2007 DECA Ontario Regionals
Test 934
QUICK SERVE RESTAURANT MANAGEMENT
QSRM
1
1. Which of the following types of business ownership would help a quick-serve restaurant by taxing its owners as
individuals:
A. Open corporation
C. Franchise
B. Subchapter "S" corporation
D. General partnership
2. Products that go straight from producers to consumers are using __________ channels of distribution.
A. indirect
B. direct
C. unusual
D.
unsatisfactory
3. Customer satisfaction, employee contentment, and profit can be directly linked to
A. paying higher wages than competitors.
C. prestigious pricing strategies.
B. ethical business practices.
D. automated distribution centers.
4. Providing quality customer service is one reason why quick-serve restaurants often coordinate distribution with
other
A. marketing activities.
C. staffing procedures.
B. operating techniques.
D. business objectives.
5. What channel strategy would provide the best market coverage for a producer that wants to distribute its new
product?
A. Inclusive distribution
C. Exclusive distribution
B. Selective distribution
D. Intensive distribution
6. The reason a quick-serve restaurant executive might do research and write proposals is to
A. understand complex data.
C. investigate resources.
B. organize information.
D. provide recommendations.
7. All calls coming into a quick-serve restaurant should end as pleasantly as possible in order to
A. help you to get a good review.
C. leave a good last impression with callers.
B. make the best use of your time.
D. provide callers with accurate information.
8. One reason food vendors often use note cards when making oral presentations to quick-serve restaurant managers
is because the cards help them to
A. remember key points.
C. write down questions.
B. look important.
D. memorize the data.
9. What section of a long, formal business report contains the author's opinions?
A. Appendix
B. Summary
C. Recommendations
D.
Introduction
10. What can quick-serve restaurant employees do to help provide good service to customers?
A. Offer discounts. B. Lower prices.
C. Plan events.
D.
Resolve problems.
11. In a quick-serve restaurant, what method of checking incoming goods is described as follows: Instead of checking
all containers, the receiving worker spot checks containers to determine the acceptability of the entire shipment.
A. Direct check
B. Quality check
C. Blind check
D.
Random check
12. Which of the following is it important for quick-serve restaurant employees to check when inspecting food deliveries:
A. Texture of processed cheese products
C. Taste of various soft drinks
B. Thickness of all hamburger patties
D. Temperature of refrigerated items
13. A quick-serve restaurant received a shipment in which several items had been damaged. When the quick-serve
restaurant sends the items back to the vendor in order to receive credit, what form should accompany them?
A. Loan
B. Consignment
C. Routing
D.
Charge-back
2007 DECA Ontario Regionals
Test 934
QUICK SERVE RESTAURANT MANAGEMENT
QSRM
2
14. Quick-serve restaurants usually store perishable products, such as meat, dairy items, and fruit, in which of the
following types of storage facilities:
A. Ordinary warehouses
C. Cold storage
B. Bulk storage
D. Commodity warehouses
15. On September 3rd, a quick-serve restaurant distributor had a devastating stockroom fire, but the business was able
to file an immediate insurance claim because it had up-to-date inventory records supplied by its
A. perpetual inventory system.
C. vendors.
B. July 1st inventory count.
D. previous tax return.
16. Calculate the inventory shrinkage in units from the following information: June 1 periodic stock count, 900; units
purchased in June, 750; units sold in June, 800; July 1 periodic count, 832.
A. 18 units
B. 15 units
C. 100 units
D.
118 units
17. Which of the following is an example of a distribution process that encourages repeat customers:
A. Accurate packing and order-checking systems
B. Restocking fees for returned merchandise
C. Consistent back orders on common items
D. Extensive lead times for shipping dates
18. A person who decides to see a movie at a theater is satisfying a(n) __________ want.
A. tangible
B. unlimited
C. economic
D.
noneconomic
19. Which of the following determines whether consumers can buy goods or services:
A. Buying power
B. Labor costs
C. Competition
D.
Production costs
20. Countries whose governments provide citizens with free medical care, education, and other benefits often are
referred to as __________ states.
A. capitalist
B. welfare
C. consumer
D.
military
21. When quick-serve restaurants use what they charge for their food items to attract customers, they are using
__________ competition.
A. rebate
B. unethical
C. sale
D.
price
22. A market in which businesses sell products that are basically identical is an example of
A. free enterprise.
C. monopolistic competition.
B. perfect competition.
D. limited socialism.
23. What is a technique that quick-serve restaurant chains use to increase their employees' job satisfaction?
A. Limited work assignments
C. Constant supervision
B. Repetition of tasks
D. Flexible work schedules
24. Based on the following information, calculate the marginal cost of producing each item: total cost is $35,500 with
zero quantity produced, and $589,900 with eight employees producing 275 items.
A. $2,000
B. $2,145
C. $2,016
D.
$2,190
25. What usually decreases when the economy is experiencing a period of contraction?
A. Cost of living
B. Unemployment
C. Interest rates
D.
Consumer spending
26. To be effective change leaders, quick-serve restaurant employees must know how to
A. enforce rules.
B. coach others.
C. dominate the group.
D.
ignore objections.
27. To develop effective political relationships within a large, quick-serve restaurant chain, it is important for an
individual to
A. go around the boss.
C. be a team player.
B. avoid the grapevine.
D. ignore conflict.
2007 DECA Ontario Regionals
Test 934
QUICK SERVE RESTAURANT MANAGEMENT
QSRM
3
28. What is the major reason that quick-serve restaurant employees lose their jobs?
A. They are unable to communicate.
C. They cannot carry out job tasks.
B. They are unable to get along with others.
D. They lack technical knowledge.
29. A group of quick-serve restaurant employees doing research and preparing a report to recommend that the
restaurant chain change certain policies is an example of using
A. management.
B. leadership.
C. persuasion.
D.
enthusiasm.
30. What credit legislation requires businesses to give consumers specific information pertaining to credit such as
amount financed, interest rates, payment schedules, and penalties?
A. Equal Credit Opportunity Act
C. Fair Credit Billing Act
B. Truth-in-Lending Act
D. Fair Credit Reporting Act
31. Ali is borrowing $275,000 from a bank to open an ice-cream stand. So Ali understands the terms of the loan, the
bank outlines the terms in a formal agreement and requires Ali to sign it. This is an example of a financial
A. proposal.
B. warranty.
C. contract.
D.
referral.
32. Identify a speculative risk that might result in financial loss for a quick-serve restaurant and cause it to fail.
A. Paying a high premium
C. Facing a lawsuit
B. Rebuilding after a fire
D. Adding a new location
33. A decrease in the availability of food items or ingredients that a quick-serve restaurant needs in order to operate is
an example of __________ risk.
A. cumulative
B. human
C. marketing
D.
economic
34. When preparing cash flow statements, quick-serve restaurants include cash coming in as well as
A. revenues.
B. sales.
C. payments.
D.
deposits.
35. The difference between a budgeted amount and an actual amount is called
A. a variance.
B. the balance sheet.
C. a safety net.
36. Total expenses subtracted from gross profit equals
A. cost of goods sold.
B. fixed expenses.
D.
financial evaluation.
C. variable expenses.
D. net profit.
37. What information should a quick-serve restaurant owner include on a bank deposit slip?
A. Account number B. Amount withdrawn
C. Account balance
D.
Social Security number
38. In a preliminary screening of job applicants, the manager of Grimaldi's Carryout Pizza should consider the
applicants'
A. background and/or job experience.
C. pre-employment test results.
B. personal information.
D. list of references.
39. Janet has been asked to prepare guidelines for the new-employee orientation program for the Zippy Hamburger
restaurant chain. What would be an appropriate guideline to include?
A. Hold the orientation near a busy work station. C. Provide adequate time for initial training sessions.
B. Use technical language in your explanations. D. Instruct new employees to avoid asking questions of
coworkers.
40. When coaching quick-serve restaurant employees, it is important to provide them with
A. positive feedback.
C. routine criticism.
B. printed materials.
D. job restrictions.
2007 DECA Ontario Regionals
Test 934
QUICK SERVE RESTAURANT MANAGEMENT
QSRM
4
41. Why can punishing an employee's undesirable behavior in a quick-serve restaurant result in negative side-effects?
A. Behavioral changes are permanent.
B. People view punishment in the same manner.
C. Workers who crave attention are deterred by discipline.
D. Workers may exhibit hostile behavior towards the disciplinarian.
42. The quick-serve restaurant owner wanted to add a new menu offering but first decided to find out if comparable
food items have been successful in similar businesses. Why would the owner need this kind of information?
A. To develop community relations
C. To meet consumers' wants and needs
B. To design attractive displays
D. To prepare advertising materials
43. Which of the following is information about customers that quick-serve restaurant chains often monitor in order to
make pricing decisions:
A. Supplemental income
C. Credit rating
B. Personal character
D. Buying behavior
44. One reason a chain of taco restaurants assesses the trading area before opening a new location is to determine if
A. the design blends with the community.
C. the site is accessible to vendors.
B. there will be a need for advertising.
D. there is a sufficient target market.
45.
The Tasty Fruit Smoothie chain needs more information in order to define the reason for its research and to
decide which direction to take. What type of marketing research would the chain use?
A. Predictive
C. Exploratory
B. Descriptive
D. Causal
46. Which of the following is an example of a quick-serve restaurant tabulating the results of a marketing survey:
A. Comparing the results with results from other types of research
B. Analyzing the information to make it useful to the quick-serve restaurant
C. Assigning a numeric value to the various responses on the survey
D. Counting the number of respondents who agreed with the questions
47. In the quick-serve restaurant industry, the business philosophy that states the demands and needs of customers
should be the central influence in every area of operation is called the _____________ concept.
A. customer relations
C. marketing
B. distribution
D. product/service management
48. McDonalds' attempt to meet the needs of specific groups of consumers by offering breakfast food, children's meals,
and low-fat menu items is an example of __________ segmentation.
A. educational
B. market
C. geographic
D. demographic
49. When identifying a target market, quick-serve restaurants often create a record of information such as age, income
level, ethnic background, occupation, and attitudes, which is known as a
A. demographic breakdown.
C. preference list.
B. customer profile.
D. consumer composite.
50. An effective marketing plan usually contains a section that explains the marketing
A. mix.
B. policy.
C. risk.
D.
concept.
51. A quick-serve restaurant considers segment size, product demand, and potential profitability when it conducts a
A. strategic assessment.
C. technology evaluation.
B. trend study.
D. market analysis.
52. A quick-serve restaurant reviewing the prices that other quick-serve restaurants are charging for similar menu
items, and the types of services they are offering to customers is an example of a quick-serve restaurant conducting
a(n) __________ analysis.
A. industry
B. technological
C. competitive
D.
relationship
2007 DECA Ontario Regionals
Test 934
QUICK SERVE RESTAURANT MANAGEMENT
53. What method of forecasting sales is based on expert opinion and personal experience?
A. Qualitative
B. Quantitative
C. Long-term forecasting
D.
QSRM
5
Intermediate forecasting
54. Tia wants to open a quick-serve restaurant and must develop a business plan to present to her investors. What are
the three major sections of a business plan that Tia should include, so she can present a well-organized document?
A. Projected income report, marketing plan, and SWOT analysis
B. Financial plan, manufacturing plan, and market segment analysis
C. Marketing plan, financial plan, and business situation analysis
D. Business situation analysis, SWOT analysis, and trading area analysis
55. One way for a quick-serve restaurant to measure the effectiveness of its marketing efforts is to compare its sales
objectives with
A. financial ratios. B. routine goals.
C. development procedures.
D. sales performance.
56. What is one reason why quick-serve restaurants conduct marketing audits?
A. To identify problems
C. To target customers
B. To account for funds
D. To review procedures
57. When handling robbery situations that occur at a quick-serve restaurant, which of the following information about
the assailant is important for employees to observe, write down, and relay to the police:
A. Sex, skin color, height, weight
C. Sex, personality, height, weight
B. Sex, eye color, height, name
D. Sex, skin color, name, aptitude
58. One technique that quick-serve restaurants use to clean service and work areas in order to kill bacteria is to
A. sanitize with chemicals.
C. rinse with soapy water.
B. wash with detergent.
D. dry with paper towels.
59. What is the policy that most quick-serve restaurants instruct their employees to follow if they are not sure whether
food is spoiled?
A. Test it by tasting a small portion.
C. Take no chances, throw it out.
B. Smell it to determine if it smells fresh.
D. Serve it, and ask the customer's opinion.
60. Requiring employees to wear appropriate clothing on the job is one way that quick-serve restaurants can maintain
a(n)
A. industrial image.
C. safe work environment.
B. comfortable atmosphere.
D. organized facility.
61. Which of the following is an example of production:
A. Reading a new novel
B. Purchasing food items
C. Providing home security
D. Answering your home telephone
62. One way for a quick-serve restaurant to determine if it is operating in the most efficient manner is to
A. develop a list of financial objectives.
C. hire an international tax consultant.
B. distribute a survey to its competitors.
D. evaluate its systems and procedures.
63. Which of the following factors do quick-serve restaurant chains need to consider in order to make a profit even if
their sales are good:
A. Expenses
C. Assets
B. Policies
D. Contracts
64. Which of the following is an activity that might be included in a quick-serve restaurant's preventive maintenance
program:
A. Remodeling the dining room
C. Replacing light bulbs
B. Rearranging display shelves
D. Renovating office area
2007 DECA Ontario Regionals
Test 934
QUICK SERVE RESTAURANT MANAGEMENT
QSRM
6
65. Given the following information, determine whether this quick-serve restaurant's cash register balances at the end
of the day: Cash in drawer $195. Cash paid out 5.Opening change fund 50. Cash received 150. Cash on detailed
audit strip 150.
A. Shortage exists
C. Overage exists
B. Register balances
D. Cannot be determined
66. Individuals are more likely to reach their personal goals if they have
A. avoided making the goals too specific.
C. analyzed all their personal dreams.
B. had help in setting the goals.
D. put their goals in writing.
67. An example of an organization whose members operate quick-serve restaurants is the
A. National Federation of Independent Franchisees.
B. American Marketing Association.
C. Chamber of Commerce of the United States.
D. National Restaurant Association.
68. Quick-serve restaurant employees who use time-management techniques make sure that the first activities they
carry out each day are the most __________ activities.
A. essential
C. unpleasant
B. difficult
D. nonessential
69. What type of information is not displayed for the customer on a point-of-sale computer at the time of a payment
transaction in a quick-serve restaurant?
A. Items in inventory
C. Item discount
B. Description of item
D. Item price
70. One reason it is important for quick-serve restaurants to recover their costs is so they can
A. stay in business.
C. maximize their losses.
B. pay lower taxes.
D. avoid government regulation.
71. Factors that affect the final cost of a product to a quick-serve restaurant are price allowances given by vendors and
manufacturers known as
A. FO.
C. EOM.
B. advance terms.
D. discounts.
72. During which phase of product/service planning might a quick-serve restaurant chain decide to modify a new menu
item?
A. Product screening
C. Concept testing
B. Test marketing
D. Market planning
73. Technological innovations now allow a restaurant-supply company to tailor a standard product to meet the specific
needs of quick-serve restaurant chains, which is commonly called
A. mass customization.
C. interactive transformation.
B. reverse standardization.
D. modified obsolescence.
74. When using synectics to develop unique product ideas for an existing market, a quick-serve restaurant chain might
generate ideas by focusing on
A. personal wants. B. specific details.
C. general needs.
D.
positive attributes.
75. When quick-serve restaurants satisfactorily handle their customers' problems by guaranteeing fast service, fresh
food, and accurate order processing, they usually increase
A. customer loyalty.
C. consumer complaints.
B. employee morale.
D. government intervention.
76. Which of the following might a quick-serve restaurant experience if its products fail to meet government standards:
A. Reduced damage
C. Increased expense
B. Increased goodwill
D. Reduced liability
2007 DECA Ontario Regionals
Test 934
QUICK SERVE RESTAURANT MANAGEMENT
QSRM
7
77. When identifying menu items and services to provide for its customers, a quick-serve restaurant must first consider
the customers'
A. performance levels.
C. emotional intelligence levels.
B. credit ratings.
D. needs and wants.
78. When a quick-serve restaurant chain provides intangible benefits to add value to its customers' core purchases, it is
providing _________ services.
A. augmented
B. external
C. ongoing
D.
conditional
79. Which of the following factors is the mostly likely reason for a business to reposition a product that is declining in
popularity in the marketplace:
A. Few marketplace competitors
C. High research and development costs
B. Stage of the product's life cycle
D. Obsolete features and benefits
80. Processing telephone orders may build goodwill and help increase sales, but these services may not be offered by
a small, quick-serve restaurant because of
A. increased operating costs.
C. sufficient storage facilities.
B. decreased insurance liability.
D. its competitors' standards.
81. To determine if an existing brand is conveying the desired image, a quick-serve restaurant chain needs to
A. select a catchy name.
C. evaluate its effectiveness.
B. describe its personality.
D. develop a brand promise.
82. A business manager's planned sales for June are $7,000. Planned stock for June 1 is $30,000, and planned stock
for July 1 is $38,000. What is the dollar amount of planned purchases for June?
A. $38,000
B. $ 8,000
C. $ 7,000
D.
$15,000
83. What is one way that quick-serve restaurants can ensure continuity of service quality when unexpected situations
occur?
A. Keep emergency numbers on the premises. C. Prepare a list of routine problems.
B. Give managers total control.
D. Develop guidelines for employees to follow.
84. Baskin & Robbins Ice Cream offers many specialty cakes such as the ice-cream Christmas Tree and the
Valentine's Heart ice-cream cake. Which type of external factor affecting promotion has prompted the business to
promote its products year-round:
A. Technology
B. Competition
C. Demand
D.
Cultural and social trends
85. An effective promotional mix is important because it helps a quick-serve restaurant to
A. place advertising.
C. obtain customers.
B. influence vendors.
D. generate publicity.
86. When a quick-serve restaurant develops an advertisement that presents a woman in a traditional female role, it is
reinforcing the concept of
A. socialization.
B. equity labels.
C. age discrimination.
D.
stereotypes.
87. Which of the following technological tools has made it possible for a quick-serve restaurant to send personalized
promotional messages in a cost-efficient manner:
A. Interactive banner
C. Electronic mail
B. Encryption card
D. Exclusive kiosk
88. Which of the following advertising media offers the easiest means to evaluate the effectiveness of an
advertisement:
A. Newspaper
B. Direct mail
C. Radio
D.
Television
89. In the quick-serve restaurant industry, a primary purpose of visual merchandising is to
A. follow the competition's lead.
C. maintain low prices.
B. make menu items desirable.
D. project an image of the restaurant.
2007 DECA Ontario Regionals
Test 934
QUICK SERVE RESTAURANT MANAGEMENT
QSRM
8
90. Which of the following is an example of coordinating a quick-serve restaurant's promotional activities:
A. Using personal selling to increase the customer's total purchase
B. Advertising a new menu item and giving customers samples of the product
C. Suggesting that the customer purchase additional food items
D. Printing coupons in a suburban newspaper
91. What is a technique that restaurant equipment salespeople use to create the desire in quick-serve restaurant
managers to buy cooking equipment?
A. Demonstrating
B. Substituting
C. Recommending
D.
Instructing
92. In a quick-serve restaurant, who should take full responsibility for any misunderstandings that are part of a sales
transaction?
A. Head Chef
B. Order processor
C. Owner
D.
Customer
93. One reason a pizza shop may use e-mail to follow up with their customers on a regular basis is because e-mail
makes it possible to
A. organize information.
C. communicate instantly.
B. arrange delivery.
D.
94. Which of the following is an example of a quick-serve restaurant supplier misrepresenting a product in a way that
may be illegal:
A. Providing product information
C. Exaggerating product capabilities
B. Offering products for low prices
D. Stating opinions about products
95. Which of the following would be appropriate individuals from whom a new salesperson could quickly obtain up-todate information about the products s/he will be selling to quick-serve restaurants:
A. Receiving department employees
C. Experienced salespersons within the firm
B. Producers of the products
D. New purchasers of the products
96. The type of sales approach being used when a food salesperson calls a quick-serve restaurant manager by name is
a ___________ approach.
A. welcome
B. merchandise
C. service
D. combination
97. Which of the following should quick-serve employees make sure is available for customers who order coffee as a
beverage:
A. Dressing
B. Butter
C. Salt
D. Sugar
98. When quick-serve restaurant employees accept cash from customers, they should keep that money on the plate
above the register drawer until they
A. print a receipt for the transaction.
C. thank customers for their business.
B. add up the total amount due.
D. give customers their change.
99. Brian spends most of his work time on strategic planning for a large, quick-serve restaurant chain. Which of the
following is most likely to be Brian's position in the chain:
A. Vice president
B. First-line supervisor
C. Sales clerk
D.
Production assistant
100. A budget is a tool that a manager uses to control a quick-serve restaurant's
A. productivity.
B. finances.
C. effectiveness.
D.
information.
2007 DECA Ontario Regionals
Test 934
QUICK SERVE RESTAURANT MANAGEMENT
QSRM
9
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
10
1. B
Subchapter "S" corporation. A subchapter "S", or "S," corporation is a state-chartered corporation developed to help
small, quick-serve restaurants by saving them money on taxes if they meet certain conditions. It is limited to 75 or
fewer shareholders, has limited shareholder liability, and requires little financial reporting. An open corporation
usually sells millions of shares of stock to many stockholders, pays corporate taxes, and must make its financial
information available to the general public. A general partnership is an agreement in which all partners are liable for
a business's losses. A franchise is a contractual agreement between a parent company and a franchisee to
distribute goods and services.
SOURCE: BL:003
SOURCE: BA LAP 7—Own It Your Way
2. B
Direct. In direct distribution, the marketing functions are performed by the producers without the assistance of
intermediaries. Indirect channels utilize intermediaries between producers and consumers to aid in the movement of
products. Both of these types of channels are satisfactory and not unusual, but they are referred to as direct or
indirect.
SOURCE: CM:003
SOURCE: MB LAP 3—Channels of Distribution
3. B
Ethical business practices. Studies have shown a strong relationship between customer satisfaction and a
company's ethical behavior. Building customer loyalty gives a business a competitive advantage and is profitable.
Taking care of employees tends to encourage employees to take care of business. Paying higher wages is not the
only requirement for employee commitment. Pricing strategies can ensure profit but have little impact on employee
commitment and customer loyalty. Customer satisfaction, employee contentment, and profit are not directly linked
to automated distribution centers.
SOURCE: CM:006
SOURCE: Ferrell, O.C., Fraedrich, J., & Ferrell, L. (2002). Business ethics: Ethical decision making and cases (5th
ed.) [pp. 246-251]. Boston: Houghton Mifflin.
4. A
Marketing activities. Distribution is one of the marketing functions that must work with the other marketing activities
to get goods and services from producers to consumers. The goal of marketing is to satisfy consumer wants and
needs while achieving company goals. Quick-serve restaurants cannot satisfy those needs and provide quality
customer service unless all the marketing activities work together. For example, quick-serve restaurants are only
able to serve customers when they have the advertised menu items on hand and at the right price. Business
objectives are the goals that a quick-serve restaurant wants to reach. Operating techniques are the ways that a
quick-serve restaurant functions on a daily basis. Staffing procedures involve finding workers for the quick-serve
restaurants.
SOURCE: CM:007
SOURCE: Etzel, M. J., Walker, B. J., & Stanton, W. J. (2007). Marketing (14th ed.) [pp. 10-11, 44-46]. New York:
McGraw-Hill/Irwin.
5. D
Intensive distribution. Intensive distribution allows for the broadest market coverage because it involves selling to
every intermediary that will carry and sell the new product. Selective distribution narrows the distribution channel to
a portion of the area similar to franchises. Exclusive distribution limits the distribution to a single retail outlet in a
specific geographic area. This strategy is usually limited to prestigious products and would not be very effective for
most types of new products. Inclusive distribution not a form of distribution.
SOURCE: CM:009
SOURCE: Pride, W., Hughes, R., & Kapoor, J. (2002). Business (7th ed.) [pp. 421-422]. Boston: Houghton Mifflin.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
11
6. D
Provide recommendations. Proposals usually are intended to answer questions or provide recommendations to
solve problems. Large quick-serve restaurant chains might ask high-level executives to research a particular
situation or problem. After employees investigate and gather information, they write proposals that explain the
problem and the solutions. The proposal is intended to persuade the quick-serve restaurant chain to follow the
recommendations. When conducting research for proposals, employees may investigate resources in order to
understand complex data. The proposal writing process includes organizing the information.
SOURCE: CO:062
SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for success (2nd ed.)
[pp. 510-511]. Cincinnati: South-Western Educational.
7. C
Leave a good last impression with callers. Leaving a good last impression is just as important as creating a positive
first impression. Quick-serve restaurant employees do not want the positive image they have created to be ruined in
the last seconds of the call. Concluding calls pleasantly may help you to get a good performance review, but that is
not the purpose of it. Providing callers with accurate information and making good use of your time are not part of
ending calls pleasantly.
SOURCE: CO:114
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006) Marketing dynamics (pp.626, 682-683). Tinley Park, IL:
Goodheart-Wilcox Co.
8. A
Remember key points. People often write brief notes on small cards to help them remember to discuss important
points they want to present to the audience. The notes serve as a guide to help people stay focused on the
information they need to present and keep them from getting off track. The notes are often a mini-outline of the
presentation. Food vendors do not use note cards to look important, write down questions, or memorize the data
when making oral presentations to quick-serve restaurant managers.
SOURCE: CO:025
SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 496-497]. Boston:
Irwin/McGraw-Hill.
9. C
Recommendations. Recommendations are stated separately so that the reader can identify what information is fact
and what is opinion. The summary highlights the main points of the report. An appendix contains materials that may
be helpful to the reader but are not necessary for understanding the report. The introduction generally includes a
statement of the problem, the purpose of the report, definitions of terms, research methods, and limitations to the
research.
SOURCE: CO:009
SOURCE: Leskiar, R.V., & Flatley, M.E. (2005). Basic business communication: Skills for empowering the Internet
generation (10th ed.) [pp. 352-353]. Boston: McGraw-Hill/Irwin.
10. D
Resolve problems. Providing good service includes resolving problems and complaints. Some customers will be
very upset about a problem, such as an incorrect food order, and quick-serve employees must be prepared to find
solutions without getting as upset as the customer. Solving problems satisfies customers and gives them the
service they deserve. Quick-serve restaurant employees do not have the authority to lower prices, offer discounts,
or plan events without the approval of management.
SOURCE: CR:004
SOURCE: HR LAP 32—Customer-Service Mindset
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
12
11. D
Random check. With a random check, receiving workers spot check containers at random. If the goods in those
containers are acceptable, the entire order is considered acceptable. If problems are detected, the receiving
workers do a direct check. With a blind check, receiving workers list the goods that were received on a dummy
invoice that is then compared with the actual invoice after a blind check is completed. The purpose of the quality
check is to inspect the grade, freshness, or other characteristics of the goods, which includes food items. In the
direct check, as the goods are unpacked, they are sorted, counted, inspected, and checked directly against the
invoice or the purchase order.
SOURCE: DS:004
SOURCE: DS LAP 5—The Receiving Process
12. D
Temperature of refrigerated items. Refrigerated food items, such as meats and dairy products, should be kept at
certain temperatures at all times. The recommended temperature varies depending on the type of food item;
therefore, quick-serve restaurant employees should know the correct temperature for refrigerated items and make
sure the items meet those standards. If refrigerated items are not kept cold enough, they may spoil and not be
suitable to use. Employees should check the temperature and refuse delivery of items that are not properly
refrigerated. Employees do not check the thickness of all hamburger patties, but might make a random check to
verify that the order is correct. Employees do not taste the various soft drinks or examine the texture of processed
cheese products.
SOURCE: DS:061
SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees
(pp. 198-199). Upper Saddle River, NJ: Prentice Hall.
13. D
Charge-back. The quick-serve restaurant keeps one copy of the charge-back form and sends a second copy to the
vendor along with the returned merchandise. Consignment is a selling method in which a business sells goods that
belong to someone else for a fee. A loan form contains information concerning the credit arrangements between a
debtor and creditor. A routing form lists names of persons who should receive whatever materials are attached.
SOURCE: DS:086
SOURCE: CLL. (n.d.). Routing guide, shipping procedures, and chargeback form. Retrieved July 24, 2007, from
<http://www.saksincorporated.com/vendorrelations/documents/CLLROUTINGGUIDEFORSUPPLIERS2
-22-07.pdf>.
14. C
Cold storage. Quick-serve restaurants typically use cold storage facilities to the store perishable food products (e.g.,
meat, dairy items, and fruit). Bulk storage facilities store products in bulk form such as chemicals. Ordinary
warehouses store products in bins, on racks, or on shelves. Commodity warehouses are buildings used to store
farm products such as grains.
SOURCE: DS:013
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 404]. Woodland
Hills, CA: Glencoe/McGraw-Hill.
15. A
Perpetual inventory system. Perpetual inventory control provides continuous, up-to-date inventory information
because it automatically adjusts inventory levels as each transaction occurs. This means that the quick-serve
restaurant distributor can determine the approximate value of its inventory at any time without doing an actual
count. This is an important advantage of perpetual control. Information from a July 1st inventory count would be too
old to use in filing a claim as many changes in stock on hand could have occurred by September 3. Inventory
values on a previous tax return would also be outdated. Vendors, or suppliers, do not supply businesses with
inventory records.
SOURCE: DS:019
SOURCE: DS LAP 2—Inventory Control Systems
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
13
16. A
18 units. To determine inventory shrinkage, add to the June 1 periodic count of 900 the 750 units purchased.
Subtract units sold (800), which equals perpetual inventory of 850. Subtract July 1 periodic count to determine
shrinkage (850 - 832 = 18).
SOURCE: DS:026
SOURCE: DS LAP 4—Inventory Shrinkage
17. A
Accurate packing and order-checking systems. Repeat customers are those individuals who purchase products and
plan to buy additional products from the business again. The fact that the customers plan to buy again generally
means that the customers are satisfied with the level of service that the company provides. Warehouse personnel
who pack and check orders to make sure the package contents are correct are encouraging repeat customers.
Orders that are packed incorrectly indicate that customers receive the wrong items; therefore, service levels have
not met customer expectations. In addition, charging restocking fees for returned merchandise, consistent backordered product, and extensive lead times do not generally meet customer satisfaction levels. When service levels
are not met, customers are generally less likely to reorder products.
SOURCE: DS:029
SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics: A supply chain
perspective (7th ed.) [pp. 97-99]. Mason, OH: South-Western.
18. C
Economic. An economic want is something that you desire and has a monetary value. Seeing a movie would have a
monetary value attached to it. A noneconomic want is a desire for something that has no monetary value, such as
friendship. Wants are unlimited because everyone has them, they change, and people are not able to obtain
enough resources to satisfy all of their wants. A tangible want is the desire for something that is a physical object.
SOURCE: EC:001
SOURCE: EC LAP 6—Economics
19. A
Buying power. Buying power is the amount of money that the consumer has available to spend. This determines the
price the consumer can afford to pay. Production costs are all the costs of producing products, including labor costs.
Competition is the rivalry between two or more businesses to attract scarce (limited) customer dollars.
SOURCE: EC:005
SOURCE: EC LAP 11—It's the Law (Supply and Demand)
20. B
Welfare. Socialist countries are often referred to as welfare states because their governments have set up many
programs to provide citizens with free medical care, education, welfare, and other benefits. High taxes are used to
pay for these programs that are available to all citizens. Capitalist and consumer states are characterized by
competition and workers providing for themselves. Military states are controlled by the armed forces.
SOURCE: EC:007
SOURCE: EC LAP 17—Economic Systems
21. D
Price. Quick-serve restaurants often reduce their prices in order to attract consumers. This is not unethical as long
as the quick-serve restaurants do not attempt to restrict competition unfairly. Sales and rebates are examples of
price competition.
SOURCE: EC:012
SOURCE: EC LAP 8—Ready, Set, Compete!
22. B
Perfect competition. Businesses that operate in a perfectly competitive market sell basically the same products that
have virtually no differences. Therefore, it is easy for businesses to enter this market. An example is a business that
grows and sells corn. There are no significant differences between the corn grown and sold by one business than
by all other businesses that grow and sell corn. Free enterprise, monopolistic competition, and limited socialism are
not examples of markets in which businesses sell products that are basically identical.
SOURCE: EC:075
SOURCE: Sexton, R.L. (2002). Exploring economics (2nd ed.) [pp. 204-205]. Mason, OH: South-Western.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
14
23. D
Flexible work schedules. Quick-serve restaurant chains are finding ways to combat many of the disadvantages of
specialization and division of labor. Quick-serve restaurant chains know that employees must like what they are
doing and be motivated to do it in order to be satisfied with their jobs. Therefore, some quick-serve restaurant
chains try to increase job satisfaction by using techniques such as flexible work schedules. Employees who have
some control over the times they work often are more satisfied and productive. Repetition of tasks, limited work
assignments, and constant supervision often lead to a decrease in job satisfaction.
SOURCE: EC:014
SOURCE: EC LAP 7—Specialization of Labor
24. C
$2,016. Marginal cost is the change in cost involved in increasing or decreasing production. It is often used to
calculate the extra cost of producing one more item. In this situation, total cost of operating the business is $35,500
before any items are produced. Once production begins, there are additional costs. To determine the marginal cost
of producing each additional item, first calculate the change in total cost by subtracting the total cost before
production from the total cost once production begins ($589,900 - $35,500 = $554,400). The change in total cost is
$554,400 from zero production to producing 275 items. To calculate marginal cost, divide the change in total cost by
the number of items produced ($554,400 ÷ 275 = $2,016). The number of employees involved in producing the
items is not a factor in calculating marginal cost.
SOURCE: EC:023
SOURCE: Gottheil, F.M. (2002). Principles of economics (3rd ed.) [pp. 182-184]. Cincinnati: South-Western.
25. D
Consumer spending. Business cycles are the periods of expansion and contraction in economic activities. During
the contraction stage of the business cycle, product demand and consumer spending decrease, while
unemployment and loan interest rates increase. Consumer spending decreases because people are concerned
about the state of the economy. Also, many people may be out of work and not have money to spend. Interest rates
increase during this time, which also increases the cost of living.
SOURCE: EC:081
SOURCE: Burrow, J. (2006). Marketing (2nd ed.) [p. 395]. Mason, OH: South-Western.
26. B
Coach others. For many people, change is uncomfortable. Change leaders understand this and know how to
encourage teamwork and keep people feeling focused, optimistic, and energetic about the change. As a coach,
change leaders assist others through the change and help them to overcome the barriers that are keeping them
from changing. Change leaders support and encourage others rather than enforce rules, dominate the group, or
ignore objections.
SOURCE: EI:005
SOURCE: QS LAP 23—20/20 Foresight
27. C
Be a team player. Being a team player is a good way to earn the respect and trust of others. Being respected and
trusted is an important part of developing effective political relationships within a company, such as a large quickserve restaurant chain. Others usually are willing to develop relationships with those who do what they say they will
do, help the team, and put the goals of the organization before their personal goals. The grapevine often is an
effective method of finding out what is going on in an organization. It is not effective to go around the boss or ignore
conflict. It is helpful to keep the boss informed and deal with conflict in order to correct problems.
SOURCE: EI:034
SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development (2nd ed.)
[pp. 279-280]. Mason, OH: South-Western.
28. B
They are unable to get along with others. Of all the people who lose their jobs, the majority do so because they are
simply not able to get along well with others. You must be able to relate to, and deal effectively with supervisors,
coworkers, and customers if you are to keep your job. You can learn how to carry out job tasks, ways to
communicate, and technical information.
SOURCE: EI:037
SOURCE: EI LAP 5 — Can You Relate?
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
15
29. C
Persuasion. Persuasion is the effort of an individual or group of individuals to influence the attitudes or behavior of
another individual or group of individuals. Quick-serve restaurant employees doing research and preparing a report
to recommend change is an example of using persuasion. The employees are trying to persuade the quick-serve
restaurant chain, with the use of valid information, that changing certain policies would be beneficial. Leadership is
the ability to guide or direct the actions of others in a desired manner. Management is the process of coordinating
resources in order to accomplish an organization's goals. Enthusiasm is intense interest or excitement.
SOURCE: EI:012
SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for success (2nd
ed.) [p. 324]. Cincinnati: South-Western Educational.
30. B
Truth-in-Lending Act. The Truth-in-Lending Act requires businesses to give consumers specific credit information.
Such information includes the amount financed, interest rates, payment schedules, penalties, etc. The Equal Credit
Opportunity Act requires businesses not to discriminate when granting credit. The Fair Credit Billing Act gives
businesses a specific time by which they must respond to customer complaints about billing errors. The Fair Credit
Reporting Act gives consumers the right to inspect their own credit files.
SOURCE: FI:002
SOURCE: FI LAP 2—Credit and Its Importance
31. C
Contract. A contract is an agreement between two or more businesses stating that one party is to do something in
return for something provided by another party. In the example, the bank agrees to lend Ali money to open her icecream stand; and Ali agrees to the loan terms, which includes a repayment schedule. If one party does not follow
through with the agreement, the other party can pursue legal action. A warranty is a promise made by the seller to
the consumer that the seller will repair or replace a product that does not perform as expected. A proposal is a
formal document that presents the reader with a call to action. A referral is an entity to which salespeople are
recommended.
SOURCE: FI:063
SOURCE: DuBoff, L.D. (2004). The law (in plain English) for small business (pp. 46-47). Naperville, IL: Sphinx.
32. D
Adding a new location. One aspect of speculative risks is that they may result in such a significant loss that the
quick-serve restaurant fails. Adding a new location is a speculative risk that might cause a quick-serve restaurant to
fail if the new location does not generate enough profit. If the quick-serve restaurant continues to invest in an
unprofitable location, it may eventually close because it cannot financially support two locations. Most businesses
buy insurance to protect themselves from pure risks such as lawsuits and fire. Paying an insurance premium is not
a speculative risk.
SOURCE: FI:080
SOURCE: Burrow, J.L. (2002). Marketing (pp. 510-514). Mason, OH: South-Western.
33. D
Economic. Economic risks are caused by changes in the market that force a lowering of prices, a change of
product, or even failure of the quick-serve restaurant. Human risk results from human weaknesses and/or
unpredictability. Marketing risk is a term which can be used to describe all kinds of risk encountered in marketing.
Cumulative risk is not a classification of risk.
SOURCE: FI:084
SOURCE: BA LAP 2—Risk Management
34. C
Payments. One of the purposes of preparing a cash flow statement is to report the cash flowing in and the cash
flowing out of a business, such as a quick-serve restaurant. Quick-serve restaurants need to have enough cash
coming in to cover payments. If quick-serve restaurants determine that there is a shortfall of cash, they often borrow
money to cover estimated payments. The loans increase the cash flow so quick-serve restaurants will be able to
pay expenses. Sales and revenues are part of the cash flowing in to a quick-serve restaurant. Quick-serve
restaurants usually deposit these funds in an appropriate account.
SOURCE: FI:092
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 396-397]. Cincinnati: South-Western.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
16
35. A
A variance. The difference between a budgeted amount and an actual amount is called a variance. A balance sheet
is a snapshot of a company's financial condition, with no direct connection to the differences between budgeted and
actual amounts. Such a difference is not a safety net—it might even be an alarm. A difference is not a financial
evaluation either, just a difference that must be evaluated.
SOURCE: FI:106
SOURCE: FI LAP 3—Money Tracks (Nature of Budgets)
36. D
Net profit. Net sales minus the cost of goods is equal to gross profit. Gross profit minus operating expenses (both
fixed and variable) is equal to net profit. Variable expenses are expenses that change from time to time, such as
payroll. Fixed expenses remain constant over time, such as rent. Fixed expenses and variable expenses are part of
total expenses.
SOURCE: FI:102
SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 232-233). Cincinnati:
South-Western Educational.
37. A
Account number. When making a bank deposit, the quick-serve restaurant owner completes a bank deposit slip.
This form must provide the bank with the restaurant's name, address, account number, date, and amount of
deposit. Social Security number is not needed. The funds are being deposited, not withdrawn. The account balance
is given on the bank statement.
SOURCE: FI:298
SOURCE: Lange, W.H., Rousos, T.G., & Mason, R.D. (1998). Mathematics with business applications (4th ed.)
[pp. 126, 146]. New York: Glencoe/McGraw-Hill.
38. A
Background and/or job experience. Quick-serve restaurant managers try to choose the most suitable applicants
during the screening process. This involves determining whether the applicant has the necessary skills, education,
and/or experience to do the job. The references, personal data, and test results would only be considered in the
case of applicants who have passed the screening process.
SOURCE: HR:356
SOURCE: MN LAP 51—Selecting New Employees
39. C
Provide adequate time for initial training sessions. Avoid rushing through a lot of information; if there is a great deal
to be learned, divide the orientation into several sessions. Use of technical language often keeps employees from
understanding the information that is being presented. Lengthy employee orientations are not held around a busy
work station because they may distract other workers. New employees should be encouraged to ask questions of
their coworkers and their managers so they can gain a full understanding of the ideas being presented.
SOURCE: HR:361
SOURCE: MN LAP 44—Orienting New Employees
40. A
Positive feedback. Coaching is an on-the-job instructional method in which a manager or supervisor is assigned a
"coach" to set goals, give assistance in reaching goals, and give ongoing performance feedback. Providing
feedback is an important part of the process because quick-serve restaurant employees need to know what they
are doing right and what needs improvement. However, the feedback should be positive so it will motivate quickserve restaurant employees to continue striving to achieve management's objectives and improve their
performance. If quick-serve restaurant employees are criticized routinely, they tend to be less motivated and not try
to improve because they never receive praise for what they do right. Although coaching is an instructional method, it
usually does not include the use of printed materials. Coaching does not involve providing quick-serve restaurant
employees with job restrictions.
SOURCE: HR:364
SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development (2nd ed.)
[pp. 447-448]. Mason, OH: South-Western.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
17
41. D
Workers may exhibit hostile behavior towards the disciplinarian. As the person administering the punishment, the
quick-serve restaurant supervisor may become the object of the employee's hostility. People view punishment in
different ways—what is punishment to one person may not be to another. Workers who crave attention will not be
deterred by discipline. Behavioral changes may be only short-term rather than permanent.
SOURCE: HR:369
SOURCE: MN LAP 53—Remedial Action
42. C
To meet consumers' wants and needs. Marketers need a constant flow of information about consumer preferences
in order to offer products that meet their wants and needs. Quick-serve restaurant owners want to make a profit by
offering the food items and services that people will purchase. Information about the success of a line would not
help to design displays, prepare advertising materials, or develop community relations.
SOURCE: IM:001
SOURCE: IM LAP 2—Marketing-Information Management
43. D
Buying behavior. Buying behavior is the usual purchasing methods of consumers; it is the process they use to
decide what they will buy and from whom they will buy. By monitoring consumers' buying behavior, quick-serve
restaurant chains are able to find out what type of food products they buy, how much they spend on the food items,
and where they buy certain food items on a regular basis. Quick-serve restaurant chains can use this information to
make marketing decisions such as whether to offer lower prices in order to take customers away from competitors.
Quick-serve restaurant chains usually are not able to obtain information about a customer's personal character.
Customer credit ratings are not a consideration in pricing. Supplemental income is income from sources other than
a primary job and often is private information that is not available to quick-serve restaurant chains.
SOURCE: IM:184
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 643-644]. Woodland Hills, CA: Glencoe/McGraw-Hill.
44. D
There is a sufficient target market. A chain of taco restaurants would assess the trading area before opening a new
location to identify the target market, which is the particular group of customers a quick-serve restaurant seeks to
attract. The reason for this is to identify the people within the trading area who are most likely to become regular
customers. For example, a chain might assess the people within the trading area on the basis of age, income,
family size, etc., to determine if there is a sufficient market for a taco restaurant. If a sufficient target market does
not exist, a chain probably would decide not to open a new location in that trading area. Chains do not assess the
trading area to determine if the site is accessible to vendors, if there will be a need for advertising, or if the design
blends with the community.
SOURCE: IM:127
SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees
(pp. 56-58). Upper Saddle River, NJ: Prentice Hall.
45. C
Exploratory. Exploratory research collects information to help a business, such as Tasty Fruit Smoothies, to define
its issue, situation, or concern and decide how to best address it. Descriptive research is used to gather specific
information that is related to the identified issue, situation, or concern. Causal research focuses on cause and effect
and tests "what if" theories. Predictive research helps the chain in forecasting future business developments.
SOURCE: IM:010
SOURCE: IM LAP 5—Nature of Marketing Research
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
18
46. D
Counting the number of respondents who agreed with the questions. In many cases, processing marketing
information involves tabulating the results. Tabulating is counting the number of respondents who answered each
question with one of the possible answers. For example, if 100 people responded to a survey, the quick-serve
restaurant needs to know how many of the respondents agreed, disagreed, or had no opinion about the questions.
Tabulating also helps the quick-serve restaurant determine if some people did not answer all the questions, which
might have an effect on the accuracy of the results. Tabulating does not involve analyzing the information to make it
useful, or comparing the results with results from other types of research. Coding is assigning a numeric value to
the various responses on the survey.
SOURCE: IM:062
SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach for the new
millennium (pp. 501-505). Boston: Irwin/McGraw-Hill.
47. C
Marketing. The marketing concept philosophy is based on the belief that all business activities should be aimed
toward satisfying customer wants and needs while achieving company goals. Customer relations is the process of
promoting a favorable business image in the mind of the customer. The distribution function of marketing involves
moving, storing, locating, and/or transferring ownership of goods or services. The product/service management
function of marketing involves obtaining, developing, maintaining, and improving a product or service mix in
response to market opportunities.
SOURCE: MK:001
SOURCE: BA LAP 11—Have It Your Way!
48. B
Market. Market segmentation is the division of a total market into smaller, more specific groups. McDonald's is
targeting several specific markets within the quick-serve restaurant market. Geographic segmentation is the division
of a market on the basis of where consumers are located. Demographic segmentation is the division of a market on
the basis of characteristics people have in common that affect their purchasing power. Educational level is a
demographic characteristic.
SOURCE: MP:003
SOURCE: IM LAP 9—Have We Met? (Market Identification)
49. B
Customer profile. Customer profiles are used by companies (e.g., quick-serve restaurants) to create a clear picture
of their target market for use in decision making. A customer profile contains a variety of information about
customers, such as age, income level, ethnic background, occupation, etc. This type of record is not known as a
preference list, a demographic breakdown, or a consumer composite.
SOURCE: MP:005
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 525]. Woodland
Hills, CA: Glencoe/McGraw-Hill.
50. A
Mix. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. One
section of an effective marketing plan explains the marketing mix, which is the combination of the four elements of
marketing—product, place, promotion, and price. A business needs to plan how it will use these elements to reach
the target customer and effectively market its goods and services. The marketing concept is a philosophy of
conducting business that is based on the belief that all business activities should be aimed toward satisfying
consumer wants and needs while achieving company goals. Policies are general rules to be followed by company
personnel. Risk is the possibility of loss or failure.
SOURCE: MP:007
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 632-633]. Mason, OH: South-Western.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
19
51. D
Market analysis. A market analysis involves collecting information about a group (segment) that may have an
unfulfilled desire for something and is willing and able to pay for it. A quick-serve restaurant analyzes various
segments to determine if it is in its best interests to market its products to those segments. The market analysis
considers the size of the market segment, demand, and profitability. A trend is the general direction in which people
or events are moving. A technology evaluation assesses a quick-serve restaurant's technology (e.g., computer,
telephone) needs. A strategy assessment is a way to determine if the business is accomplishing its goals through
its plans of action.
SOURCE: MP:009
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 54]. Mason, OH:
Thomson/South-Western.
52. C
Competitive. A competitive analysis involves examining the competitive environment to find out what competitors
are doing. When conducting a competitive analysis, a quick-serve restaurant usually reviews the prices that
competitors are charging for similar menu items. A quick-serve restaurant also wants to find out the types of
services that competitors are offering to customers. The goal is to find out what the competition is doing in order to
be able to compete effectively. For example, a quick-serve restaurant might reduce prices on certain products if it
discovers that most competitors are selling similar menu items for a lower price. A technological analysis involves
reviewing the current technology that is available. An industry analysis involves examining the industry as a whole
rather than individual competitors. Relationship analysis involves reviewing the relationship that exists between the
quick-serve restaurant and its customers.
SOURCE: MP:012
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 64-67]. Mason, OH:
Thomson/South-Western.
53. A
Qualitative. When qualitative forecasting methods are used, a business prepares its sales forecasts by asking
knowledgeable people to state their opinions or predictions about sales. Many of these individuals have what is
called a feel for the marketplace. Their predictions are based on what they have seen happen in the past as well as
on current observations of the economy or of the industry. Quantitative methods of forecasting sales are based on
the results of gathering and analyzing all kinds of numerical market data. Intermediate and long-term forecasting are
time frames for forecasting sales that exceed one year.
SOURCE: MP:013
SOURCE: IM LAP 3—Nature of Sales Forecasts
54. C
Marketing plan, financial plan, and business situation analysis. A well-organized business plan consists of three
major sections. The business situation analysis is the first section of the business plan. It provides a description
about the business including the type of business, philosophy, product description, and self-analysis for
entrepreneurs. The second section describes the business's marketing plan and also addresses organizational
issues. The last section is the financial plan, which discusses the business's overall financial status and needs. The
market segment analysis, SWOT analysis, and trading area analysis are components of the business situation
analysis. The manufacturing plan applies only to manufacturing businesses and is a component of the
organizational section of the business plan. The projected income report is a component of the financial plan.
SOURCE: MP:018
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk C.A. (2006). Marketing essentials (4th ed.) [p. 740]. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
20
55. D
Sales performance. To be successful in the marketplace, a quick-serve restaurant must control its marketing plan.
This means that the quick-serve restaurant needs to continuously monitor the plan and make appropriate changes
as necessary. Quick-serve restaurants consider many factors when developing marketing plans, such as pricing,
advertising, and sales. Sales objectives are a quick-serve restaurant's desired outcomes or goals for sales. Quickserve restaurants measure sales in a variety of ways, such as dollar volume or unit volume. To determine if the
quick-serve restaurant is meeting its sales goals, it compares the goals to actual sales. For example, if a quickserve restaurant's quarterly sales goal is $300,000, and actual quarterly sales are $255,000, then the quick-serve
restaurant knows that it needs to take corrective action. Corrective action may involve training employees to
improve their efficiency or providing suggestive-selling techniques. Quick-serve restaurants do not compare sales
objectives with routine goals, development procedures, and financial ratios to measure the effectiveness of their
marketing efforts.
SOURCE: MP:019
SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 51, 53-54]. Upper Saddle
River, NJ: Prentice Hall.
56. A
To identify problems. One of the goals of a marketing audit is to identify problems and make adjustments to improve
a quick-serve restaurant's marketing performance. A marketing audit involves examining all aspects of a quickserve restaurant's marketing effort to identify problems or techniques that are working effectively. Once quick-serve
restaurants have identified specific marketing problems, they can use this information to make necessary changes.
Quick-serve restaurants do not conduct marketing audits to account for funds, target customers, or review
procedures. However, a quick-serve restaurant might review marketing procedures as part of the audit to identify
problems.
SOURCE: MP:024
SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 708-711]. Upper Saddle River, NJ: Prentice
Hall.
57. A
Sex, skin color, height, weight. Quick-serve restaurant employees should try to observe and remember as much
information about the robber as possible in order to help the police apprehend the assailant. Observing the person's
sex, skin color, height, and weight will help to develop a description that the police can use during the investigation.
It may be difficult to observe the eye color if the robber is wearing glasses or a mask. Robbers do not give their
names. Quick-serve restaurant employees would not be able to determine a robber's personality or aptitude.
SOURCE: OP:113
SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging management
program: Year one (pp. 94-95). Lansing, MI: Author.
58. A
Sanitize with chemicals. Sanitizing takes place after washing and rinsing in order to kill bacteria. Chemicals are
often used to sanitize because they are effective in destroying micro-organisms that might cause illnesses. Washing
with detergent and rinsing is cleaning rather than sanitizing. Drying with paper towels will not kill bacteria.
SOURCE: OP:082
SOURCE: National Restaurant Association: The Educational Foundation (1998). Becoming a food service
professional (2nd ed.) [p. 119]. Chicago: National Restaurant Association: The Educational Foundation.
59. C
Take no chances, throw it out. Food may spoil for a variety of reasons such as being improperly stored or
refrigerated or contaminated during preparation. Most quick-serve restaurants instruct their employees to dispose of
food that may be spoiled. Some foods can be spoiled but have no odor; therefore, smelling would not be a good test
for spoilage. Some bacteria can be deadly—even in small amounts—so no one should taste or serve suspected
food items.
SOURCE: OP:103
SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees (p. 252). Upper
Saddle River, NJ: Prentice Hall.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
21
60. C
Safe work environment. Quick-serve restaurants usually develop procedures and policies for employees to follow in
order to maintain a safe work environment. One policy might involve the type of clothing that employees are
permitted to wear on the job. Depending on the type of work, employees may be required to wear certain types of
shoes or clothing that cover their arms and legs. Employees may not be allowed to wear clothing that might get
tangled up in equipment. The intent is to keep the work environment safe for employees. Quick-serve restaurant
employees often wear uniforms while working, which may help create a certain image with that particular restaurant,
rather than the quick-serve restaurant industry as a whole. Quick-serve restaurants do not require employees to
wear appropriate clothing to maintain a comfortable atmosphere, or an organized facility.
SOURCE: OP:008
SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)
[pp. 272-273]. Weimar, TX: Culinary and Hospitality Industry Publications Services.
61. C
Providing home security. Production is the process or activity of producing goods and services. Providing home
security creates a service for consumers and is, therefore, considered a form of production. Reading for pleasure,
answering a telephone that is not a business phone, and purchasing food items are not production activities
because they do not create a good or service.
SOURCE: OP:017
SOURCE: BA LAP 1—Nature of Production
62. D
Evaluate its systems and procedures. A procedure is a step-by-step process for performing a specific task. A quickserve restaurant must conduct many tasks to keep it running. To make sure that the quick-serve restaurant is
operating efficiently, it may evaluate its procedures to see if it should make improvements in order to reach its
various goals. A quick-serve restaurant would not distribute a survey to competitors or hire an international tax
consultant to determine if it is operating in the most efficient manner.
SOURCE: OP:022
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 288, 330]. Cincinnati: South-Western.
63. A
Expenses. Expenses are the monies that a business spends. Quick-serve restaurant chains should consider their
expenses because uncontrolled expenses reduce profits, which ultimately may lead to business failure. Quick-serve
restaurant chains should not make the mistake of ignoring expenses because sales are good. Even if sales are
good, uncontrolled expenses could eliminate all profits. Policies are general rules to be followed by company
personnel. Contracts are agreements between two or more businesses stating that one party is to do something in
return for something provided by the other party. Assets are anything of value that a business owns.
SOURCE: OP:025
SOURCE: MN LAP 56—Employee Role in Expense Control
64. C
Replacing light bulbs. A quick-serve restaurant's preventive maintenance program usually specifies when to replace
light bulbs in order to change them before they burn out. By replacing bulbs before they burn out, quick-serve
restaurants are eliminating the need to handle this type of repair on an emergency basis while customers are
present. Regular bulb replacement maintains the quick serve restaurant's lighting system in good repair.
Remodeling the dining room and renovating the office area are major construction projects rather than preventive
maintenance activities. Rearranging display shelves is a housekeeping activity.
SOURCE: OP:033
SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)
[pp. 318-319]. Upper Saddle River, NJ: Prentice Hall.
65. B
Register balances. To determine whether the register balances, add cash paid out to the cash in the drawer and
subtract the opening change fund. If this figure equals the cash on the detailed audit strip, the register balances
($195 + $5 = $200 - $50 = $150).
SOURCE: OP:195
SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 152-154). Cincinnati:
South-Western Educational.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
22
66. D
Put their goals in writing. Goal setters should write down their goals. This helps to visualize the goals, to clarify
them, and to plant them firmly in the mind. Goals should be in specific, measurable terms. They also should be
personal goals, not goals someone else has helped you to set. Analyzing dreams may help insetting goals but not
in reaching them.
SOURCE: PD:018
SOURCE: HR LAP 6—Goal Setting
67. D
National Restaurant Association. This is an example of a trade association in the restaurant industry. The American
Marketing Association is an organization of people who are interested in marketing. The Chamber of Commerce of
the United States makes known to government the recommendations of the business community on national issues
and problems affecting the economy. The National Federation of Independent Franchisees is a fictitious term.
SOURCE: PD:036
SOURCE: CD LAP 1—Trade Associations and Professional Organizations
68. A
Essential. Time-management techniques are skills that can be applied to aid in the wise use of time. Many quickserve restaurant employees like to get difficult or unpleasant tasks out of the way first, but good time management
dictates that the most essential or necessary activities should be completed first. Nonessential activities would be
the last to be performed.
SOURCE: PD:019
SOURCE: OP LAP 1—About Time (Time Management)
69. A
Items in inventory. Certain information is sent through the point-of-sale computer on the quick-serve restaurant's
network to a central computer that keeps track of sales. The point-of-sale computer indicates item price, description,
and applicable discounts, and other transaction-related data and prints this information on the customer's receipt.
The customer's receipt would not indicate the restaurant's inventory status.
SOURCE: PI:016
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 273-275]. Woodland Hills, CA: Glencoe/McGraw-Hill.
70. A
Stay in business. A quick-serve restaurant that sells its products below cost will eventually go broke. In order to
succeed, the quick-serve restaurant must recover its costs and make a profit. By recovering costs, quick-serve
restaurants are able to minimize their losses. Recovering costs does not reduce taxes and is not associated with
government regulation, except in monopolies that are owned or controlled by the government.
SOURCE: PI:002
SOURCE: PI LAP 3—Factors Affecting Selling Price
71. D
Discounts. The most frequently offered discounts are seasonal, trade, cash, and quantity. FOB is a shipping term
that means free on board and is used to indicate who pays shipping costs. Advance terms extend the time period
for the discount beyond the invoice date. EOM means end of month terms in which the time allowed to pay the
invoice does not begin until the end of the month shown on the invoice.
SOURCE: PI:019
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 577-581).
New York: Glencoe/McGraw-Hill.
72. B
Test marketing. Test marketing is the process of introducing a new product to a limited market to determine what its
acceptance will be. The product may be tried out in specific locations to get consumers' and retailers' reactions
before starting a wider distribution. Modifications in the product can be completed as a result of the test market.
During concept testing and product screening, a quick-serve restaurant chain might decide to drop a proposed new
product. Market planning takes place when a new product goes into full production.
SOURCE: PM:001
SOURCE: PP LAP 5—Product/Service Planning
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
23
73. A
Mass customization. Ongoing technological advancements are helping businesses (e.g., restaurant-supply
companies) take their standard products and customize them for other businesses (e.g., quick-serve restaurant
chains) in an efficient, cost-effective way. An example of mass customization is when a paper products company
customizes items for its quick-server restaurant customers by placing the restaurant's logo on napkins, drink cups,
etc. Reverse standardization, interactive transformation, and modified obsolescence are fictitious terms.
SOURCE: PM:039
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 308-309]. Mason, OH: South-Western.
74. B
Specific details. A common use of synectics is to describe a topic in great detail. The goal is to generate ideas by
focusing on the details of a situation. The technique is often useful to develop ideas when a good or service exists.
Often, the goal is to determine potential market opportunities and identify unique attributes of the product that might
appeal to the potential market. To identify the market opportunities, the synectics' process involves identifying many
specific details about the product and the potential market. The detail-orientation synectics' technique might begin
by addressing general needs, personal wants, or positive attributes; however, the creative-thinking process must
evolve and identify all components in great detail.
SOURCE: PM:127
SOURCE: PM LAP 11—Unleash Your Oh! Zone
75. A
Customer loyalty. Guarantees can be used to foster customer loyalty. When a quick-serve restaurant handles a
customer's problem (e.g., incorrect food order) courteously and quickly, the customer feels good about the quickserve restaurant and is more likely eat in the restaurant again. Increasing employee morale is not the purpose of
handling such problems effectively, although that may occur. Satisfactorily handling problems generally reduces the
number of consumer complaints and decreases the possibility of government intervention.
SOURCE: PM:020
SOURCE: PP LAP 4—Warranties and Guarantees
76. C
Increased expense. Quick-serve restaurants that fail to meet government standards often experience increased
expenses. These added expenses may result from efforts to comply with the law and to produce safe products.
Increased expenses also may result from replacing defective products, paying higher insurance premiums, or
paying court fines for violating government safety regulations. Failing to meet government standards increases a
quick-serve restaurant's liability, reduces its goodwill in the community, and increases its possible damages.
SOURCE: PM:017
SOURCE: PP LAP 7—Consumer Protection in Product Planning
77. D
Needs and wants. Quick-serve restaurants need to offer products that customers will purchase or they will not thrive
in the marketplace. To determine what products the customers will purchase, the quick-serve restaurant must
determine the customers' true needs and wants, and then develop products to fulfill those needs and wants. When
identifying products to offer its customers, businesses do not first consider the customers' emotional intelligence,
performance levels, or credit ratings.
SOURCE: PM:130
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (p. 71). Upper
Saddle River, NJ: Prentice Hall.
78. A
Augmented. A core product is the primary product that a customer purchases. To entice customers to buy, quickserve restaurants often provide additional services, or augmented services, to increase the perceived value of the
core purchase. For example, some quick-serve restaurants now accept credit cards as a payment option for dine-in,
carryout, and drive-through orders. External, ongoing, and conditional are not types of services that add value to
core products.
SOURCE: PM:036
SOURCE: Solomon, M.R., & Stuart, E.W. (2000). Marketing: Real people, real choices (2nd ed.)
[p. 297]. Upper Saddle River, NJ: Prentice Hall.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
24
79. B
Stage of the product's life cycle. During the decline stage of a product's life cycle, sales and profits fall rapidly. To
keep the product on the market, the business may reposition it to appeal to a different market segment. For
example, the business might position the product by reducing the price in order to attract value-conscious
customers. By positioning the product in this way, the business has the opportunity to generate some profit by
keeping the product alive. If the demand is consistent or high, and there are few competitors, the business would
probably not need to reposition the product. High research and development costs are associated with products in
the introductory stage. If features or benefits become obsolete, the product would most likely be taken off the
market.
SOURCE: PM:042
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 644-645).
New York: Glencoe/McGraw-Hill.
80. A
Increased operating costs. Adding a telephone order placement and processing service would require additional
storage space, which is usually a problem for small, quick-serve restaurants. The added operating costs in personal
effort, time, additional personnel, and insurance may also make such a service unprofitable. Competitors' standards
are not always a primary consideration when determining whether or not a quick-serve restaurant should add a
service.
SOURCE: PM:013
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (p. 222). Upper
Saddle River, NJ: Prentice Hall.
81. C
Evaluate its effectiveness. To develop a brand, a quick-serve restaurant chain should follow a step-by-step process.
The final step is to determine if the brand is doing what the quick-serve restaurant chain wants it to do, or evaluate
its effectiveness. Marketing research methods can help the quick-serve restaurant chain determine if its brand is
successful. Developing the brand's promise, describing the brand's personality, and selecting a catchy name are
steps that a quick-serve restaurant chain takes to build the brand, and must be done before it can measure the
brand's effectiveness.
SOURCE: PM:126
SOURCE: PM LAP 10—Building Your Business's Brand
82. D
$15,000. To calculate planned purchases, use the following formula: Planned monthly purchases = planned sales +
planned end-of-the-month stock - planned beginning-of-the-month stock. First, add planned monthly sales and
planned end-of-the-month stock ($7,000 + $38,000 = $45,000). Then, subtract planned beginning-of-the-month
stock from that figure ($45,000 - $30,000 = $15,000).
SOURCE: PM:064
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 486-487).
New York: Glencoe/McGraw-Hill.
83. D
Develop guidelines for employees to follow. Quick-serve restaurants know that unexpected situations will occur
occasionally which will have an impact on the quality of service. To ensure the continuity of service quality, it is
helpful for restaurants to develop guidelines for employees to follow. Then, employees will know what to do in the
event of an unexpected situation. For example, a customer complains that a hamburger is not cooked sufficiently.
To handle the situation, employees should know that they can offer the customer another hamburger or offer the
customer a refund. Giving managers total control prevents the employees from handling unexpected situations on
their own. This often has a negative impact on service quality because customers must wait for a manager to
correct the problem. Simply preparing a list of routine problems will not help employees learn how to deal with them
and provide quality service. Emergency numbers are important to have in order to handle emergency, situations
such as a robbery, rather than to ensure the continuity of service quality.
SOURCE: PM:175
SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.) [pp. 161162]. Upper Saddle River, NJ: Prentice Hall.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
25
84. C
Demand. Because demand for ice cream changes with the seasons, Baskin & Robbins increases its promotions in
the winter to increase demand. Competition uses promotion to gain an edge over and respond to competitors.
Technology provides promotional opportunities through "new and improved" products. Cultural and social trends
address changes in lifestyles, attitudes, and tastes.
SOURCE: PR:001
SOURCE: PR LAP 2—Promotion
85. C
Obtain customers. The promotional mix plays a key role in obtaining and keeping customers. An appropriate blend
of the promotional elements enables quick-serve restaurants to communicate effectively with consumers. Promoters
are able to inform potential consumers about the existence of their products, services, or ideas and to persuade
them to buy. An effective promotional mix does not help a business to influence vendors. Advertising and publicity
are elements of the promotional mix.
SOURCE: PR:003
SOURCE: PR LAP 1—Promotional Mix
86. D
Stereotypes. A stereotype is a set image or an assumption about a person or thing. An advertisement that portrays
a woman in a traditional female role (e.g., mopping the kitchen floor) is reinforcing a stereotype. Stereotyping
women in such roles may offend some people because many males and females now share the responsibility of
household chores. Discrimination is the unfair treatment of a person or group based on the person's or group's
characteristics. Some people consider an advertisement that portrays a woman in a traditional female role as a
gender-based form of discrimination rather than age-based discrimination. Socialization refers to the way in which a
community organizes itself. Equity label is a fictitious term.
SOURCE: PR:099
SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (p. 216). Mason, OH:
South-Western.
87. C
Electronic mail. Electronic mail (e-mail) refers to the electronic transmission of messages across computer
networks. A small, quick-serve restaurant might use electronic mail to send promotional messages to customers or
potential customers in a cost-efficient manner. Encryption card, interactive banner, and exclusive kiosk are not
technological terms that are commonly used to describe a means of sending promotional messages.
SOURCE: PR:100
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [p. 505]. Mason, OH: South-Western.
88. B
Direct mail. The return of response cards and coupons or the volume of telephone calls are evidence of the
effectiveness of direct mail promotions. The relationship of ads in newspapers, radio, and television to sales volume
is more difficult to establish. Sales increases through direct mail can be more easily tied to the ad itself.
SOURCE: PR:007
SOURCE: PR LAP 3—Types of Promotional Media
89. D
Project an image of the restaurant. A quick-serve restaurant's visual merchandising efforts give customers a good
idea of the restaurant's products by reflecting a certain image. Visual merchandising cannot make menu items
desirable or keep prices low. Visual merchandising may be used in competing with other quick-serve restaurants,
but following their lead is not a purpose of visual merchandising.
SOURCE: PR:023
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 383).
New York: Glencoe/McGraw-Hill.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
26
90. B
Advertising a new menu item and giving customers samples of the product. This is an example of coordinating
advertising and sales promotion, two types of promotional activities, because they are being used together to
market the product. Advertising brings customers to the quick-serve restaurant, and sales promotion techniques
such as giving customers samples help to persuade them to buy. Providing coupons and using personal selling are
promotional activities, but they are being used alone rather than as part of a coordinated effort. Suggesting that a
customer purchase additional items is not a promotional activity.
SOURCE: PR:076
SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 89-93). Mason, OH:
South-Western.
91. A
Demonstrating. Demonstrating is the technique of using visual explanation to describe complex products or to
illustrate selling situations. Restaurant equipment salespeople often use demonstrations to explain product features
and benefits to customers (e.g., quick-serve restaurant manager) in order to create a desire for a certain piece of
cooking equipment. Showing the customer how the product operates often heightens the customer's desire to
purchase that product. Recommending is suggesting. Instructing is teaching or training. Substituting is offering
items in place of others.
SOURCE: SE:017
SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)
92. B
Order processor. When a misunderstanding occurs, it is important for the order processor, who is usually the
primary contact with the customers, to deal with the situation tactfully in order to satisfy customers. Regardless of
who is at fault, the order processor should take responsibility for the problem and do whatever is necessary to
correct the problem. The customer must be made to feel that the problem is being taken care of promptly and
competently. The customer should not take responsibility for the problem. The head chef and the owner would not
usually become involved, except when the order processor is not able to remedy the problem.
SOURCE: SE:828
SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)
93. C
Communicate instantly. E-mail technology makes it possible for small, quick-serve restaurants, such as pizza
shops, to communicate with their local customers instantly. Many pizza shops use e-mail to follow up with
customers because it is a fast and efficient method of communication. For example, a pizza shop may e-mail online
coupons to customers, and the customer receives the message instantly. A customer may decide to order a pizza
because s/he can use the coupon to receive a lower price or special deal for the pizza. Pizza shops would not
generally use e-mail to arrange for delivery of an order or to schedule training for a customer's employees. E-mail is
not used to organize information.
SOURCE: SE:107
SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.) [pp. 133134]. Mason, OH: South-Western.
94. C
Exaggerating product capabilities. Quick-serve restaurant suppliers should avoid exaggerating the capabilities of
their products or promising more than the products can provide. An example of misrepresentation is promising that
a product will increase profit by a certain amount. If a customer buys the product based on a supplier's statement
and the product does not generate the promised profit, the customer (e.g., quick-serve restaurant owner) may sue
the supplier. Misrepresenting products is illegal and may be costly to quick-serve restaurant suppliers if they are
sued. Suppliers' representatives should be as factual as possible and provide exact product information to avoid
misleading customers. It is not illegal for a supplier's salesperson to state his/her opinions or boast that the supplier
offers the best service. Offering products for low prices is not illegal.
SOURCE: SE:108
SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 89-94]. Boston:
Irwin/McGraw-Hill.
Test 934
QUICK SERVE RESTAURANT MANAGEMENT — KEY
27
95. C
Experienced salespersons within the firm. Other salespersons who are already experienced in selling the products
can provide the new salesperson with a wealth of information in a very short time. Since new salespersons are
usually assigned to work with someone who has experience, this provides them with an easily accessible source of
information. Customers (e.g., quick-serve restaurants) are good sources of information about products they have
used, but new purchasers of a product will not be well informed. Receiving department employees handle incoming
shipments of products and are not likely to be knowledgeable about specific products. Producers of products are
not likely to be available to the salesperson.
SOURCE: SE:062
SOURCE: Burrow, J.L. (2002). Marketing (pp. 465-466). Mason, OH: South-Western.
96. A
Welcome. This approach is also called a greeting approach, and it is used to create a friendly atmosphere so that
customers, such as quick-serve restaurant managers, feel welcome and at ease. With an informal greeting, you
might say, "Good morning, Mr. Smith." The service approach is a polite question, such as "May I help you?" that
indicates willingness to be of service to the customer. A merchandise approach is used when the customer is
already looking at merchandise or examining labels. The combination of all or some of the alternatives would be
appropriate for many selling situations.
SOURCE: SE:110
SOURCE: SE LAP 101—Opening the Retail Sale
97. D
Sugar. Customer taste preferences dictate that cream, sugar, and artificial sweetener be offered or available with
coffee. Buttermilk is used as a cooking ingredient or food topping. Salt gives flavor to certain foods. Dressing is a
salad topping.
SOURCE: SE:145
SOURCE: Kirkham, M., Weiss, P., & Crawford, B. (2000). The waiting game: The ultimate guide to waiting tables
(pp. 5, 7). Austin, TX: Twenty Per Cent.
98. D
Give customers their change. Keeping the customers' money on the plate above the register drawer is the best way
to avoid a dispute with a customer. If the money is in plain view until the change is given, a quick-serve restaurant
employee can easily show it to the customer to prove there is no error in change. For example, a customer gives an
employee a $10 bill for an $8.50 purchase, and the employee leaves the bill on the plate above the register drawer.
If the customer then claims that the bill was a $20, the employee can point to the $10 which is still in view.
Employees add up the total amount due before accepting cash from customers. Once the transaction is complete
and the customer receives change, an employee might print a receipt and thank the customer.
SOURCE: SE:150
SOURCE: Bond, R. (2001). Retail in detail: How to start and manage a small retail business (2nd ed.) [pp. 106107]. Central Point, OR: Oasis Press.
99. A
Vice president. Strategic planning is one of the major responsibilities for top-level managers, which includes
company presidents and vice presidents. Vice presidents often spend most of their work time developing long-range
plans and setting objectives for the quick-serve restaurant chain. A first-line supervisor would spend the most time
working directly with employees. Production assistants and sales clerks have limited responsibility for planning.
SOURCE: SM:001
SOURCE: BA LAP 6—Manage This!
100. B
Finances. Control is the management function that monitors the work effort. A budget is an estimate of what income
and expenses will be for a specific time period. Managers use budgets as way to control expenses in relation to the
income that the quick-serve restaurant receives. Productivity is the amount of work employees perform in a given
period. Effectiveness is the ability to achieve a result. Information is knowledge, facts, or data.
SOURCE: SM:004
SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development (2nd ed.)
[p. 444]. Mason, OH: South-Western.