Test 937A
HOSPITALITY SERVICES
1
1. Which of the following forms of business ownership must obtain a charter from the state(s) in which it
operates:
A. Consolidation
C. Partnership
B. Sole proprietorship
D. Corporation
2. What is the federal agency responsible for enforcing environmental regulations?
A. Environmental Protection Agency
C. Federal Trade Commission
B. Food and Drug Administration
D. National Transportation Safety Board
3. The hotel manager needs a new car for the hotel staff and decides to purchase a Lexus. The manager
visits the only Lexus dealership in the area and orders a car that will be delivered in six weeks. What type
of distribution is being demonstrated?
A. Restrictive
C. Selective
B. Exclusive
D. Intensive
4. Which of the following makes it possible for a hotel supply business's drivers to determine their exact
location and obtain accurate directions to destinations:
A. Video frequency technology
C. Cellular telephone system
B. Global positioning system
D. Image scanning technology
5. Resort pro shops that buy products from suppliers that are not the authorized distributors for the
products' manufacturers are involved in the
A. gray market.
C. export business.
B. outlet industry.
D. discount trade.
6. If a hotel supply business considers where the consumers are and who they are before selecting a
channel of distribution, the business is considering the __________ factor.
A. promotion
C. human
B. market
D. sales
7. Why is it important for convention hotel employees to identify the audience before developing an oral
presentation?
A. To send invitations to the event
C. To determine the date of attendance
B. To select a comfortable seating area
D. To include appropriate information
8. The reason hotel chain employees often do research and write proposals is to
A. understand complex data.
C. investigate resources.
B. organize information.
D. provide recommendations.
9. Which of the following questions should front desk clerks ask guests requesting wake-up calls:
A. Are you in a nonsmoking or a smoking room?
B. How many persons are staying with you?
C. Could I have your name and your room number?
D. Will you be ordering room service?
10. The human relations element that contributes to success in the hotel gift shop is
A. offering a wide variety of merchandise.
C. having an easy return policy.
B. establishing good customer/client relations.
D. offering high-quality merchandise.
11. Why should motel employees act as if customers are their employers?
A. Employees would not have jobs if there were no customers.
B. Customers pay employees' bonuses.
C. Employees might work for the customers in the future.
D. Customers own the motel.
Copyright © 2008 by Marketing Education Resource Center®, Columbus, Ohio
Test 937A
HOSPITALITY SERVICES
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12. The Days Inn lodging chain considers the factors of accessibility and interception when building
properties. These factors are part of which aspect of the place (distribution) element?
A. Familiarization tours
C. Open house
B. Global reservation systems
D. Appropriate location
13. One of the main purposes of taking a physical inventory is to determine whether the hotel gift shop has
A. filed its invoices properly.
C. lost any of its stock.
B. satisfied its customers.
D. given its employees adequate training.
14. Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or dinner
at a hotel restaurant. If he chooses the DVD player, what is the opportunity cost of this decision?
A. Dinner
C. Birthday check
B. DVD player
D. $50
15. Which of the following is an external factor that affects market price:
A. Location of item in store
C. Number of items in stock
B. Consumer buying power
D. Available credit terms
16. Financial analysis occurs when a hotel chain
A. communicates with potential customers.
B. keeps accurate expense records.
C. plans for long-term success.
D. effectively retrieves data.
17. What consumers want and need helps to answer the basic economic question of
A. who will do the production.
C. how products will be produced.
B. what products will be produced.
D. how products will be allocated.
18. Which of the following often is the result of a tight monetary policy:
A. Inflation decreases
C. Money supply increases
B. Interest rates decrease
D. Spending increases
19. Which of the following is a technique that ski resorts often use to increase job satisfaction among
employees:
A. Offering flexible work schedules
C. Providing repetitious assignments
B. Eliminating the need to make decisions
D. Developing strict performance guidelines
20. Unemployment hurts the economy because unemployed people are unable to contribute to the
A. balance of payments.
C. annual federal deficit.
B. gross domestic product.
D. standard of living.
21. In 1999, both Congress and the Senate passed a tax cut for the citizens of the United States. If President
Clinton hadn't vetoed the cut, it would have helped the economy by affecting which internal cause of
business cycles?
A. Money supply
C. Inventory levels
B. Aggregate demand
D. Investment in capital goods
22. Mr. Field makes all the important decisions and gives his motel employees very specific instructions.
Which of the following describes Mr. Field's management style:
A. Authoritarian
C. Laissez-faire
B. Democratic
D. Open
23. Which of the following is a character trait that effective leaders usually possess:
A. Lifestyle
C. Domineering personality
B. Self-interest
D. Emotional intelligence
Test 937A
HOSPITALITY SERVICES
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24. Which of the following is a powerful motivator that often prompts hotel employees to take action:
A. Criticism
C. Feedback
B. Recognition
D. Leadership
25. Motel chain employees who have different opinions about how a certain task should be performed often
negotiate in order to
A. avoid rejection.
C. make a statement.
B. reach a compromise.
D. create opposition.
26. What is often the last recourse for a hotel supply business trying to collect a delinquent account?
A. Legal action
C. Regular follow-up
B. Frequent harassment
D. Formal notification
27. Many people pay for meals and lodging on credit through a(n)
A. unsecured loan.
C. budget credit account.
B. installment credit account.
D. travel and entertainment card.
28. By developing a personal budget, individuals will be able to review their
A. daily transactions.
C. investment plans.
B. spending patterns.
D. bank statements.
29. One of the main causes of economic risks in the hotel business is
A. changes in the market.
C. employees being hired.
B. prices being lowered.
D. alterations in a product.
30. Which of the following does not describe the information produced when accounting standards are
applied:
A. Complex
C. Credible
B. Relevant
D. Transparent
31. How is the resort gift shop affected if its sales forecast is too high?
A. The shop won't need to take markdowns.
B. The shop's profits may be increased.
C. The shop may have to increase its promotions.
D. The shop may not order enough goods.
32. A hotel gift shop's profit-and-loss statement contains the following financial information: Total revenue,
$100,000; Cost of goods sold, $39,000; Expenses, $48,000. What is the shop's net profit?
A. $12,000
C. $23,000
B. $13,000
D. $31,000
33. Sales price of hotel restaurant food items, minus their preparation cost, equals
A. food cost.
C. tips.
B. sales.
D. profit.
34. Before a hotel chain takes steps to hire a new employee, it should
A. set up a schedule for the new employee.
B. develop a training plan for the new employee.
C. identify the available sources of new employees.
D. determine that a new employee is actually needed.
35. Which of the following are factors that might cause a motel to discharge an employee:
A. Poor performance, violating company policies, inappropriate work behavior
B. Company expansion, inappropriate work behavior, poor performance
C. Downturn in the economy, company expansion, unsatisfactory job performance
D. Unsatisfactory job performance, violating company policy, possible promotion
Test 937A
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36. If a golf resort fails to provide an orientation program for new employees, those employees might
A. fail the pre-employment test.
C. feel comfortable with coworkers immediately.
B. have an incomplete performance appraisal.
D. adjust poorly to the job and the resort.
37. Which of the following should not be part of an employee's performance evaluation:
A. Quantity of work completed
C. Quality of work performed
B. Ability to meet deadlines
D. Opinion of the evaluator
38. When obtaining marketing information from guests, why is it important for hotels to tell guests how their
personal information will be used?
A. To be ethical
C. To follow the law
B. To analyze data
D. To achieve goals
39. Why do some hotel chains' computers place a "cookie" on a visitor's hard drive when the visitor accesses
the chain's web site?
A. To track usage
C. To protect data
B. To ensure privacy
D. To eliminate theft
40. What does the following profile suggest about the large group of individuals staying in the east wing of a
downtown property: primarily males who share a common purpose, members of an inelastic market,
average length of stay is three days.
A. They are part of an extended-stay group of business travelers.
B. They are part of a tourist operation traveling for leisure.
C. They are part of a convention traveling on business.
D. They are members of an international delegation traveling for political purposes.
41. Marketing research can affect the hotel supply business's marketing mix by providing information about
the effectiveness of advertising that will influence the business's __________ decision.
A. price
C. promotion
B. place
D. product
42. The belief that profitable sales volume will result from giving customers quality products at fair and
reasonable prices is part of the
A. marketing mix.
C. marketing concept.
B. planning process.
D. consumers' movement.
43. A hotel supply company has a goal of increasing its sales by 15% and chooses a strategy of trying to
increase sales-staff motivation. An appropriate tactic to accomplish that goal would be to
A. conduct more sales contests.
C. increase administrative salaries.
B. reduce department budgets.
D. compete in the international marketplace.
44. An overall purpose of market segmentation is to divide the market
A. into consumer or industrial markets.
C. into well-defined groups of consumers.
B. by distance from store or producer.
D. by consumer or industry income.
45. A linen manufacturer that produces a unique type of bed linens to appeal to a specific segment of its
larger group of hotel customers is involved in
A. product planning.
C. regional selling.
B. specialty advertising.
D. niche marketing.
46. Which of the following information is included in the financial component of a convention hotel's
marketing plan:
A. Price of competitive services
C. Cost to implement the plan
B. Salary of the marketing manager
D. Reasons for offering discounts
Test 937A
HOSPITALITY SERVICES
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47. Which of the following is an example of a situation analysis aid:
A. Vertical integration
C. Diversification
B. Market penetration
D. Environmental scanning
48. Which of the following is a weakness that a hotel supply business might identify as a result of conducting
a SWOT analysis:
A. Availability of technically-advanced equipment
B. Possibility of competitors entering the market
C. Need to comply with additional governmental regulations
D. Inability to adapt to changes in customer preferences
49. Determine a resort gift shop's sales forecast for the coming year based on the following information: Last
year's sales were $500,000, which was 5% less than the previous year, and that trend is expected to
continue.
A. $475,000
C. $445,000
B. $450,000
D. $480,000
50. What do hotel chains develop in order to set aside the funds needed to cover the cost of performing
marketing activities?
A. Financial statement
C. Marketing budget
B. Accounting system
D. Cash-flow report
51. As part of their marketing plans, what do hotel supply businesses develop first that are intended to lead
to increased sales and revenue?
A. Tactics
C. Objectives
B. Strategies
D. Activities
52. What do hotel supply businesses often do with the information obtained as a result of conducting a
marketing audit?
A. Develop pricing strategy
C. Gather advertising data
B. Plan corrective action
D. Organize current inventory
53. An advantage in using an automated messaging system in a lodging facility is that it
A. increases hotel revenues by charging a message retrieval fee.
B. provides personal, professional, and courteous service.
C. lowers the risk of message transcription mistakes.
D. delivers messages by programmed time delays to accommodate guests.
54. In a noncomputerized hotel or motel, front-desk employees use an information rack to
A. store information about the local area.
C. keep track of guests' account balances.
B. keep an alphabetical list of guests.
D. hold guest folios during the guest's stay.
55. When posting information on a web page, the hypertags you will use to mark paragraphs in your
document are
A. <para> and <para>.
C. <P> and </P>.
B. <P> and <P>.
D. <startP> and <endP>.
56. Grand Beach Resort is keeping documents regarding the accidental death of an employee while on the
job. In case the employee's family sues the resort, the resort should have __________ records on hand.
A. payroll
C. asset
B. legal
D. promotional
Test 937A
HOSPITALITY SERVICES
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57. When accepting a personal check from a customer, one way to ensure that the hotel gift shop does not
suffer a loss because the check is worthless is to make sure that the
A. customer signs the check as it appears on his/her personal identification.
B. check is completed correctly and that your company name is shown as the payee.
C. customer is not using low check numbers and has the minimum balance required by the bank.
D. identification information on the check matches the identification that is carried by the customer.
58. Why do resorts post information about upcoming events, guided tours, and special activities?
A. To satisfy the target market
C. To fill meeting space
B. To attract a large audience
D. To encourage guests to buy
59. The government requires hotels and lodging facilities to keep a running log, or list, of work-related
accidents in order to identify __________ in workplace accidents.
A. victims
C. recordkeeping
B. first-aid procedures
D. patterns or trends
60. What activity is part of the industrial purchasing process?
A. Arranging demonstrations of goods
C. Analyzing needs of sales staff
B. Identifying sources of supply
D. Determining availability of funds
61. Hotel chains that provide training to employees so they will understand their jobs and be able to perform
effectively are often able to create a
A. secure environment.
C. friendly atmosphere.
B. quality culture.
D. growth opportunity.
62. Resort gift shops that buy goods for resale can control their expenses by
A. expanding their product lines.
C. taking advantage of cash discounts.
B. increasing their inventory levels.
D. buying additional insurance coverage.
63. Which of the following is a factor that might make a hotel supply business decide to buy rather than to
lease a facility:
A. Current cash flow
C. Decreasing land values
B. Long-term cost
D. Negative credit rating
64. What activity helps to maintain goods in an organized, clean condition on the selling floor of the hotel gift
shop?
A. Receiving
C. Cashiering
B. Packaging
D. Housekeeping
65. What is a reason for varying the amount of a hotel gift shop's change fund?
A. A competitor's advertising campaign appears in the newspaper.
B. A vendor visits the shop.
C. The economic conditions remain constant.
D. The number of customers expected in the shop increases.
66. People who figure out what they need to do to obtain what they want are often able to
A. compete with others.
C. reach their goals.
B. act independently.
D. achieve financial success.
67. Most hotel supply businesses today are looking for employees who have at least basic __________
skills.
A. management
C. computer
B. accounting
D. legal
68. Trade associations, rather than professional organizations, are typically more __________ oriented.
A. profit
C. service
B. retail
D. standards
Test 937A
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69. A hotel supply business that takes advantage of an emergency situation by unnecessarily raising its
prices is behaving unethically because it is failing to exhibit its duty of social
A. gratuity.
C. responsibility.
B. confidentiality.
D. necessity.
70. In what type of market does the industry leader usually determine prices because there are relatively few
sellers and it is expensive to enter the market?
A. Oligopoly
C. Monopolistic
B. Pure monopoly
D. Pure competition
71. During which step in the new-product development process do product planners evaluate how well a
product would fit into the hotel supply firm's product mix?
A. Product development
C. Test marketing
B. Feasibility analysis
D. Commercialization
72. As a result of ongoing product updates and changes, manufacturers of hotel equipment must address
ethical issues associated with
A. planned obsolescence.
C. demographics.
B. international markets.
D. taxation.
73. To generate innovative product ideas, a hotel supply business often
A. evaluates traits.
C. monitors trends.
B. interprets laws.
D. measures feedback.
74. Which of the following is used to indicate the quality of products:
A. Trade characters
C. Encoded UPC label
B. Descriptive names
D. Letters of the alphabet
75. Which of the following actions can be taken by the Consumer Product Safety Commission:
A. Require warranties to be clearly stated.
B. Require producers to provide warnings.
C. Make sure the food supply is safe.
D. Ensure that drugs and medical devices are safe.
76. When evaluating guests' experiences, a convention hotel should keep in mind that guests are most often
influenced by their interactions with the hotel's
A. suppliers.
C. labor union.
B. employees.
D. negotiation committee.
77. Which of the following is an illustration of increasing the breadth of a company's product mix:
A. A department store opened a branch in a suburb of Detroit.
B. A hotel restaurant added Italian entrees to its dinner menu.
C. A chain of automotive stores dropped its line of CB radios.
D. A bank increased its hours of customer service on weekends.
78. One way a hotel supply business can identify products to fulfill customers' needs is by
A. observing processes.
C. designing a survey.
B. conducting research.
D. organizing a focus group.
79. When considering the services to offer customers, a hotel supply business should determine if a specific
service would
A. stabilize variable interest rates.
C. offend the business's existing competitors.
B. increase the amount of customer returns.
D. enhance customer-satisfaction levels.
80. What type of products might not carry a brand name?
A. Private-label products
C. Related products
B. Repositioned products
D. Generic products
Test 937A
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81. How is a hotel supply business positioning its product when it places emphasis on the item's safety?
A. Class
C. Attributes
B. Price
D. Competition
82. Interior design details of a hotel's lobby area are determined by the
A. desired hotel image.
C. need for a safe entrance.
B. cost of hiring employees.
D. building's location.
83. To prevent others from using its brand logo, a hotel chain should
A. apply for a patent.
C. register its domain name.
B. obtain trademark protection.
D. prepare a licensing charter.
84. When a hotel supply company's promotional activities focus on pointing out differences between its wellestablished product and competing products, the product is in the __________ stage of its life cycle.
A. introductory
C. declining
B. growth
D. maturity
85. Which of the following is an example of a general business magazine:
A. Fortune
C. Teen
B. Brandweek
D. TV Guide
86. Using which form of direct advertising is an advantage to hospitality marketers because it is inexpensive
to execute?
A. E-mail
C. Direct mail
B. Infomercial
D. Billboard
87. A promotional method that is used frequently by hotels and motels but has a short life is
A. magazine advertising.
C. travel brochures.
B. trade publications.
D. newspaper advertising.
88. Which of the following is a true statement about the types of promotion in a promotional plan:
A. Size of a business does not affect its choice of promotion types.
B. Most businesses focus on one type of promotion.
C. All types of promotion serve the same purpose.
D. Promotions change as a product moves through its life cycle.
89. A hotel supply salesperson who can determine customers' buying motives, handle objections, and close
sales is demonstrating
A. product knowledge.
C. creativity.
B. selling skills.
D. ethical standards.
90. Amy, a new employee for a hotel supply company, frequently talks with customers about the company's
products. How is Amy benefitting from her company's clientele?
A. By increasing her knowledge
C. By generating repeat sales
B. By building customer goodwill
D. By obtaining personal satisfaction
91. Which of the following statements is true about ethics in selling:
A. Ethics can affect a firm's profitability.
C. Withholding information is ethical.
B. Ethics are government regulations.
D. Relaying product facts is unethical.
92. The labels of certain products, such as cosmetics or insect repellent sold in resort gift shops, often
provide product information identifying their
A. features.
C. value.
B. grades.
D. content.
Test 937A
HOSPITALITY SERVICES
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93. Which of the following is not a benefit to a hotel gift shop of using substitute selling:
A. Makes shopping easier and faster
C. Increases profits
B. Increases sales
D. Improves reputation of the shop
94. Assigning too many rooms in advance to preregistered guests can slow down the registration process for
other guests because it
A. involves additional registration forms.
C. limits the number of available rooms.
B. limits the acceptable methods of payment.
D. requires an advance cash payment.
95. Dollar amounts in the cash drawer are: checks, $1,250; cash, $550; and petty-cash vouchers, $125.
What do these amounts indicate if the front-office cashier should have $2,000 at the close of the shift?
A. A $75 due bank
C. A $75 overage
B. A balanced drawer
D. A $75 shortage
96. What individual is responsible for coordinating promotional efforts, including selling, with other
departments in a large hotel?
A. Tour and travel sales manager
C. Convention sales manager
B. Marketing director
D. Corporate sales director
97. Based on the following statistics in a sales report, which hotel supply salesperson achieved at least 95%
of monthly quota: Anderson: Monthly Quota, $75,000. Actual Sales, $70,450; Brown: Monthly Quota,
$82,500. Annual Sales, $78,750; Davis: Monthly Quota, $68,250. Annual Sales, $64,100; Miller: Monthly
Quota, $96,000. Annual Sales, $90,850.
A. Davis
C. Brown
B. Anderson
D. Miller
98. In a large hotel, which of the following employees is responsible for providing guests with information
about local sightseeing tours and booking them on the tour of their choice:
A. Gift shop manager
C. Bell captain
B. Housekeeper
D. Concierge
99. A manager studies the hotel supply business's previous sales statistics as well as the sales forecast
before making purchasing decisions. What type of resource is the manager using?
A. Financial
C. Human
B. Information
D. Material
100. One of the purposes of developing a business plan is to __________ for the hotel chain.
A. provide direction
C. invest resources
B. acquire customers
D. identify employees
Test 937A
HOSPITALITY SERVICES — KEY
10
1. D
Corporation. In order to obtain a charter, a document containing information about the firm, and called
articles of incorporation, must be filed with the state. A sole proprietorship is owned and managed by one
person. A partnership is a business owned by two or more persons. Neither of these forms of ownership
requires a charter. Consolidation is the joining of two or more companies to form a new company.
SOURCE: BL:003
SOURCE: BA LAP 7—Own It Your Way
2. A
Environmental Protection Agency. The EPA is responsible for enforcing federal environmental laws and
regulations. The Food and Drug Administration oversees the safety of the food supply and drugs. The
Federal Trade Commission enforces a variety of regulations regarding pricing, advertising, and other
business practices. The National Transportation Safety Board investigates transportation safety issues.
SOURCE: BL:073
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 86-87]. Woodland Hills, CA: Glencoe/McGraw-Hill.
3. B
Exclusive. Exclusive distribution involves making goods available only in certain locations. This type of
distribution often means only one dealer per area and is used mainly for luxury products such as the
Lexus that the hotel manager wants. Selective distribution is distribution that is restricted to a certain area
and is used for products such as designer clothes. Intensive distribution is widespread distribution of
products, such as candy bars, that customers expect to be able to buy almost anywhere. Restrictive is
not a type of distribution.
SOURCE: CM:001
SOURCE: DS LAP 1—Distribution
4. B
Global positioning system. Global positioning systems installed in delivery vehicles make it possible for
drivers to determine their exact location and obtain accurate directions to destinations. Global positioning
systems are the result of satellite technology which allows hotel supply businesses to track a vehicle.
These systems also enable drivers to obtain directions so they do not waste time searching for their
destinations. The systems speed up the delivery process. Video frequency technology, cellular telephone
system, and image scanning technology do not make it possible for a business's drivers to determine
their exact location and obtain accurate directions to destinations.
SOURCE: CM:004
SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics: A
supply chain perspective (7th ed.) [pp. 464-465]. Mason, OH: South-Western.
5. A
Gray market. The gray market involves buying goods from suppliers that are not the authorized
distributors for the manufacturers. This practice is considered unethical and even illegal because the
suppliers do not have the right to sell the goods. Resort pro shops often are able to buy goods for lower
prices on the gray market, which enables them to sell the goods for less. Exporting is the process of
selling goods and services to businesses in other countries. Outlet stores usually sell overruns and
irregular products. Discount stores sell regular merchandise at lower prices than those found in
department stores.
SOURCE: CM:006
SOURCE: Solomon, M.R., & Stuart, E.W. (2000). Marketing: Real people, real choices (2nd ed.)
[p. 110]. Upper Saddle River, NJ: Prentice Hall.
Test 937A
HOSPITALITY SERVICES — KEY
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6. B
Market. Market factors deal with where the consumers are, who they are, the information they require,
and the size of their orders. Understanding the market is an important aspect of selecting the best
channel of distribution. For example, it is important for businesses to know that most consumers prefer to
buy products from retailers. Promotion, human, and sales are not factors that businesses consider when
selecting a channel of distribution.
SOURCE: CM:010
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 440-441]. Mason,
OH: Thomson/South-Western.
7. D
To include appropriate information. It is important for convention hotel employees to identify the audience
before preparing an oral presentation because the type of audience will have an effect on the information
that is provided. For example, if the audience is composed of other businesspeople, the language and
examples used will be different than if the audience is composed of students. When preparing oral
presentations, employees need to consider the age, educational level, and interests of the audience in
order to include information that will appeal to that specific group of people. Business employees do not
identify the audience in order to select a comfortable seating area, to send invitations, or to determine the
date of attendance.
SOURCE: CO:025
SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for
success (2nd ed.) [pp. 90-91]. Cincinnati: South-Western Educational.
8. D
Provide recommendations. Proposals usually are intended to answer questions or provide
recommendations to solve problems. Hotel chains often ask employees 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 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.
9. C
Could I have your name and room number? The front desk clerk must find out the guest's name, the
guest's room number, and the day and time that the guest would like to be awakened. An accurate wakeup call cannot be carried out without this information. None of the other alternatives have any bearing on
wake-up calls.
SOURCE: CO:048
SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 564, 566]. Upper
Saddle River, NJ: Prentice Hall.
10. B
Establishing good customer/client relations. Hotel gift shops that develop positive customer/client
relations usually make the most sales. Consumers who are satisfied with their purchases and the way in
which they were treated are likely to become loyal repeat customers. The alternatives are different
factors that can contribute to success, but they do not involve human relations.
SOURCE: CR:003
SOURCE: Eggland, S.A., & Williams, J.W. (1998). Human relations for career success (p. 2). Cincinnati:
South-Western Educational.
Test 937A
HOSPITALITY SERVICES — KEY
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11. A
Employees would not have jobs if there were no customers. Without customers, there would be no need
for employees, motels would close, and employees would be out of work. All customers are important to
the success of a motel—not just those who own the motel. Customers deserve the very best service now,
regardless of what might happen in the future. Motels pay employee bonuses—not customers.
SOURCE: CR:004
SOURCE: HR LAP 32—Customer-Service Mindset
12. D
Appropriate location. Lodging properties are built with the factors of accessibility, cumulative attraction,
and interception in mind. Open houses are held by the sales and marketing staff to promote the product
to targeted guests. Global reservation systems are computerized links between a property's reservation
system, a central reservation office, and an airline's reservation system and are often used by travel
agents. Familiarization tours are used by lodging operators to promote their properties to travel agents
and tour operators.
SOURCE: DS:075
SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)
[pp. 215-227]. Upper Saddle River, NJ: Prentice Hall.
13. C
Lost any of its stock. A physical inventory is an actual count of the goods on hand. Comparing the
physical inventory figures with sales records helps the hotel gift shop to determine how much of its stock
has been lost because of theft, breakage, etc. Proper filing of invoices is not part of taking inventory.
Taking inventory is not intended to measure employees' training. Inventory counts show how much stock
has been sold but cannot evaluate customers' satisfaction with their purchases.
SOURCE: DS:025
SOURCE: DS LAP 6—Counting Inventory
14. A
Dinner. Opportunity cost is the benefit that is lost when a decision is made to use scarce resources for
one purpose rather than for another. In this case, the dinner at the hotel restaurant was given up;
therefore, that is the opportunity cost.
SOURCE: EC:001
SOURCE: EC LAP 6—Economics
15. B
Consumer buying power. Market price is the actual price that prevails in a market at any particular
moment. The amount of money customers have to spend, or their buying power, affects demand, which
in turn has a corresponding influence on market price. Credit terms and inventory are internal factors that
may affect a business's prices. The location of an item in the store does not affect market price.
SOURCE: EC:006
SOURCE: EC LAP 12—Price
16. B
Keeps accurate expense records. Financial analysis involves obtaining funds for the hotel chain and
keeping accurate records for analysis and interpretation. Marketing involves communicating with potential
customers. Strategic management involves planning for long-term success. And, information
management involves effectively retrieving data.
SOURCE: EC:071
SOURCE: EC LAP 19—Strictly Business (Business Activities)
17. B
What products will be produced. Some of the factors that affect the decision as to what will be produced
include which items are profitable, what consumers want and need, and what resources are available.
Who will do the production and how products will be produced are not basic economic questions. How
products will be allocated depends upon the type of economic system.
SOURCE: EC:007
SOURCE: EC LAP 17—Economic Systems
Test 937A
HOSPITALITY SERVICES — KEY
13
18. A
Inflation decreases. A government's monetary policies are often intended to correct economic problems.
If a country is experiencing an inflation problem, the government might use a tight monetary policy to
solve the problem. In that situation, the government increases the interest rates and decreases the
money supply to slow down the economy and decrease inflation. Once inflation is under control, the
government might turn to an easier monetary policy to encourage growth in the economy. When the
monetary policy is tight, spending usually decreases.
SOURCE: EC:073
SOURCE: McConnell, C.R., & Brue, S.L. (2005). Economics: Principles, problems, and policies
(16th ed.) [pp. 278-279]. Boston: McGraw-Hill/Irwin.
19. A
Offering flexible work schedules. Ski resorts have identified ways of combating many of the
disadvantages of specialization by increasing job satisfaction among employees. Resorts increase job
satisfaction by offering flexible or alternative work schedules, asking for and using employee suggestions,
and giving praise for a job well done. By offering flexible work schedules, resorts give employees control
over their lives which tends to increase job satisfaction. Eliminating the need to make decisions, providing
repetitious assignments, and developing strict performance guidelines often decrease job satisfaction
among employees.
SOURCE: EC:014
SOURCE: EC LAP 7—Specialization of Labor
20. B
Gross domestic product. The gross domestic product is the final market value of the total output of all
goods and services produced within a country's geographic boundaries during a year's time. When
people are unemployed, they do not work to produce the goods and services that are part of the gross
domestic product; therefore, there are fewer goods and services available for people to purchase. As a
result, the overall economy is affected by unemployment because the unemployed are unable to
contribute to the gross domestic product. The federal deficit is the amount of money that the government
owes. The balance of payments is the difference between all monies coming into a country and going out
of a country. The standard of living is the general condition in which people live.
SOURCE: EC:082
SOURCE: Lowe, R.E., Malouf, C.A., & Jacobson, A.R. (2003). Consumer education & economics
(5th ed.) [pp. 160-161]. New York: Glencoe/McGraw-Hill.
21. A
Money supply. The federal government can increase the amount of money in circulation by lowering
interest rates, thus increasing consumers' spending power. The 1999 tax cut would have increased the
amount of money in circulation by keeping it in the hands of consumers, allowing them to spend it on
economic goods and services. Aggregate demand is the total demand for an economy's goods and
services. Investment in capital goods is when producers, hopeful about the future of business, will invest
more money in new equipment. Inventory levels are the amounts of products businesses keep in stock.
SOURCE: EC:018
SOURCE: EC LAP 9—Business Cycles
22. A
Authoritarian. This management style is used by people who enjoy being in command, rely on their own
judgment, and tell employees exactly how to do their jobs. Democratic managers encourage employee
participation in decision-making, seek employee input, and share authority. Laissez-faire is a more open
style of management that provides only general guidance and avoids giving specific, detailed directions.
SOURCE: EI:037
SOURCE: EI LAP 5—Can You Relate?
Test 937A
HOSPITALITY SERVICES — KEY
14
23. D
Emotional intelligence. This is the ability to recognize and manage emotions in ourselves and in others.
It's about being aware of our own emotions, responding to them appropriately, and then doing the same
with the emotions of other people. The trait of emotional intelligence enables leaders to act in ways that
are consistent with leadership activities. Self-interest is concern for what interests or profits oneself. A
domineering personality involves individuals thinking they know more and are better than the average
person. Lifestyle is not a character trait but the way in which people lead their daily lives.
SOURCE: EI:009
SOURCE: QS LAP 27—Follow Me!
24. B
Recognition. Recognition is special notice or attention. It is a powerful motivator and often prompts hotel
employees to take action. The motivating power of recognition applies to all areas of a person's life. For
example, when employees are recognized for doing a great job on an important project, they are
motivated to keep doing great work. Criticism is a response that indicates disapproval. Feedback is a
response to a certain behavior or attitude. Leadership is the ability to guide or direct the actions of others
in a desired manner.
SOURCE: EI:014
SOURCE: QS LAP 13—Gimme Five!
25. B
Reach a compromise. Motel chain employees who have different opinions often negotiate with each
other in order to reach a compromise and solve the problem. Compromising involves each employee
conceding a few issues in order to reach a mutual agreement. Compromise is often the result of
successful negotiations because each employee obtains something and both sides meet part way.
Employees do not negotiate in order to avoid rejection or to make a statement. Negotiating often results
in cooperation rather than creating opposition.
SOURCE: EI:062
SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations
(2nd ed.) [p. 249]. Cincinnati: South-Western Educational.
26. A
Legal action. Taking legal action against a customer is often the last way for a hotel supply business to
try to collect a delinquent account. Businesses usually try to avoid taking legal action because it probably
means losing the customer. However, if delinquent customers do not respond to regular follow-up or
formal notification, a business may have no other option except to take legal action. Harassment of the
debtor is illegal according to the Fair Debt Collection Practices Act of 1978.
SOURCE: FI:014
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[p. 490]. Cincinnati: South-Western.
27. D
Travel and entertainment card. These cards are especially popular with travelers who do not wish to
carry large amounts of cash. Customers must have an excellent credit rating in order to obtain a card and
are billed monthly. An unsecured loan is an amount of money borrowed by an individual or business by
signing a note promising to repay the loan. An installment credit account is a credit account set up to
handle one total amount of credit that is to be paid off in regular installments. Budget credit accounts are
a form of short-term credit with a payment due every 30 days.
SOURCE: FI:002
SOURCE: FI LAP 2—Credit and Its Importance
Test 937A
HOSPITALITY SERVICES — KEY
15
28. B
Spending patterns. A budget is an estimate of what income and expenses will be for a specific time
period. The expense section of a budget helps individuals review their spending patterns, which are the
ways that they spend money. For example, a budget might indicate that a lot of money was being spent
on convenience foods or casual clothing. This indicates a spending pattern that may need to be changed
depending on the amount of income. Developing a personal budget will not enable individuals to review
their daily transactions, investment plans, or bank statements.
SOURCE: FI:066
SOURCE: Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hoyt, W.B. (2005). Business and personal
finance (pp. 80-81). New York: Glencoe/McGraw-Hill.
29. A
Changes in the market. Economic risks are chances of loss due to changes in the market that force
prices to be lowered, products to change, or even hotels to fail. These risks affect the production,
distribution, and consumption of goods and services. Lower prices and alterations in a product are not
the causes of economic risks. Hiring employees may result in human risk.
SOURCE: FI:084
SOURCE: BA LAP 2—Risk Management
30. A
Complex. When accounting standards are applied, the information produced is relevant, credible, and
transparent. It is not complex. Instead, it is easy to understand.
SOURCE: FI:086
SOURCE: Financial Accounting Standards Board. (n.d.). Facts about FASB. Retrieved August 10,
2007, from http://www.fasb.org/facts/facts_about_fasb.pdf
31. C
The shop may have to increase its promotions. When a resort gift shop's sales forecast is too high, the
shop may order more goods than it can sell. The gift shop may have to increase its promotion of the
goods in order to sell them. The shop may also have to take markdowns on the goods, and its profits are
likely to be reduced.
SOURCE: FI:096
SOURCE: IM LAP 4—Forecasting Sales
32. B
$13,000. Net profit is determined by subtracting the cost of goods sold and expenses from total revenue
($100,000 - [$39,000 + $48,000] = $13,000). Net profit shows how much a business actually made.
SOURCE: FI:102
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 670-671]. Woodland Hills, CA: Glencoe/McGraw-Hill.
33. D
Profit. Sales Price - Preparation Costs = Profit. Food cost is the amount of money paid for the food-item
ingredients. Tips are the gratuities extended to a waitress/waiter by customers for good service.
SOURCE: FI:300
SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)
[pp. 114-119]. Upper Saddle River, NJ: Prentice Hall.
34. D
Determine that a new employee is actually needed. The hotel chain should make sure that the chain
really needs another employee before beginning the hiring process. New employees are often needed
when the chain has expanded, its market has grown, or current employees are leaving or retiring. Once
the need for an additional employee has been established, the chain can identify the available sources of
new employees and plan the employee's schedule and training.
SOURCE: HR:353
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[p. 635]. Cincinnati: South-Western.
Test 937A
HOSPITALITY SERVICES — KEY
16
35. A
Poor performance, violating company policies, inappropriate work behavior. Motels might decide to
discharge employees if they perform poorly, violate company policies, and behave inappropriately at
work. Motels often hire additional employees when they are expanding or when current employees are
being promoted to other positions.
SOURCE: HR:358
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[p. 639]. Cincinnati: South-Western.
36. D
Adjust poorly to the job and the resort. This often happens when employees do not have an orientation.
Poor adjustment to the job can frustrate new employees, thereby increasing the likelihood they may leave
the job after a short time. Likewise, without an orientation, the new employee has not received
information regarding the golf resort's background, purpose, and goals. Pre-employment tests are given
prior to employment. Performance appraisals are assessments of the way in which employees carry out
their responsibilities.
SOURCE: HR:361
SOURCE: MN LAP 44—Orienting New Employees
37. D
Opinion of the evaluator. The manager or supervisor should keep personal opinion out of the evaluation
process. S/He should focus on such factors as the employee's ability to reach goals or meet deadlines,
both the amount and the quality of the work produced, and the employee's attendance.
SOURCE: HR:368
SOURCE: Mathis, R.L., & Jackson, J.H. (2003). Human resource management (10th ed.) [p. 362].
Cincinnati: Thomson/South-Western.
38. A
To be ethical. Ethical behavior involves doing what is right. When hotels collect marketing information
from guests, it is ethical to make sure guests know how the information will be used. Then, guests have
the opportunity to decide not to provide information, or to provide only certain types of information. It is
not ethical to mislead guests about how the information will be used, or say it will remain private if that is
not correct. Hotels do not tell guests how their personal information will be used to analyze data, follow
the law, or achieve goals.
SOURCE: IM:025
SOURCE: Solomon, M.R., & Stuart, E.W. (2000). Marketing: Real people, real choices (2nd ed.)
[pp. 134-135]. Upper Saddle River, NJ: Prentice Hall.
39. A
To track usage. Some hotel chains' computers place information, a "cookie," on a visitor's hard drive
when the visitor accesses the chain's web site. The next time a user visits that site, the site's computer
recognizes the user because of the cookie. Hotel chains use cookies to maintain visitor information and
track how many times a user visits a specific web site or reserves a room. This type of data allows chains
to customize web sites in order to appeal to the preferences and habits of the consumers who are visiting
their sites. The use of cookies does not ensure privacy, protect data, or eliminate theft.
SOURCE: IM:183
SOURCE: Broadbent, B. (1998). Using the internet smarter and faster at home, on the road, or at the
office (pp. 125-126). Menlo Park, CA: Crisp Publications.
Test 937A
HOSPITALITY SERVICES — KEY
17
40. C
They are part of a convention traveling on business. Business travelers are primarily male, and they often
attend two- or three-day conventions focusing on a common theme. They are part of an inelastic market
because their demand for rooms does not fluctuate when room rates increase. Tourists consist primarily
of couples, and their market is elastic because higher room rates cause them to have less demand for
the rooms. Although members of international delegations are primarily male, their length of stay is
typically six or more days because of the expense and time involved in international travel. Extended-stay
travelers do not meet all of the demographics in the profile because they stay at a property for at least
five days.
SOURCE: IM:207
SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 41, 51]. Upper Saddle
River, NJ: Prentice Hall.
41. C
Promotion. The promotion decision involves deciding which of the various types of communications the
hotel supply business will use to inform, persuade, or remind customers of the business and its products.
It is affected by evaluating what promotions have worked well for the business in the past. The place
decision involves getting products to the right place at the right time. The product decision involves
selecting the goods, services, or ideas the business will sell. The price decision involves determining the
amount of money the business will ask in exchange for its products.
SOURCE: IM:010
SOURCE: IM LAP 5—Nature of Marketing Research
42. C
Marketing concept. The marketing concept expresses 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. Product planning, pricing, promoting, and distributing goods and services
are elements of the marketing mix. The consumers' movement refers to organized efforts by consumers
to establish fairness, quality, and safety in the marketplace.
SOURCE: MK:001
SOURCE: BA LAP 11—Have It Your Way!
43. A
Conduct more sales contests. Tactics are specific actions that will be used to carry out strategies.
Conducting more sales contests should increase the competition among salespeople and lead to
increased sales. Becoming competitive in the international marketplace is an example of a goal.
Reducing departmental budgets and increasing administrative salaries are both tactics that are not linked
to increasing sales.
SOURCE: MP:001
SOURCE: IM LAP 7—Pick the Mix
44. C
Into well-defined groups of consumers. Segmenting the market enables the business to know as much as
possible about customers or potential customers, which helps the business to market its products
effectively. This is the overall purpose of market segmentation. Dividing the market by consumers'
incomes or their locations is an aspect of market segmentation. Consumer markets are composed of
individuals who purchase goods or services to satisfy their personal desires. Industrial markets are
composed of businesses which purchase items for use in the operation of the business, for resale, or for
making other goods.
SOURCE: MP:003
SOURCE: IM LAP 9—Have We Met? (Market Identification)
Test 937A
HOSPITALITY SERVICES — KEY
18
45. D
Niche marketing. A niche market is the specific or narrow classification of customers in a market
segment. A linen manufacturer produces linens for all people who need and use the product. If the linen
company produces a unique type of bed linens to appeal to a specific segment of its larger group of hotel
customers, it is involved in niche marketing. This is not an example of specialty advertising, regional
selling, or product planning.
SOURCE: MP:005
SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [p. 198]. Upper Saddle
River, NJ: Prentice Hall.
46. C
Cost to implement the plan. The financial component of a marketing plan includes information about how
much it will cost a convention hotel to implement the plan. Convention hotels use this information to
compare the projected costs with the expected benefits to make sure that the benefits exceed the costs.
For example, a hotel would not want to spend more to implement a marketing plan than it would be able
to generate in revenue. The financial component of a hotel's marketing plan does not include information
about the salary of the marketing manager, the price of competitive services, or the reasons for offering
discounts.
SOURCE: MP:007
SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.)
[pp. 98-100]. Boston: Irwin/McGraw-Hill.
47. D
Environmental scanning. Environmental scanning involves obtaining and compiling information about
those environmental forces that might be relevant to the company's strategic planners. Market
penetration involves taking steps to boost sales of present products. Diversification is a strategy of
expanding into related market segments. Vertical integration involves owning or controlling the inputs to
the firm's processes.
SOURCE: MP:008
SOURCE: Dessler, G. (1998). Management: Leading people and organizations in the 21st century
(3rd ed.) [pp. 182-183, 186]. Upper Saddle River, NJ: Prentice Hall.
48. D
Inability to adapt to changes in customer preferences. A SWOT analysis is the systematic evaluation of a
hotel supply business's internal strengths and weaknesses and external opportunities and threats. A
benefit of conducting a SWOT analysis is that it enables a business to identify its weaknesses and make
adjustments in order to take advantage of external opportunities or to combat external threats. An
example of a weakness that a business might identify is the inability to adapt to changes in customer
preferences. Once a business realizes that it is slow in adapting to changes, it can take steps to become
more responsive and provide the types of products that customers want. Without this information, a
business might lose customers to other businesses that are responding to customer preferences. The
possibility of competitors entering the market and the need to comply with additional governmental
regulations are external threats. The availability of technically-advanced equipment might be an
opportunity.
SOURCE: MP:010
SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (pp. 187-188). Mason, OH:
South-Western.
49. A
$475,000. Resort gift shops analyze changes in the market and trends from previous years when
developing sales forecasts. If a shop's sales have been declining by 5% on a yearly basis and that trend
is expected to continue, the shop probably would reduce its sales forecast for the coming year by 5%. In
this situation, last year's sales were $500,000 and the shop expects a decrease of 5%. To determine the
sales forecast for the coming year, multiply $500,000 by the percentage of decrease ($500,000 x 5% or
.05 =$25,000). Then, subtract that amount from $500,000 to determine the sales forecast ($500,000 $25,000 = $475,000).
SOURCE: MP:013
SOURCE: IM LAP 3—Nature of Sales Forecasts
Test 937A
HOSPITALITY SERVICES — KEY
19
50. C
Marketing budget. The purpose of developing a marketing budget is to set aside the funds necessary to
cover the cost of performing marketing activities. First, hotel chains need to estimate all costs including
such categories as wages, supplies, postage, travel, office equipment, telephone, etc. Once chains have
compiled all the cost information, they can prepare budgets for each major marketing activity or for the
marketing department as a whole to make sure funds are available to pay expenses. An accounting
system is the methods and procedures used in handling the chain's financial information. Financial
statements are summaries of accounting information. A cash-flow report is a summary of how much
money is coming into, and going out of, a chain.
SOURCE: MP:017
SOURCE: Burrow, J.L. (2002). Marketing (p. 542). Mason, OH: South-Western.
51. C
Objectives. Objectives are goals the hotel supply business wants the marketing plan to reach. The
objectives in a marketing plan are intended to lead to increased sales and revenue. When preparing its
marketing plan, a business first develops specific objectives to follow that should be clear and
measurable and that should be achieved in a certain amount of time. For example, a business will be
able to monitor its expanded advertising program in order to determine if sales and revenue are
increasing by the desired amount. If sales and revenue do not increase by 10% in one year, the business
will be able to revise its marketing plan and establish new objectives. A business develops objectives
before it develops strategies, tactics, and activities which are intended to achieve the objectives.
SOURCE: MP:018
SOURCE: Burrow, J.L. (2002). Marketing (pp. 238-243). Mason, OH: South-Western.
52. B
Plan corrective action. Conducting a marketing audit is worthwhile only if hotel supply businesses use the
information obtained to develop a plan to correct problems. The purpose of a marketing audit is to identify
problems or techniques that are working effectively with the intention of making adjustments to improve
the business's marketing performance. Once businesses have the information, they need to use it to
improve or revise their marketing efforts. The information obtained as a result of conducting a marketing
audit might suggest that a business revise or update its existing pricing strategy or change its advertising
approach. Businesses do not use marketing audits to organize current inventory.
SOURCE: MP:024
SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 708-709]. Upper Saddle River, NJ:
Prentice Hall.
53. C
Lowers the risk of message transcription mistakes. Automated messaging systems operate in a similar
fashion as voice mail. Some hotels have capabilities that allow guests to record their own personal
messages for callers. The system provides the guest privacy and reduces the risk of message
miscommunication by a telephone operator. Although it is possible to charge a message retrieval fee, it is
not always done. Many hotels view message systems as a basic service to guests. In addition,
automated systems can reduce staffing needs, which often saves the hotel operational expenses.
Automated message systems can provide professional service; however, the system is not personal
(e.g., speaking with a telephone operator). In addition, people are courteous, machines are not. An
advantage in using an automated messaging system is that it delivers messages to the guest quickly and
efficiently. Delayed messages, particularly in emergency situations, are not considered advantageous.
SOURCE: NF:051
SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 80, 480]. Upper Saddle
River, NJ: Prentice Hall.
Test 937A
HOSPITALITY SERVICES — KEY
20
54. B
Keep an alphabetical list of guests. An information rack has slots to hold guest information slips. These
slips are arranged alphabetically so that front-desk employees can easily route telephone calls, mail, etc.,
to the guest at the correct location. In a computerized facility, this information is stored in the computer.
Guest folios are kept in folio trays. Account balances are maintained in the guest folios. Information about
the local area may be at the front desk or at the concierge's desk.
SOURCE: NF:068
SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 179-181]. Upper
Saddle River, NJ: Prentice Hall.
55. C
<P> and </P>. The hypertag <P> tells the browser to begin a new paragraph and </P> tells it to end that
paragraph. Notice there is a difference; the end symbol includes a slash mark. Both markings are
necessary if the browser is to work correctly on the page. Using <P> twice simply repeats the new
paragraph hypertag. The symbols <startP> and <endP>, and <para> and <para> are not hypertags.
SOURCE: NF:042
SOURCE: National Center for Supercomputing Applications (NCSA). (n.d.). A Beginner's Guide to
HTML. Retrieved August 3, 2007, from
http://archive.ncsa.uiuc.edu/General/Internet/WWW/HTMLPrimerAll.html#PA
56. B
Legal. Any lawsuit in which a resort is involved requires the beach resort to have legal records. These
records can be almost any business document created. Payroll records, asset records, or promotional
records may be required in certain legal situations. But in the Grand Beach Resort's situation, there has
been an accidental death of an employee while on the job. This means that legal records should be on
hand in case the family sues.
SOURCE: NF:001
SOURCE: NF LAP 1—Record It (Business Records)
57. D
Identification information on the check matches the identification that is carried by the customer. Making
sure that the check is completed correctly, signed properly, and that the customer is not using low
numbers will not provide the same protection as having accurate identification on the check that matches
what the person was carrying. If the check is worthless, the best way to collect is to have full identification
in order to contact the customer or to prosecute him/her.
SOURCE: OP:114
SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 458-463]. Upper
Saddle River, NJ: Prentice Hall.
58. D
To encourage guests to buy. Most resorts offer a wide variety of activities and events, and many of these
involve an additional cost to the guests. To encourage guests to buy, resorts post information about
these events and activities in locations that are frequented by guests such as lobbies and dining areas.
For example, a poster describing a scheduled hay ride that is available for a modest fee might encourage
guests to sign up. By posting the information, the resort encourages guests to participate and also
increases sales. Resorts post information in the hope of attracting the number of guests that the event or
activity can accommodate. Resorts do not post information to fill meeting space. Resorts develop events
and activities that will appeal to the target market.
SOURCE: OP:133
SOURCE: Educational Institute of the American Hotel & Motel Association. (2000). Lodging
management program: Year two (p. 139). Lansing, MI: Author.
59. D
Patterns or trends. Once these trends are identified, employers and the government can make changes
to help prevent accidents. The names of the victims and the first-aid procedures followed may be part of
the recordkeeping, but gathering this information is not the purpose of keeping a log.
SOURCE: OP:009
SOURCE: RM LAP 3—Handling Accidents
Test 937A
HOSPITALITY SERVICES — KEY
21
60. B
Identifying sources of supply. Industrial purchasing involves locating and selecting potential sources of
supply. These sources must be able to provide items that meet the business's required characteristics
and specifications. Industrial purchasers should then obtain price and delivery quotations from potential
suppliers. Identifying suppliers that can deliver the needed goods or services on time and at acceptable
prices is an important part of the industrial purchasing process. The industrial purchasing process does
not involve arranging demonstrations of goods, determining availability of funds, or analyzing needs of
the sales staff.
SOURCE: OP:015
SOURCE: PU LAP 1—Purchasing
61. B
Quality culture. Hotel chains need to train employees so they will understand their jobs and have the
ability to work with customers. Employees who know what they are expected to do and how to do it
usually create a sense of quality in a business. They are able to function effectively and provide quality
service to customers. In return, customers appreciate the quality and continue to buy from the business.
Training employees does not necessarily create a secure environment, a friendly atmosphere, or a
growth opportunity.
SOURCE: OP:019
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 534-535]. Cincinnati: South-Western.
62. C
Taking advantage of cash discounts. Resort gift shops often are able to control expenses by taking
advantage of discounts offered for paying in cash within a specified amount of time. By controlling
expenses, a shop has the necessary funds to pay its bills on time and save additional money. Paying bills
on time eliminates the need to borrow money and pay interest or to pay a late penalty. Increasing
inventory levels, expanding product lines, and buying additional insurance coverage would increase
business expenses.
SOURCE: OP:025
SOURCE: MN LAP 56—Employee Role in Expense Control
63. B
Long-term cost. Over time, leasing is more expensive than buying, so the long-term cost is a reason why
a hotel supply business might decide to buy rather than to lease. When a business leases a facility, the
owner builds a profit into the lease payment. This is additional money that the business pays out each
month that it could be using for other activities. Buying a facility eliminates that expense and may also
save on taxes because depreciation, interest payments, and other property expenses are tax deductible.
Many new businesses have limited cash flow which makes it easier to lease than to invest a lot of money
in buying a facility. Decreasing land values and a negative credit rating are other reasons why a business
might decide to lease rather than to buy.
SOURCE: OP:028
SOURCE: CCH Inc. (No date). When leasing makes sense. Business Owner's Toolkit. Retrieved July
18, 2007, from http://www.toolkit.cch.com/text/P04_3005.asp
64. D
Housekeeping. Housekeeping activities include arranging stock, dusting shelves and counters, and
keeping merchandise in an organized, clean condition on the selling floor of the hotel gift shop. Good
housekeeping is important because customers usually do not want to buy goods that appear to be soiled
or untidy. Receiving's role is the handling and distributing of merchandise from its point of arrival at the
store to the selling floor. Packaging is enclosing products in appropriate wrappings or containers.
Cashiering activities involve the process of transferring ownership of the product from the seller to the
buyer.
SOURCE: OP:032
SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)
[pp. 318-320]. Upper Saddle River, NJ: Prentice Hall.
Test 937A
HOSPITALITY SERVICES — KEY
22
65. D
The number of customers expected in the shop increases. The change fund is the money placed in a
cash drawer at the beginning of each shift. A larger change fund is needed to make change for an
increased amount of business. The alternatives do not affect the size of a change fund.
SOURCE: OP:194
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 344-346).
New York: Glencoe/McGraw-Hill.
66. C
Reach their goals. An important step in reaching a goal is identifying the goal and figuring out what needs
to be done in order to reach it. Acting independently, achieving financial success, and competing with
others are examples of goals that people might set for themselves.
SOURCE: PD:018
SOURCE: HR LAP 6—Goal Setting
67. C
Computer. Today, most hotel supply businesses expect employees to have at least basic computer skills
because many business functions and activities involve the use of computers. Businesses communicate
with employees, customers, and vendors by e-mail. Many businesses have web sites and offer online
ordering. As a result, most employees need to know how to use a computer even if only to send an
e-mail or to access a competitor's web site. Accounting, management, and legal skills are more
specialized. Therefore, most employees are not expected to have these skills.
SOURCE: PD:025
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 270-275].
Mason, OH: South-Western.
68. A
Profit. Businesspeople participate in a trade association hoping to find solutions to business problems
which they, as individuals, could not solve alone. Working together, trade association members seek
ways to increase the profitability of all members' businesses. Professional organizations are usually
concerned with expanding the knowledge of the profession and maintaining high professional standards.
While these groups do provide service to their members, they would not be described as service
oriented. Either group could be retail oriented.
SOURCE: PD:036
SOURCE: CD LAP 1—Trade Associations/Professional Organizations
69. C
Responsibility. Social responsibility is the duty of business to contribute to the well-being of society. A
hotel supply business that raises its prices to take advantage of an emergency situation is not acting in a
socially responsible manner. Confidentiality is promising not to reveal important information to other
people. A gratuity is a payment or a tip for a job well done. A necessity is something that a person or
business needs to complete a task.
SOURCE: PI:015
SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 344, 606-607].
Upper Saddle River, NJ: Prentice Hall.
70. A
Oligopoly. In an oligopolistic market there are relatively few sellers, and the industry leader usually
determines prices. Prices tend to be stable because it is expensive to enter this market. The type of
market that a business will operate in is a major factor to consider when setting selling prices because
the business knows it will lose sales if it cannot compete on price. In a pure monopoly there is only one
seller or provider of a product, and no substitutes are readily available. In a pure competition market,
there are a great many buyers and sellers of nearly identical products, and marketers have very little
control over pricing. In a monopolistic market there are many buyers and sellers, but there is a range of
prices rather than one market price.
SOURCE: PI:002
SOURCE: PI LAP 3—Factors Affecting Selling Price
Test 937A
HOSPITALITY SERVICES — KEY
23
71. B
Feasibility analysis. During a feasibility analysis, product planners examine such factors as demand,
costs, competition, capital investment required, and potential profit of a product to determine how it will fit
into the hotel supply company's product mix. Product development is the step in the creation of a new
product in which a working model may be tested, modified, and retested. Test marketing involves
introducing a product to a limited market to see what its acceptance will be. Commercialization is the step
in the new-product development process at which a product goes into full-scale production, the marketing
plan is put into place, service and sales training are done, and the product's life cycle begins.
SOURCE: PM:001
SOURCE: PP LAP 5—Product/Service Planning
72. A
Planned obsolescence. Business ethics are the basic principles that govern a company's actions.
Planned obsolescence occurs when a manufacturer releases a new piece of hotel equipment and plans
to discontinue it and replace it with an updated version of the item. This often occurs with technologybased products such as computer software. When a business plans product updates on an annual basis,
its customers are often required to purchase the new version in order to use the core product. This can
be a financial burden on consumers and can present an ethical situation for the business. International
markets, demographics, and taxation are not ethical issues that businesses often encounter when
planning product updates and changes.
SOURCE: PM:040
SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [p. 609]. Upper Saddle
River, NJ: Prentice Hall.
73. C
Monitors trends. A trend is the general direction in which people or events are moving. By monitoring
economic, cultural, and societal trends, a hotel supply business can identify needs and develop newproduct ideas to accommodate these needs. Businesses do not need to interpret laws so they can
generate product ideas. Traits are an individual's personal characteristics, which s/he expresses by
exhibiting a regular pattern of behavior that becomes a part of that person over time. Feedback can take
place only after the business generates product ideas.
SOURCE: PM:128
SOURCE: Kuratko, D.F., & Hodgetts, R.M. (2001). Entrepreneurship: A contemporary approach
(5th ed.) [pp. 133-135]. Mason, OH: South-Western.
74. D
Letters of the alphabet. Indicating the quality of products assists the customer in making a buying
decision, and this is sometimes done with letters. Examples include eggs whose quality is rated AA, A, B,
and C. Trade characters are brand marks that have been personified, e.g., the Pillsbury doughboy.
Descriptive names are brand names that have fallen into everyday use so that the brand is used to
describe every product in the brand's product category, e.g., aspirin. UPC (Universal Product Code)
labels are encoded with product information such as price, brand, size, etc., to be read by an electronic
scanner.
SOURCE: PM:019
SOURCE: PM LAP 8—Grades and Standards
75. B
Require producers to provide warnings. The Consumer Product Safety Commission is the federal agency
that has the bulk of the responsibility for product safety. The agency has jurisdiction over the safety of
most consumer products except those such as foods, drugs, cosmetics, medical devices, or automotive
vehicles. The agency requires businesses to mark potentially hazardous products with warnings and
carry clear, easy-to-understand instructions. The Federal Trade Commission is responsible for requiring
that warranties be clearly stated. The Food and Drug Administration has jurisdiction over foods, drugs,
and medical devices.
SOURCE: PM:017
SOURCE: PP LAP 7—Consumer Protection in Product Planning
Test 937A
HOSPITALITY SERVICES — KEY
24
76. B
Employees. The way that guests experience purchase transactions affects how they view the convention
hotel. Good experiences often bring the guests back, while unpleasant experiences can prompt guests to
purchase from the hotel's competitors. The ways that employees interact with guests have a major
impact on the guests' experiences and their perceptions of the hotel. Helpful, courteous, and
knowledgeable employees foster good guest experiences. Employees who are indifferent, rude, and
lacking in knowledge often have a negative effect on the guests' experiences. Guests do not usually
interact with the hotel's suppliers, labor union, or negotiation committee.
SOURCE: PM:138
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 625-626). Tinley Park,
IL: Goodheart-Willcox.
77. B
A hotel restaurant added Italian entrees to its dinner menu. Increasing the breadth of the product mix
involves adding product lines. A product line is a group of related product items. The restaurant has
increased the breadth of its product mix by adding a new line of dinners to its regular line of dinners.
Increasing hours of service or opening a branch store would not increase the breadth of the product mix.
Dropping a line of radios would narrow the automotive store's product mix.
SOURCE: PM:003
SOURCE: PP LAP 3—Product Mix
78. B
Conducting research. Finding out what customers want is an important step in identifying products to
fulfill their unmet needs. To find out what customers want, a hotel supply business must gather
information or conduct research. Businesses conduct research in a variety of ways, which include
observing people, situations, and processes; designing, distributing, and tabulating a survey and
analyzing its results; and organizing and holding a focus group to obtain information.
SOURCE: PM:130
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 640-641). New
York: Glencoe/McGraw-Hill.
79. D
Enhance customer-satisfaction levels. When a hotel supply business determines which services to offer
its customers, it should consider what its customers want or need. If the business has the available
resources (e.g., personnel, financial) to provide the service, the service has the ability to enhance the
customers' overall satisfaction levels with the business. When satisfaction levels are high, the business is
most likely to gain repeat business. When a customer returns something to the business, s/he is
returning something tangible; services are intangible. The business does not consider interest rates when
determining which services to offer, nor does it consider whether its competitors find the service
offensive.
SOURCE: PM:036
SOURCE: Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: Concepts, strategies, &
cases (2nd ed.) [pp. 434-435]. Orlando, FL: Harcourt.
80. D
Generic products. Generic products are unbranded products that are plainly packaged, have lower or
standard quality, are sold at a lower price than branded products, and receive little or no promotion. All of
the other alternatives are likely to have a brand name. Private-label products are products that a
business produces and/or sells under its own brand. Repositioned products are products whose
marketing strategies have been changed to alter their perception in the eyes of consumers. Related
products are product items in the same product line.
SOURCE: PM:021
SOURCE: PM LAP 6—It's a Brand, Brand, Brand World!
Test 937A
HOSPITALITY SERVICES — KEY
25
81. C
Attributes. Positioning is a product mix strategy that a business uses to create a certain image or
impression of a product in the minds of the consumers. An attribute is a characteristic of something. Hotel
supply businesses often position products by emphasizing attributes such as materials, features, and
construction methods in relation to the product's safety. Price is a positioning strategy that stresses the
amount of money the customer pays for a product. Class is a positioning strategy that often associates
status with the product. The competition positioning strategy compares a product with other similar
products in the marketplace.
SOURCE: PM:043
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 246]. Mason, OH:
Thomson/South-Western.
82. A
Desired hotel image. The decorative accessories, floor and wall coverings, lighting, etc., that a hotel uses
are determined by the image the hotel wants to project in order to appeal to the customer. The interior
design of a hotel's lobby area is not determined by the need for a safe entrance, the cost of hiring
employees, or the building's location.
SOURCE: PM:010
SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)
[pp. 457-459]. Upper Saddle River, NJ: Prentice Hall.
83. B
Obtain trademark protection. To protect the integrity of its brand, a hotel chain should obtain trademark
protection from the government to deter others from using the logo without the chain's authorization. A
chain that wants to seek legal protection of an invention or process applies for a patent from the
government. A domain name is a chain's web address, which is registered through authorized
organizations or businesses. A licensing charter is a fictitious term.
SOURCE: PM:126
SOURCE: PM LAP 10—Building Your Business's Brand
84. D
Maturity. To reach the maturity stage, a product must be well established. Competition increases and
focuses on promoting the differences of competing products. During the introductory stage, a product
doesn't have much, if any, competition; and the promotional efforts are focused on informing consumers
about the product. The growth stage is when competition increases, but the product is not yet well
established. Once newer products start taking the place of existing ones, a company's product enters the
declining stage and eventually stops production.
SOURCE: PR:003
SOURCE: PR LAP 1—Promotional Mix
85. A
Fortune. Fortune is a business magazine that is targeted at a general population of workers and,
therefore, contains information on a wide variety of business issues. Brandweek is also a business
magazine, but it is aimed at workers employed in the promotion industry who want to read articles related
to their specific trade. TV Guide contains listings of television programs and their air dates, and it is a
consumer magazine. Teen is a consumer magazine that is targeted at teenagers.
SOURCE: PR:007
SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)
Test 937A
HOSPITALITY SERVICES — KEY
26
86. A
E-mail. An advantage to hospitality businesses that use electronic mail (e-mail) to promote products is
that it is relatively inexpensive to produce and execute. An e-mail campaign is less expensive than many
other forms of advertising, including traditional direct mail. E-mail messages can be sent quickly and
simultaneously to a large audience, which lowers the business's promotional costs. An infomercial is a
lengthy commercial (broadcast advertisement) that looks like a television program. Infomercials are more
expensive to produce and execute than e-mail. Billboards are a form of outdoor advertising.
SOURCE: PR:089
SOURCE: O'Guinn, T.C., Allen, C.T., & Semenik, R.J. (2003). Advertising and integrated brand
promotion (3rd ed.) [p. 685]. Mason, OH: South-Western.
87. D
Newspaper advertising. The hotel or motel can target specific markets by choosing an appropriate
location for its ads in the newspaper. For example, a hotel catering to business travelers might advertise
in the business section. However, the ad will have a short life because most people discard their
newspapers. Trade publications are specialized industry magazines. Magazine advertisements
promoting individual properties and travel brochures are longer lasting promotional methods available to
hotels and motels.
SOURCE: PR:082
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 402). New
York: Glencoe/McGraw-Hill.
88. D
Promotions change as a product moves through its life cycle. For example, promotion for a product in its
introductory stage should provide consumers with much more information than will be needed after the
product has moved on to acceptance and maturity. Very few businesses can focus on only one type of
promotion because each type serves a different purpose. However, a small business may have a limited
promotional budget and, therefore, rely heavily on personal selling.
SOURCE: PR:073
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials
(pp. 362-363, 367-368). New York: Glencoe/McGraw-Hill.
89. B
Selling skills. Hotel supply salespeople must use specific selling techniques to be effective. Other
valuable selling skills include the ability to open sales, question customers, suggest additional or
substitute products, demonstrate products, and follow up sales. Demonstrating product knowledge
involves obtaining information about the product and using it in selling. Demonstrating ethical standards
involves being honest so that customers know they can trust you. Demonstrating creativity involves
finding and using new and improved methods for selling your products.
SOURCE: SE:017
SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)
90. A
By increasing her knowledge. By exchanging information with customers, Amy is increasing her
knowledge of company products. Many customers have valuable information that they can share with
new employees that will benefit those employees in future sales situations. Salespeople are key figures
in building customer goodwill. Salespeople obtain personal satisfaction by providing good service to
customers. Amy is obtaining information rather than generating repeat sales.
SOURCE: SE:828
SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)
Test 937A
HOSPITALITY SERVICES — KEY
27
91. A
Ethics can affect a firm's profitability. Ethics are the basic principles that govern a person's behavior.
Ethical behavior involves being honest, trustworthy, and law abiding. If a firm's employees behave
unethically or if buyers do not share the firm's values, consumers are less likely to do business with the
firm. Societal values can influence regulation; however, regulations are not ethics. Withholding
information is unethical, and relaying product facts to customers is ethical.
SOURCE: SE:106
SOURCE: SE LAP 129—Keep It Real—In Sales (Selling Ethics)
92. D
Content. Since the early 1900s, government regulations have required that labels identify the contents of
more and more products. Some of these products are cosmetics, chemicals, insect repellent, and food
products. Government stamps are used to indicate grades of some food items. Labels usually do not
contain information about a product's features or value.
SOURCE: SE:062
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 664-667).
New York: Glencoe/McGraw-Hill.
93. A
Makes shopping easier and faster. This is a customer benefit of the use of substitute selling. Substitute
selling benefits the hotel gift shop by completing sales that would have been lost if an acceptable
substitute had not been suggested to the customer. Increased sales result in increased profits. The
shop's reputation is also enhanced when efforts are made to satisfy customers' needs with substitutes
when the requested product is not available.
SOURCE: SE:114
SOURCE: SE LAP 111—Using Substitute Selling
94. C
Limits the number of available rooms. Most hotels and motels preregister guests because it is convenient
for guests and the hotels/motels. However, they usually do not assign rooms to very many of the
preregistered guests because it makes too few rooms available for other guests, and the preregistered
guests may change or cancel their reservations. Preregistration does not require advance cash payment
if the guest uses a valid credit card. Preregistration does not involve additional registration forms and
may actually reduce the number of forms needed.
SOURCE: SE:226
SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 197, 201-204 ]. Upper
Saddle River, NJ: Prentice Hall.
95. D
A $75 shortage. Adding up the amount of money in the cash drawer results in a total of $1,925 ($1,250 +
$550+ $125 = $1,925). By subtracting this figure from the $2,000 that should be on hand at the close of
the shift, it is determined that the drawer is under, or short, by $75 ($2,000 - $1,925 = $75). A $75
overage would occur if the amount in the drawer was over by $75 (i.e., if there had been $2,075 in the
drawer instead of $1,925). A balanced drawer would result if there was $2,000 in the drawer at the end of
the shift, exactly as it should be. A due bank refers to the amount of money that is necessary to rebuild
the starting bank, and it is determined by subtracting the cash on hand (i.e., $550) from the amount
needed for the following day's starting bank. Since the starting bank amount is not provided, there is not
enough information to determine the due bank.
SOURCE: SE:248
SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 370-374]. Upper
Saddle River, NJ: Prentice Hall.
Test 937A
HOSPITALITY SERVICES — KEY
28
96. B
Marketing director. This individual, also known as the sales director, is the highest ranking executive in
the marketing and sales division and is responsible for coordinating sales efforts and other duties. The
tour and travel sales manager cultivates new business from group reservations and tour operations. The
convention sales manager works with the convention trade to bring in new business. Corporate sales
focus on selling to businesses.
SOURCE: SE:277
SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 78-82]. Upper Saddle
River, NJ: Prentice Hall.
97. C
Brown. Sales reports often contain statistical information about each hotel supply salesperson's quota for
a certain period of time and the salesperson's actual sales figures. By analyzing sales reports, a business
can determine if its salespeople are meeting or exceeding their quotas. If the statistical information
indicates that actual sales are less than the quotas, a business knows that there might be a problem that
needs to be corrected. In this example, the salespeople did not achieve their monthly quotas; however,
Brown was the only salesperson to achieve at least 95% of goal. To determine which salesperson
achieved at least 95% of goal, multiply the monthly quota by 95% ($82,500 x 95% or .95 = $78,375).
Brown exceeded $78,375 and had actual sales of $78,750.
SOURCE: SE:056
SOURCE: Churchill, G.A., Ford, N.M., Walker, O.C., Johnston, M.W., & Tanner, J.F. (2000). Sales force
management (6th ed.) [pp. 520-527]. Boston: Irwin/McGraw-Hill.
98. D
Concierge. It is the responsibility of the concierge in large hotels to know about the kinds of facilities,
services, and entertainment attractions available for guests. Housekeepers are responsible for the
cleanliness of rooms and hallways, the gift shop manager's responsibilities involve the running of the gift
shop, and the bell captain coordinates luggage and transportation (e.g., taxis, shuttles).
SOURCE: SE:356
SOURCE: Vallen, G. K., & Vallen, J. J. (2000). Check-in: Check-out (6th ed.) [pp.77-79]. Upper Saddle
River, NJ: Prentice Hall.
99. B
Information. Information is knowledge, facts, or data, and it is an important resource for a business. Sales
statistics are a type of information. A sales forecast is a prediction of what a hotel supply firm's sales will
be during a specific future time period using a certain marketing plan. Financial resources are all the
sources of money available to the business. Material resources are equipment and supplies used by
businesses in their operation. Human resources are people who work to produce goods or services.
SOURCE: SM:001
SOURCE: BA LAP 6—Manage This!
100. A
Provide direction. A business plan is an outline of how a hotel chain will operate. It includes a variety of
information such as what goods or services will be sold, target customers and how to reach them,
financial resources, management team, and goals and objectives. During the process of developing a
plan, chains conduct market research, identify competitors, and decide how to operate in order to reach
their goals and be successful. The plan provides chains with the direction they need in order to make
decisions and operate in a manner that is compatible with their objectives. A business plan identifies a
chain's target customers, but it does not acquire them. A business plan does not invest resources or
identify employees.
SOURCE: SM:007
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 738-739).
New York: Glencoe/McGraw-Hill.