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Hospitality and Tourism Cluster
Terms in this set (100)
1. As a primary source of law, federal statutes are enacted by
The U.S. Congress. The U.S. Congress, which includes the Senate and the House of Representatives, is
a primary source of law. It enacts federal statutes (laws). The Supreme Court interprets the laws. The
U.S. Congress enacts the formation of administrative agencies. Agencies such as the Food and Drug
Administration develop various administrative regulations, which are also primary sources of law.
2. Requiring businesses to control pollution and to dispose of hazardous waste properly are some of the
main functions of __________ regulations.
Environmental. Environmental regulations are intended to conserve natural resources by requiring
businesses to control pollution and dispose of hazardous waste properly. These regulations set pollution
standards that businesses must meet, establish rules for disposing of waste, encourage recycling, and
monitor illegal dumping. Workplace regulations are intended to make the work environment safe for
employees. Personnel regulations are intended to promote equal opportunity in the workplace.
Geological is not a type of regulation.
3. Which of the following regulations have an effect on the travel and tourism industry:
Airline. Air transportation is regulated by specific government agencies. These regulations affect the
travel and tourism industry because airlines are a main form of travel. Airlines are required to abide by
regulations concerning safety, routes, passenger rights, etc. Shipping, courier, and mail regulations
usually do not have an effect on the travel and tourism industry.
4. The use of dual distribution is legal only if it is intended to
Promote competition. Using more than one channel to reach consumers is known as dual distribution.
Dual distribution is legal as long as it promotes competition. If dual distribution is used to discourage or
eliminate competition, the practice is illegal. Dual distribution is not used to improve transportation,
eliminate warehousing, or reduce inventory.
5. What does a channel of distribution usually need to be able to manage or avoid conflict within the
Strong leadership. A channel of distribution that has strong leadership is often able to manage or avoid
conflict because the leadership has the power to assign specific responsibilities to each channel member.
Strong leadership has the authority to set goals for the entire channel and demand cooperation, which
reduces the possibility of conflict. When a channel has strong leadership, channel members work for the
good of the channel rather than for their individual goals. A channel of distribution does not need updated
technology or limited competition to manage or avoid conflict within the channel. Equal authority might
create conflict because there is no clear leader who has power and control over the channel.
6. Listening carefully should enable employees to
Follow directions. In order to follow directions or instructions, the person receiving them must listen
carefully. Listening is an important skill for everyone, but it is especially important to workers who receive
directions from supervisors about their job duties. Good listeners are often effective workers who are less
likely to receive criticism and more likely to earn raises. However, listening skill does not enable workers
to avoid all criticism, to earn frequent raises, or to become good speakers themselves.
7. Sara is a new marketing employee who is learning that the best way to listen to customers is
Actively. Active listening is giving full attention to what is being said. It enables the listener to note major
points and to notice gestures or actions which give added meaning to what is being said. Passive
listening is casual listening, or paying only partial attention to what is being said. Distractedly describes a
listener whose mind is on other things, not just on what the customer is saying. Listening to customers
should be thoughtful and rational, not emotional.
8. What type of communication style is usually appropriate for evaluation or counseling interviews with
Formal. Different communication styles are appropriate for different situations and for different audiences.
When conducting evaluation or counseling interviews with employees, it is usually appropriate to use a
formal communication style. The person conducting the interview is in a position of authority and may be
discussing problems or behavioral issues with an employee. Maintaining a formal communication style
will help the interviewer to remain in control and provide the guidance that may be necessary. Casual and
routine communication styles usually are appropriate for discussions between friends or coworkers on
the same level. A technical style may be appropriate when communicating complex information to those
who understand the information.
9. When defending their ideas objectively, employees should be prepared to
Provide supporting information. When employees present their ideas to management or coworkers, they
should be prepared to defend those ideas and provide supporting information. Being prepared will help
employees remain objective and be able to offer logical evidence to back up their ideas. Employees
should be prepared to explain supporting information because others may have questions or concerns
about the ideas. It is usually not necessary for employees to write technical research reports to defend
their ideas. The use of aggressive body language may offend others. Employees do not need to
demonstrate a sense of leadership when defending their ideas. The best approach is to be prepared.
10. In order to be understood on the telephone, a business's employees should always
Enunciate clearly. Enunciating clearly involves speaking clearly and distinctly, which makes the message
easy for the listener to follow. The message may not be clear if employees mumble or speak rapidly. It is
sometimes useful to have notes when speaking on the telephone, but it is not always necessary. Other
guidelines to follow are to use appropriate vocabulary and to avoid using technical terminology or slang.
11. A business that writes letters to customers to confirm their orders or requests should make sure that the
All the necessary information. When preparing written communication, one of the most important rules is
to be thorough and provide all the necessary information because the receiver may not have the
opportunity to ask questions in person. Letters confirming customer orders should answer the questions
of who, what, when, and where by including specific information about ordered items, quantity, delivery
address, etc. The letters should contain all the necessary information to verify that what the business
intends to provide is exactly what the customers have requested. Whether product ratings and grades,
exchange rates, and a map of all business locations are necessary information to include in a
confirmation letter depends on the type of business and the customer's needs.
12. Bart is writing a letter intended to persuade customers to upgrade their service with his company. He
begins with an outline. What is the best order for the four main parts of his letter?
Gain attention, introduce service, create desire for product, and encourage purchase. Because
persuasive messages are unsolicited, they must first capture the attention of the reader and cause
him/her to read further. The letter then describes the service to the reader, and calls out reasons that the
reader should desire the product. Finally, once the reader desires the product, the call to action, or
purchase request, is made. Rearranging these steps would not lead the reader through the decision
making process. For example, explaining a product or service before gaining the reader's attention about
why he/she should read this message is not likely to engage the reader.
13. Communication between two employees with the same level of authority in the business is __________
Horizontal. Such communication is essential to efficient business operation. Vertical communication may
move upward from employees to management, or the reverse. Departmental communication occurs
within the boundaries of one department. External information comes into the company from the outside.
14. Which of the following will help you to have a pleasant voice when speaking to customers:
Speaking at a comfortable volume. To speak pleasantly with customers, you should speak at a
comfortable volume—not too loudly or too softly. You also need to vary the tone of your voice and speak
neither too quickly nor too slowly.
15. Eva works at a hotel registration desk. When a customer was checking in tonight, Eva reminded him that
checkout time would be 11:00 a.m. "No, it's not!" he exclaimed. "It's always at 11:30!" Eva's customer is
a(n) __________ customer.
Argumentative. Eva's customer is argumentative. He's trying to pick a fight with her and tell her that she's
wrong. A suspicious customer questions everything and is constantly worried that your business might
take advantage of him/her. A leave-me-alone customer does not want your advice or assistance even
though you might be able to help. An impatient customer shows verbally or non-verbally that s/he does
not want to wait in line.
16. Which of the following is a benefit of customer relationship management:
The opportunity to create targeted marketing campaigns. The opportunity to create targeted marketing
campaigns is one benefit of customer relationship management. The more you know about your
customers and their changing needs and wants, the more you know what kinds of marketing
communications they will respond to. CRM does not provide an error-free work force. It should result in
an increase in customer advocacy. It should help the business increase its profits, but it will not
necessarily double them.
17. Which of the following is an example of a measurable customer-service goal that many businesses set in
order to facilitate the distribution process:
18. Time utility makes products available to the consumer
When they are needed. Making goods or services available to consumers when consumers want or need
them creates time utility. Price and credit terms help create possession utility. Making products available
in different locations creates place utility.
19. One important function of the main business activity of marketing is the __________ of goods or
Promotion. Marketing is a primary business activity that involves creating, communicating, and delivering
value to customers and managing customer relationships in ways that benefit the organization and its
stakeholders. Promotion is one aspect of marketing that communicates information about goods,
services, images, and/or ideas to achieve a desired outcome. Evaluating and controlling are functions of
the business activity of management. Inventory is a function of the business activity of operations.
20. Which of the following is an example of increased financial risk for a company with poor business ethics:
Decreased company value. An increased financial risk for a company with poor business ethics is
decreased company value. An unethical company loses sales, and its stock decreases in value. This
causes a decrease in the overall company value. Unethical companies also suffer from decreased
productivity. A company with poor business ethics does not have decreased labor costs.
21. Because of competition, people in our society enjoy
A higher standard of living than that of people in many other countries. In our society, goods and services
are being developed and improved to make our lives more convenient, easier, and perhaps even longer
and healthier. As a result of competition, there are more goods and services from which to choose and
more changes to existing products. Although our government monitors business activities, it does not
control our economic system. Control of our economic system is found in the interaction of buyers and
22. The two main sources of revenue used to pay the costs of government regulation are
Taxes and borrowing. Government collects taxes from taxpayers to pay the costs of regulating business
and providing services. The taxes collected are not sufficient to cover government expenses which make
government borrowing necessary. Nontaxpayers don't provide money to the government. Business,
labor, and industry are types of taxpayers.
23. The manager of a franchise business prepares a monthly calendar according to the franchiser's
requirements. What level of depth and scope are involved in this task?
Low depth, high scope. Scope is the number of tasks involved in a job and the frequency with which they
occur. Depth is the amount of control and decision making an employee has in a job. A manager who is
preparing a monthly calendar is performing a number of different operations (high scope). However, the
fact that the job must be done according to franchisor specifications means that the manager has little
control over the task (low depth).
24. Businesses' profits are at a 30-year low, but consumer savings are at an all-time high. For more than a
year, unemployment has also been at record levels. What is the state of the economy?
Depression. In an economic depression, consumers often choose to save their incomes due to
uncertainty about the future. Many of them also lose their jobs, so there is more incentive to save than to
spend. In a period of economic expansion, consumers spend more and save less because they are
optimistic about the future. During times of economic recession, consumers are inclined to save more
and spend less; however, it is for a shorter time period than an economic depression. In an economic
recovery, consumers begin to spend again because there is optimism about the future of the economy.
25. Which of the following is a benefit of international trade:
An improved standard of living. International trade provides important consumer goods to countries
where these products are not available or are in short supply. Making these goods available to all
countries improves the standard of living throughout the world. An increased trade deficit, higher prices
for goods and services, and stronger trade restrictions are not benefits of international trade.
26. John trains new employees in his department. He has just been informed that he will also be responsible
for training new employees in a different department. Which of the following personality traits does John
Adaptability. Adaptability means to be flexible and able to adjust to changing conditions. John needs to
adapt to having additional responsibilities. Loyalty to the company may provide motivation to shoulder the
extra work, but it will not help John to do the actual job. Empathy is the ability to put yourself in another
person's place. Initiative is willingness to act without having to be told
to do so.
27. Which of the following is a situation where acting responsibly is mandated by law:
You must decide whether or not to drink with friends at a party. According to the law, alcohol is only for
people who are 21 and over. If you're under 21 and you drink, you're not only being irresponsible, you're
also breaking the law. There are no laws telling you whether or not you should keep money you found, lie
to your parents, or cheat on a test. These decisions are irresponsible but not illegal.
28. When you receive criticism on the job, the best course of action would be to
Use it to improve your job performance. When criticism is fair, it highlights those areas which need to be
changed. Complaining or ignoring the criticism would be of no benefit. Most job situations invite criticism
at some time, so changing jobs is not a practical solution.
29. Of the following, which is a true statement about change:
It is the only thing that is constant in our lives. Things in life change so rapidly that keeping up is often
difficult. Many people change occupations four or five times during their lives. Change is very obvious in
our personal lives. Changes also create many problems for business firms and make it necessary for
them to make changes of their own.
30. Negotiators decide how to get what they want by
Strategizing. When people are strategizing, they are developing a plan of action for something, such as a
negotiation. Strategizing for a negotiation involves anticipating the other person's negotiating styles and
strategies, and then planning appropriate responses. This helps the negotiator prepare for different
situations, which often puts him/her in a better position to get what s/he wants. Sympathizing with
someone is to feel sorry for her/him because s/he is experiencing a problem or is suffering misfortune.
Aggressive behavior is conduct based on a willingness to ignore the rights of others and to take
advantage of them in order to achieve personal goals. Negotiators do not decide how to get what they
want by making demands, sympathizing, or being aggressive.
31. An example of assertive verbal behavior would be
Initiating conversations with others. Taking the initiative to approach other people and begin
conversations is a good example of assertive verbal behavior. Other examples include openly expressing
your positive or negative thoughts, asking questions, and requesting help. Maintaining appropriate eye
contact is an example of nonverbal behavior. Giving a progress report in a staff meeting is a routine job
task that does not demonstrate assertive verbal behavior. Complimenting someone to obtain a favor is
not assertive but dishonest and manipulative.
32. What kind of team is a business likely to use to prevent defects in the company's products?
Quality circle. A quality circle is a problem-solving group of coworkers who are given work situations or
problems to study and discuss in order to recommend solutions to management. Their main goal is to
improve the quality of the company's products. This is a long-term goal for which a short-term committee
would be inappropriate. A project team is a team of employees from different parts of the company who
are assigned to work together on a specific project such as new-product development. A network is a
computer hookup, not a team.
33. Which of the following is a disadvantage of consensus building:
Encouraging unnecessary compromise. A disadvantage of consensus building is that it encourages
group members to compromise—all the time—even when it might not be wise for a group member to
give in on his/her personal beliefs. Persuasive skills should not be a part of consensus building. But, if
they are, consensus building certainly does not rely on them. Some group members may speak in front of
the group, but no one is required to. Everyone is given equal say, but how a group member presents
his/her information can vary. Discussing different points of view is not a drawback to consensus building.
In fact, it promotes it.
34. How important are human relations skills in the business world?
Very important. On the job, you might be required to interact frequently with supervisors, coworkers, and
customers. You must be able to deal effectively with all of these people if you are to perform your job
well. It is also important to the career success of the individual since more people lose their jobs because
they can't get along with others than for any other reason.
35. Which of the following is NOT an advantage of debit card payments:
Businesses pay 0.75% of each debit card sale to the bank that handles the billing. Although businesses
pay a percentage of their credit sales to the bank that handles the credit card transactions, they pay a flat
fee for each debit card transaction, regardless of the amount of the sale. Therefore, debit card
transactions usually cost business less than credit card charges do. Because a business is informed
during the debit card transaction if the customer has insufficient funds, there is no risk of the business not
getting paid. It is easier for customers to get debit cards than credit cards, and businesses get their
money sooner when customers use debit cards instead of checks.
36. The arrangement by which businesses or individuals can purchase now and pay later is known as
Credit. Businesses use credit to obtain goods and services to sell, and consumers use credit to purchase
those goods and services. Interest is the fee that lenders charge borrowers for the use of credit. Capacity
is the individual's ability to earn income, one of the three C's of credit. Collateral is anything of value
belonging to the borrower which is pledged to the lender to guarantee that the loan will be repaid.
37. Molly and Tim have just had their first baby, Tommy. On top of their other financial considerations, such
as saving for their retirement, they will now have to start saving and investing for Tommy's
College education. Most new parents begin saving for their children's college education after they are
born, but some begin earlier. Tommy will likely have to pay for his own retirement and life insurance. As
soon as he is born, he will likely be put on their health insurance until he can afford his own.
38. Matt is balancing his checkbook for the first time. He compares the checks he has written over the last
month with those listed on his statement and finds that all of his checks have cleared. Next, he verifies
that his latest paycheck, which he deposited the previous day, is on the list. It is not, so he adds it to his
statement balance. After this, he should
Subtract fees and charges. To complete checkbook balancing, Matt needs to subtract fees and charges.
Some financial institutions charge a monthly fee on bank accounts, especially those with less than a
certain balance. They also have charges for new checks, bounced checks, etc. All of these charges must
be subtracted from the balance in the check register to obtain an accurate monthly balance. Interest is
added to, not subtracted from, the check register balance. Matt does not need to call the bank for a new
statement just because the latest deposit is not on his current statement. He does need to subtract fees
and charges and add any interest before he can consider everything done
39. Of the following ownership investments, which involves owning items that gain or lose value over time:
Collectibles. Items that gain or lose value over time are collectibles—such as antiques, gems, stamps,
dolls, and sports memorabilia. "Collecting" usually involves owning these items, waiting until they
become really valuable, and then selling them for a profit. With stocks and stock mutual funds, investors
own pieces of corporations or agencies. With real estate investments, investors own property.
40. A characteristic of the accrual method of accounting is that it
Records credit purchases when the purchases are made. The accrual method of accounting records
transactions at the time they occur even if no money changes hands at that time. This method, therefore,
keeps the business up-to-date on the amount of sales rather than on the amount of cash received. The
cash accounting method records both income and expenditures at the time the money changes hands. It
is the method most frequently used by small businesses, especially those that don't offer credit.
41. Which of the following is an example of current liabilities that a business should include in its balance
Employees' salaries. Liabilities are debts that a business owes. Liabilities are classified as current, which
means that the debts will be paid off during the year, or long-term, which means that they will be paid off
over a period of time. Employees' salaries are current liabilities because the business is expected to pay
its employees for their work on a regular basis throughout the year. Mortgage loans are long-term
liabilities because businesses usually make mortgage payments for several years. Accounts receivable
are assets because they are all the monies owed to the business by its customers. Owner's equity is the
amount an owner has invested in the business plus or minus profits and losses.
42. What is one of the main purposes of a business's sales budget?
To estimate income. The sales budget sets the financial pace for a business by estimating what amount
of expenses and income can be expected from the sale of the business's goods and services. Sales
budgets are extremely important because they estimate the major source of income, which helps a
business determine if it will be profitable. Businesses take into consideration future trends, the state of
the economy, and the level of competition when developing sales budgets.
43. True or false: All employees make an impact on a business.
True; all employees make either a positive or negative impact on a business. A good employee in a
certain job position can boost a company's productivity, help create profit, and contribute to a pleasant
working environment. The wrong employee in that same position may not only cause a company to miss
out on these benefits but can also create negative results in their place. Not all employees make a
positive impact. Managers, supervisors, executives, and board members are not the only people who
make an impact on a business.
44. Analyzing relevant marketing information can help a tour company make favorable business decisions,
which may provide the tour company with
A competitive advantage. When a tour company acquires up-to-date, relevant marketing information from
reputable sources, it can make thoughtful business decisions and take action to offer new travel
products, increase its profits, and gain market share. A tour company that takes steps to increase its
market share may gain a competitive advantage, which is the edge achieved by the business for offering
something better or different from its competitors. Quality assurance is the process by which a business
achieves its desired level of quality. Balance of trade is the difference between the value of a nation's
exports and its imports. Although favorable business decisions should provide the business with more
brand recognition, recognition is not guaranteed.
45. The Cozy Night Motel chain wants to learn about hospitality trends. Which secondary source would
provide the chain with the desired information:
Trade association. Secondary information is information that has already been collected by others. A
trade association is a group of persons in the same industry (e.g., hospitality) or geographic area who
form a society to solve their common problems. Trade associations often gather marketing information
about their industries, so they are a good source for obtaining secondary information about industry
trends. A sampling plan is an outline or document that describes the process of choosing a
representative group of consumers to survey. Guest comment cards and telephone interviews are
sources of primary information, which is new information collected for a specific purpose.
46. Which of the following is an example of a regulatory issue that may impact the hospitality and tourism
Tax change. Governments that raise hotel or sales tax rates can affect a region's hospitality and tourism.
If the tax rates are too high, vacationers or tourists are more likely to travel to destinations that have
lower tax rates, which will reduce their travel expenses. Natural disasters (e.g., hurricanes) and the
unemployment rate are economic factors that can affect the hospitality and tourism industry. Terrorism is
a political factor.
47. Last year's quarterly sales for Mountain High Ski Resort were as follows: 1st Quarter: $652,276; 2nd
Quarter: $947,550; 3rd Quarter: $423,835; 4th Quarter: $345,766
What does the data reveal about the resort's sales?
The resort's peak season occurred during the second quarter. Successful hospitality businesses monitor
their sales data on a continuous basis. Monitoring sales data helps resorts to identify trends and selling
cycles, establish sales forecasts, and determine if they are meeting their sales objectives. The provided
sales information reveals a substantial sales increase during the second quarter, which indicates that this
is the resort's peak season. This is likely due to higher resort occupancy rates, and the purchase of more
ski passes and ski rentals during the winter months, when guests stay at the resort to snow ski. There is
not enough information provided to determine if the resort is experiencing financial problems or if it did
not meet its annual sales objectives. Total sales for the year were $2,369,427 ($652,276 + $947,550 +
$423,835 + $345,766 = $2,369,427). The first and third quarter sales were $1,076,111 ($652,276 +
$423,835 = $1,076,111). Half of the annual sales would be $1,184,713.50 ($2,369,427 ÷ 2 =
$1,184,713.50). Therefore, the combined sales for the first and third quarters did not exceed half of the
year's annual sales.
48. What is the range of times people went to the movies if 20 people go to the movies 8 times a month, 45
people go to the movies 7 times a month, 72 people go to the movies 6 times a month, 58 people go to
the movies 5 times a month, and 32 people go to the movies 4 times a month?
4. Range is the distance between the highest value and the lowest value. In this example, 8 is the highest
value because it represents the most times during the month that the people responding went to the
movies. The lowest number of times the people responding went to the movies was 4 times a month. To
calculate the range, subtract the lowest value from the highest value (8 - 4 = 4).
49. A product being in great demand is a factor that might encourage businesses to
Adjust prices. Deciding on a product's price is not always easy. Businesses must consider many factors,
some of which encourage businesses to adjust prices. For example, if a product is in great demand,
businesses might increase the price because customers are willing to pay the price to obtain the product.
If a product is in great demand, a business would increase inventory in order to increase sales.
Businesses do not contact competitors about prices. By gathering information, a business might learn
that a product is in great demand.
50. Which of the following is an example of a travel and tourism service that a travel agency might market:
Escorted bus tour plus lodging. Marketing a travel and tourism service involves marketing intangibles,
which often are experiences. In this example, the escorted bus tour is a travel experience that
participants enjoy. It is not a tangible product, although the bus and lodging facilities are physical items.
The difference is that participants purchase the experience of the bus tour rather than the bus or the hotel
room. The use of the bus and the hotel room are part of the experience. Dinner, souvenirs, and postcards
are tangible items that can be marketed and sold. They may add to the overall travel experience, but they
are not services.
51. Which of the following could be used by a hotel/motel in an effort to encourage return visits by previous
Guest history records. These records contain the names and addresses of all previous guests. The hotel
can use this information to create a mailing list and to encourage previous guests to return. A guest folio
is a record of an individual guest's hotel charges. Express check-out is a system used by many hotels to
speed the check-out process for departing guests. The daily transaction report lists telephone charges for
each guest room.
52. The reason businesses obtain information usually is to apply it in order to
Accomplish a task. Businesses need information to manage and operate the business. The reason they
obtain information is to use it to accomplish a task, such as locating new customers, organizing inventory,
or developing a new marketing strategy. Simply obtaining information is not useful unless the business
applies it to accomplish a task. Businesses do not obtain information simply to develop a database. They
determine a need before obtaining information. They evaluate the source of the information to determine
its usefulness before applying it to accomplish a task.
53. Which of the following U.S. laws relates to information management:
The Sarbanes-Oxley Act. The Sarbanes-Oxley Act of 2002 is a major federal law regarding information
management and accounting records. Businesses must take proper steps to comply with this legislation.
The Sherman Anti-Trust Act relates to monopolies. The Landrum-Griffin Act and the Taft-Hartley Act both
relate to labor issues.
54. Eli is using an online search engine to obtain business information. To obtain narrow search results for a
specific phrase, which of the following should Eli place around the text:
Quotation marks. A search engine is a software program that automatically crawls the Web looking for
information pertaining to specified search terms and displays a list of results. To narrow the scope of the
information that the search query returns, Eli should place quotation marks around the specific phrase,
such as "International Internet Marketing Association." By using quotation marks, the search will return
results with those words in the exact way the researcher enters them, which narrows the scope of the
returned results. Asterisks, the number sign, and the equal sign are not keystroke options that will narrow
online search results.
55. What type of software program would a cruise line use in order to maintain a list of recent passengers
and their cabin preferences?
Database. Database software programs are used to collect, sort, organize, and analyze information
quickly. A cruise line would use database software to maintain a list of recent passengers and their cabin
preferences. The cruise line could sort the information according to various factors, such as the
passengers' addresses, and develop mailing lists to promote upcoming cruises. Businesses use
presentation software to develop visual aids to supplement an oral presentation. Communication
software programs are used to send information from one computer to another. Word-processing
software programs are used for writing and editing documents.
56. What must businesses determine during the phases of record keeping?
Who will be responsible for record keeping. The phases of record keeping include getting started,
implementing the process, and monitoring/adjusting the process. At the "how to keep them" point (in the
"getting started" phase of record keeping), the business must set policies and practices, deciding whether
or not the records should be kept digitally and who should be responsible for creating, maintaining, and
destroying the records. Where competitors keep their records is not an issue in a firm's own record
keeping. Employees may or may not dislike record keeping. No client should be excluded from the
57. The increased use of computers and telecommunications equipment is fueling the trend in business that
allows many employees to
Work in various locations. The increased use of computers and telecommunications equipment is
changing the way many companies operate and do business. At one time, most employees worked in
one location and communicated with others through written memos and phone calls. Today, computers
and telecommunications equipment allow many employees to work in various locations and maintain
contact with coworkers, managers, and customers. For example, an employee with a laptop computer
can work from home, while traveling by air to an appointment, while conducting business in a foreign
country, or while relaxing at the beach. Routine tasks often do not involve the use of computers or
telecommunications equipment. The increased use of computers and telecommunications equipment
does not necessarily allow employees to participate in management or encourage them to compete with
58. One way to determine the importance of an issue or trend is to consider its impact on
Demand for your business's products. One way to determine the importance of an issue or trend you
discover during an environmental scan is to ask, "How does this affect demand for our goods and
services?" Your personal finances should not be an issue when conducting an environmental scan for
work. An environmental scan does not relate to your competitors' personnel. A trend's impact on foreign
governments does not necessarily affect its importance to your business.
59. A hotel clerk can match available space to a guest's request for a certain type of accommodation by
checking the information in the
Room rack. A room rack is a series of metal file pockets that hold information about the status of each
room as well as information about features and rates. A hotel clerk could look at the information in a room
rack to find out which available room best fits a guest's needs. A fax machine sends copies of written
material through telephone lines. A switchboard is the telephone answering system. A key drawer
contains keys to the hotel rooms.
60. When Mr. Mason develops a production schedule, he is carrying out __________ activities.
61. One of the ways workers can protect themselves from injury on the job is to
Report or correct safety hazards. Employees should routinely report or correct such hazards as torn
carpet, slippery spots, spills, etc., which may cause accidents to themselves or to others. They should
not, however, try to fix anything that is broken since some repairs should only be made by experts. OSHA
is a governmental agency that writes and enforces safety standards for businesses, not an organization
to join. Paying workers' compensation is the responsibility of the business, not the worker.
62. In order to prevent credit-card fraud, businesses often instruct their employees to check the __________
on the back of the card.
Customer's signature. The back of a credit card contains a place for the customer's signature. When
accepting credit cards for payment, employees should check the signature on the back of the card to
make sure it matches the customer's signature on the charge slip. Carefully checking signatures on credit
cards is one way for employees to help prevent fraud by detecting customers who are trying to use stolen
cards. The expiration date and account number usually appear on the front of a credit card. A credit
card's identification code usually is its account number.
63. Why is it important for business employees to follow established security procedures?
To reduce the possibility of loss. Businesses establish security procedures, which are activi ties that
employees should follow to protect the business from loss. These security procedures are intended to
reduce the risk of robbery, assault, and other violent crimes, all of which might result in a loss for the
business. For example, robbery usually results in financial loss. Employees do not follow established
security procedures to create a pleasant facility, avoid the risk of accidents, or develop a healthy
64. A project manager persuading group members to reach an agreement about how to carry out a project is
an example of
Negotiation. Negotiation is the process of one person reaching an agreement with another person to
meet specific wants or needs. Negotiation is an important skill because project managers must be able to
influence others to take a certain course of action in order to achieve a desired outcome. Leadership is
the ability to guide others in a desired manner. Organization is bringing all components together to
achieve the project goals. Communication is the ability to express yourself clearly and simply.
65. Which of the following is an example of an employee's assisting in controlling expenses:
Is careful when using equipment. Exercising care when handling equipment and money may prevent
damage and/or loss, thereby helping to control expenses. A well-groomed appearance and effective
communication are important in presenting a positive business image but are not related to expense
66. A business that is clean and well maintained is likely to
Attract and retain customers. People generally feel more comfortable when they enter a business that is
neat and clean and has a pleasant atmosphere. Businesses keep their facilities in good condition in order
to attract and retain customers. Businesses are not well maintained in order to appeal to suppliers. A
well-maintained business does not necessarily have a sanitation department or high operating expenses.
67. What do many gift shops keep on hand in the event there is a robbery situation?
Bait money. Bait money is a few bills whose serial numbers have been recorded. Many gift shops keep a
few of these bills in the cash register in the event there is a robbery situation. The robbers are given the
bait money which often helps to identify and apprehend them at a later time. Gift shops usually do not
hire armed guards or keep police radios on hand. Most shops do not keep concealed weapons because
they are more of a danger to employees than a way of handling a robbery situation
68. A cruise ship security specialist may advise a tourist who is going ashore at a port of call to
Limit shore tours to ones approved by the cruise line. Cruise lines conduct extensive research and
planning to determine the best route and destination points. The companies are familiar with many of the
local tour and transportation services at the ports of call, and not all of them meet the standards of
service and ethical responsibility that the cruise line or traveler expects. Therefore, tourists should use
tour companies that are approved or recommended by the cruise line. This recommendation also applies
to any transportation service (e.g., bus or taxi). Valuables, such as jewelry, should be locked in a safe on
the ship to reduce the chance of theft onboard the ship or while on shore. For safety measures, a tourist
should travel in organized groups instead of alone while on shore.
69. The two major areas that determine your personal appearance are
Your physical body and your dress. Your physical body (and the health of it) along with how you dress
(the clothing you wear) are the two most important factors influencing your personal appearance. How
you take care of your body and what you do with it, along with how you present yourself through clothing,
are decisions that affect your personal appearance. Your personal appearance is usually a critical factor
that affects your self-concept, self-esteem, personality, and behavior. Your income and educational level
are not directly tied to your personal appearance. Your personal appearance may reflect a certain income
or educational level, but it doesn't have to.
70. Orderly and systematic behavior means being
Organized. Orderly and systematic individuals keep track of everything that is going on in their lives. A
bold individual is a risk taker. A cautious person is careful in making choices. Chaotic behavior would be
unorganized and unpredictable.
71. What is the first thing you should do when breaking down your goal?
Pinpoint your main goal. When breaking down your goal, the first thing you should do is pinpoint your
main goal. Once you know where you're headed, you split your main goal into several smaller goals.
Then, you prioritize them. Updating your goals is not part of breaking them down.
72. Which of the following employees demonstrates good time management:
Jeff makes a "to-do" list. A "to-do" list is a list of activities that an individual plans to accomplish during a
certain period of time, and it is a good technique for using time wisely. Sara is working quickly but not
necessarily efficiently. Karen is procrastinating and may end up with no time or less time to complete the
tasks she keeps putting off. Dan allows others to take up his time.
73. Lauren was filling out an employment application and encountered a question for which she was unsure
of the answer. What should she do?
Write in "unknown." On occasion, people will encounter questions on employment applications for which
they do not know the answer. When this situation occurs, it is acceptable to write "unknown" in the space.
This indicates that the applicant has read the question but either doesn't have the information available or
doesn't know the answer. It is always better to write in "unknown" or "NA" than to leave a blank space
that might make an employer think that an applicant forgot to answer the question. Applicants should
never make up answers. Employment applications are not allowed to contain the types of questions that
would obtain strictly personal information from applicants, such as age or religious preference.
74. One of the reasons why networking is so effective is because the contacts often
Work at the company that is hiring. Many of the people in a network are professionals that the individual
knows because of business or work-related activities. The advantage of including these people in a
network is that they often work at the company that is hiring and can pass on information to others in the
network. If the contacts are interested in the same position, they might not be willing to network and
share information. The contacts may have information about job skills and know how to communicate
with others, but those are not reasons why networking is so effective.
75. One of the services provided by some professional organizations in the travel and tourism industry is
training that leads to obtaining
Certification. Some professional organizations in the travel and tourism industry provide training that
results in conferring a certificate of completion. This certification indicates that an individual has
completed an approved training course and is qualified to perform certain functions. For example, the
National Tour Association awards a certificate to tour professionals who take specific courses and have
at least five years of experience in the tour industry. Not all training programs provide firsthand
experience. Professional organizations do not award college degrees. Some courses are offered online
as a way for participants to obtain certification.
76. Which of the following statements is true regarding the development of the hospitality industry
Transportation advancements increase the demand for hospitality services. The development of the
automobile and airplane, as well as roads and highway systems, in the past century has made travel
faster and easier. As a result, more people are traveling for business and pleasure, which increases the
demand for hospitality services. Political factors do, in fact, influence the development for hospitality
services. For example, the end of the cold war, marked by tearing down the Berlin Wall, increased
opportunities for travel to various countries. As travel increases, the need for hospitality services
increases. Because of advancements in the transportation industry (e.g., automobile and air travel), the
hospitality industry has grown and changed significantly in the past one hundred years. An increase in
tourism would create a higher demand for hospitality services.
77. Because of regular changes in the supply of and demand for hotel rooms, prices for rooms are often
Negotiable. The hospitality industry experiences fluctuations in demand for hotel accommodations.
Supply and demand fluctuations occur for many reasons. For example, seasonal factors affect how
resorts price their rooms. They often charge higher prices during typical vacation times because more
people are traveling and need sleeping accommodations. Room prices are also affected by the economy.
When the economy is good, more people take vacations and more organizations hold off-site business
meetings. This creates a higher demand, which lowers the availability of hotel rooms. When people are
traveling less, there is a decrease in demand and an increase in room availability. When this occurs,
guests can often negotiate lower prices for the guest rooms. The hotels are willing to negotiate so that
rooms do not go unoccupied, which is a financial loss for the hotels. Hotel room prices are not consistent,
unimportant, or imprecise as a result of changes in supply and demand.
78. Creating an economical image of a new product to match the business's low-cost image is an example of
Product positioning. Positioning is a product mix strategy in which a business creates a certain image or
impression of a product in the minds of consumers. In most cases, businesses want the image of the new
product to match the business's image and the image of its other products. Businesses create an overall
image that they project to consumers, and maintain that image by positioning new products accordingly.
It would confuse customers if a business with a low-cost image positioned a new product as expensive or
exclusive. Also, customers might not buy an expensive new product from a business with a low-cost
image. Promotional pricing is pricing goods/services at low levels and advertising them heavily. Creating
an economical image of a new product to match the business's low-cost image is not an example of
publicity planning or persuasive selling.
79. A key factor for a business to consider in determining the right time to purchase is
Whether products will be available when needed. Purchases need to be made so that products needed
for resale and/or raw materials needed for production will be on hand at the appropriate time. The quality
and the variety of products to be purchased are part of the process of deciding what to buy. Safety stock
is a slightly larger amount of stock than the business expects to sell. It is more likely to create
overstocking than to prevent it.
80. Mega-agencies are large travel agencies that often offer specialized services to their large corporate
accounts. Which of the following examples illustrates a specialized service to a corporate account:
Vacation clubs. Company employees are offered special vacation packages or discounted prices on
leisure trips they book through the agency. Familiarization trips are taken by meeting planners and travel
professionals to inspect sites. Guaranteed lowest airfare and advance seat assignments are common
services offered by most all agencies—not only to corporate travelers, but to leisure travelers as well.
81. If buyers offer something to vendors in exchange for something else while negotiating a contract, the
buyers are making a
Concession. During negotiations, one party often makes a concession which involves giving up
something in exchange for getting something else. For example, a buyer might offer to sign a contract to
purchase items for $5.25 instead of $5.00 if the vendor agrees to deliver the items in two days instead of
five days. Making a concession is often the way for both parties to get what they want. However, this
process is only effective if both parties are flexible and each party actually receives something of value.
In this case, the buyer negotiated a prompt delivery in exchange for paying a little more. Once
negotiations are completed, a buyer makes a commitment to sign the contract. Offering something in
exchange for something else is not a transition or a statement.
82. When a visitor to the Royal Caribbean Cruise Lines' web site moves the mouse from one part of the web
site to another, a video-like ad appears that shows entertainment on board. This is a form of online
advertising known as
Superstitial. This is the next generation of interstitials, which feature minivideos timed to appear when the
user moves the mouse within the web site. Interstitials are Java-based ads appearing while the
publisher's content is loading. Daughter windows are a variation of interstitials. They appear in a separate
window overlaying the browser window. Interactive banners are activated by some action from the user.
83. Deleting duplicate e-mail addresses and removing unauthorized subscriptions are the responsibility of
List management. List management is the manual or automatic act of organizing, handling, and/or
supervising the information about individuals who deal with a particular business. E-mail marketers
maintain lists of customers that need to be managed. Some of the responsibilities of list management
include deleting duplicate addresses and removing unauthorized subscriptions. An Internet service
provider is a company that provides access to the Internet. Automation programs do not require a human
to operate. Permission-based marketing is known as opt-in e-mail.
84. What is one of the most effective and flexible elements of a print advertisement?
Color. Color is one of the most effective and flexible elements of a print advertisement because it can
attract attention and help create the desired mood. Color can dramatically and realistically show products
and highlight certain parts of the ad. Also, readers tend to pay more attention to color ads than to ads in
black and white. A symbol is a distinctive design or group of letters that usually remains the same rather
than being flexible. Layout is not an element of a print ad but the way in which the elements of an
advertisement are arranged. Unity is a design principle rather than an element.
85. The type styles used in advertisements often are selected because they are
Distinctive. Certain type styles are more distinctive and unusual than others. In many cases, the type
styles used in advertisements are selected because they stand out and are distinctive. The intent is to
attract the readers' attention and encourage them to continue reading. Often, distinctive type styles are
used in headlines to set one advertisement apart from all of the others. Most type styles are available in
both a condensed and an italicized form. All type styles include lowercase letters. However, the style is
used because it is distinctive
86.What type of advertising copy draws attention by using words with strong psychological impact?
Emotional. The emotional approach to creating ad copy uses strong language to reach the audience. The
words selected are intended to reach the audience on a psychological, or emotional, level; the words are
used to create a certain feeling. For example, a card company that advertises its line of Mother's Day
cards may use language that reminds us how wonderful mothers are. Words such as love, devotion,
guidance, great, or best might be used to reach the audience and entice people to buy a card, which
reflects the sentiment expressed in the advertisement. Comparative copy is used when the advertiser
makes a direct comparison of a good or service with a competitor. Usually, the advertiser emphasizes its
strengths and the competitor's weaknesses. The factual approach to advertising copy uses language that
describes the good or service. It may explain how the product works, what it is made of, and why the
audience needs it. A testimonial is a statement by an identified user of a product proclaiming the benefits
received from the use of the product.
87.An advertising proof shows the advertiser exactly how an ad
Will look when it is run. The proof shows exactly how the ad will appear if it is printed without any
changes. It has not been corrected. The proof is sent to the advertiser to be checked for errors. If there
are errors, the advertiser marks them on the proof and immediately returns the proof to the publisher. A
tear sheet is a copy of the actual ad that is sent to an advertiser after an ad has run. The advertiser
usually has a contract with the publisher that indicates how an ad will be billed
88.Which of the following is a community issue that a business might decide to become involved with and
Food for the needy. Community issues are those issues that affect the community as a whole such as
homelessness or food for the needy. To be socially responsible, businesses often become involved with
and support certain community issues. This involvement benefits the community because businesses are
able to provide support which often includes money as well as time. The involvement also benefits the
businesses because they receive positive publicity which helps to create a good public image. Consumer
rights, truth in lending, and personal ethics are not community issues.
89.Simplicity and consistency are essential qualities viewers seek and that must be incorporated into the
planning of a web site's
Navigation. Viewers need to be able to move around a web site easily. They like to know where they are
on web sites. To make this a reality, websites' navigation needs to be carefully planned. To attract
attention, banner ads should not be consistent, but change. Hyperlinks enable viewers to jump from
section to section, page to page, or site to site on a web page. They are written in code that is not seen
by viewers. Click throughs are performed by viewers after a web site is in place.
90.What should the writers of news releases avoid splitting between two pages?
Paragraphs. For optimal readability, writers should avoid splitting a sentence or a paragraph between two
pages of a news release. Thoughts and information may be split between two pages. News releases do
not contain chapters.
91.Which of the following is completed first when planning a special event:
Determining the purpose of the special event. Every event should start with identification of the event's
purpose. The purpose of the special event might be to make money; to increase awareness a product,
brand, or apparel store; or to celebrate a success or a milestone. Once the purpose of the special event
is determined, the team responsible for the event can begin its planning. Planning includes developing
objectives for the special event, developing a planning timeline, and creating checklists (also known as
"to do" lists) for accomplishing the activities leading up to the event.
92.What do hotel gift shops usually do to prepare the shop for a special seasonal event?
Put up decorations. One of the main ways that gift shops prepare for special seasonal events is to put up
decorations that reflect the event. For example, shops usually decorate for such seasonal occasions as
Valentine's Day, St. Patrick's Day, and Christmas. These are events that often attract more customers
and generate more sales for the shop. To tie in to the seasonal occasions, shops decorate in an
appropriate way to appeal to customers and encourage them to buy. Gift shops would not prepare for a
special event by remodeling the facility or decreasing operating hours. Shops actually increase hours
during special seasonal events. A shop would not write a news release because the seasonal event is
not news but something that occurs every year.
93.Using the same shape, color, or texture over and over in a display is a technique called
Repetition. Repetition is used to create emphasis. Repeating the same color, shape, or texture in display
items calls attention to those particular items. Scale is the relationship of display items to each other and
to the display space. Harmony is the smooth blend of all the elements of a display. Contrast uses items
of very different size, shape, or texture together in order to create emphasis.
94.The Ramada Inn is a sponsor of the annual "Festival of Trees," which raises money for a local women's
shelter. This is an example of
Promotion. Sponsoring this community event creates a positive public image for the hotel. Programming
refers to special offerings for groups that share common interests. Packaging involves offering more than
one good or service for one total price. Although people are involved in delivering services, they are not
being exemplified in this situation.
95.Why do hotels use sweepstakes?
To attract new customers. One of the main reasons why hotels have sweepstakes is to attract new
customers. Sweepstakes are a popular form of promotion that encourages customers to stay at a
property in order to win prizes. Not only do sweepstakes increase sales during the duration of the
contest, but they also attract new customers who often become regular guests. Although sweepstakes
give away prizes which may include weekend packages, that is not why hotels use them. Hotels do not
use sweepstakes to improve their efficiency levels.
96.Why is it important for travel agents to implement creative display techniques when promoting trips or
Customers respond well to visuals. Most travel and tourism displays include visuals such as posters or
photographs of interesting destinations. The use of creative display techniques is effective because
customers respond well to visuals. It is easier to sell a trip or tour to customers if the customers are able
to see some of the sites. Then, customers often are able to picture themselves visiting those sites which
encourages them to buy. Suppliers provide printed materials that travel agents might use to develop a
creative display. Some display techniques include the use of videos that employees can show to
customers. Competitors may display souvenirs but usually do not give away souvenirs.
97.An example of a service approach in selling is
"May I help you?" "May I help you?" is a polite question indicating the salesperson's willingness to be of
assistance to the customer. "This flashlight is rechargeable" and "This resort offers all-inclusive options"
both are merchandise approaches that indicate characteristics of a product. "Good morning, Mrs. Jones"
is an example of a greeting approach.
98.Which of the following often is a benefit to a business of using product substitution:
Increased sales. The use of product substitution can benefit a business by increasing sales. When a
salesperson is able to substitute a product for items that are out of stock or not carried, the salesperson
makes a sale that might otherwise have been lost. Substitute selling does not increase open-to-buy, the
amount of money a business has available to purchase stock. Improved inventory control and greater
selection are not benefits of using product substitution.
99.A front-desk employee telling a guest about the hotel's new casual restaurant and expanded roomservice
menu is an example of
Recommending hospitality services. Front-desk employees often tell guests about the hotel's dining
options to encourage guests to use the hotel's food service. This is an example of recommending
hospitality services. The advantage of recommending services, such as the dining room or room service,
is that these services generate additional revenue for the hotel. If guests are unaware that the hotel has a
restaurant or offers room service, they may leave the property and dine elsewhere. Telling guests about
the hotel's restaurant and room-service menu is not an example of explaining complimentary offers,
describing local opportunities, or promoting recreational activities.
100.A hotel coffee shop cashier processes a food and beverage check for a guest who presents a half-off
coupon for one entree. What key on an electronic cash register calculates the discount?
Percent. An electronic cash register can calculate discounts for employees. The employee enters 50 and
then touches the percent (%) key after the sale amount of the check. The register automatically
calculates or subtracts 50% from the item on the check. The No Sale key is used to open the cash
drawer when a sales transaction is not in process. The purpose of the Refund key is to record cash
refunds. The Conversion key is used to convert payment to a different currency.
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