees begun to penetrate
a. Boutique hotels
a. Retail distributors
a. Convenience stores
a. Fast casual restaurants
What made hoteliers see the need for independent hotel management companies
It became common for multiple hotels to have the same owner
Hotel organization became more complex and departmentalized
Hotel companies expanded faster than they could find managers
a. Guests began to expect more from hotels as the industry evolved.
Which describes early lease agreements between hotel owners and hotel companies
The hotel owner paid fixed charges
The hotel company paid fixed charges
The hotel owner hired and managed the entire staff
The hotel company received all the hotel’s gross operating profit
What are the benefits of a soft brand affiliation
It allows branded management companies to engage in leasing
It allows individual properties to set their own rules about hotel operation
It allows branded management companies to employ fewer hotel managers
It allows individual properties to share thecentralized systems of major hotels
What is the purpose of the incentive fee
To provide an alternative to franchise royalty fees
a. To encourage hoteliers to lower their employee turnover
a. To motivate a hotel company to produce maximum profit
a. To lessen the financial risks of hotel development and ownership
What is a development that has made hotel owners less willing to take financial risk
There is alimited variety of equity and debt participants
Environmental concerns have made it harder to build new hotels
Owners and management companies no longer sign management contracts
There has been a shift in bargaining power to hotel management companies
What type of operating term provision would a hotel owner most likely prefer in a management contract
Long-term, because it provides them with a sense of security
a. Long-term, because it gives them time to recover their investment
a. Short-term, because it is more flexible and allows for greater freedom
Short-term, because it minimizes the risk of being tied to theagreement
What are feespaid to an operator for managing a property
Basic fees
a. Technical assistance fees
a. Pre-opening management fees
a. Post-opening management fees
Which provision in a management contract would address one of the parties filing for bankruptcy
Approval provision
Termination provision
a. Operator investment provision
a. Reporting requirements provision
What advantage does a management contract have for an operator
They assume a low financial risk
They have final control over revenue
They have less responsibility for properties
They cannot be dismissed from operating a property
From a hotel owner’s point of view, what is a disadvantage of management contracts
They do not have to pay fees to operators
They must carry all or most of the financial burden
They have no input about anoperator’s business decisions
They don’t know whether a hotel operator has a proven track record
What are the values and beliefs that guide people in their interactions and decisions
Ethics
Principles
Imperatives
Responsibilities
Which suggests that there are no universal ethical principles
a. Business ethics
a. Ethical relativism
a. Social responsibility
a. Community engagement
What is the term for using our unconscious to process information
Intuition
Emotion
a. Sense experience
a. Deductive reasoning
What is the belief that one should act in a way that achieves the greatest good for the greatest number of people
Deontology
Utilitarianism
a. Moral relativism
a. Ethical relativism
Which situation should most likely result in terminating an employee
a. An employee bumps a reservation
a. An employee shares guest information for personal gain
a. An employee accidentally orders too many cases of wine
a. An employee upgrades a guest’s room without gettingpermission
A company makes a commitment to fair labor practices. What are they committing to
a. Legal compliance
a. Business efficiency
a. Social responsibility
a. Sustainable behavior
A restaurant managerlearns that the chef occasionally serves lower grades of meat than advertised. What should the manager do first
Ask other employees not to serve the dishes
Ignore the issue unless a customer complains
Confrontthe chef privately and ask for an explanation
Immediately report the situation to the health department.
What is the purpose of truth-in-menu laws
a. To be transparent about food costs
a. Tobe transparent about caloricinformation
a. To prevent misleading or deceptive descriptions of dishes
a. To keep prices equitable among restaurants of the same kind
Affirmative action policies have been put in place to address which form of discrimination
Age discrimination
a. Racial discrimination
a. Gender discrimination
a. Disability discrimination
What is the main reason for a hospitality business to have a code of ethics
a. To provide guests with consistent quality
a. To protect the privacy of all guests and employees
a. To ensure that managers do not abuse their power
a. To clearly state the business’s principles and values
