Kphostour

Front 1

1. The wrongful interference with the right of a business to operate is the basis of business
A. compliance. C. fraud.
B. liability. D. tort law.

Back 1

D. Tort law. The concept of wrongful action is the basis of all torts. Tort law that applies to business involves the wrongful interference with the right of a business to operate. Therefore, business torts are wrongful actions against a business that cause it harm in some way. An example might be unfair competition. The wrongful interference with the right of a business to operate is not the basis of business liability, fraud, or compliance.

Front 2

Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs?
A. Sole proprietorship C. Private corporation
B. Business-format franchise D. Product trade -name franchise

Back 2

B
Business-format franchise. A business-format franchise is a franchise agreement in which the franchisee must operate under the trade name of the parent company that provides continuous assistance in setting up and operating the business. This kind of business arrangement would give Jake more assistance than any of the other alternatives. A sole proprietorship is a form of business ownership in which the business is owned by one person who takes all of the risk and responsibility. A private corporation is a type of corporation owned by a few people that does not offer its shares for sale to the public. A product trade- name franchise is based on an independent sales relationship between a franchisor and a fr anchisee to stock and sell a specific line of goods.

Front 3

Great Adventures Travel Agency is preparing a new brochure for its clients which will include the following information: what is included in the package, reservation procedures, deposit and payment schedule, cancellation and refund policy, and the tour operator's limited responsibility and liability. This information is required by the two trade associations serving the tour segment of the travel industry and is known as
A. federal regulation. C. code of ethics.
B. performance bond. D. statement of conditions.

Back 3

D
Statement of conditions. Tour operators are required to include a statement of terms and conditions in their brochures. It usually appears at the back of the brochure in fine print and should be explained to the client. A performance bond is a type of insurance policy that guarantees payment of any money owed in the event the operator experiences financial problems. A code of ethics is a written statement of responsibility for proper conduct. Federal regulation refers to the role the government plays in overseeing the conduct of an industry. While the federal regulation has diminished, self-regulation has increased. SOURCE: BL:065

Front 4

Which of the following would not be considered an intermediary in a channel of distribution: A. Wholesaler C. Agent
B. Retailer D. Producer

Back 4

. D
Producer. The channel of distribution begins with the producer. The producer's goal is to reach the consumer as quickly and efficiently as possible. A retailer buys consumer goods or services and sells them to the ultimate consumer. A wholesaler buys goods from producers or agents and sells them to retailers. An agent assists in the sale and/or promotion of goods and services, but does not take title to them. The retailer, wholesaler, and agent are intermediaries because they operate between the producer and consumer to help the movement of goods and services.

Front 5

Businesses that buy products from suppliers that are not the authorized distributors for the products' manufacturers are involved in the
A. discount trade. C. export business. B. outlet industry. D. gray market.

Back 5

D
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. Businesses 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.

Front 6

As the reporter from WRTZ interviews the fire chief, she takes careful notes of the conversation. When he explains the details of injuries, she says, “that's two people in critical condition and three in fair condition.” This is an example of
A. defensive behavior. C. passive listening. B. ongoing feedback. D. active listening.

Back 6

D.Active listening. By repeating important information, the listener is checking to be sure that she understood the message correctly. Feedback occurs when a communicator responds back with new information or an opinion. Passive listening often results in misunderstood messages, and does not include verification of what was said. Defensive behavior occurs when the receiver of a message becomes offended by the message and attempts to justify his/her position.

Front 7

The front desk can be a hectic work area at times. Front desk clerks can still give good service under these conditions if they
A. have good accounting skills. C. know how to avoid problems. B. stay calm during interruptions. D. are able to organize others.

Back 7

B
Stay calm during interruptions. Hotel guests often need your attention as they check in or out, ask questions, and request services. The key to giving good service while handling all this activity is to remain calm during interruptions. It is not possible, or always desirable, to avoid problems. Front desk clerks are not required to have accounting skills or to organize other employees.

Front 8

In oral presentations, a closing method used specifically for getting the audience to do something is
A. using humor. C. making an appeal for action. B. using a quotation. D. making a comparison.

Back 8

C
Making an appeal for action. If a speaker is trying to get an audience to do something, challenging them with an appeal for action is a good closing. Using a quotation, using humor, or making a comparison are also clos ing methods, but they do not ask the audience to do anything

Front 9

Which of the following is a characteristic of a persuasive sales message:
A. Discredits the competition C. Makes the product appealing
B. Reminds customer of the product D. Contains loaded language

Back 9

C
Makes the product appealing. Persuasive messages usually are intended to encourage someone to do something. In the case of a sales message, the goal usually is to persuade a customer to buy a product. In order to do this, the message should make the product appealing to the customer so the customer will understand the benefit of buying and want to buy. The sales message shoul d persuade the customer to spend money. Persuasive sales messages are not intended to simply remind the customer of the product or discredit the competition. Persuasive messages should not use loaded language, which is often biased and stereotypical.

Front 10

. Which of the following is a type of simple written report that usually is distributed to employees within a business:
A. Proposal C. Handbook
B. Memorandum D. Newsletter

Back 10

B
Memorandum. Memorandums are a frequently used form of brief, written communication exchanged by people within a business. Memorandums often are distributed to employees within a business to update them on the progress of various projects, or inform them of changes in policies and procedures. They are informal and simple because they are intended only for the use of the business's employees. A proposal usually is a complex written report that is formal and may be distributed to those outside the business. Handbooks and newsletters are internal company publications but they are not memorandums.

Front 11

What is a type of inform al communication that coworkers often use to communicate with each other?
A. Grapevine C. Network
B. Feedback D. Structured

Back 11

A
Grapevine. Grapevine is an oral communication method in which information is passed around the company but not formally announced or verified. Coworkers frequently discuss company issues and pass on information from one department to another through the grapevine. Employees often obtain
information and communicate it to others by the grapevine before management makes an official
announcement. Feedback is evaluative information given by supervisors to employees. Network is a system of contacts within and outside the organization. Structured is formal communication

Front 12

When a business strives to make every customer experience a positive one, it is remembering its
A. history. C. competition. B. internal customers. D. touch points.

Back 12

D. Touch points. When a business strives to make every customer experience a positive one, it is remembering its touch points. When a business remembers its touch points, it shows that it recognizes the importance of each interaction in building positive customer relations. Touch points don't necessarily relate to internal customers, competition, or the business's history.

Front 13

When customers ask questions or have complaints about a business's procedures, employees need to be able to
A. give the customers a booklet to read. C. call a supervisor for help.
B. explain the business's policies. D. refer the customers to management.

Back 13

. B
Explain the business's policies. When customers ask questions about business policies, or when they complain about certain policies, employees must be able to interpret the policies properly so that customers understand them. Employees usually are the ones responsible for explaining policies and would not refer customers to management or supervisors unless the question or complaint was more complicated than they could handle. Employees would not give customers a booklet to read because most businesses do not have all of their policies in written form.

Front 14

An individual books a hotel reservation on an Internet web site. This is an example of
A. product. C. place.
B. promotion. D. possession.

Back 14

C
Place. Place refers to the ability to make sure that products are available where they are needed or wanted by customers. In the hospitality industry, place can be a physical location (e.g., restaurant, hotel) or a site where a want or need (e.g., reservation) is fulfilled. An Internet web site fulfills a customer's desire to make a hotel reservation. Promotion is the marketing element referring to the various types of communications that marketers use to inform, persuade, or remind customers of their products. Product is defined as goods and services that businesses offer their customers. Possession refers to the goods that people own.

Front 15

The social science concerned with the basic problem of scarcity is called
A. manufacturing. C. marketing. B. purchasing. D. economics.

Back 15

D
Economics. Economics is the study of how limited resources are used to satisfy unlimited, competing wants for goods and services. The gap between unlimited wants and limited resources creates a condition known as scarcity. Marketing is the process of planning and execut ing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Purchasing involves the planning and procedures necessary to obtain goods and services for use in the operation of a business or for resale. Manufacturing is the process of changing raw materials into finished products.

Front 16

A business that begins selling winter holiday decorations in late autumn is creating utility.
A. form C. time
B. place D. possession

Back 16

C
Time. Time utility is usefulness created when products are made available at the time they are needed or wanted by consumers. Many customers want to buy winter holiday decorations in late autumn. Place utility is usefulness created by making goods and services available at the place (location) they are wanted or needed. Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to consumers. Possession utility is usefulness created when the ownership of a product is transferred from the seller to the user.

Front 17

In a market economy, which of the following factors has an influence on what goods are produced: A. Profit C. Quotas
B. Need D. Opinion

Back 17

A
Profit. Profit is the monetary reward a business owner receives for taking the risk to invest in a business. In a market economy, businesses make and sell goods and services that earn a profit for them. Some products that consumers want and need may not be produced because producers are not ensured a profit. Need is a factor in traditional economies. Quotas are specific goals to be met. Opinion, or what the government decides , is a factor in command economies.

Front 18

Fracton Enterprises and Garland Manufacturing are identical businesses that are supplied by Alta Wholesale. Fracton provides a holiday party for its suppliers, while Garland does not. Because of the holiday party, Alta Wholesale charges Fracton less for its merchandise than it charges Garland for purchasing the same quantity of merchandise. Which government legislation of competition is Alta violating?
A. Robinson -Patman Act C. Sherman Antitrust Act
B. Clayton Act D. Celler-Kefauver Antimerger Act

Back 18

A
Robinson -Patman Act. The Robinson -Patman Act prohibits price discrimination and states that all businesses purchasing similar amounts and types of products should be charged the same price. Because the two businesses purchase the same amount of merchandise, Alta is discriminating against Garland. The Clayton Act prevents specific business actions that might restrict competition such as exclusive agreements. There are no exclusive or tying agreements in this case. The Sherman Antitrust Act prevents monopolies from forming and hinders price fixing (all businesses charging the same price). There are no monopolies or price fixing involving this case. The Celler -Kefauver Antimerger Act protects competitors from takeovers if the acquisition would hinder competition. There is no takeover situation in this case.

Front 19

The gross domestic product (GDP) is calculated each year in the United States to determine
A. the health of the economy. B. the level of exports.
C. whether income taxes should be lowered or raised. D. how much money should be printed during the year.

Back 19

A
The health of the economy. Gross domestic product is the final market value of all goods and services produced within a country's geographic boundaries during a year's time. GDP is used as an economic yardstick to measure economic growth. Net exports is one of the statistics used in calculating GDP. GDP does not determine taxes or the amount of money printed by the Government Printing Office

Front 20

Countries record the flow of imports, exports, foreign aid, business investment, foreign investments, and money spent by tourists in order to determine their
A. number of multinationals. C. need for trade missions. B. balance of payments. D. volume of production

Back 20

B
Balance of payments. Balance of payments is the difference between all monies coming into a country and going out of a country. Nations need to have more money coming in than going out. The volume of production is recorded to calculate productivity levels. The number of multinationals would show how many businesses have facilities located abroad. A trade mission is a group of volunteer businesspeople sponsored by the government to inform exporters about foreign markets.

Front 21

A restaurant server was working constantly, going from one task to the next. This server was demonstrating interest and enthusiasm for the job through
A. body language. C. boredom.
B. personality. D. verbal communication

Back 21

A
Body language. One of the ways that int erest and enthusiasm can be demonstrated is through body language which includes body movement. Verbal communication involves the use of words. Boredom is the opposite of interest and enthusiasm. Only a part of the server's personality is indicated in this situation.

Front 22

An employee accidentally quoted the wrong price to an important customer. How should the employee deal with this problem?
A. Tell the customer the typist made an error
B. Admit the mistake and quote the correct price
C. Ask a coworker to accept responsibility
D. Say the manager provided inaccurate information

Back 22

. B
Admit the mistake and quote the correct price. When ethical people make mistakes, they don't try to cover them up or put the blame on someone else. Instead, they admit their mistakes and try to correct them if possible. Everyone makes a mistake at some point in time, and the ethical response is to admit it. Telling the customer the typist made an error or saying the manager provided inaccurate information are examples of blaming the mistake on others. Employees should not ask coworkers to accept responsibility for their mistakes.

Front 23

. Which of the following is key to developing empathy:
A. Being on guard against criticism C. Avoiding people who are different
B. Being sensitive to others' emotions D. Basing your opinions on your emotions

Back 23

B
Being sensitive to others' emotions. You must pay close attention to the people around you to become aware of how they are feeling. Being on guard against criticism is a negative attitude that leads to defensiveness. Avoiding people who are different will keep you from understanding others and developing empathy. Basing your opinions on your emotions rather than on facts can lead to bias or prejudice.

Front 24

Which of the following is an example of a manager being unethical when communicating with employees: A. Deliberately limiting the distribution of classified information
B. Explaining that some information is confidential
C. Sending information in simple chart form
D. Deliberately providing insufficient information

Back 24

. D
Deliberately providing insufficient information. In some situations, a manager might deliberately provide insufficient information for the purpose of setting up an employee to fail. This is considered an unethical way to communicate because the employee does not have a fair chance to complete an assignment successfully. Managers have an obligation to treat all employees ethically and give them the information and tools needed to do the job. It is ethical for managers to explain that some information is confidential and to limit the distribution of classified information. Sending information in simple chart form often makes it easier for employees to understand complex data.

Front 25

The question, “Who is experiencing the conflict?” can provide insight about the
A. importance of the relationship. C. other person's personality.
B. core issue surrounding the disagreement. D. type of disagreement that is occurring.

Back 25

A
Importance of the relationship. Identifying who is involved in a conflict, such as a salesperson and a customer, provides insight about the nature of the relationship and its importance. Identifying who is involved in the conflict does not necessarily provide insight about personality, disagreement type, or the disagreement's core issue.

Front 26

Employees who set realistic goals and standards for themselves often are able to control their
A. ability to advance. C. work schedule.
B. level of stress. D. group participation.

Back 26

B
Level of stress. Employees who set realistic goals and standards for themselves rather than expecting perfection all the time are usually able to control and manage their level of stress. It is important for employees to understand that they cannot perform perfectly in all situations and that they will make some mistakes. Being aware of this helps employees to manage stress because they will not set their goals so high that they will often be unable to achieve them. Striving to obtain perfection all the time increases stress and may cause employees to think that they are failures if they don't live up to those expectations. Employees usually advance based on their ability to perform satisfactorily on the job. Managers usually establish work schedules and expect employees to work in groups when nec essary.

Front 27

One reason why consensus building encourages commitment and support from all group members is because
A. the process promotes thinking. C. everyone has equal power.
B. the process encourages creativity. D. everyone agrees with the decision.

Back 27

D
Everyone agrees with the decision. Consensus building is the group's process of coming to an agreement. The result is that everyone in the group agrees with the decision. When each member agrees, s/he is committed to the decision and supports putting the decision into action. This means that the group can, and wants to, bring about change. Consensus building encourages creativity and promotes thinking, but these are not reasons why consensus building encourages commitment and support from all members. Consensus building does not encourage commitment and support because everyone has equal power.

Front 28

An advantage to businesses of offering credit is that credit customers
A. are not as price-conscious as cash customers. B. buy less readily than cash customers.
C. can often save money on purchases. D. buy few impulse items.

Back 28

A. Are not as price-conscious as cash customers. Credit encourages customers to buy regardless of price because they know they don't need to worry about whether they have cash on hand to pay for their purchases. Credit customers are likely to buy impulse items that catch their attention, larger quantities, or more expensive models. Credit customers often have more chances to save money through advance notices of special sales, but that is an advantage to the customers, not to the businesses.

Front 29

When a business's insurance premiums are high, it is most often because the A. security is optimal. C. threats are minimal. B. liability is low. D. risk is high.

Back 29

D
Risk is high. Insurance is a contractual agreement in which one company (insurer) will pay for specified losses incurred by the other company (insured) in return for installment payments (premium). The premium amount is dependent on many factors, including the risk, or chance of loss. For example, a business located near a river that frequently floods is more likely to pay higher property ins urance premiums than a business that is not located near a body of water. The insurance company is more likely to pay a claim to the business for flood damages because the chance for flooding is higher. To cover the claim, the insurance company will charge the business high premiums for the policy. Low liability, minimal threats, and good security tend to lower premiums.

Front 30

Which of the following financial tools shows an estimate of the start -up costs for a new business and the sources of those funds:
A. Balance sheet C. Statement of financial requirements
B. Break-even analysis D. Cash-flow analysis

Back 30

C
Statement of financial requirements. The start -up costs include fixed assets, prepaid items and deposits, pre-opening expenses, inventory and supplies purchases, and working capital (cash) requirements. The monthly cash-flow analysis predicts whet her the cash generated by the business can cover the operating expenses and loan repayments. The break -even analysis shows the level of sales needed to pay the operating expenses and to make the debt payments. The balance sheet shows the financial status of the business.

Front 31

When customers buy on credit, the money owed the business by the customers is part of the business's
A. cash receipts. C. accounts payable.
B. current liabilities. D. accounts receivable.

Back 31

D
Accounts receivable. Accounts receivable are monies owed to a business by its cus tomers. Whenever a customer makes a credit purchase, s/he owes the business or the credit -card company a debt. Cash receipts are income in the form of currency or coins. Current liabilities are debts that must be paid within a year. Accounts payable are de bts owed by the business.

Front 32

. The three sections of a balance sheet represent the basic
A. accounting equation. C. financial quota.
B. bookkeeping system. D. monetary policy.

Back 32

A
Accounting equation. The basic accounting equation is assets = liabilities + owner's equity. These are the three sections in a balance sheet. For the balance sheet to balance, the amount in the asset section must equal the amount in the liabilities section plus the amount of owner's equity. The three sections of a balance sheet do not represent the basic bookkeeping system, the basic financial quota, or the basic monetary policy.

Front 33

Which of the following are usually responsible for analyzing a business's income statement:
A. Managers C. Cashiers
B. Customers D. Bookkeepers

Back 33

A. Managers. The income statement is usually analyzed by peo ple who are responsible for the financial status of the business. This includes managers who look at ratios to monitor operations and determine whether a company is running efficiently. They also use the income statement to monitor yearly profit activity. Customers usually do not review a business's income statements unless they are also stockholders in the business. Bookkeepers usually are responsible for compiling income statement information but not analyzing it. Cashiers accept payments from customers, but they are not responsible for analyzing a business's income statements.

Front 34

When a business owner or manager uses a budget, s/he
A. demonstrates leadership. C. has to try to make it interesting.
B. makes more informed decisions. D. can more accurately evaluate employees.

Back 34

B
Makes more informed decisions. When a business owner or manager uses a budget, s/he makes more informed decisions. A manager who uses a budget can make better decisions about the company's day - to-day activities by keeping the overall budget in mind. S/He may or may not demonstrate leadership by doing so. Being interesting is not necessarily a feature of budgets, but a budget might be interesting to a manager. Using a budget as a way to evaluate employees may not work because budgets are estimates, and there are often valid reasons to change them.

Front 35

A current employee who is asked to help orient a new employee will be serving as the new employee's
A. apprentice. C. manager. B. sponsor. D. trainee.

Back 35

. B
Sponsor. The sponsor method of orientation and training involves current employees who volunteer or are asked to be of assistance to the new employee. Sponsors provide job information, advice, and other kinds of job -related help. An apprent ice or a trainee is a worker who is learning a job. A manager performs management functions and probably would be the one to ask an employee to help orient a new employee

Front 36

Which of the following is the primary reason that hospitality and tourism businesses obtain relevant marketing information:
A. To offer products that customers want
B. To maximize the use of the latest technology C. To improve their relationships with creditors D. To drive indirect competitors out of business

Back 36

A
To offer products that customers want. Businesses are likely to fail if they do not offer products that customers want. Because customers' needs and wants change over time, hospitality and tourism businesses must collect and monitor marketing information. Knowing what customers want helps businesses develop or adapt products that suit their customers' changing wants and needs. Although hospitality and tourism businesses use technology to acquire marketing information, using technology is not the primary reason for obtaining the marketing information. Businesses can improve their relationships with their creditors by paying their bills. Marketing information can help hospitality and tourism businesses make sound business decisions to increase market share; however, their primary reason for doing so should not be to drive indirect competitors out of business, which may be illegal.

Front 37

The Majestic Resort and Conference Center sent an online survey to former guests to obtain feedback about their satisfaction levels with the facility and its services. What type of information did the resort collect?
A. Primary C. Preparatory
B. Supportive D. Secondary

Back 37

A
Primary. Primary information is information collected for the purpose at hand. Because the resort collected feedback for a specific purp ose—to obtain its former guests' opinions about its facility and services —it is primary information. Secondary information is information that has already been collected for other purposes. There is not enough information provided to determine if the feedb ack was collected to support a theory or hypothesis or if the feedback was collected as a preliminary or preparatory step for a larger project.

Front 38

To attract new customers, a Philadelphia-based travel agency plans to conduct a web search to determine the types of domestic tour packages that leisure travelers have been booking in the past two years. Which of the following organizations is most likely to provide this information on its web site:
A. The United States Tour Operators Association
B. Cruise Lines International Association
C. The American Hotel and Lodging Association
D. Recreational Gaming Association of Washington

Back 38

A. The United States Tour Operators Association. Professional organizations often provide their members with industry information and trends. A tour operator would most likely visit a U.S. tour operators professional association web site to learn about domestic tour -package trends. Professional organizations for the cruise, hotel and lodging, and gaming industries are less likely to have the specific information that the travel agency is looking for.

Front 39

Business travelers make up 40% of a hotel chain's market in the Southwest region of the country. If
860,800 guests stayed at the various properties in the Southwest region last year, how many of the hotel guests were business travelers?
A. 364,400 C. 348,640
B. 360,400 D. 344,320

Back 39

. D
344,320. Hotel chains measure and analyze the composition of various markets to determine how to best market their services to different market segments. The hotel chain's objectives, the market segment's demographics, and the size of the market segment affect how much money the hotel chain will allocate to various marketing activities for a particular market segment. To determine the number of hotel guests
that were business travelers in the Southwest region of the country last year, multiply the total number of
hotel gues ts by the percentage rate of business travelers (860,800 x .40 or 40% = 344,320).

Front 40

. What is a primary advantage of using Internet surveys to collect marketing information?
A. Less confusing for respondents C. Immediate data capture
B. Easy to conduct follow up D. High degree of interviewer influence

Back 40

C
Immediate data capture. After the respondents have submitted their answers, the marketer has immediate access to the data. Having immediate access allows the marketer to tabulate and analyze sample groups in real time. Other advantages to Internet surveys are low costs, interactivity, and low interviewer influence or bias. A disadvantage to using Internet surveys is that poorly written questions may be confusing for respondents, which may lead them to answer questions incorrectly because they have no way to obtain clarification. Another disadvantage is that many Internet surveys involve respondent anonymity, so follow up is difficult unless the marketer has the respondent's e-mail addres

Front 41

. If 60 people respond to a questionnaire and 20 answer "A," 20 ans wer "B," and 20 answer "C," what is the median?
A. 60 C. "C"
B. "A" D. "B"

Back 41

. D
"B." The median is the middle value. That means that the number above the median is the same as the number below the median. For example, if 60 people respond to a questionnaire and 20 answer "A," 20 answer "B," and 20 answer "C," the median is "B" because there is an equal number higher and lower. The mode is the response most often given to a question. The mean is the arithmetic average of all the responses in a sample. Range is the distance between high and low.

Front 42

What can business professionals do during oral presentations to ensure their audiences' understanding of marketing -research findings?
A. Speak very slowly C. Include humor whenever possible
B. Repeat minor points D. Use clear, concise language

Back 42

. D
Use clear, concise language. When making an oral presentation that includes complex research findings, the speaker should use words that help the audience understand the subject matter. The speaker may want to repeat key or major points to reinforce important information. The use of humor depends on the nature of the audience and the topic at hand. Using too much humor or speaking too slowly may irritate some audience members, which in turn may affect their comprehension of the information.

Front 43

. West Lake Yacht Club wishes to increase membership and has placed several advertisements in local boating magazines and brochures. This advertising increase is an example of
A. promotion. C. publicity.
B. pricing. D. production.

Back 43

A. Promotion. Promotion involves communicating information about goods, services, images, and/or ideas to achieve a desired outcome. Pricing involves determining and adjusting prices to maximize return and meet customers' perceptions of value. Production is the creation of goods and services. Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual that benefits from it.

Front 44

Which of the following is a characteristic of travel and tourism marketing:
A. Controlled by society C. Locally organized
B. Unaffected by technology D. Highly competitive

Back 44

D
Highly competitive. Travel and tourism is a rapidly growing industry throughout the world. As a result, marketing the industry is highly competitive because there are a wide range of companies that sell travel and tourism services. All of these companies compete for the same customers who have only so much money and time to spend on travel. Advances in technology affect the industry by making it easier for both travel companies and customers to plan vacations and book travel. Travel and tourism is a worldwide industry, although there are local attractions and facilities. Travel and tourism marketing is not controlled by society, although it is af fected by what society wants in the way of travel options.

Front 45

How can properties use the information found in guest history records?
A. To schedule payment plans C. To recruit new employees
B. To target specific markets D. To process room accounts

Back 45

B
To target specific markets. Guest history records usually contain information about guests' home towns, whether the visits were for business or pleasure, how often the guests visited, and who made the reservations. Properties use this information to develop marketing strategies that target the specific populations that are likely to use the lodging facility. If a large percentage of guests were business travelers, the property might develop a marketing plan to target corporations whose employees travel frequently. Properties do not use the information in guest history records to process room accounts, schedule payment plans, or recruit new employees.

Front 46

. Wireless networks are now more common due to
A. government regulations req uiring them. C. increased distribution of the workforce. B. information overload. D. increased competition

Back 46

C
Increased distribution of the workforce. Wireless networks are now more common due to increased distribution of the workforce. Many employees no longer have permanent offices. Instead, they work from home or the road. Wireless networks keep employees connec ted to the information they need. Wireless networks are not related to information overload, government regulations, or increased competition.

Front 47

Which of the following is an umbrella term referring to any type of Internet transaction: A. URL C. E-business
B. E-commerce D. Web site

Back 47

. C
E-business. E-business goes beyond buying and selling electronically as referred to in e-commerce. It also includes providing service to customers and suppliers and enabling interactive communication such as teleconferencing. URLs are Internet addresses, while web sites are collec tions of web pages.

Front 48

Which of the following demonstrates the correct method to ensure that all words in a phrase are included in a web search:
A. "Confidence in itself is the secret of success" B. [There is no tree that the wind has not shaken] C. 'To be or not to be'
D. (Discipline is the most important part of success)

Back 48

A. Confidence in itself is the secret of success." Many search engines eliminate common words (e.g., the, of, a) as the search is conducted because the words slow down the search process. In addition, the inclusion of common words generally does not improve search result accuracy. When it is necessary to include all words in a search, enclose the phrase in double quotation marks. Search engines do not generally recognize single quotation marks, brackets, or parenthesis as designations to include all words in a web search.

Front 49

Which of the following forms of communication is the most efficient way to bring four coworkers who are located in different cities together to simultaneously discuss a common business issue:
A. Voice mail C. Text messaging
B. Audio conferencing D. Facsimile

Back 49

B
Audio conferencing. Audio conferencing is a communication method that allows several individuals to simultaneously hold a discussion by telephone. Although each person is in a different location, each person can speak and hear all of the conference participants. Voice mail and facsimile machines are not business tools that allow several people to communicate simultaneously. Typing a text message on the computer or on a cell phone can take time, so it is not as efficient as holding an audio conferenc

Front 50

When Roger retrieved a client's information and dialed the phone number listed, he discovered the information was incorrect. This is an example of the importance of records.
A. archived C. digital
B. quality D. required

Back 50

B
Quality. Roger would have benefited from quality records — records that are accurate and reliable. Archived records (stored for the long-term), digital records (stored in a computer-related medium), and required records (mandated by a governing authority) may or may not be quality records.

Front 51

Which of the following is an economic factor that businesses might identify as a result of conducting an environmental scan:
A. Population shift C. Unemployment rate
B. Increased regulation D. Lifestyle adjustment

Back 51

C
Unemployment rate. An environmental scan is an analysis of external forces that influence a business's success. The fluctuation of unemployment rates is an economic factor because unemployment has an effect on consumers' ability to buy goods and services. If consumers are unemployed, they do not have income to spend. As a result, businesses do not sell as much because consumers are not buying. When this situation occurs, businesses often reduce expenses in an attempt to stay in business until the rate of employment starts to rise again. Increased regulation is a political factor. Population shift is a demographic factor. Lifestyle adjustment is a cultural factor.

Front 52

Hospitality businesses are developing strategies to accommodate niche markets. Skydivers are an example of a group in a growing segment called the market.
A. environmental C. agritourism
B. adventure D. geotourism

Back 52

. B
Adventure. The hospitality industry is developing ways to accommodate niche markets. Trends indicate that many niche markets are growing. Some of these markets include the baby boomers, health conscious people, and adventure travelers. Adventure travelers include people who enjoy nature an d often enjoy taking risks. Adventure travelers enjoy activities such as skydiving, mountain biking, and race car driving. Geotourism (or environmental tourism) refers to a market that is interested in unique or threatened outdoor environments, such as the rainforest. Agriculture enthusiasts are members of a niche market called the agritourists and often visit working farms.

Front 53

. Requiring employees to wear appropriate clothing on the job is one way that businesses can maintain a(n)
A. industrial image. C. safe work environment.
B. comfortable atmosphere. D. sanitary facility.

Back 53

C. Safe work environment. Businesses usually develop procedures and policies for employees to follow in order to maintain a safe work environment. One policy might involve the type of clothing that employees are permitted to wear on the job. Depending on the type of work, employees may be required to wear certain types of shoes or clothing that cover their arms and legs. Employees may not be allowed to wear clothing that might get tangled up in equipment. The intent is to keep the work environment safe for employees. Businesses do not require employees to wear appropriate clothing to maintain a comfortable atmosphere, an industrial image, or a sanitary facility.

Front 54

A new cashier handled customer's purchases without noticing that the customer's signature did not match the imprint from the charge card. Which of the following kinds of security precautions might have prevented this loss to the business:
A. Pilferage prevention C. Burglary prevention
B. Fraud prevention D. Robbery prevention

Back 54

B
Fraud prevention. Fraud is deceiving or cheating an individual or a business out of money or property. Businesses usually instruct employees to check the status of credit cards, the card's expiration date, and the signature on the back of the card. Employees should make sure that the signature on the charge receipt matches the signature on the back of the credit card. Pilferage is theft of small sums of money or inexpensive items. Robbery is theft that involves the use of force, violence, or fear. Burglary is any illegal entry into a building to commit a theft.

Front 55

. Before selecting the right people to work on a project, it is important to identify the
A. tangible resources. C. required supplies. B. needed skills. D. physical facilities.

Back 55

B
Needed skills. You know you need people to work on a project. Before you can identify the right people, you need to decide what skills are needed. For example, do you need people to use hand tools or lift heavy boxes? Once you determine the needed skills, you can select people who have those skills and are willing to participate. Tangible resources are the supplies, equipment, and materials needed to complete a project as well as the physical facilities that might be needed.

Front 56

A business converts inputs into outputs through its activities.
A. production C. marketing
B. management D. accounting

Back 56

A
Production. Production is the process or activity of producing goods and services. For example, a company uses raw materials, equipment, employees, and a building to produce radios for purchase by other businesses for use or for resale. Management is the process of coordinating resources in order to accomplish an organization's goals. Accounting is the process of keeping financial records. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Front 57

Which of the following is a way that employees can help to control expenses by managing their work: A. Reading magazines C. Leaving early
B. Taking long breaks D. Meeting deadlines

Back 57

D
Meeting deadlines. Employees need to accomplish as much as possible while on the job rather than just putting in their hours. One way they can do this is by meeting deadlines so they don't hold up co-workers' projects or disappoint customers. Meeting deadlines helps to control expenses by eliminating the need
for overtime or additional work in order to complete projects. Employees who read magazines, take long
breaks, and leave early cost a business additional money in lost time.

Front 58

Jordan is in charge of a project that involves several vendors, so he must keep track of the invoices to make sure that the project is within budget. From which department would Jordan obtain copies of the invoices relating to the project:
A. Inventory control C. Accounts payable
B. Sales D. Service

Back 58

C. Accounts payable. Accounts payable refers to all monies owed by the business to others. Many companies have departments that handle all of the bills (accounts payable) that the companies need to pay. When a project requires the input of several outside sources, there are usually many bills associated with the project. To make sure that the projected budget amounts match the actual bills, the project manager may request copies of the invoices from the accounts payable department to review the
invoices for discrepancies. The sales, inventory control, and service departments do not handle accounts payable.

Front 59

What do businesses often develop in order to properly maintain their equipment and physical facilities?
A. Regular housekeeping plan C. Ongoing security measures
B. Routine landscaping service D. Continual inspection program

Back 59

D
Continual inspection program. Many businesses develop continual inspection programs in order to identify and correct any problems. Businesses often have programs that call for the inspection of each area on a regular basis. For example, the lights may be checked weekly while the heating an d cooling system is inspected twice a year. By continually inspecting equipment and facilities, a business is able to prevent many breakdowns from occurring. Continual inspection may identify problems with housekeeping, landscaping, and security that the business would then be able to correct.

Front 60

Why is it important for business employees to remain calm when confronted by an armed robber?
A. Because the silent alarm automatically activates and notifies authorities
B. So they do not put themselves or others in additional danger
C. Because the management requires the staff to refuse to cooperate with thieves
D. So they can use company procedures to distract the robber and avoid the robbery

Back 60

B
So they do not put themselves or others in additional danger. The most important thing to do is to try to stay calm and not do anything that might anger the robber. By angering the robber, the event may escalate into a situation where someone gets hurt. For example, attempting to write down the description of the robber, refusing to cooperate or follow instructions, or attempting to distract or overtake the robber while the robbery is in process might anger the robber and result in serious injury. When the robber leaves the premises, the police should be called and a physical description of the robber should be detailed in a written format. Many businesses have hidden or quiet alarm systems located on the
premises. Employees should be carefully trained to use the silent alarm system in the event of a robbery.

Front 61

Which of the following security measures is often found in lodging establishments: A. Metal detectors C. Electronic key cards
B. Radio frequency tags D. Property management system

Back 61

. C
Electronic key cards. These offer excellent security for hotel guests as they do not contain a hotel room number, so that if one is lost or stolen it cannot be easily traced. Metal detectors are used in airports to check passengers entering boarding areas. Retailers use radio frequency identification tags, which are attached to expensive merchandise, to reduce the risk of shoplifting. A property management system is used to store information about reservations, room availability, and room rates.

Front 62

Individuals can improve their chances of making a good first impression on others by
A. doing all the talking. C. using street slang in conversation. B. sitting up straight. D. wearing dressy clothes at all times.

Back 62

B
Sitting up straight. Individuals are frequently judged by others on the basis of first impressions or the image they project. Good posture has a positive effect on the image people project to others, and sitting up straight is an example of good posture. Using slang will not create a favorable impression. Wearing dressy clothes at all times is inappropriate and may indicate poor judgment. Not letting the other person talk makes a bad impression.

Front 63

Which of the following actions is least likely to help you achieve a goal:
A. Keeping a written record of your progress C. Asking your friends if the goal is worthwhile
B. Setting a time limit for achieving the goal D. Developing a plan of things to do

Back 63

C. Asking your friends if the goal is worthwhile. You are not likely to achieve a goal unless you are sure that it is worth working toward. Setting a time limit, developing a plan, and keeping a written record of your progress are all steps that will help you to achieve your goal.

Front 64

Rob decides that he really can't know if Patrick will help him unless he asks, so he decides to do so.
Which step of the seven-step problem-solving method does this situation illustrate?
A. Select and implement a solution C. Define the problem
B. Evaluate the solution D. Brainstorm possible solutions

Back 64

A
Select and implement a solution. Rob has decided to take an action (asking Patrick for help) that can solve his problem with an assignment. The problem has already been defined, and Rob is no longer brainstorming possible solutions because he has decided on one. He won't be able to evaluate this solution until after he talks to Patrick.

Front 65

What should people ignore when they are polishing and refining their ideas in order to make them work?
A. Logical questions C. Negative comments
B. Personal suggestions D. Industry feedback

Back 65

C
Negative comments. Polishing and refining an idea may involve hard work, perseverance, and a good bit of persuasion. You may need to ignore those who tell you it won't work and who give you negative comments. In order to make your idea work, you need to believe in it and give it sufficient thought and revision. Industry feedback, personal suggestions, and logical questions may help you to improve on your original idea.

Front 66

Should a job applicant let the interviewer know at the end of an initial job interview that s/he would like to have the job?
A. No, the applicant should wait for the interviewer to offer the job. B. Yes, the applicant can expect to be hired during the interview.
C. Yes, the applicant should say that s/he would really like to be hired.
D. No, the applicant will seem to be too anxious to find a job.

Back 66

. C
Yes, the applicant should say that s/he would really like to be hired. Job applicants who know that they would like to have the job for which they are being interviewed should let the interviewer know this, usually at the conclusion of the int erview. Applicants are seldom hired at an initial job interview, but it helps the interviewer during the selection process to know which applicants seemed most interested in working for the company. The applicant will not seem over anxious, especially if it is phrased in a low-key manner.

Front 67

Which of the following is a service that is provided by some professional organizations in the travel and tourism industry:
A. Training C. Marketing
B. Counseling D. Interviewing

Back 67

A
Training. Some professional organizations in the travel and tourism industry provide training to members. This is an advantage of belonging to certain professional organizations. Training that is sponsored by a professional organization usually is recognized throughout the industry. Counseling, marketing, and interviewing are not services that are provided by professional organizations in the travel and tourism industry

Front 68

The hospitality industry consists of ______ businesses.
A. destination planning, financial, and fine dining
B. lodging, transportation, and fine dining
C. prepared food, entertainment, and lodging
D. entertainment, destination planning, and prepared food

Back 68

C
Prepared food, entertainment, and lodging. The hospitality industry provides services to anyone who travels. The services that the hospitality industry provides include prepared food (e.g., quick-serve restaurants, full -service restaurants which include fine dining), entertainment (e.g., sporting events, concerts), and lodging (e.g., hotel, motel, bed and breakfast inn). Destination planning and transportation (e.g., airlines, bus tours) are functions of the travel and tourism industry. Financial services, such as banks, financial brokerage firms, and mortgage companies, provide consumers monetary assistance.

Front 69

An example of price in the hospitality industry is the amount a guest pays for
A. one night at an all -inclusive resort. C. transportation to a full -service hotel.
B. dinner in a hotel's main dining room. D. a sightseeing trip arranged by a concierge.

Back 69

A
One night at an all -inclusive resort. Price in the hospitality industry is the amount that guests pay for the primary services provided by a property. In most situations, the price is the amount guests pay for one night's lodging. However, in the case of an all -inclusive resort, price is the amount a guest pays for one night's lodging which also includes a variety of extras such as meals and beverages. An all-inclusive price is often appealing to guests because they think they are getting a bargain. Price in the hospitality industry usually does not include dinner in the main dining room, transportation, or sightseeing trips. These services are often included in a total vacation package that is often provided by the travel and tourism industry.

Front 70

Communicating the core values of products is an effective way to
A. analyze the sales operation. C. reinforce a business's image. B. explain the price structure. D. create a distribution channel.

Back 70

. C
Reinforce a business's image. Core values represent the underlying worth of products and the image those products project. The image of products reinforces a business's image. Ideally, the core values of the business and its products should be the same or compatible. For example, exhibiting social responsibility is a core value. Businesses project this value in their products by making products that are safe. Communicating the core value of product safety also reinforces the business's image of being socially responsible. Communicating the cor e values of products is not an effective way to explain the price structure, analyze the sales operation, or create a distribution channel.

Front 71

If a one-pound box of spaghetti yields eight side dishes, how many boxes should a restaurant purchase in order to prepare 100 sides?
A. 13 C. 12
B. 10 D. 8

Back 71

A
13. To calculate the amount to purchase, first determine the servings per box. If a one-pound box of spaghetti yields eight side dishes, divide the number of customers to be served by that figure (100 ÷ 8
=12.5). The res taurant needs to purchase 12.5 boxes of spaghetti to prepare 100 side dishes but will need to purchase 13 boxes because it cannot buy partial boxes.

Front 72

Which of the following examples illustrates the concept of product in the hospitality industry: A. A conference center making reservations at other properties
B. A bed and breakfast advertising private baths and a fireplace in each room
C. A resort promoting that it treats guests like family
D. A cruise ship providing a list of rental car agencies located at ports-of-call

Back 72

. B
A bed and breakfast advertising private baths and a fireplace in each room. This illustrates the product element of marketing in the travel industry. The product is the accommodations. Th e resort is focusing on how it treats its guests. The cruise ship is providing information. The conference center is offering additional services.

Front 73

Some properties make it easier for guests to get to and from their destinations by providing
services.
A. bell staff C. concierge
B. valet D. shuttle

Back 73

. D
Shuttle. Shuttle services provide a means of transportation for guests and their baggage when the property is located far away from popular destinations such as the airport. Valet services are responsible for cleaning guests' garments so that guests don't have to obtain access to laundry facilities. Concierge services provide tourist information, directions, dinner reservations, and other personalized services that make it easier for guests to enjoy their stay and to navigate unfamiliar territory. Bell staff services handle guests' baggage, making it easier for them to get to and from their room, as well as their modes of transportation.

Front 74

A hospitality business adding a line of suite hotels to increase its product depth is an example of a product
A. enhancement. C. feature.
B. outsource. D. extension.

Back 74

D
Extension. A hospitality business might add an item (e.g., suite hotels) to its existing product line to appeal to a broader audience. A traditional hotel business might add suite hotels to its product line to attract guests who have large families and need more room, or to appeal to travelers who are staying longer than the typical transient guests. Acquiring assistance from outside organizations or consultants to obtain goods or services to accomplish business objectives is known as outsourcing. A product feature
is a fact or characteristic of a specific product. Enhancement can be described as a product improvement. Outsource, feature, and enhancement are not terms commonly used to describe the addition of a product to an existing product line in the hospitality industry.

Front 75

A business with a limited promotional budget could benefit from choosing a vendor that A. pretickets goods. C. offers exchange privileges. B. provides sales training. D. provides advertising aids

Back 75

D
Provides advertising aids. Many vendors provide a variety of advertising signs, point -of-purchase displays, banners, or cooperative advertising funds. A business with a limited promotional budget could extend that budget by choosing this kind of vendor. The other alternatives are services that some vendors offer, but they are not related to the promotional budget.

Front 76

Which of the following is a characteristic of most online banner advertisements: A. Productive C. Selective
B. Restrictive D. Interactive

Back 76

. D
Interactive. Most banner advertisements are interactive, which means that they involve two-way communication. Users are able to click on the ad and be linked to the advertiser's home page. Users also may click on a portion of the ad to obtain additional information, download coupons or other specials, or link to related sites. The banner advertisements interact with users by providing information and allowing users to respond to the information by linking to other information or sites. Banner advertisements are not restrictive or selective because they are available to all users who access the site on which they appear. The advertisements may, or may not, be productive depending on whether they appeal to consumers.

Front 77

An e-mail that allows the reader to click on certain text and be transported to a specific web site is using
A. address books. C. gateways.
B. hyperlinks. D. mailing lists.

Back 77

B
Hyperlinks. A hyperlink is a component of an electronic document that can be clicked on to jump to another place within the document or into a different document. A common use of hyperlinks is to make it possible to link from somewhere within the e-mail to a web site. Hyperlinks are a great way to drive traffic to web sites. An address book is a list of Internet addresses. A gateway is a combination of hardware and software that connects different types of networks that convert an e-mail so that the software program understands it. A mailing list is a system that sends out regular e-mail messages to subscribers of the list.

Front 78

When using color for billboard advertising, it is best to use
A. a variety of primary and secondary hues. C. a pastel color scheme.
B. primary colors. D. excessive variations of tones and tints.

Back 78

B
Primary colors. Colors generally should be bright rather than pastel, and an artist should keep the color scheme simple. When the color scheme is simple, the main illus tration helps to make the basic idea of the billboard stand out. Excessive variations of tones and tints should be avoided. It is best to use primary colors only—the most readable combination is black on yellow. If too many colors are used, the billboard m ay confuse and distract the viewer.

Front 79

What type style looks like cursive handwriting and is often used to communicate short messages that have a formal feel?
A. Novelty C. Sans serif
B. Script D. Roman

Back 79

B
Script. Script type styles are those in which the letters are linked together and look like cursive handwriting. Script styles are most often used when messages are formal or want to convey high quality. Because script type styles look like handwriting, they often convey a more personal touch to a message. Novelty type styles are decorative in nature and are used primarily as headlines. Sans serif type styles do not have feet or strokes at the end of the letter forms. Roman type styles use a combination of thin and thick lines and are often used for lengthier copy or text.

Front 80

What color harmonies tend to stimulate intense emotion and energy?
A. Blue, green, and purple C. Black, blue, and yellow
B. Red, yellow, and orange D. Orange, green, and white

Back 80

B
Red, yellow, and orange. Color harmonies are the ways in which colors are combined on the page to create a sense of visual order and appeal. Colors tend to trigger certain feelings in people. Because the color red attracts the most attention visually, it tends to generate intense emotion and energy. Yellow also attracts attention and tends to be an “optimistic” color. Because yellow is hard on the eyes, it should be used sparingly. Orange is a mixture of red and yellow and often generates feelings of enthusiasm and warmth. Blue and purple are cool colors that creat e a sense of calm and tranquility. Green is easiest on the eye and is most often associated with nature. White signifies purity, and black signifies authority.

Front 81

An effective advertisement headline should
A. criticize the competition. C. eliminate the need for additional copy. B. indicate a benefit. D. offer a guarantee.

Back 81

B
Indicate a benefit. After the graphic, the headline is the next element of an advertisement the audience scans. A well-written headline is short and memorable, and it encourages the audience to read the advertising copy. An effective headline also indicates how the product will benefit the reader. For example, a Tide laundry detergent advertisement contained a headline stating, ”Just when you thought laundry could n't get any more fun.” The benefit of using Tide is having fun while doing laundry. The headline does not need to criticize the competition or offer a guarantee to be effective.

Front 82

What is a good tip to follow when developing effective copy for mobile advertisements?
A. Include coupons C. Use symbols
B. Make it vague D. Keep it short

Back 82

D
Keep it short. Because mobile advertisements are displayed on cell phones, it is important to keep the message short and direct. If the message is too long, the intended audience is likely to delete the ad without reading it. The use of symbols (e.g., an offer 4 u) in mobile ad copy depends on characteristics of the target audience. For example, tech-savvy 16 - to 25 -year-olds are more likely to understand the use of symbols than those who do not “text” or use technology on a regular basis. Coupons are a sales - promotion technique.

Front 83

An important purpose of checking a business's advertising proofs is to
A. determine how long the ad should be run. C. compare the ad with competitors' ads.
B. make sure the firm's name is correct. D. select the media that will present the ad.

Back 83

B
Make sure the firm's name is correct. All kinds of mistakes are possible in print ads. The firm paying for the ad should make sure that its name and, in some cases, its address appear correctly in the ad so that consumers who read the ad will be able to identify the business. The business might also include a telephone number and hours of business operation with the business identification, and this information should be checked for accuracy. Questions as to how long an ad will run, what media will present it, and how it compares with competitors' ads would be answered before a final proof of the ad is prepared.

Front 84

As an element of its public-relations program, a travel agency decides to support the local community's literacy initiatives. Which of the following would be the most appropriate activity for the travel agency to implement:
A. Sponsoring a blood drive at a local high school
B. Providing a college scholarship
C. Organizing a 5-K to raise funds for cancer research
D. Donating books to local elementary schools

Back 84

D
Donating books to local elementary schools. Literacy initiatives focus on helping people learn to read. Donating books to schools, libraries, and hospital waiting rooms are ways to support literacy initiatives. Providing a college scholarship is a way to support educational endeavors. An event to raise money for cancer research and sponsoring a blood drive are heath-related causes.

Front 85

Tony owns a charter fishing boat business on the Outer Banks of North Carolina. Which of the following web sites would you recommend for Tony to place a pay-per-click advertisement:
A. www.surfboardsusa.net C. www.redlobster.com
B. www.obxbaitandtackle.com D. www.whitewaterrafting.net

Back 85

B
www.obxbaitandtackle.com. Pay -per-click ads involve paying a web-site vendor a set fee each time a visitor clicks on the sponsor's ad, directing visitors to the ad sponsor's web site. In the presented situation, Tony is the ad sponsor and he wants to place an ad on the web site that his target market is most likely to visit. Because tourists who visit the Outer Banks and like to fish are most likely to access a local bait and tackle shop's web site, Tony should place his ad on www.obxbaitandtackle.com. Surfboarders are most likely to visit a surfboard web site, whitewater rafters are most likely to visit a
whitewater rafting web site, and people who like to eat seafood are most likely to access the Red Lobster
restaurant's web site.

Front 86

Which of the following are the basic factors that should be included in the first paragraph of a good news release:
A. Sales promotion, publicity, personal selling, advertising
B. Product, price, place, promotion C. Attention, interest, desire, action D. Who, what, where, when, why

Back 86

D
Who, what, where, when, why. The first paragraph contains the most important information. For example, a news release should tell who the company or organization is, what the eve nt is, when the event will occur, where the event will happen, and why this is an important event. Product, price, place, and promotion are the elements of the marketing mix. Attention, interest, desire, and action, or AIDA, represents the sequence the cus tomer goes through in the buying process. Sales promotion, publicity, personal selling, and advertising are the elements of the promotional mix.

Front 87

When planning special events, which of the following must be considered:
A. Customers' likes and dislikes C. Markups planned for products
B. Scheduling strategy to use with the media D. Brands to be offered

Back 87

A
Customers' likes and dislikes. Special events should appeal to your customer. To do this, you need to determine what your customers like and don't like. The special event can be used to sell product or to create a certain image. When the purpos e of the event is to create a desired image, brands and markups are not considered. If the purpose of the event is to sell product, you should base the brands to feature based on your customers' likes and dislikes.

Front 88

Pedro's Grill is ready to roll out its Caribbean summer menu. One way to prepare the restaurant for the rollout is by
A. placing tropical-themed tent cards on each table. B. sending a newsletter to trade publications.
C. requiring all employees to wear red sweaters to work. D. hiring a jazz musician to entertain guests.

Back 88

A
Placing tropical -themed tent cards on each table. Full -service restaurants often develop seasonal menus. A Caribbean summer menu might consist of fresh fruits, seasonal vegetables, and flavorful seafood and chicken entrees. Because the Caribbean Islands are a tropical location, the restaurant might place
tropical-themed tent cards on the tables to promote the new menu items. Sending a newsletter to trade
publications would not be a way to prepare the restaurant for the premier of a new summer menu. Employees might be required to wear tropical shirts and shorts rather than red sweaters. It would better follow the tropical theme if the restaurant were to hire a reggae band rather than a jazz musician

Front 89

The best type of display for a hotel cof fee shop to use to protect freshly baked desserts while still promoting their sales is a(n) display.
A. open C. closed
B. island D. end cap

Back 89

C
Closed. The closed display case is usually made of glass and prevents the transfer of germs or the possibility of theft while motivating customers to buy. Is land, open, and end cap displays do not protect freshly baked desserts.

Front 90

Which of the following should be done to maintain a display: A. Display props and fixtures should be dusted.
B. Display background paper should be changed.
C. Signs in the displays should be replaced.
D. Old staples from the display should be removed.

Back 90

A
Display props and fixtures should be dusted. A professional image is created when display props and fixtures are clean and free of dust. Changing background paper, replacing signs, and removing staples would occur during the dismantling of the display.

Front 91

An online travel business sends its clients an e-mail message about a special that it is offering for a five- day Caribbean cruise. This is an example of
A. distribution. C. operations management. B. product/service management. D. promotion.

Back 91

D
Promotion. Promotion is the element of marketing that involves communicating and sending messages to inform, persuade, or remind customers of a travel and tourism business's products. An online travel business that sends an e-mail about a special product offer is using promotion. Product/Service management is a marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. Operations management is the process of planning, controlling, and monitoring the day -to-day activities required for continued business functioning. Distribution is an aspect of operations.

Front 92

Hotels and motels often attract guests by advertising a combination rate that includes a room and a special activity such as a concert, play, or sports event. This is an example of a(n)
A. incentive rate. C. rack rate.
B. package plan. D. corporate plan.

Back 92

B
Package plan. Package plans are often promoted as mini -vacations because they combine lodging and certain amenities at a discounted price. A corporate rate is a commercial rate offered to businesses. The rack rate is the regular room rate. An incentive rate is one offered to other employees of the hospitality industry, e.g., travel agents, to encourage referrals.

Front 93

Which of the following items would a travel agency display to promote travel to a Mexican beach destination:
A. Sombrero, poster of Cancun, beach towel, and sunglasses
B. Sunglasses, maracas, poster of Athens, and beach towel
C. Sunscreen, brochures of the Bahamas, sunglasses, and maracas
D. Sailboat model, sunscreen, Eiffel Tower poster, and sombrero

Back 93

A
Sombrero, poster of Cancun, beach towel, and sunglasses. A travel agency that is running a special offer for Mexican beach destinations is likely to display items that relate to the beach and to the Mexican culture. Therefore, the travel agency is most likely to display “beach” items such as sunscreen, sunglasses, beach towels, or even a model of a sailboat. It would also display items that relate to the Mexican culture, such as maracas (hand -held shaking instrument), a sombrero (hat), and a poster of Cancun, which is a popular beach destination in Mexico. Athens is a city in Greece, the Eiffel Tower is in Paris, France, and the Bahamas are part of the Caribbean Islands. The travel agency would not display materials for these destinations when it is promoting beach destinations in Mexico.

Front 94

When hotel-restaurant guests are given an opportunity to study the menu before a server comes to take their order, which characteristic of a good sales approach is being applied:
A. Sincere and friendly C. Enthusiastic
B. Respectful and courteous D. Properly timed

Back 94

. D
Properly timed. Proper timing is an important characteristic of a sales approach. Restaurant guests should be given time to consider the menu selections before the server opens the sale. Respect, courtesy, enthusiasm, sincerity, and friendliness are additional characteristics of a good sales approach, but do not relate to providing a guest or customer with enough time to review product (menu) information.

Front 95

Which of the following is good advice for a salesperson to follow when questioning customers: A. Discourage the customer from asking questions
B. Ask personal questions
C. When stock is limited, ask more questions
D. Use pauses between questions

Back 95

D
Use pauses between questions. Pausing is an effective technique that enables the customer to absorb all the information and to ask questions. Customers should be encouraged to ask questions and made to
feel that their questions are important. Personal questions, such as "How much can you afford to spend?" are inappropriate. When stock is limited, fewer questions are needed to narrow the choices for the customer.

Front 96

What should salespeople do if they discover that a different product will better meet a customer's needs than the one originally requested?
A. Respond to an objection C. Prepare a demonstration
B. Question for information D. Recommend a substitute

Back 96

D
Recommend a substitute. Sometimes salespeople sell substitute items when they know that a substitute item will meet the customer's true needs better than the requested product. By determining a customer's needs, a salesperson may learn that a product of greater or lesser value might meet the customer's needs better than the item originally requested. After recommending a substitute product, a salesperson might demonstrate the item to the customer. A salesperson questions and listens to a customer to determine the customer's needs before recommending a substitute product. Salespeople should be prepared to answer questions or respond to objections when substitute selling.

Front 97

A hotel restaurant waiter/waitress should present the check to the customer when s/he
A. has served all the desserts. C. has served the entrees.
B. feels the time is right. D. is sure the customer wants nothing more.

Back 97

D
Is sure the customer wants nothing more. This can be determined by asking the customer whether anything more is needed. The check should not be presented too soon, or customers will feel they are being rushed, but neither should customers be kept waiting for the check.

Front 98

Why is it important for salespeople to find out something about their customers before trying to sell them a good or service?
A. To develop personal relationships C. To ask for information
B. To make conversation D. To address their needs

Back 98

D
To address their needs. Before salespeople can decide which selling technique to use to sell goods or services to customers, they need to find out something about the customers. Each customer has a different need and responds differently to various selling techniques. Effective salespeople obtain information about customers in order to determine their needs and to use the most appropriate selling technique to satisfy those needs. Salespeople often make conversation and ask for information in an attempt to find out something about their customers. Salespeople usually do not expect to develop personal relationships with their customers.

Front 99

Which of the following is a factor that often motivates people to choose a certain travel destination: A. Methods of promotion C. Level of maintenance
B. Actions of competitors D. Recommendations of friends

Back 99

. D
Recommendations of friends. People often rely heavily on the recommendations of friends, relatives, and associates when choosing travel destinations. When friends share information about good experiences on cruise ships or on escorted tours, they often encourage each other to take similar trips. People may assume that they and their friends have similar likes and dislikes and would enjoy the same travel destinations. People usually do not select a destination if their friends had a bad experience and do not recommend it. People are not motivated to choose travel destinations because of the methods of promotion, actions of competitors, or level of maintenance.

Front 100

What level of management is responsible for establishing company objectives, selecting strategies for reaching goals, and providing leadership for the company?
A. First-level management C. Middle management
B. Executive management D. Supervisory management

Back 100

B
Executive management. Executive, or top -level, management is composed of all managers who are responsible for the entire company. They must chart the course and provide leade rship in order for the business to be successful. Middle management is composed of managers who report to top-level management and who have supervisors who report to them. Supervisory, or first-level, management works directly with employees who carry out the business's routine work.

Front 101

Torts relating to misrepresented facts about a business's goods or services may be subject to a lawsuit on the basis of
A. defamation. C. intrusion. B. assault. D. fraud.

Back 101

D
Fraud. A tort is a private wrongdoing against another person. Businesses can be held responsible in a variety of torts. For example, suppose a business's employee intentionally provides misleading product information to a customer in order to make a sale. Then, the customer purchases and is injured by the
product based on the employee's misleading information. The customer may file a civil lawsuit against
the business, and in some situations, the business's employee for fraudulent behavior. Assault and intrusion are criminal acts that are addressed in the criminal court system rather than the civil court system. Defamation is a tort that involves harm to an individual's or business's reputation.

Front 102

Aviation, taxation, and commerce are categories of law.
A. judicial C. administrative
B. legislative D. executive

Back 102

C
Administrative. Administrative law deals with the rules and regulations that have been established by governmental agencies. The legislative branch of the government (i.e., U.S. Congress and Canadian Parliament at the Federal level) establishes these agencies, which have the authority to enact and
enforce regulations for various administrative functions, including aviation, taxation, and commerce. For
example, in the United States, the Federal Aviation Administration (FAA) regulates air-transportation functions (i.e., airspace, aircraft safety); the Internal Revenue Service (IRS) handles issues related to personal and business taxes; and the Federal Commerce Commission (FCC) handles issues related to business and commerce. The legislative branch of government introduces and passes statutes. The judicial branch of government (court systems) interprets the law. The executive branch of the government guides government policy, and in some countries, has the power to veto legislation.

Front 103

Which of the following is true regarding passenger rights in the air travel industry: A. There is an international "Bill of Rights" to protect air travel consumers.
B. If baggage is lost, airlines pay a flat fee to reimburse the passenger. C. It is legal for an airline to overbook a flight.
D. Airlines must provide monetary compensation if a flight is delayed due to bad weather.

Back 103

C
It is legal for an airline to overbook a flight. Since there are no laws to protect the travel consumer from overbooking, bumping passengers from flights is common when traveling by air. The U.S. Department of Transportation does, however, require that airlines first ask for volunteers to give up their seats in exchange for compensation. This may be in the form of cash or a voucher. The amount a passenger is compensated for lost luggage is subject to negotiation. Most airlines have a ceiling on the amount paid ($2,500/passenger); international travelers are paid $9.07/lb. Currently, there is no international "Bill of Rights." The United States Congress has developed several options for an airline passenger "Bill of Rights," but there is nothing on the law books as of yet (August, 2009). Airlines are not required to pay any compensation for flight delays due to bad weather.

Front 104

Wal-Mart, Domino's Pizza, and Avis Rent-a-Car are examples of
A. retailers. C. agents.
B. industrial distributors. D. wholesalers.

Back 104

A
Retailers. Retailers are businesses that buy consumer goods or services and sell them to the ultimate consumer. Wal-Mart, Domino's Pizza, and Avis Rent-a-Car all sell directly to consumers. Wholesalers are businesses that buy goods from producers or agents and sell to retailers. Agents assist in the sale and/or promotion of goods and services but do not take title to them. Industrial distributors are intermediaries that buy industrial goods and services and sell them to industrial users.

Front 105

5. Channel members of a supply chain should be familiar with antitrust laws so they do not engage in activities that
A. limit monopolies. C. restrict efficiency. B. hinder competition. D. prohibit authority.

Back 105

B
Hinder competition. Antitrust laws are regulations that prevent a person or company from taking any actions to restrain free trade and competition in the marketplace. Businesses should understand the types of business activities that violate antitrust laws, so they do not engage in them. If a business
requires tying agreements or attempts to create a monopoly, it may be violating antitrust laws. The
government fines a business when it violates antitrust laws. Actions that restrict efficiency or prohibit authority do not violate antitrust laws.

Front 106

Before you can perform new tasks, you should first read the instruction manual so you can
A. use shortcuts to complete the tasks quickly. B. apply the directions in reverse order.
C. perform the tasks in the order that you think works best. D. follow the written directions in the proper sequence.

Back 106

D
Follow the written directions in the proper sequence. The first step in applying written directions to perform tasks usually involves reading the directions. Employees need to understand the written directions before they can apply them. If employees do not read the directions and apply them in the proper sequence, they may perform the tasks incorrectly. Therefore, reading the directions for understanding and meaning is an important step. The use of shortcuts to complete a task may or may not be included in the manual's written directions.

Front 107

What two elements are necessary for effective two-way communication to take place?
A. Sharing and caring C. Sharing and understanding
B. Telling and informing D. Words and meaning

Back 107

C
Sharing and understanding. Sharing means that there must be one who sends the message and one who reacts to it. Understanding means that both sender and receiver grasp the same message. Telling/Informing is a one-way process. All messages have words but meanings are generally not
included. Personal beliefs and attitudes determine if you care about a message or not.

Front 108

Once you know your group's purpose, what should you do next?
A. Find out what people know about the subject
B. Agree on ground rules
C. Volunteer a new idea
D. Contribute in a useful way

Back 108

B
Agree on ground rules. Once you know your group's purpose, you can (as a group) lay some simple ground rules for appropriate behavior during the discussion. Finding out what people know about the subject and contributing in a useful way occur later in the process. Volunteering a new idea is a
discussion tool for contributing in an open-minded way.

Front 109

Which of the following actions is it important for a speaker to take when s/he makes an oral business presentation to a large group:
A. Relax the audience by swaying back and forth when speaking
B. Turn away from the audience when presenting visual aids
C. Avoid eye contact with anyone in the audience
D. Speak loudly enough for the audience to hear the message

Back 109

D
Speak loudly enough for the audience to hear the message. When making an oral presentation to a group, the speaker should speak loudly enough for everyone in the audience to hear what s/he is saying. If audience members cannot hear what the speaker is saying, they might misunderstand or misinterpret the message. A speaker should try not to turn away from the audience when presenting visual aids and should maintain eye contact with the audience. Because swaying back and forth can distract the audience, the speaker should avoid this type of movement.

Front 110

What is a technique that often helps businesspeople to write effective business letters?
A. Developing charts C. Preparing outlines
B. Consulting references D. Asking questions

Back 110

C
Preparing outlines. Businesspeople often are expected to write business letters on a regular basis. One technique that helps them to write effective business letters is to first prepare an outline. An outline is a general plan giving only the main points to be covered. Preparing an outline helps businesspeople to
decide exactly what they want to say in the letter and to organize their thoughts. Businesspeople then
can use the outlines to write effective letters. Businesspeople usually do not ask questions, consult references, or develop charts in order to write effective business letters.

Front 111

A persuasive message that asks a person to do something should be written in a way that makes it easy for the person to
A. respond positively. C. answer politely. B. organize logically. D. read slowly.

Back 111

A
Respond positively. Persuasive messages often ask people to do something, such as buy a product, make a donation, give a speech, etc. To be effective, the message should be written in a way that makes it easy for the person to respond positively and agree to do what is asked. The messages might contain toll-free telephone numbers, an offer to deliver a product for free, or to pick up a donation. People are more likely to respond positively if it is easy to do so. Persuasive messages do not need to be read slowly. The writer of the message organizes it logically. People might politely answer persuasive messages, but the intent is to have them respond positively.

Front 112

Customer relations skills such as courtesy and friendliness should be emphasized during a business's
A. facilities design. C. hiring process.
B. market research. D. technology planning.

Back 112

C
Hiring process. Customer relations skills such as courtesy and friendliness should be emphasized during a business's hiring process. Employees are the most important factor in a business's customer relations. Businesses must hire people who will present a positive “face” for the company to the public. Courtesy and friendliness are not skills that relate to market research, facilities design, or technology plannin

Front 113

. A business improves its technology so it can better meet customer wants and needs. This results from a business activity known as
A. continuous improvement. C. organizational structuring.
B. employee training. D. business process management.

Back 113

D
Business process management. A customer-centric business is constantly striving to align its objectives and activities with customer needs. Doing so is known as business process management (BPM). BPM focuses on this alignment by stressing innovation, flexibility, and most importantly, technology. Employee
training involves educating workers on how to best perform their job duties. Organizational structuring
refers to the way business functions relate within a company. Continuous improvement refers to continuously evaluating business processes to make them more efficient and effective

Front 114

Distribution channel members must keep in mind that customers tend to
A. expect low service levels. C. want immediate delivery. B. define service differently. D. refuse late shipments.

Back 114

. B
Define service differently. Customer service involves performing activities and providing benefits which lead to customer satisfaction with the product and/or the business. Channel members, which are all of the individuals and businesses that assist in moving products from the producer to the end user, depend
on each other to perform activities leading to customer satisfaction. While it is important to have products
when and where they are needed, it is also important to remember that customers often have different ideas about service. For example, one customer may not accept a substitution for a certain item or brand because they are concerned about quality, while another customer may want the item quickly and will accept the substitution. Each customer has different expectations, so each customer defines service differently. Expecting low service levels, wanting immediate delivery, and refusing late shipments are different factors that influence how customers define service.

Front 115

The things that people buy in order to satisfy their economic wants are known as
A. free goods. C. tangible objects.
B. economic votes. D. economic goods and services.

Back 115

. D
Economic goods and services. People purchase both tangible objects (goods) and productive activities (services) in order to satisfy their economic wants. When consumers purchase one good rather than another, they are casting their dollar, or economic, votes for the item they purchased and against the
items not purchased. Noneconomic wants are satisfied by free goods—items which can be obtained
without spending money.

Front 116

Which of the following factors have provided businesses with more opportunities to buy and sell products at the international level:
A. Protectionism C. Language barriers
B. Free-trade agreements D. Strict safety standards

Back 116

B
Free-trade agreements. Free-trade agreements lessen the trade restrictions (e.g., tariffs, quotas, licenses) among countries. For example, the North American Free Trade Agreement (NAFTA) is a trade agreement among the United States, Canada, and Mexico that has eliminated trade barriers. When fewer
trade barriers exist, there are more opportunities for businesses to buy and sell products in other
countries. Protectionism is a government's policy to protect domestic industries and businesses against foreign competition. Protectionism, language barriers, and strict safety standards often hinder a business's ability to enter international markets.

Front 117

What do businesses often need to do to adapt to today's markets?
A. Remodel corporate facilities C. Participate in international trade
B. Hire new management staff D. Analyze organizational resources

Back 117

. D
Analyze organizational resources. Organizational resources are everything the business uses to operate. These resources include tangible items such as equipment and capital, as well as intangibles such as patents and brand names. It is important to analyze the resources that are available in order for businesses to adapt to today's markets. They need to determine if they have the capacity to adapt using current resources. For example, a business might find that it needs new equipment in order to increase productivity and remain competitive in today's market. Businesses do not necessarily need to hire new management staff, participate in international trade, or remodel corporate facilities to be able to adapt to today's markets.

Front 118

A major characteristic of a market economy is ownership of property.
A. monopolistic C. government
B. limited D. private

Back 118

D
Private. A market economy is an economic system in which the means of production and distribution are owned and controlled by individuals and businesses. This ownership is not limited except by the abilities of the individuals or businesses. Government ownership is a characteristic of a command economy. Monopolies in which markets are controlled by single suppliers do exist in market economies, but under controlled conditions.

Front 119

A business that encourages its workers to give input on issues affecting the company is using
A. quality of work life. C. motivation.
B. specialization. D. participative decision-making.

Back 119

D
Participative decision-making. When businesses encourage employees to give input, share suggestions, and take part in decision-making, participative decision-making occurs. Motivation involves giving employees rewards and incentives for being productive. Specialization is the process of making the best use of resources in the production of outputs. Quality of work life is the general conditions in which employees work.

Front 120

Which of the following factors characterizes the growth phase of business cycles: A. Demand for resources exceeds their availability.
B. Consumers and producers are borrowing more money. C. Consumers are putting more money into savings.
D. Producers are reducing their purchases of new goods.

Back 120

B. Consumers and producers are borrowing more money. During the growth, or expansion, phase of business cycles, interest rates on loans are low, thereby encouraging consumers and producers to borrow more money in order to make even more purchases. During the peak phase, demand for all resources exceeds their availability. During the peak and the contraction phases, people become less hopeful about the future of business and begin to save more money. Also during the contraction phase, producers reduce their purchase of new goods; instead, they try to sell the goods which are currently in inventory.

Front 121

. Refusing to do things you really don't want to do is your self-esteem.
A. of no help to C. good for
B. harmful to D. not good for

Back 121

C
Good for. Not doing things you don't want to do is one way of being responsible to yourself. It is as good for your self-esteem as doing the things that make you feel good about yourself.

Front 122

Which of the following is often one of the causes of discrimination: A. Harassment C. Stress
B. Diversity D. Prejudice

Back 122

D
Prejudice. Prejudice is opinion or judgment that is based on feeling or hearsay, rather than fact. Prejudice often is a cause of discrimination, which is the unfair treatment of a person or a group based on the person's or group's characteristics, such as race, religion, or gender. For example, if an employer assumes that a person in not capable of doing a job simply because that person is a member of a certain race, the employer is guilty of discrimination based on prejudice toward race. Diversity is all the ways in which people differ, including background, age, gender, and race. Stress is a mental or emotional feeling of pressure or tension. Harassment is any kind of behavior toward another person that is carried out for the purpose of annoying or threatening the individual.

Front 123

Christie's coworkers know that she won't repeat what they tell her if they ask her not to do so. This indicates that Christie is a(n) coworker.
A. tactful C. trustworthy
B. straightforward D. efficient

Back 123

C
Trustworthy. Being trustworthy means that people can rely on you to do what you say you will do. Trustworthy people will not tell anything they have been asked not to tell or pass along rumors that might not be true. An efficient person is one who performs in an effective, organized manner. A straightforward
person is direct, open, and honest. A tactful person has the ability to do or say the right thing in any
circumstances.

Front 124

Showing your concern for another person by using appropriate facial expressions, gestures, and eye contact is one way of exhibiting
A. self-understanding. C. empathy.
B. interdependency. D. verbal communication.

Back 124

C
Empathy. Empathy is the ability to put yourself in another person's place. Concern or identification with others can be demonstrated by using appropriate words or facial expressions, gestures, and eye contact. Self-understanding is understanding oneself. Interdependency is the dependence of people on each
other. Verbal communication uses words rather than facial expressions, gestures, or eye contact

Front 125

During a negotiation, Kara tells Jason that she will agree to help him with the department budget, if he agrees to help her finish a research project. This is an example of
A. unfair collaboration. C. peer pressure. B. bargaining. D. self-control.

Back 125

B Bargaining. Bargaining is a negotiating strategy that uses "give-and-take" tactics to reach an agreement. One person gives up something the other person wants and, in return, that person offers something the first person wants. A collaborative negotiating style is most likely to create an outcome that benefits both parties. When both parties benefit, the result is usually fair, rather than unfair. Peer pressure occurs when one person tries to influence another person of equal status to act in a particular way. Most often, peer pressure is used to describe negative types of behavior, such as smoking. Self-control refers to a
person's ability to restrain his/her feelings, words, and actions.

Front 126

Taking a couple of deep breaths and counting to 10 slowly are techniques that will help you to
A. get what you want. C. become more emotional. B. keep your self-control. D. feel superior to others.

Back 126

B
Keep your self-control. Keeping your self-control is sometimes very hard to do during conversations in which you tell people that you are unable to help them now. However, this is a time when it is important to remain calm and not become angry or upset with someone. You don't want to say something that you will regret later. If you feel yourself starting to lose it, take a couple of deep breaths. Count to 10 slowly. These techniques help you to relax. Taking a couple of deep breaths and counting to 10 slowly will not help you to get what you want, become more emotional, or feel superior to others.

Front 127

When persuading others to go along with a proposed change, you should
A. explain how the change will benefit them.
B. tell them that there's a better way of doing things. C. minimize the amount of information you give.
D. reinforce your proposal with facts and statistics.

Back 127

A
Explain how the change will benefit them. A change leader is a person who has the ability to guide others and persuade them to alter their opinions or actions. Because some individuals have a difficult time accepting and making changes, change leaders must be able to explain how a change will actually
benefit them. By doing so, the change leader has a better chance of persuading others that a new idea, process, or action will improve a situation. Telling others that there is a better way of doing things (even if it is true) might put them on the defensive and make them more resistant to change. Giving others as
little information as possible may make you appear like you are being dishonest, which may hinder your ability to persuade others because they won't trust you. In many situations, facts and statistics aren't necessary or relevant to the proposed change.

Front 128

Which of the following is an example of processing a transaction with a debit card:
A. Jayden purchased a new video game from Great Deal Electronics using a store-issued card given to him by his grandfather.
B. Tyler provided his card number and expiration date to the online-travel agency so he could obtain his airline tickets now and receive his bill for the tickets later.
C. After Ava finished her meal at an upscale restaurant, she presented the server with a card that
provided Ava with a special discount off her bill.
D. When Naomi purchased office supplies, she presented the cashier with a card that automatically withdrew funds from her business's checking account.

Back 128

. D
When Naomi purchased office supplies, she presented the cashier with a card that automatically withdrew funds from her business's checking account. A debit card is a common method of payment for goods and services. Issued by financial institutions (e.g., banks), a cardholder scans the card into a
machine at the point of sale. The information is transmitted to the appropriate location, and the funds are
electronically transferred from the cardholder's checking or savings account to the seller's account. Credit is the arrangement in which businesses and individuals can purchase now and pay later. Individuals and businesses can obtain the goods and services that they need right away, such as airline tickets, and then pay for the tickets when they receive their statements from their lending institutions. Some businesses offer membership or customer-loyalty cards, which provide their members or customers with product discounts. Gift cards are store-issued vouchers that a gift giver can purchase for another person to use to buy the store's products.

Front 129

If individuals are not self-employed, which of the following is a type of earned income they might receive: A. Vacation pay C. Interest and dividends
B. Child support income D. Trust disbursements

Back 129

A.Vacation pay. If individuals receive paid vacation, they are being reimbursed for work done. Child support income is unearned because it is court-ordered. Interest and dividends are unearned because an individual is not required to work for them. Trust disbursements also qualify as unearned income because no work is done to receive them.

Front 130

Insurance is a key element in lifelong financial planning that
A. provides protection against financial losses.
B. protects a person from unethical salespeople. C. guarantees a solid financial future.
D. is available only to property owners.

Back 130

A
Provides protection against financial losses. Insurance is designed to protect against financial losses, whether those losses are related to property, health, or even life. Insurance does not protect a person from unethical salespeople or guarantee a solid financial future. Insurance is available to property owners and non-owners alike.

Front 131

When Alana prepares a report so that all of the financial data is clearly disclosed, she is ensuring that the information is
A. transparent. C. timely. B. relevant. D. flexible.

Back 131

. A
Transparent. When financial information is fully disclosed and is presented in a clear, understandable way, it is transparent. Transparent information is not buried in a document or presented in a way that deliberately confuses the reader. Relevant information consists of data that are helpful to users of the
information. Timely information is current or up-to-date. Flexible data are often used in or applicable to
different situations. Alana's report may or may not contain flexible, relevant, or timely information.

Front 132

Which of the following would a business use in order to know how much money is available to hire more staff:
A. Accounting information C. Income statement
B. Profit-and-loss statement D. Journal

Back 132

A
Accounting information. Accounting is the process of keeping financial records. The accounting information in these records helps managers to make financial decisions that affect the business. The accounting information indicates to managers how much money they can spend for activities, such as hiring more staff. A profit-and-loss statement is an income statement which shows how much money the business has made or lost. Journals are special books or computer programs in which a business's transactions are recorded in the order in which they occur.

Front 133

One reason why ethics is important in accounting is because financial records can be
A. made available to the public. C. reviewed by government agencies. B. interpreted in different ways. D. communicated in writing

Back 133

B
Interpreted in different ways. Accounting is the process of keeping and interpreting financial records. Because many issues and situations in business are different, it is possible to interpret financial information in different ways. Some of these interpretations may be more ethical than others. In order to interpret financial records in a way that is ethical, it is necessary to consider how others are affected by the interpretation. For example, if investors are hurt by the financial interpretation, it may be unethical. Not all financial records are made available to the public or reviewed by government agencies. Financial records often are communicated in writing; however, this is not why ethics in accounting is importan

Front 134

One of the roles of ethics in finance is to encourage business employees to
A. make the right decisions. C. sell to customers.
B. increase company profits. D. prepare operating budgets.

Back 134

A. Make the right decisions. Finance is the process of obtaining funds and using them to achieve the goals
of the business. As a result, employees involved in finance often have many decisions to make that affect the company and its customers. Making the right decisions is often difficult because employees try to do what is best for the company and for customers. Being ethical and having ethical standards to follow
often helps employees make the right decisions. The role of ethics in finance is not to encourage employees to increase company profits, sell to customers, or prepare operating budgets.

Front 135

One way that the use of computer technology benefits human resources management is by
A. reducing the need to interview candidates. C. quickly delegate work assignments. B. electronically processing information. D. analyzing valuable feedback.

Back 135

B
Electronically processing information. Human resources management involves gathering and maintaining an enormous amount of information related to employees and their jobs. One way that the use of computer technology benefits human resources management is by electronically processing information. Computer systems are able to store vast amounts of information in databases, allow managers to access and update information when necessary, and organize information according to specific criteria. As a result, fewer employees are needed to process the information and the amount of paperwork is reduced, which saves money for the business. The use of computer technology does not reduce the need to interview candidates or analyze valuable feedback. Departmental managers delegate work and provide their subordinates with feedback.

Front 136

. Which of the following is an example of external secondary information that a hotel chain might use for marketing-research purposes:
A. Suggestion cards collected from guests C. Guest-registration data
B. Online industry reports D. Occupancy forecasts

Back 136

B
Online industry reports. Secondary information is information collected by others. External secondary information is obtained from sources outside the hotel chain, such as competitors' web sites, government documents, or online industry reports. Guest-registration data or occupancy forecasts are internal sources of secondary information that are collected for one reason and may be used for other purposes, such as for marketing. Suggestion cards that the hotel collects from guests are an example of primary information, which is information collected for the purpose at hand-to obtain feedback about their experiences with the hotel's goods and services.

Front 137

Which of the following is an example of primary hospitality and tourism market information: A. Financial statements provided in annual reports
B. Automated guest history records that can be shared by affiliated businesses
C. Reservation records and registration information
D. Free reception for frequent travelers in which feedback is collected

Back 137

D
Free reception for frequent travelers in which feedback is collected. Primary information is collected for the purpose at hand, while secondary information is collected for some other purpose but used to provide insight to the purpose at hand. Automated guest history records, reservation records and registration information, and financial statements provided in annual reports are all examples of secondary information.

Front 138

. A restaurant wants to predict how their customers will react to a new menu. What type of relationship should the restaurant mine from blogs?
A. Sequential patterns C. Clusters
B. Classes D. Associations

Back 138

A. Sequential patterns. When mining data to anticipate behavior patterns and trends, the restaurant should check for sequential patterns in the data. When stored data are used to locate data in predetermined groups, then the relationship of classes is sought. Clusters of relationships are found when items are grouped according to logical relationships or customer preferences. Data can also be mined to identify associations among data.

Front 139

Calculate the mean using the following statistical table:

Numeric Value of Response Number of Responses
6 8
5 12
4 16
3 14
2 9
1 6

A. 2.9 C. 3.7
B. 3.3 D. 4.1

Back 139

C
3.7. The mean is the arithmetic average of the statistical sample. To calculate the mean, first multiply the value of each response by the number of responses (6 x 8 = 48; 5 x 12 = 60; 4 x 16 = 64; 3 x 14 = 42; 2 x
9 = 18; 1 x 6 = 6). Then, add the totals (48 + 60 + 64 + 42 + 18 + 6 = 238), and tabulate the total number of responses (8 + 12 + 16 + 14 + 9 + 6 = 65). Divide the total by the number of responses to determine
the mean (238 ÷ 65 = 3.66 or 3.7).

Front 140

The research data indicate a correlation of -1 > r > 0. What does that tell you?
A. The two variables tend to increase or decrease together. B. One variable increases as the other variable decreases. C. There is perfect correlation between the two variables.
D. The two variables do not vary together at all.

Back 140

B
One variable increases as the other variable decreases. The correlation coefficient, r, ranges from -1 to
+1. A correlation coefficient of -1 > r > 0 tells the reader that as variable X increases, variable Y
decreases. When the two variables tend to increase or decrease together, the correlation coefficient is 0
> r > 1. When two variables do not vary together at all, the correlation coefficient is r = 0. When there is perfect correlation between two variables, r = 1.

Front 141

The purpose of using presentation software to prepare multimedia presentations often is to use those presentations to
A. support report findings. C. develop web sites.
B. maintain customer files. D. access online resources.

Back 141

A
Support report findings. Presentation software is used to produce multimedia presentations that often include slides, video, graphics, sound, color, etc. Because the information contained in reports is often technical or complex, businesses often prepare multimedia presentations to explain and support the
report findings. The visual presentation often makes complicated information easier to understand as well
as more interesting. The purpose of using presentation software to prepare multimedia presentations is not to use the presentation to maintain customer files, develop web sites, or access online resources

Front 142

When presenting research findings orally, you can help an audience of business professionals to better understand the findings if you
A. designate a research team member to ask questions.
B. call on the audience to explain their understanding of the research. C. use meaningful comparisons.
D. provide a bibliography of the resources cited.

Back 142

C
Use meaningful comparisons. When the presenter of a research report compares the findings with information previously known by the audience, the presenter helps to make the findings concrete and meaningful to the audience. Providing a bibliography of resources cited may be of interest to the audience, but it does not help them better understand your findings. Calling on the audience to explain their understanding of the research and asking them questions are classroom activities—not something done in the business world. Instead, the audience will ask questions that you should be prepared to answer.

Front 143

A small, local restaurant has decided to advertise its elegant atmosphere and qualified wait staff. This approach is an example of marketing.
A. service C. mass
B. product D. target

Back 143

A. Service. Service marketing involves the marketing of service-oriented businesses and activities, such as food service. The restaurant is promoting its atmosphere and qualified staff who provide the service. Product marketing is the marketing of goods, such as the food entrees that the restaurant sells. Mass marketing involves appealing to the whole market. Target marketing is selecting specific markets and advertising to them.

Front 144

A company wants the public to perceive it as a builder of luxury resorts. What goal does this illustrate?
A. Projecting a certain image C. Increasing efficiency/productivity
B. Increasing sales D. Achieving stability

Back 144

A
Projecting a certain image. If a company wants the public to perceive it in a certain way, it is trying to project a certain image. Increasing sales, increasing efficiency/ productivity, and achieving stability are all company goals, but they are not necessarily related to how a company wants to be perceived by the public

Front 145

One of the benefits to a hotel of keeping a guest-history file is that the information in the file can help the hotel to
A. advertise effectively. C. hire well-trained workers.
B. stay within a budget. D. register walk-in guests efficiently.

Back 145

A
Advertise effectively. The guest-history file contains information such as the guest's name and address, length of stay(s), date of stay(s), method of payment, etc. Knowing the geographic location of its guests allows the hotel to target its advertising and other promotions to those areas. If walk-in guests have never stayed at the property, the hotel would not have a guest history for them. The files also would not help
the hotel to stay within the budget or to hire employees.

Front 146

One way for a hospitality business to obtain current information in a cost-effective and efficient manner is by
A. interviewing experts. C. reviewing archived journals.
B. developing a survey. D. accessing an Internet search engine.

Back 146

D
Accessing an Internet search engine. A quick, cost-efficient way to obtain current information is by accessing an Internet search engine. A search engine is a software program that automatically crawls the Web looking for information pertaining to specified search terms and that displays results. Developing a
survey does not obtain the desired information unless it is sent out, completed, tabulated, and analyzed.
Archived journals can be found in libraries or by accessing online sources, but may not contain current information. Setting up interviews with experts might take time, so this option is not efficient and could be more costly for the hospitality business.

Front 147

Information management can be a challenge because
A. there is only one "right" way to do it.
B. there is often not enough information to manage. C. many people don't understand what it is.
D. no one wants to participate in it.

Back 147

C
Many people don't understand what it is. Information management can be a challenge because many people don't understand what it is or what role they should play in it. Many people may want to participate in information management but just do not know how. There is often too much information to manage, something known as information overload. There is no one "right" way to approach information management.

Front 148

. Mr. Edwards saved some confidential customer information from his employer's computer network onto a flash drive, so that he could work on a project from a different location. Without realizing it, Mr. Edwards dropped the flash drive in a parking lot on his way to a meeting. This situation is an example of a risk related to
A. employee privacy. C. information security. B. patent protection. D. data entry.

Back 148

C
Information security. Businesses often maintain personal information about their customers, such as credit-card numbers, bank-account numbers, and account passwords. Businesses must take reasonable care to protect and secure their customers' personal information to reduce the risk of fraudulent behavior,
such as computer hacking and identity theft. Businesses should develop policies about removing digital
information from their facilities. A patent provides legal protection to the owners of inventions. The customers' privacy, rather than employees' privacy, has been compromised in the presented situation. There is no indication that data entry problems exist with the information provided.

Front 149

. Which of the following is an example of the digital convergence occurring on the Internet: A. Internet companies increasing their bandwidth
B. Internet companies offering wireless service
C. Internet companies offering phone service
D. Internet companies increasing their use of WANs

Back 149

C
Internet companies offering phone service. Digital convergence is the tendency of digital services that were once separate entities to combine into new forms. An example of the Internet offering phone service is Skype. Wireless, bandwidth, and WANS are not examples of digital convergence.

Front 150

Justin's company is keeping documents regarding the accidental death of an employee while on the job.
In case the employee's family sues the company, the business should have records on hand.
A. promotional C. asset
B. payroll D. legal

Back 150

. D
Legal. Any lawsuit in which a company is involved requires the business 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 Justin's company'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.

Front 151

A growing trend that is influencing the way that many companies do business is the concern for
A. distributing the wealth. C. monitoring the economy.
B. protecting the environment. D. regulating the government.

Back 151

B
Protecting the environment. The growing concern over the condition of the environment is influencing the way that many companies do business. Businesses that once ignored the damage they did to the environment are now spending billions of dollars to correct the problems and to change the way they operate. Public sentiment is forcing these companies to address environmental issues, such as pollution. The businesses that fail to do their part to protect the environment often anger consumers, which may lead to a loss of sales. The government, rather than business, is concerned with the distribution of
wealth. Monitoring the economy is not a new trend but an ongoing business function. Businesses do not regulate government; instead, government regulates business.

Front 152

A current trend in the hospitality industry is to build loyal customer relationships and enhance service levels by optimizing the use of
A. independent travel agents. C. Internet web sites.
B. satellite roving devices. D. service rating advisors.

Back 152

C
Internet web sites. The evolution of the Internet has made it possible for customers to book, cancel, and change their hotel reservations as well as gather information and take a virtual tour of the guest rooms of various lodging facilities. New technology has made it possible for hospitality businesses to track an Internet user's online purchasing habits. The information gathered through the tracking system can be analyzed and used to develop customer relationships via direct marketing efforts (e.g., specials,
surveys). Because more people are booking lodging facilities via the Internet, the use of travel agents is decreasing. Satellite roving devices and service rating advisors are not common terms used to describe
concepts related to the hospitality industry.

Front 153

. One way that businesses maintain the security of data that they send over the Internet to clients is by using a software program that prevents a(n)
A. virus from being downloaded. C. attachment from being included. B. document from being forwarded. D. search engine from being used

Back 153

B. Document from being forwarded. Some businesses use software programs that help maintain the security of data they send over the Internet to clients. These programs prevent documents from being forwarded to others so the information does not end up in the hands of competitors. Also, these programs prevent others from copying, editing, or printing the documents which helps maintain the information in its original form. These software programs do not prevent a virus from being downloaded, an attachment from being included, or a search engine from being used.

Front 154

Judy fell from a display platform and tore the ligaments in her ankle. Her injury is considered a(n) A. strain. C. hernia.
B. open wound. D. sprain.

Back 154

D
Sprain. A sprain is an injury to muscles or joints caused by twisting or tearing of the ligaments. An open wound involves a break in the skin, such as a paper cut. A strain is an injury to muscles or tendons caused by stretching or overexerting. A hernia is an injury in which part or all of a body organ breaks
through surrounding tissue and protrudes.

Front 155

What type of computer program helps protect digital business information from the negative effects of malware?
A. Spyware C. Cookies
B. Firewalls D. Shareware

Back 155

B
Firewalls. Malware (malicious software) is an illegal computer program that is used to disrupt computer processes, destroy computer programs, and access confidential business information. Firewalls are types of computer programs that combat these types of dishonest activities and protect a business's digital information. Spyware is a computer program that tracks and captures a computer user's Internet usage habits, e-mail messages, etc. Cookies are text files that are put on a web-site visitor's hard disk and then later retrieved during subsequent visits to the site to track Internet behavior. Shareware is a type of computer program in which computer users can sign up for the software on a trial basis. After the trial expires, the computer user can purchase and register the program, if desired.

Front 156

What should an event's project managers do before asking for contributions?
A. Prepare a budget C. Arrange for credit
B. Open an account D. Hold a fund-raiser

Back 156

A
Prepare a budget. Most projects have costs involved. However, before asking everyone you know to make a contribution, it is important to prepare a budget. By developing a budget, project managers will have an accurate picture of what it will cost to do the project. Then, they can ask others for the financial resources to cover the costs. It is not necessary to open an account or arrange for credit before asking for contributions. Holding a fund-raiser is one way to obtain financial assistance after preparing a budget to find out the amount of money that will be needed.

Front 157

Which of the following is NOT something you need to complete your project: A. Sponsors C. Permission
B. Tools D. Money

Back 157

A
Sponsors. You do not need sponsors to complete your project. Sponsors are not a necessary resource. You do need tools, money, and permission (if required).

Front 158

. Some businesses use an automatic reorder system to maintain an adequate
A. work environment. C. budget for expenses. B. inventory of supplies. D. maintenance system.

Back 158

B. Inventory of supplies. When businesses use an automatic reorder system, an order for additional supplies is placed when the inventory decreases to an established level. This makes it possible for a business to effectively maintain an inventory of supplies at the right level. The business does not tie up funds by purchasing too many supplies, or risk running out of supplies. Businesses do not use an automatic reorder system to maintain an adequate work environment, budget for expenses, or maintenance system.

Front 159

What production activity establishes a timetable?
A. Routing C. Planning
B. Dispatching D. Scheduling

Back 159

D
Scheduling. Production scheduling establishes the timetable to be followed in production. Employees responsible for scheduling look at the number of steps in the production process and estimate how long each step will take. They then set times when each step should begin and end, and schedule delivery of the resources that will be needed. Routing is the production activity that determines the sequence for the steps in the production process. Dispatching is issuing orders for production to start. Planning is deciding what will be produced, how it will be produced, and how much of it will be produced.
SOURCE: OP:017

Front 160

When dealing with an actual robbery situation, it is important that employees remember to
A. keep the business's safe locked.
B. keep as little cash on hand as possible.
C. discuss the situation with anyone who asks about it.
D. give the robbers what they want to avoid potential injury.

Back 160

D
Give the robbers what they want to avoid potential injury. In order to deal with robbers, it is always best to give in to their demands without causing a disturbance. Robbers want to enter a business and leave quickly, and any startling activity could make them panic and cause employees additional harm. Although it is good advice to keep as little cash on hand as possible to limit losses, it will not impact the actual robbery situation. Keeping the safe locked will also limit losses but, again, doesn't keep the robbery from occurring. As a rule of thumb, employees should not discuss the situation with anyone except management and the police.

Front 161

While an adventure tour guide is leading a white-water rafting group, a group member falls and breaks an ankle. What are the primary provisions the guide needs to help the injured group member?
A. Medical kit and cellular phone C. Map and compass
B. Toolbox and flashlight D. Prescription pain medication

Back 161

A
Medical kit and cellular phone. Medical kits should contain items needed to initiate emergency care (e.g., a splint). Depending on the location of the accident and the extent of the injury, a cellular phone would be useful to call for additional help and transportation of the injured party. A toolbox, flashlight, map, and compass may be helpful but are not the primary items needed for the described situation. Most first-aid or medical kits include nonprescription pain relievers, such as Ibuprofen, rather than medication prescribed by medical doctors.

Front 162

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.

Back 162

. 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.

Front 163

. Time management helps to reduce stress because it
A. allows adequate time for personal and professional activities. B. provides less time for rest and relaxation.
C. encourages procrastination in planning necessary activities. D. increases feelings of pressure and tension.

Back 163

A
Allows adequate time for personal and professional activities. The use of time-management techniques forces us to take care of important activities immediately, which relieves pressure and tension. It allows more time for rest and relaxation. This will ultimately reduce stress.

Front 164

The job interviewer told Elizabeth at the end of the interview that he couldn't offer her the job because she lacked a particular skill that the job required. Elizabeth's next step should be to
A. look for another similar job opportunity. C. file a formal complaint with the EEOC. B. write the interviewer a follow-up letter. D. look for training in the required job skill.

Back 164

B. Write the interviewer a follow-up letter. Expressing appreciation for the interview is just as important when you know you won't get the job as it is when you believe you might be hired. It makes a good impression on the company, puts your name into their files and, in some cases, may make them reconsider their decision. The letter should be written while the details of the interview are fresh in your mind. After that, you might want to find out about training for the skill you lack and to look for a similar job opportunity. There is no basis for filing a complaint in this case.

Front 165

Why do many businesses provide opportunities for their employees to continue their education or receive additional training?
A. To be able to promote from within C. To identify problems in the company
B. To provide financial assistance D. To support the local community college

Back 165

A
To be able to promote from within. Many businesses prefer to promote from within whenever possible and help current employees move up the career ladder. To do this, businesses often provide opportunities for their employees to continue their education or receive additional training. As a result, they have a pool of qualified employees to choose from when higher-level jobs become available. This benefits the employees because they can advance within the business. Businesses often provide financial assistance, such as tuition reimbursement, to help employees continue their education. However, that is not the reason for providing the additional training. Businesses do not provide educational opportunities to identify problems in the company or to support the local community colleg

Front 166

One of the main benefits for companies participating in a trade show is the opportunity to
A. meet with competitors. C. visit new cities.
B. obtain sales leads. D. hire new employees.

Back 166

B
Obtain sales leads. People who attend trade shows usually have an interest in the goods and services on exhibit. Therefore, they are good sales leads for the companies participating in the show. Companies do not participate in trade shows in order to meet with the competition, although trade shows do give businesses a chance to see what competitors are doing. Visiting new cities and hiring new employees
are not main benefits of trade show participation.

Front 167

. A primary reason hospitality employees and businesses join professional or trade organizations is to A. increase employee productivity. C. qualify for additional government funding. B. develop promotional efforts and materials. D. obtain further education and certification.

Back 167

. D
Obtain further education and certification. Trade or professional organizations consist of individuals or groups that work within a particular industry. Benefits of belonging to a professional organization include networking opportunities, the establishment of consistent industry standards, trade shows, and venues
for members to further their education (e.g., seminars, workshops, classes, certification) within the
industry. Continuing education programs can help people keep up with trends associated with their industry. The availability of government funding is dependent on each government's resources and guidelines. Therefore, it cannot be assumed that all governments provide financial support to trade organizations. Joining a professional organization does not necessarily improve or increase employee productivity. Joining a trade organization might help industry members learn about the use of promotion, but it does not necessarily develop the materials or programs for them.

Front 168

What is the typical effect of an economic slowdown on the hospitality industry?
A. An increase in the number of guests and a decrease in the number of rooms available B. A decrease in the number of guests and an increase in the number of rooms available C. A decrease in the number of guests and a decrease in the number of rooms available
D. An increase in the number of guests and an increase in the number of rooms available

Back 168

B. A decrease in the number of guests and an increase in the number of rooms available. A decrease in the number of guests occurs during economic slowdowns because people are reluctant to spend their discretionary income on travel. Consequently, there is an increase in the number of rooms available as more rooms become available for rent. An increase in the number of guests and an increase in the number of rooms available does not follow the law of supply and demand, which suggests that as demand for rooms go up, supply typically goes down. A decrease in the number of guests and a decrease in the number of rooms available would work the other way because as demand goes down, the supply of rooms available for rent typically goes up. An increase in the number of guests and a
decrease in the number of rooms available typically occurs during good economic times when people are more willing to spend their discretionary income on travel.

Front 169

In the travel and tourism industry, customers' perceptions of value and worth are often associated with
A. price. C. place.
B. profit. D. promotion.

Back 169

A
Price. Price is the marketing element requiring marketers to determine the amount of money they will ask in exchange for their products. In the travel and tourism industry, price is closely associated with customers' perceptions of value and worth. If customers think the travel product has value and worth,
they are often willing to pay for it. Also, value and worth differ from customer to customer, so what is
value to one customer might not be value to another. For example, some people prefer economy hotels because saving money is a value to them. To other people, receiving many services is a value that they are willing to pay for. Profit is the monetary reward a business owner receives for taking the risk involved in investing in a business. Place is the marketing element focusing on considerations in getting a selected product in the right place at the right time. Promotion is a marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome

Front 170

Which of the following would be the best option for restaurant managers to do to encourage the identification of new product ideas:
A. Encourage family members to generate new product suggestions and ideas
B. Encourage competitors to recommend new product ideas
C. Encourage employees to report new product ideas from other restaurants they visit
D. Encourage their trade association to regularly submit new product ideas to local restaurants

Back 170

C
Encourage employees to report new product ideas from other restaurants they visit. New product ideas come from a variety of internal and external sources. Some examples of internal sources include personal observation; formal research and development activities; recommendations from corporate,
employees, family members, and people who provide professional assistance to the restaurant such as
bankers, attorneys, etc. The problem with asking family members for recommendations is that managers might feel that they can't reject bad ideas. Competitors won't recommend new products because they don't want to lose business to others. Although trade associations might suggest ideas for new products, the fact that they're recommending the products to local restaurants would fail to give any one restaurant a competitive advantage.

Front 171

Several clients indicate an interest in products that the business does not currently offer. These requests can be given to buyers to help them to
A. forecast sales. C. select vendors.
B. determine what to buy. D. research the market.

Back 171

B
Determine what to buy. Buyers consider customer requests in order to determine whether a profitable market exists for new goods and services. A sales forecast is a prediction of what sales to a target market will be over a specific period of time. Marketing research is the process of collecting, recording, and analyzing data for marketing decision-making. Buyers obtain information about prices, terms, delivery, etc., from several vendors during the process of vendor selection.

Front 172

How does a product's peak selling season affect a business's purchasing efforts?
A. Businesses usually buy small quantities of the item on a more frequent basis. B. Businesses generally need less lead time for large quantity orders.
C. Businesses usually base order size on the competition's buying behavior. D. Businesses generally buy the item in larger quantities.

Back 172

D
Businesses generally buy the item in larger quantities. A business's peak selling season occurs when customer demand for certain goods and services is very high. For example, the demand for beachwear and outdoor furniture is usually highest during the spring and summer months in the northern
hemisphere. Therefore, businesses generally try to order these types of items so they have enough on
hand to meet demand. Some types of businesses (e.g., resort gift shops) carry similar items need them at the same time, so vendors and manufacturers might need more lead time to fill orders. Although businesses might purchase small quantities of the item on a frequent basis, they run a risk of back-order situations from their suppliers and, therefore, cannot meet customer demand. Although businesses consider competition when marketing products, other factors are often considered when determining the quantity of items to purchase.

Front 173

Which of the following is an example of a product in the travel and tourism industry:
A. A brochure explaining cruise options C. An inquiry about flight schedules
B. A fly-drive vacation package D. A confirmation letter to a customer

Back 173

B
A fly-drive vacation package. The main product in the travel and tourism industry is the experience. This experience often includes contact with tangible objects such as airplanes, automobiles, cruise lines, etc. However, what the customer is buying is the actual experience of traveling and visiting destinations. In
this example, the fly-drive vacation package is the product because it is what the customer will
experience. A brochure explaining cruise options is a promotional piece. Checking on flight schedules and sending confirmation letters are services involved in selling the travel and tourism product.

Front 174

A large company that owns a chain of economy hotels recently developed plans to start a chain of upscale hotels. This is an example of
A. multicorporate franchising. C. product extensions.
B. market potential. D. property management systems.

Back 174

. C
Product extensions. A product extension is a good or service added to an existing product line or product category. An example is a hotel chain adding a new line of hotels. Valet service and full-service dining can be found in many upscale hotels but not at an economy facility. A company that owns more than one type of hotel and offers different levels of service or amenities have extensions from the main product (hospitality services). Market potential refers to estimated revenues or income that can be generated
from a specific market segment. Franchising is a method of distributing goods and services through a licensing arrangement between a parent company and another individual or company outside the parent company. Multicorporate franchising is not a term used in the hospitality and tourism industry. Property management systems are the central computer or technological systems that a hotel uses.

Front 175

Which of the following is a service that might influence a business owner's decision to select a certain vendor:
A. Budgeting C. Regulating
B. Forecasting D. Advertising

Back 175

D
Advertising. When selecting a vendor, business owners consider the services that vendors offer. Some vendors provide assistance with advertising, either on a cooperative basis or by giving the business promotional materials. Businesses often need advertising assistance and select those vendors who
provide the most help. Regulations are an established set of rules rather than a service. Forecasting is
predicting the future. Budgeting is estimating what income and expenses will be for a specific period of time.

Front 176

Four Seasons Hotels and Resorts, which prides itself on its extensive collection of art and artifacts, has created a series of audio programs featuring discussions with art experts about works of art found at Four Season Hotels and Resorts around the country. These recordings, available in several different formats, are available for download at the company's web site. Which of the following terms best describes these audio programs:
A. Podcasts C. Blogs
B. Social media D. Ad serving

Back 176

A
Podcasts. Podcasts are digital audio and/or visual programs that can be automatically or manually downloaded from the Internet to customers' mp3 players or computers. Customers can then listen to and/or watch the podcasts at their leisure. Hospitality and tourism companies may use podcasts to
educate or entertain potential guests while also advertising their organizations' services. Social media are
typically networking web sites that rely on users for content. Blogs are online journals containing entries written by a company, individual, or group of people. Ad serving involves advertising to an Internet user while his/her chosen web page is loading onto her/his browser.

Front 177

Which of the following is an example of a social bookmarking web site: A. Del.icio.us C. Bing
B. Google D. Facebook

Back 177

A
Del.icio.us. Social bookmarking web sites such as Del.icio.us allow subscribers to post, tag, and rank links to articles, blogs, photos, and videos online. Some do so for strictly personal purposes, such as to bookmark web pages, articles, or photos that they would like to access away from home or share with
their friends. Other individuals access social bookmarking web sites to search for more “trusted” web
sites that focus on a particular topic. Because these individuals may bypass more traditional search engines such as Google and Bing entirely, businesses often post their own web sites and blog entries on social bookmarking sites as well. To improve their chances of being seen on these social bookmarking sites even further, businesses also encourage their web site and blog visitors to tag and/or rank their
sites for many different social bookmarking sites. Facebook is a social networking web site, not a social bookmarking web site.

Front 178

Which of the following computer programs prevents e-mail messages containing the word "free" in the subject header from entering the inbox:
A. Queues C. Filters
B. Gophers D. Servers

Back 178

C
Filters. Filters are computer programs that block out unwanted information such as junk e-mail. Some filters only allow e-mails from preselected addresses such as those from friends and family members to pass through. Others don't let e-mails with certain words such as "free" in the subject header enter the inbox. Filters are an obstacle to businesses because they can prevent the delivery of their e-mail messages. Servers, gophers, and queues are not computer programs.

Front 179

Using the color yellow in an advertisement would help to create a(n)
A. appropriate ad for St. Patrick's Day. C. very legible advertisement.
B. feeling of cheerfulness and warmth. D. feeling of coolness and quiet.

Back 179

B
Feeling of cheerfulness and warmth. Yellow suggests sunlight, which provides both warmth and cheer. Whether an ad using yellow was very legible would depend upon the color(s) used with it—black on yellow is easy to read. St. Patrick's promotions are traditionally green. A feeling of coolness and quiet is created by blue.

Front 180

Which of the following has a significant impact on the composition of a print ad: A. Production costs C. Color harmonies
B. Storyboard D. Dialogue

Back 180

C
Color harmonies. The various colors in an ad need to go together, or be in harmony, for the ad to be visually appealing. Color is an important element of an ad because color attracts attention and helps to create a mood. Therefore, it is important to use colors that go together well and create the desired look. Storyboard is the outline of a television commercial. Production costs do not impact the composition of a print ad because composition involves the design of the ad. Dialogue is important in television commercials and radio spots.

Front 181

One way to use the concept of digital color is to prepare
A. publicity plans. C. marketing programs. B. accurate proofs. D. sales procedures.

Back 181

B
Accurate proofs. Digital color is one aspect of digital imaging which involves the development of computer-generated ads and promotional materials and the printing of those materials. Digital color also is a method of preparing accurate proofs that portray the colors exactly as they will appear in the printed
piece because the proof is prepared from the same computer file that will be used to print the piece. The
concept of digital color is not used to prepare publicity plans, marketing programs, or sales procedures.

Front 182

At the Clara's Pizza Parlor web site, customers are encouraged to send electronic postcards advertising the restaurant to friends and families. This is an example of word-of-mouth marketing.
A. amplified C. celebrity
B. organic D. inconspicuous

Back 182

A
Amplified. Word-of-mouth marketing occurs when customers tell others of their satisfaction with a particular business. Amplified word-of-mouth marketing takes place when marketers purposely encourage their customers to share information about a business with others in their community. Clara's Pizza Parlor, for example, deliberately asks visitors to its web site to send information about the restaurant—in the guise of a postcard—to their families and friends. Organic word-of-mouth marketing is another word-of-mouth strategy. Organic word-of-mouth marketing occurs when satisfied customers voluntarily tell people around them about a business that they like, without the business prompting them to do so. Celebrities are sometimes used as a word-of-mouth strategy, but that is not true of this example. Inconspicuous word-of-mouth marketing is a fictitious term.

Front 183

Advertising copy that explains the features of a product and how those features benefit consumers is using a(n) strategy.
A. irrational C. emotional
B. imaginative D. factual

Back 183

D
Factual. There are several strategies that copywriters can use to develop advertising copy. One of these is the factual strategy that involves explaining what a product is, what it does, and how it benefits consumers. Copywriters are using facts to promote the product, such as explaining size or composition. For example, factual copy might state that a cell phone weighs less than one pound, is made of scratch- resistant material, and can be programmed to hold 500 numbers. The imaginative strategy would focus on explaining new and unusual ways to use a product. The emotional strategy appeals to consumers on a personal level and focuses on their feelings, such as love and loyalty. The emotional strategy also includes an irrational appeal rather than a factual appeal.

Front 184

Which of the following is effective mobile ad copy for a teenage target market:
A. Psst. Are you hungry? Then stop by Pete's Pizza for a free slice of cheese pizza. Today only.
Tell all your friends. See you soon.
B. RU hngry? thN stop by Pete's <) 4 a fre slice. 2day 1ly. CU sn. C. Pete's Pizza. Free slice.
D. When was the last time that you ate? Aren't you getting hungry? Then you've got to stop by.
We'd love to see you. Bye.

Back 184

B
RU hngry? thN stop by Pete's <) 4 a fre slice. 2day 1ly. CU sn. Although text messaging abbreviations are typically avoided in mobile ad copy, there are times when they are appropriate. For instance, if a restaurant's target market is teenagers, then it might send a mobile ad to teenagers in "their" language—
text messaging lingo. Teenagers are more likely to respond to a message that uses the same
abbreviations that they do rather than writing out every word in what becomes a very long message. While shorter messages are better, "Pete's Pizza. Free slice." is too short to give the ad recipients all of the information that they need, such as the fact that the offer is only good today.

Front 185

The purpose of checking an advertising proof is to
A. check the ad's style. C. finalize the copy.
B. correct any errors. D. choose the ad's placement

Back 185

B
Correct any errors. The proof shows the advertiser exactly the way that the ad will appear in print after it is typeset. Advertisers should check the proof carefully so that errors can be corrected before the ad is printed. The ad's copy and style have been finalized before the proof is prepared. The ad's placement refers to its location in the newspaper or magazine, which is determined before the ad is developed

Front 186

When identifying community issues for company involvement, most businesses consider participating in ones that
A. contribute to the social good. C. support controversial issues. B. earn a reasonable profit. D. boost employee loyalty.

Back 186

A
Contribute to the social good. Businesses often identify community issues for company involvement. When considering possible issues, businesses often look for those that will contribute to the social good, such as helping needy families, supporting education, mentoring at-risk teenagers, etc. The intent is to
become involved in activities that will improve the community and benefit the citizens. When identifying
community issues for company involvement, businesses usually do not consider which ones will earn a reasonable profit or build loyalty. However, as a result of being involved in community activities, a business might receive positive publicity which will help build employee and consumer loyalty and increase profit. A business is less likely to support controversial issues that may alienate its various publics.

Front 187

Which of the following is a guideline for writing a news release: A. Close with a summary of the main points
B. Be objective in presenting facts
C. Use several pages to tell the complete story
D. Allow the media to correct spelling and grammar

Back 187

B
Be objective in presenting facts. News releases are supposed to be objective. Don't include your opinion or let your feelings show. A news release follows the format of a news story and begins by answering the questions "Who?" "What?" "When?" "Where?" and "Why?" There is no need to close with a summary of the main points. A news release should be a maximum of two type-written pages in length. You should check your spelling and grammar because the media often use a news release just the way they receive it.

Front 188

What do many businesses plan to attract customers and encourage them to visit their facilities?
A. Market trips C. Press kits
B. Trade shows D. Special events

Back 188

D
Special events. Businesses often plan a variety of special events to attract customers and encourage them to visit the store. Special events might include special sales, grand openings, celebrity visits, product demonstrations, etc. Businesses usually try to plan special events that will appeal to the target
market. Trade shows are events where businesses display and/or demonstrate their products to build
sales leads and interest. Press kits are developed by businesses for the media. Market trips involve retail buyers visiting market centers to buy merchandise for their stores.

Front 189

Putting out seasonal merchandise and creating festive displays are activities that are part of a
A. liquidation sale. C. staff party.
B. holiday open house. D. customer appreciation day.

Back 189

B
Holiday open house. Preparing for a special event, but especially a holiday open house, includes providing seasonal merchandise to customers and also creating festive displays. This kind of event is fun for customers and retailers alike but also involves a lot of work. It is important to start early and
thoroughly plan all the details. A liquidation sale does not involve seasonal merchandise or festive displays, nor does a staff party. A customer appreciation day might involve special merchandise and/or special displays, but these would generally not be seasonal in nature but would reflect customer-focused themes.

Front 190

Which of the following is an important part of display maintenance:
A. Selecting proper lighting C. Selecting an arrangement pattern
B. Choosing an effective principle of design D. Replacing missing items immediately

Back 190

D
Replacing missing items immediately. Display items may be removed from the display because they have become soiled, been damaged or stolen, or sold. Many businesses do not sell items directly from a display because it will disrupt the display and damage its appearance. However, even these businesses will occasionally agree to sell a displayed item when no other item is available for the customer to purchase. When this happens, an appropriate replacement item should be put in the display as quickly as possible. The alternatives are actions taken in creating a display rather than maintaining it.

Front 191

One way of tracking marketing-communications activities is through the use of
A. questionnaires. C. surveys.
B. databases. D. interviews.

Back 191

B
Databases. A database is computerized storage for information and facts. The use of databases is one way of tracking marketing-communications activities. For example, a business sends out 100,000 promotional letters to customers and receives 25,000 responses. The business maintains a database of
the names and characteristics of 100,000 customers as well as information about those who responded.
The business can analyze the database to track the effectiveness of the mailing in reaching the target market. Questionnaires, surveys, and interviews are ways of obtaining marketing information rather than ways of tracking marketing-communications activities.

Front 192

Which of the following is an example of a sales promotion that hotels often use to attract customers: A. Public relations campaign C. Weekend discount package
B. Local newspaper advertisement D. Cable television commercial

Back 192

C
Weekend discount package. Sales promotion is promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases. These activities include coupons, contests, discounts, and premiums that are intended to attract customers. A hotel that offers a special weekend
discount package is using sales promotion to encourage customers to visit during what might be a slow
time for the hotel. A local newspaper advertisement and a cable television commercial are examples of traditional advertising rather than sales promotion. A public relations campaign is not sales promotion

Front 193

What might a travel agency include in a display to graphically show people enjoying a destination or participating in a tour of exotic places?
A. Videos C. Facts
B. Testimonials D. Souvenirs

Back 193

A
Videos. Many travel agencies are developing displays that include videos to be able to graphically show people enjoying a destination or participating in a tour. The benefit of using videos is that it enables potential customers to see what they would see on a tour and to see what they might do at a destination. The videos are able to show action and excitement and create an atmosphere that attracts customers and increases sales. For example, a video of people white-water rafting or touring a castle is more
interesting than a simple photograph. A display might include facts, testimonials from satisfied customers, and sample souvenirs; but these are static parts of a display and do not graphically show people
participating in activities.

Front 194

What type of selling question is the following: "What color of car do you want?" A. Open-ended C. Impersonal
B. Assumptive D. Interpretive

Back 194

A
Open-ended. An open-ended question requires more than a simple "yes" or "no" response. Assumptive questions are used when you think you know how customers feel and what they will say. Interpretive questions help you to understand what the customers have said. An impersonal question would be
unrelated to the customer's preferences.

Front 195

Salespersons who use the products they sell are able to suggest appropriate substitute products to customers because of their own personal
A. experience. C. feelings. B. preference. D. opinion.

Back 195

A
Experience. Salespeople often try the products they sell in order to acquire product information. They are able to explain the features and benefits of substitute items based on information they have obtained
from using the items themselves. Salespeople should not let their own personal preferences, opinions, and feelings influence the product information or suggestions that they give to customers

Front 196

Which of the following is an example of a salesperson empathizing with a customer's objection: A. "I understand how you feel." C. "Everyone is buying this item."
B. "You think the price is too high." D. "This is the best deal in town."

Back 196

A
"I understand how you feel." Salespeople do not always have to agree with customers, but they should show that they understand the customers' feelings and appreciate their points of view. With a statement such as, "I understand how you feel," salespeople can tell customers that they think their objections are
important. As a result, salespeople will probably find that customers will be more open and honest with
them. The other responses do not show empathy with customers' objections.

Front 197

A salesperson should answer a customer's questions and fully explain the benefits of products so that the customer will
A. feel good about the buying decision. C. be left in a state of indecision. B. think about making a decision. D. make a quick decision.

Back 197

A
Feel good about the buying decision. Customers often are not able to make a decision on what they want, and the salesperson should help them make the buying decision by answering their questions and providing them with information. Salespeople who answer questions and explain benefits will help
customers to feel good about their decision to buy. Customers should not be rushed into making a quick
decision as this may lead to dissatisfaction later. Salespeople should not leave customers in a state of indecision or thinking about making a decision.

Front 198

What type of technique might be effective if a business is trying to sell a large, complex product to another business?
A. Retail selling C. Sale pricing
B. Mass marketing D. Team selling

Back 198

D
Team selling. Team selling is a technique that involves putting together a group, or team, of specialists to sell to a business. Some products are large and complex and require the expertise of several different specialists to effectively explain their features and benefits. A selling team is able to present a large amount of information to a potential customer, answer technical questions, and project a strong sales effort. Mass marketing is designing products and directing marketing activities in order to appeal to the whole market. Sale pricing is pricing items at low levels and promoting them for a limited period of time. Retail selling is selling directly to the ultimate consumer.

Front 199

A circumstance that often motivates people to select one lodging facility over another is the
A. food and beverage tax rate. C. use of positioning strategies. B. seller's personal preferences. D. location of the property.

Back 199

D
Location of the property. People travel for many reasons, including business and leisure. The purpose of the trip, as well as the site location, often influences the selection process. For example, a businessperson traveling to meet with a customer might select a property close to the customer's office. A leisure traveler might select a beachfront resort hotel over a nearby roadside motel because it might
offer more amenities geared to vacationers. A trucker, on the other hand, might select the roadside motel because of its easy access to the highway. Positioning strategies are methods that members of the hospitality industry use to create a particular image or standing in the marketplace. Although hotels use positioning strategies to appeal to customers, customers do not generally consider the specific techniques that businesses use to position products. A traveler selects a lodging facility based on his/her personal preferences, not the seller's (hotel). Although some travelers might consider tax rates when selecting a lodging facility, it is usually not a primary factor in the selection process. In addition, lodging facilities in the same general area most likely have the same tax rates.

Front 200

Which of the following is the main purpose of management:
A. To create a pleasant working atmosphere C. To obtain the needed resources
B. To reach a specific level of productivity D. To accomplish the business's goals

Back 200

D
To accomplish the business's goals. Management is the logical process of coordinating resources, such as money and employees, in order to accomplish an organization's goals. Some ways that management can do this are by obtaining needed resources and creating a good working atmosphere in which workers
can be as productive as possible.