Hospitality And Tourism Quiz! Exam

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Hospitality And Tourism Quiz! Exam - Quiz



Questions and Answers
  • 1. 

    An offer must be made by one party and accepted by the other party in order for a contract to be

    • A.

      Notarized

    • B.

      Legally binding

    • C.

      Put in written form

    • D.

      Interpreted correctly

    Correct Answer
    B. Legally binding
    Explanation
    Legally binding. In order for a contract to be legally binding, an offer must be made by one party and
    accepted by the other party. In effect, the two parties are agreeing to the terms stated in the contract.
    Then, both parties must live up to those terms. All contracts do not need to be notarized, put in written
    form, or interpreted correctly

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  • 2. 

    When an agent legally acts in the best interests of his/her client, the agent is establishing a(n) _______ relationship.

    • A.

      Principal

    • B.

      Authoritative

    • C.

      Fiduciary

    • D.

      Legislative

    Correct Answer
    C. Fiduciary
    Explanation
    Fiduciary. An agent is someone who acts on the behalf of another party. The agent often negotiates contracts and handles legal issues for another person with that person's consent. The agent who shows that s/he is loyal, trustworthy, and acting in the best interest of his/her client (principal) is fostering a fiduciary relationship. Authoritative relationships are based on a particular level of control. Principal is a legal term that describes the client. Legislative processes involve the procedures in which people or governments establish laws.

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  • 3. 

    Which of the following is one of the rights of customers in the travel and tourism industry:

    • A.

      To be reminded that foreign travel is often dangerous

    • B.

      To be asked if they want to buy trip insurance

    • C.

      To be informed about a destination's social conditions

    • D.

      To be told about a competitor's refund policy

    Correct Answer
    C. To be informed about a destination's social conditions
    Explanation
    To be informed about a destination's social conditions. Travel agents and tour operators have an
    obligation to inform clients about the social and political conditions in a destination that they are
    considering visiting. Clients have a right to know if there is political unrest, a threat of terrorism, or other
    dangerous situations that might affect their travel plans or their safety. They should be made aware of
    possible problems in order to make an informed decision as to whether to visit certain destinations.
    Travel agents and tour operators usually do not discuss a competitor's refund policy. They often ask
    customers if they want to buy trip insurance, but that is not considered a customer right. Travel to most
    foreign countries is not dangerous. However, if travel to some areas is dangerous, customers have a
    right to know.

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  • 4. 

    One way that a manufacturer can foster positive relationships with its channel members is by

    • A.

      encouraging a competitive culture.

    • B.

      Providing training programs.

    • C.

      Selling directly to end users

    • D.

      Using aggressive tactics.

    Correct Answer
    B. Providing training programs.
    Explanation
    Providing training programs. Positive channel relationships require collaboration among channel
    members. Collaboration involves sharing relevant information, setting mutually-beneficial goals, and
    developing a team-oriented attitude. Channel leaders have the most power or leverage in the channel,
    and can implement tactics to foster positive relationships. Providing channel members with product
    training programs helps channel members be successful in selling the products. Encouraging a
    competitive culture among channel members, using aggressive tactics, and selling directly to end users
    are more likely to create conflict and have a negative impact on channel relationships.

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  • 5. 

    What should employees be willing to accept when defending their ideas objectively?

    • A.

      Critical feedback

    • B.

      Additional responsibility

    • C.

      Nonverbal support

    • D.

      Personal attack

    Correct Answer
    A. Critical feedback
    Explanation
    Critical feedback. When employees present their ideas to management or coworkers, they should be
    prepared to defend those ideas and provide supporting information. They also should be willing to accept
    critical feedback because others might not agree with the ideas or have different opinions. Being
    prepared will help employees remain objective and be able to offer logical evidence to back up their
    ideas. Critical feedback is often useful because it allows employees to view their ideas from a different
    perspective. Defending ideas usually does not involve accepting additional responsibility or nonverbal
    support. It is not acceptable to attack employees on a personal level because of their ideas.

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  • 6. 

    Why do businesses often make it possible for employees to meet during work time and participate in group discussions?

    • A.

      To plan extracurricular activities

    • B.

      To discuss personal issues

    • C.

      To share many different opinions

    • D.

      To have casual conversations

    Correct Answer
    C. To share many different opinions
    Explanation
    To share many different opinions. Many businesses encourage employees to participate in group
    discussions to analyze problems and find solutions. The advantage is that when employees share many
    different opinions, there is an increase in the chance of developing useful recommendations. However,
    for the group discussions to be useful, all members must feel comfortable and be willing to express their
    opinions. Businesses do not make it possible for employees to participate in group discussions to discuss
    personal issues, to plan extracurricular activities, or to have casual conversations.

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  • 7. 

    An accounts-receivable employee monitors delinquent accounts by placing them into three folders—30 days past due, 60 days past due, and 90 days past due. How has the employee organized the information?

    • A.

      Name

    • B.

      Invoice number

    • C.

      Location

    • D.

      Time

    Correct Answer
    D. Time
    Explanation
    Time. The system used or the way information is organized often depends on the type of information or
    task at hand. In the example, the employee must track delinquent accounts. Because some accounts are
    more overdue than other accounts the employee may use time as a method of organizing the
    information. Each interval may require the employee to take a different action, such as mailing a late
    notice to accounts that are 30 days past due, calling accounts that are 60 days past due, and turning
    accounts over to collection agencies that are 90 days past due. Each action is based on a certain time
    frame. The example does not indicate if the invoice numbers, locations, or names are organized in a
    specific

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  • 8. 

    Which of the following is a guideline for writing clear instructions for your coworkers:

    • A.

      Write from your supervisor's perspective.

    • B.

      Understand the process you are explaining.

    • C.

      Write complex, lengthy statements

    • D.

      Confine the instructions to one page.

    Correct Answer
    B. Understand the process you are explaining.
    Explanation
    Understand the process you are explaining. In order to write accurate instructions, you must be
    knowledgeable about the sequence and content of steps required for completion of the task. Instructions
    should consist of simple, brief statements that are written from the employee's perspective. Although
    instructions should be as brief as possible, the type and complexity of the process or activity will dictate
    the length of the instructions.

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  • 9. 

    A transmittal letter is a business letter whose purpose is to

    • A.

      Apologize to a customer

    • B.

      Accompany other written material.

    • C.

      Extend good wishes.

    • D.

      Sell specific products.

    Correct Answer
    B. Accompany other written material.
    Explanation
    Accompany other written material. A transmittal letter is sent along with other documents or reports as an
    introduction and explanation. The purpose of a transmittal letter is to identify what is being sent so that
    the recipient will know what should be included and if any action needs to be taken. The other
    alternatives would require letters that apply to the specific situation. A letter of congratulations would
    extend good wishes, a letter of apology would make amends with a customer, and a sales letter would try
    to sell specific

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  • 10. 

    When writing informational messages, business employees should explain the situation and include sufficient data for the recipient to be able to

    • A.

      Agree with the content.

    • B.

      Read the message.

    • C.

      Contact the business.

    • D.

      Make a decision.

    Correct Answer
    D. Make a decision.
    Explanation
    Make a decision. Informational messages are intended to inform and provide data to the recipients. In
    many cases, the purpose of an informational message is to help the recipient make a decision. For this to
    happen, the business employee should explain the situation and include sufficient data. If recipients
    clearly understand the who, what, where, when, why, and how of the situation, they usually have
    sufficient information to make a decision. Clear and concise writing enables a recipient to read the
    message. The letterhead usually includes the business's name, address, and phone number so
    recipients are able to contact the business. Explaining the situation and including sufficient data does not
    guarantee that the recipient will agree with the content.

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  • 11. 

    What type of simple report might a buyer for a business prepare in order to periodically inform other departments about the status of scheduled deliveries?

    • A.

      . Research

    • B.

      Analytical

    • C.

      Progress

    • D.

      Statistical

    Correct Answer
    C. Progress
    Explanation
    Progress. A progress report is a type of simple report that businesses often use to keep the various
    departments informed of each other's activities. Progress reports briefly provide updated information
    about long-term activities. They are short and usually include only summaries of necessary information.
    Analytical, research, and statistical are examples of complex written reports that are lengthy and contain
    detailed

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  • 12. 

    It is appropriate for a participant to ask questions during a staff meeting when

    • A.

      Another participant is speaking.

    • B.

      S/he needs a point clarified

    • C.

      The agenda is being distributed.

    • D.

      S/he does not agree with the speaker.

    Correct Answer
    B. S/he needs a point clarified
    Explanation
    S/He needs a point clarified. When employees do not understand what the speaker has said, it is
    appropriate to raise their hand to ask for clarification; however, it is rude to interrupt another person while
    s/he is speaking. In many meetings, the leader will ask the participants if they have questions, and it
    would be appropriate to ask for clarification at that time. Asking questions due to differing opinions or
    when the agenda is being distributed may not be appropriate

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  • 13. 

    You have a customer-service mindset if you believe that your customers are your

    • A.

      Relatives

    • B.

      Assosciates

    • C.

      Friends

    • D.

      Employers

    Correct Answer
    D. Employers
    Explanation
    Employers. A customer-service mindset is the belief that giving customers good service should be a top
    priority of a business. Without customers, there would be no need for employees. The business would
    have to close, and you would be out of a job. You should, therefore, keep in mind that customers pay
    your salary and are, in effect, your employers. Having a customer-service mindset does not involve
    believing that your friends, associates, and relatives are your customers, although they may be at times.

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  • 14. 

    In order to interpret business policies to customers, salespeople must

    • A.

      Get permission from management

    • B.

      Understand the business's policies.

    • C.

      Feel good about the policies

    • D.

      Help to set the business's policies.

    Correct Answer
    B. Understand the business's policies.
    Explanation
    Understand the business's policies. Salespeople must have a clear understanding of the business's
    policies in order to explain them to customers and to answer questions. Management is responsible for
    setting policies. Salespeople are expected to interpret and to implement policies, and they do not need
    permission to do so. The salesperson must follow the business's policy even if s/he disagrees with it.

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  • 15. 

    . A business exhibits ethical behavior in customer relationship management by implementing policies that

    • A.

      Encourage repeat sales.

    • B.

      Require customer feedback.

    • C.

      Offer exclusive benefits

    • D.

      Protect its customers' privacy.

    Correct Answer
    D. Protect its customers' privacy.
    Explanation
    Protect its customers' privacy. An ethical business implements strategies to protect its customers'
    privacy. This is an important consideration to build long-term relationships with its customers, which
    requires earning the customers' trust. One way for a business to earn its customers' trust is by
    developing, implementing, communicating, and adhering to a customer privacy policy. Although privacy
    policies vary by business, they might include limiting the access that employees have to customer
    information and refusing to sell customer lists to third parties. If customers feel that the business respects
    their privacy, they are more likely to trust the business and become loyal customers. Loyal customers
    provide the business with repeat sales. A business can ask, but cannot require, its customers to provide
    feedback. Offering exclusive benefits is a strategy that a business might use in customer relationship
    management; however, this practice does not indicate or prove that the business is behaving in an
    ethical manner.

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  • 16. 

    An individual books a hotel reservation on an Internet web site. This is an example of 

    • A.

      Place

    • B.

      Promotion

    • C.

      Product

    • D.

      Possesion

    Correct Answer
    A. Place
    Explanation
    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.

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  • 17. 

    Which of the following situations involves finding another source of a limited natural resource:

    • A.

      Conserving the oil that we use

    • B.

      Searching for oil on the ocean floor

    • C.

      . Paying a higher price for oil

    • D.

      Replacing oil with natural gas

    Correct Answer
    B. Searching for oil on the ocean floor
    Explanation
    Searching for oil on the ocean floor. The ocean is another place we can look for oil besides land. Natural
    gas is an alternative resource. Conserving oil to prevent waste and paying a higher price for it are not
    ways of finding more oil.

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  • 18. 

    What economic activity examines how money payments are divided between resource owners and producers?

    • A.

      Distribution

    • B.

      Consumption

    • C.

      Exchange

    • D.

      Production

    Correct Answer
    A. Distribution
    Explanation
    . A
    Distribution. This economic activity examines how the money payments received by resource owners and
    producers are divided or distributed. Resource owners must feel that the incomes they receive are large
    enough so that they will continue to be willing to supply resources. Producers must receive enough
    income so that they are able to continue making or providing goods and services. Consumption is the
    process or activity of using goods and services. Production is the making of goods and services.
    Exchange involves the exchange of money payments between producers and the owners of resources.

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  • 19. 

    Which of the following describes the services offered by trade industries: 

    • A.

      They are always limited.

    • B.

      They may be limited or full line.

    • C.

      They vary from day to day.

    • D.

      They are always full line.

    Correct Answer
    B. They may be limited or full line.
    Explanation
    They may be limited or full line. Each trade industry must decide how broad the range of services it offers
    to customers will be. They are not always limited or always full line, but they are not changed on a daily
    basis as this would be confusing to customers and cause problems for the business.

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  • 20. 

    You pay Burger King for the right to set up a location in Barcelona under the corporate headquarters' guidance and regulation. This is an example of

    • A.

      Franchising

    • B.

      a joint venture

    • C.

      A wholly owned subsidiary

    • D.

      Exporting

    Correct Answer
    A. Franchising
    Explanation
    Franchising. A franchise is a contractual agreement between a parent company and a franchisee to
    distribute goods or services. Franchising is very common in the restaurant business. A joint venture is an
    arrangement that involves two or more businesses entering into a relationship by combining
    complementary resources, such as technology, skills, capital, or distribution channels, for the benefit of
    all parties. A wholly owned subsidiary is a firm that is completely owned and controlled by the parent
    company. Exporting is selling domestic goods in a foreign nation.

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  • 21. 

    Government can prevent unqualified persons from operating a business by

    • A.

      Refusing to grant them a license.

    • B.

      Closing their bank accounts.

    • C.

      Raising their taxes

    • D.

      Helping their competitors.

    Correct Answer
    A. Refusing to grant them a license.
    Explanation
    Refusing to grant them a license. In some types of businesses, owners/operators must meet certain
    standards to obtain a license to operate the business. The government can refuse to grant a license to
    unqualified applicants. The government cannot use unfair practices such as helping

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  • 22. 

    One of the benefits of competition to consumers is that competition encourages

    • A.

      . businesses to limit their product lines.

    • B.

      Businesses to develop new products.

    • C.

      Government to fix prices.

    • D.

      Government to finance business activity.

    Correct Answer
    B. Businesses to develop new products.
    Explanation
    Businesses to develop new products. Competition encourages the development of products that satisfy
    consumers' needs. Government does not finance business activity. Price fixing is an illegal activity that
    would not benefit consumers, and is prohibited by law. When businesses limit their product lines, they
    often create dissatisfaction among customers.

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  • 23. 

    Generating revenue to pay for services that are provided to the public is the reason for

    • A.

      Quotas

    • B.

      Sales

    • C.

      Prices

    • D.

      Taxes

    Correct Answer
    D. Taxes
    Explanation
    Taxes. Taxes are monies that individuals and businesses must pay to the government. The purpose of
    many taxes is to generate sufficient revenue for governments to pay for providing necessary services to
    the public. Certain services, such as highway construction and maintenance, are beyond the capability of
    individuals. Therefore, government takes responsibility for providing the services but needs the revenue
    to do that which is the function of taxes. Generating sufficient revenue to pay for providing necessary
    services to the public is not the reason for sales, prices, or quotas.

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  • 24. 

    What action expands economic activities?

    • A.

      Increasing inventory levels

    • B.

      Decreasing the purchase of durable goods

    • C.

      . Increasing the unemployment rate

    • D.

      Decreasing investments in capital goods

    Correct Answer
    A. Increasing inventory levels
    Explanation
    Increasing inventory levels. When producers are optimistic about business activity, they increase their
    inventory levels in order to be prepared for the increase in demand. This action expands economic
    activities. Increasing the unemployment rate, decreasing the purchase of durable goods, and decreasing
    investments in capital goods would contract economic activities.

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  • 25. 

    To find a career that's best suited for your strengths, it's important to be __________ about your strengths and weaknesses.

    • A.

      Realistic

    • B.

      General

    • C.

      Hopeful

    • D.

      Competitive

    Correct Answer
    A. Realistic
    Explanation
    Realistic. To find a career that's best suited for your strengths, it's important to be realistic about your
    strengths and weaknesses. You must be honest about your aptitudes and limitations if you want to
    succeed. You should be specific in your self-assessment, rather than general. It's OK to be hopeful, but
    you must be realistic as well. Self-assessment involves only you—it's not a competition.

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  • 26. 

    Accepting blame for failure and credit for success is an indication of a person's

    • A.

      Responsibility

    • B.

      Initiative

    • C.

      Consideration

    • D.

      Interpersonal skills

    Correct Answer
    A. Responsibility
    Explanation
    Responsibility. Responsible individuals are accountable for things that are within their control. Initiative is
    the ability and willingness to think or act without being told. Interpersonal skills are how a person gets
    along with others. Consideration means showing kindness or thoughtfulness to others.

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  • 27. 

    Mary often frowns and shakes her finger when she is communicating with customers. Mary should try to develop self-control by controlling her

    • A.

      Body language

    • B.

      Service attitude

    • C.

      Patient behavior

    • D.

      Listening skills

    Correct Answer
    A. Body language
    Explanation
    Body language. Body language is gestures, facial expression, posture, or any other form of
    communicating without words. People who exhibit self-control make sure that their forms of nonverbal
    communication do not send a negative message. Customers probably would interpret frowning and finger
    shaking as negative gestures. Patience is the ability to endure life's aggravations and difficulties calmly.
    A service attitude is the salesperson's commitment to the client's needs as expressed through
    professional behavior. Salespeople try to improve their listening skills in order to better assist customers

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  • 28. 

    One of the reasons you should listen to criticism carefully is that it shows that you

    • A.

      Know you have made a mistake.

    • B.

      Believe the criticism is valid.

    • C.

      Don't have any questions

    • D.

      Take the criticism seriously.

    Correct Answer
    D. Take the criticism seriously.
    Explanation
    Take the criticism seriously. You should listen carefully to criticism, even though you may not like what
    you are hearing. The speaker thinks the criticism is valid and expects you to take it seriously. Listening
    carefully does not indicate that you know you have made a mistake, that you don't have any questions, or
    that you believe the criticism is valid.

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  • 29. 

    Why is it important to be patient when learning to exhibit cultural sensitivity?

    • A.

      You will definitely offend someone.

    • B.

      You'll never make mistakes.

    • C.

      It's a lifelong process.

    • D.

      It's a one-time goal.

    Correct Answer
    C. It's a lifelong process.
    Explanation
    It's a lifelong process. It's important to be patient when learning to exhibit cultural sensitivity because it's
    a lifelong process, not a one-time goal. You'll make mistakes along the way, and you may offend
    someone, but you can apologize and learn from your mistakes

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  • 30. 

    A person can determine the reason for a conflict by

    • A.

      Taking responsibility for his/her own actions.

    • B.

      Taking a break and ignoring the situation.

    • C.

      Evaluating the other person's behavior and attitudes.

    • D.

      Asking why the disagreement is occurring.

    Correct Answer
    D. Asking why the disagreement is occurring.
    Explanation
    Asking why the disagreement is occurring. To determine why a conflict is occurring, a person should ask
    why the disagreement is occurring. Ignoring the situation does not help an individual determine why a
    conflict is occurring. Evaluating the other person's behavior and attitudes helps to determine the best way
    to approach or confront the conflict. When confronting the conflict, it is important for a person to take
    responsibility for her/his own actions.

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  • 31. 

    One of the disadvantages of using consensus building as a decision-making tool is that it often encourages group members to

    • A.

      Communicate

    • B.

      Compromise

    • C.

      Collaborate

    • D.

      Cooperate

    Correct Answer
    B. Compromise
    Explanation
    Compromise. A compromise involves giving in to another's wishes so that an agreement may be
    reached. This is one of the disadvantages of using consensus building as a decision-making tool. Group
    members are encouraged to compromise, even when they really shouldn't, in order to settle differences.
    Advantages of using consensus building is that it encourages group members to communicate their ideas
    and collaborate, or work together, to reach an agreement. Consensus building is a cooperative effort
    because it requires the effort of all members of the group.

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  • 32. 

    Why is accepting responsibility for your own actions important to effective human relations skills?

    • A.

      People will not take advantage of you.

    • B.

      It helps you to be objective.

    • C.

      It helps you to be enthusiastic.

    • D.

      People will be able to depend on you.

    Correct Answer
    D. People will be able to depend on you.
    Explanation
    People will be able to depend on you. Taking full responsibility for your own actions and never blaming
    others for your mistakes means you are reliable. People will know they can depend on you to do what
    you say you will do. This does not help you to be objective or enthusiastic, and it will not keep people
    from trying to take advantage of you.

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  • 33. 

    A business that buys services and goods in order to operate now and pay for them later is using

    • A.

      Capital

    • B.

      Collateral

    • C.

      Currency

    • D.

      Credit

    Correct Answer
    D. Credit
    Explanation
    Credit. Credit is the ability to obtain products now and pay later. Credit permits businesses to continue
    operating without having to pay cash for all purchases. Currency is paper money. Collateral is the assets
    pledged to a lender as security for a loan. Money and other assets owned by a company are called
    capital.

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  • 34. 

    You are more likely to achieve your goals if they are

    • A.

      Long term

    • B.

      Based on needs only

    • C.

      Written down

    • D.

      Short term

    Correct Answer
    C. Written down
    Explanation
    Written down. People who have written goals accomplish 50 to 100 times more than people who do not.
    You are not more likely to achieve goals that are based on needs only or that are long- or short-term.

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  • 35. 

    When Jane received her first paycheck from her part-time job, she was surprised to see the amount was much less than her $8.00 per hour pay rate multiplied by the number of hours she worked. Jane had not planned on __________ tax being taken out of her paycheck.

    • A.

      Income

    • B.

      Property

    • C.

      Sales

    • D.

      Excise

    Correct Answer
    A. Income
    Explanation
    Income. Income tax is a tax rate on all income a person earns. A percentage of Jane's pay is taken out to
    pay for this tax. Property tax is tax on property, such as a home. Consumers pay a sales tax when they
    purchase many types of goods. Since Jane is receiving her pay, not buying a good, sales tax does not
    apply. Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline.
    Excise taxes are often included in the price of the product.

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  • 36. 

    Why is it important for individuals to periodically validate their credit histories?

    • A.

      To understand credit laws

    • B.

      To avoid being denied credit

    • C.

      To find out about different types of credit

    • D.

      To protect themselves from bankruptcy

    Correct Answer
    B. To avoid being denied credit
    Explanation
    To avoid being denied credit. Individuals should periodically validate their credit histories to make sure
    that the information is correct. In some cases, inaccurate or false information may appear in a credit
    history, which will result in an individual being denied credit. To make sure this doesn't happen,
    individuals should review the information and contact the credit bureau to change or remove inaccurate
    information. Individuals do not validate their credit histories to understand credit laws, find out about
    different types of credit, or protect themselves from bankruptcy.

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  • 37. 

    To protect a business from natural risks, the business should purchase __________ insurance.

    • A.

      Crime

    • B.

      Life

    • C.

      Property

    • D.

      Health

    Correct Answer
    C. Property
    Explanation
    Property. 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). Businesses
    purchase property insurance to protect against losses from natural circumstances, such as hurricanes,
    hail, floods, and tornados. Life insurance pays a designated person (beneficiary) upon the carrier's death.
    To obtain coverage for losses that result from theft, arson, and embezzlement, businesses purchase
    crime insurance. Health insurance covers a certain percentage of a person's medical bills.

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  • 38. 

    Teresa is a new employee who received training in handling sales and returns for the business. Her supervisor referred to both types of activities as

    • A.

      Exchanges

    • B.

      Credits

    • C.

      Transactions

    • D.

      Functions

    Correct Answer
    C. Transactions
    Explanation
    Transactions. A transaction is a business activity such as a sale, a purchase, or a return. These
    transactions must be recorded accurately as part of the accounting information. Credit is the arrangement
    by which businesses or individuals can purchase now and pay later. An exchange is the trading of one
    thing for another. A function is a group of activities that are similar in purpose.

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  • 39. 

    To keep communication flowing with other departments, the finance function depends on

    • A.

      Information systems.

    • B.

      Accounts receivable.

    • C.

      Marketing.

    • D.

      Production.

    Correct Answer
    A. Information systems.
    Explanation
    Information systems. To keep communication flowing with other departments, the finance function
    depends on information systems. Information systems refers to any tools of communication within a
    business. Accounts receivable refers to money owed to the business by others. Marketing and production
    are not responsible for keeping communication flowing within the business.

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  • 40. 

    One of the most important ways that businesses use budgets is for

    • A.

      Promotion

    • B.

      Evaluation

    • C.

      Research

    • D.

      Rennovation

    Correct Answer
    B. Evaluation
    Explanation
    Evaluation. Budgets are critical for evaluation of a business. When businesses want to know if they are
    accomplishing their goals, budgets show where they are on target and where they are not. By comparing
    original budget figures to actual figures, businesses can see specifically what costs more than expected
    or less than expected and make accommodations to meet their goals. One of the business's goals might
    be renovation. Businesses do not use budgets for research or for promotion, although they often allocate
    a certain amount of money in the budget for these items.

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  • 41. 

    Which of the following activities typically occurs during new employee orientation:

    • A.

      A tour of the business

    • B.

      Contact with the employee's references

    • C.

      A performance appraisal

    • D.

      Review of the employee's résumé

    Correct Answer
    A. A tour of the business
    Explanation
    A tour of the business. New employee orientation usually includes activities that will provide new
    employees with information about the business. Orientation also helps to put new employees at ease and
    helps to eliminate many of their anxieties about their new surroundings. Reviewing the employee's
    résumé and contacting the employee's references is usually done before the business hires the
    employee. A performance appraisal is a tool that evaluates how well the employee performs his/her job
    duties. Employees receive performance appraisals after they have worked for a certain amount of time.

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  • 42. 

    Alonzo, the marketing director at the local convention and visitors bureau, conducted a series of focus groups with people in different age groups to determine what entertainment they are interested in. He then compared his findings to determine similarities across groups. This is an example of

    • A.

      Primary data

    • B.

      Secondary data

    • C.

      Quantitative research

    • D.

      Longitudinal research

    Correct Answer
    A. Primary data
    Explanation
    A tour of the business. New employee orientation usually includes activities that will provide new
    employees with information about the business. Orientation also helps to put new employees at ease and
    helps to eliminate many of their anxieties about their new surroundings. Reviewing the employee's
    résumé and contacting the employee's references is usually done before the business hires the
    employee. A performance appraisal is a tool that evaluates how well the employee performs his/her job
    duties. Employees receive performance appraisals after they have worked for a certain amount of time.

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  • 43. 

    To track environmental changes impacting hospitality and tourism marketing, a destination marketer should use

    • A.

      Model building

    • B.

      Push technology

    • C.

      Customer delivery

    • D.

      Market-basket analysis

    Correct Answer
    B. Push technology
    Explanation
    Push technology. Marketers can keep up with environmental changes by scanning information that is
    automatically delivered to their computer by push technology. This helps marketers identify trends in their
    early stages of development. LexisNexis is an example of a company that scans information, finds
    relevant information, and forwards it to subscribers so that they can review and interpret the information
    at their convenience. Model building involves identifying relationships between variables. Customer
    discovery is a data-mining application that enables researchers to determine who will make a valuable
    customer. Market-basket analysis is another data-mining technique used to identify relationships
    between product purchases and retail shopping information.

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  • 44. 

    Which of the following can be learned from monitoring the sales data of any hospitality and tourism business:

    • A.

      Average amount of sales per customer

    • B.

      Median age of customers

    • C.

      Average size of customers' families

    • D.

      Most frequently preferred color of customers

    Correct Answer
    A. Average amount of sales per customer
    Explanation
    Average amount of sales per customer. By totaling the amount of all sales and dividing by the number of
    customers, hospitality and tourism businesses can determine the average amount of sales per customer.
    Hospitality and tourism employees can use this information as a target amount to work toward attaining
    and exceeding with their sales efforts. The age of customers, the size of their families, and their preferred
    color cannot be obtained from all hospitality and tourism sales data.

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  • 45. 

    When examining two data sets, the hotel manager found that one set had a correlation of +1 and the other had a correlation of -1. What should the hotel manager understand about the strength of the relationship of the two data sets?

    • A.

      The strength of the relationship of the two data sets is the same.

    • B.

      No relationship exists with the -1 correlation.

    • C.

      The strength of the relationship of the +1 correlation is twice as strong as the -1 correlation.

    • D.

      The strength of the relationship of the -1 correlation is less than that of the +1 correlation.

    Correct Answer
    A. The strength of the relationship of the two data sets is the same.
    Explanation
    The strength of the relationship of the two data sets is the same. The +1 correlation has a direct
    relationship with the X and Y coordinates, while the -1 correlation has an inverse relationship with them.
    However, the strength of that relationship is the same.

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  • 46. 

    The audience for the research report is young professionals. What should you incorporate into a visual presentation that will appeal specifically to that audience?

    • A.

      Different backgrounds on each slide

    • B.

      Pictures

    • C.

      Concise information

    • D.

      Animated backgrounds

    Correct Answer
    D. Animated backgrounds
    Explanation
    Animated backgrounds. The use of animated backgrounds appeals to young professionals, whereas
    older professionals would prefer having clear, concise information. Pictures and concise information
    appeal to all audiences. Using different backgrounds on each slide makes the presentation appear
    "busy."

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  • 47. 

    Which major marketing function determines how various products will be shipped?

    • A.

      Servicing

    • B.

      Warehousing

    • C.

      Distribution

    • D.

      Transportation

    Correct Answer
    C. Distribution
    Explanation
    Distribution. Distribution is the process of moving, storing, locating, and/or transferring ownership of
    goods or services. Shipping is one aspect of distribution. Important considerations in selecting the
    method of shipment are the weight of the product, its size, and whether it is perishable and/or fragile.
    Warehousing, a component of distribution, involves the storage, recording, and care of goods for future
    sale to customers. Servicing is the maintenance, repair, or replacement of defective parts of a product
    after it has been sold. Transportation is the act of moving anything from one place to another or the
    method by which it is moved, and is an aspect of distribution.

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  • 48. 

    A major pharmaceutical company is considering replacing meetings with teleconferences and substituting regional meetings for national meetings. This consideration is in response to which factor affecting marketing in the travel environment?

    • A.

      Competition

    • B.

      Economic

    • C.

      Technology

    • D.

      Legislation and Regulation

    Correct Answer
    B. Economic
    Explanation
    Economic. In a time of economic uncertainty, companies look for substitute goods and services such as
    teleconferencing instead of holding a meeting or having one national meeting instead of several regional
    meetings. The competition factor in the travel environment refers to competition within the travel industry
    itself. Regulations in the travel industry do not affect the drug industry. Technology has made
    teleconferencing possible but does not affect the substitution of regional meetings for national meetings

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  • 49. 

    A reason that hotels keep guest-history records that tell them the geographic locations of the majority of their guests is in order to

    • A.

      Order appropriate newspapers.

    • B.

      Advertise in specific areas.

    • C.

      Serve regional menu items.

    • D.

      Serve regional menu items.

    Correct Answer
    B. Advertise in specific areas.
    Explanation
    Advertise in specific areas. Knowing the part of the country that most of their guests are from helps hotels
    to choose appropriate areas in which to advertise. They are able to target the majority of their advertising
    to the areas that provide the most guests. Knowing the home towns of guests would not influence a
    hotel's selection of newspapers, menu items, or travel brochures.

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  • 50. 

    You have been asked to provide information to management about the impact a highway bypass will have on your business, identifying a recommended course of action. What would be the best way to organize the information?

    • A.

      By emphatic order

    • B.

      In chronological order

    • C.

      By cause/effect

    • D.

      In alternating organization

    Correct Answer
    C. By cause/effect
    Explanation
    By cause/effect. Identifying the causes and/or the effects of the highway bypass will be helpful in
    persuading management to make a decision about its course of action. Cause tells management why the
    bypass happened, while effect presents the results of the bypass. Chronological order would provide
    management with information according to the sequence in which the bypass occurred. An alternating
    organization pattern would stress the points you want to make about a comparison you are making.
    Emphatic order would present your ideas in their order of importance, either the strongest point being
    given first or last.

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Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 22, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 20, 2014
    Quiz Created by
    Greg.eppes

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