Business Quiz: Hospitality And Tourism Test!

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Business Quiz: Hospitality And Tourism Test! - Quiz

Do you think you could pass this business quiz about hospitality and tourism? Hospitality and tourism management are multidisciplinary fields for training people with expertise, dedication, and skills for administration, marketing, and operations. The people who work in this business help people enjoy vacations and entertainment activities. If you are looking for a career in the hospitality business, this is the quiz for you!


Questions and Answers
  • 1. 

    One of the main functions of the legal procedure is to

    • A.

      Establish laws.

    • B.

      Enact legislation.

    • C.

      Resolve disputes.

    • D.

      Dissolve businesses.

    Correct Answer
    C. Resolve disputes.
    Explanation
    Resolve disputes. The legal procedure is the process of reviewing disputes or claims and resolving them in a fair manner. Businesses are often involved in disputes with other entities, such as suppliers or competitors. If a business believes it has been wronged by another, the business follows the appropriate legal proceedings to resolve the issue. Enacting legislation, establishing laws, and dissolving businesses are not the main functions of the legal procedure. SOURCE: BL:070 SOURCE: Miller, R.L., & Jentz, G.A. (2005). Fundamentals of business law (6th ed.) [pp. 32-40]. Mason, OH: Thomson/South-Western.

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  • 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.

      Business-format franchise

    • B.

      Sole proprietorship

    • C.

      Private corporation

    • D.

      Product trade-name franchise

    Correct Answer
    A. Business-format franchise
    Explanation
    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 franchisee to stock and sell a specific line of goods.
    SOURCE: BL:003
    SOURCE: BL LAP 1—Own It Your Way (Business Ownership)

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  • 3. 

    Because the regulations of various jurisdictions differ, tour-bus drivers must be aware of and follow specific __________ laws.

    • A.

      Traffic

    • B.

      airspace

    • C.

      Shipping

    • D.

      Property

    Correct Answer
    A. Traffic
    Explanation
    Traffic. Tour-bus drivers must understand traffic laws in each jurisdiction where they travel because laws
    differ by jurisdiction. For example, one city might allow a vehicle to turn left onto a one-way street at a red
    light, while another city does not. If the driver does not understand and follow the law, the bus might be
    involved in an accident that injures the tourists, other vehicles, and pedestrians. Airline pilots must
    understand laws relating to airspace. Laws relating to shipping processes regulate the way certain
    products are moved or transported. Property laws regulate the ways in which land and buildings are used
    or maintained.
    SOURCE: BL:065
    SOURCE: Find Law. (n.d.). State traffic laws. Retrieved November 1, 2012, from
    http://public.findlaw.com/traffic-ticket-violation-law/state-traffic-law/

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  • 4. 

    What action would you recommend a hotel restaurant's manager take when the following situation occurred?The manager phoned a restaurant supply house to order new table linens and was told that she would also need to buy a case of wine and two-dozen wine glasses to get the table linens. The manager did not want the wine or the glasses.

    • A.

      Report the restaurant supply house for antitrust violations

    • B.

      Buy the linens and the add-ons from the restaurant supply house

    • C.

      Report the restaurant supply house for fraud

    • D.

      Visit the restaurant supply house to verify the quality of the wine and the glasses

    Correct Answer
    A. Report the restaurant supply house for antitrust violations
    Explanation
    Report the restaurant supply house for antitrust violations. The scenario is an example of a tying agreement in which a company requires a buyer to purchase one product in order to get the desired product. Tying agreements are a violation of antitrust laws. The manager should not buy the wine and glasses if they are not needed. Fraud is defined as an intentional deception undertaken for personal gain. The restaurant supply house did not deceive the restaurant manager. A visit to the restaurant supply house would only be done if the wine and wine glasses were wanted.
    SOURCE: CM:005
    SOURCE: Sherman, A.J. (n.d). Understanding antitrust and related regulatory aspects of building distribution channels. Retrieved October 30, 2012, from http://www.entrepreneurship.org/en/resource-center/understanding-antitrust-and-related-regulatory-aspects-of-building-distribution-channels.aspx

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  • 5. 

    In relation to channel management, which of the following actions should the manufacturer take to effectively introduce a new product to the marketplace:

    • A.

      Establish ethics policies

    • B.

      Use appropriate promotional techniques to inform channel members

    • C.

      Improve communication with distributors or wholesalers

    • D.

      Apply for a line of credit

    Correct Answer
    B. Use appropriate promotional techniques to inform channel members
    Explanation
    Use appropriate promotional techniques to inform channel members. Promotion is a critical consideration when introducing a new product because this function lets channel members and customers know that the good or service is available. The promotional efforts should be carefully planned and coordinated with the product's release. For example, a manufacturer might provide catalogs, brochures, coop-advertising funds, and product training to its intermediaries (e.g., dealers, wholesalers) before the product is released so that the intermediaries can explain the products to their customers or end users. Some channel members (e.g., retailers) might need to coordinate promotion so that newspaper and television advertising or special events are appropriately timed with the product's arrival on the stores' shelves. If the communication between a manufacturer and its intermediaries is already very good, the manufacturer needs to continue using good communication rather than improve it. Applying for a line of credit is a financial consideration. Ethics policies must not only be established, but they must communicated to the appropriate people or organizations.
    SOURCE: CM:007
    SOURCE: Kotler, P., & Armstrong, G. (2008). Principles of marketing (12th ed.) [pp. 10-11, 12-17, 44-45]. Upper Saddle River, NJ: Prentice-Hall.

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  • 6. 

    As an audience member, which of the following should you do to encourage a speaker during an oral presentation?

    • A.

      Smile

    • B.

      Refrain from asking questions.

    • C.

      Keep a straight face to communicate that you are serious.

    • D.

      Quietly discuss the speech with the person sitting next to you.

    Correct Answer
    A. Smile
    Explanation
    Smile. A smile shows the speaker that you support and encourage him/her. It is a good idea to ask questions when asked. It shows interest in the topic. A straight face is difficult for a speaker to interpret. It may mean a person is upset, is daydreaming, or is seriously listening. Talking to others during a presentation is rude to the speaker and may cause him/her to lose his/her train of thought.
    SOURCE: CO:082
    SOURCE: Leskiar, R.V., & Flatley, M.E. (2005). Basic business communication: Skills for empowering the Internet generation (10th ed.) [p. 439 ]. Boston: McGraw-Hill/Irwin.

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  • 7. 

    When Dawn answered the front desk telephone at her property, a female caller who sounded very upset said, "My daughter, Susan Smith, is staying at your hotel, and I need to reach her immediately because of a family emergency. Would you please give me her room number?" Dawn quickly answered, "Ms. Smith is in room 224. I'll connect you." What did Dawn do wrong?

    • A.

      She told the caller that she would transfer the call quickly

    • B.

      She didn't forward the caller to the guest's voicemail.

    • C.

      She gave out a guest's room number

    • D.

      She didn't answer the caller with enough courtesy.

    Correct Answer
    C. She gave out a guest's room number
    Explanation
    She gave out a guest's room number. Although Dawn was courteous with the caller, she was distracted by the fact that the caller seemed upset and said the call was about an emergency. In her haste to be helpful, she forgot that she should try to locate the guest, not give out her room number, even in what was described as an emergency. It was appropriate for Dawn to tell the caller that she would transfer the call and to ring the guest's room before transferring the caller to the guest's voicemail, especially in an emergency situation.
    SOURCE: CO:114
    SOURCE: Bruninghaus, M. (2006, August 21). Protecting guest data: Why hotel information security awareness training is so important. Retrieved October 30, 2012, from http://enterpriseinnovator.com/index.php?articleID=7291§ionID=25

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  • 8. 

    It is most appropriate to format a section of a document with a numbered list, when you are

    • A.

      Including a testimonial in a promotional piece.

    • B.

      Identifying the sequential steps of a process.

    • C.

      Using charts to summarize information.

    • D.

      Providing a detailed example to clarify a concept.

    Correct Answer
    B. Identifying the sequential steps of a process.
    Explanation
    Identifying the sequential steps of a process. When describing activities that need to be done in a specific order, the writer might want to number the steps to set the process apart from the text and to clarify the process. One testimonial or a single piece of information does not require a numerical designation to reinforce the order of content. Charts are graphics that summarize numerical data. A narrative writing format is usually most appropriate when providing an example to clarify a concept.
    SOURCE: CO:088
    SOURCE: Bovée, C.L., & Thill, J.V. (2008). Business communication today (9th ed.) [p.155]. Upper Saddle River, NJ: Pearson Prentice Hall.

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  • 9. 

    When developing persuasive business letters, it is most important for the writers to think about the readers' 

    • A.

      Possible objections.

    • B.

      Personal images.

    • C.

      Decision-making styles.

    • D.

      Nonverbal cues.

    Correct Answer
    A. Possible objections.
    Explanation
    Possible objections. The purpose of a persuasive letter is to convey information that encourages the reader to take a specific course of action. For example, the purpose of a sales letter is to motivate a person to buy a particular product. An objection is a reason for not taking a specific course of action. When developing persuasive messages, it is important for the writers to think about the readers' possible objections and acknowledge them. By acknowledging the objections and providing a rationale that removes the objections, the writers better position themselves in persuading the readers to take specific actions. Because each reader has different personal images and decision-making styles, it is not feasible for the writer to consider these factors if the letter is going to a lot of people. The readers' nonverbal cues cannot be seen when writing persuasive messages.
    SOURCE: CO:031
    SOURCE: Hayden, K. (2012, March 12). Persuasive letter writing lesson. Retrieved October 30, 2012, from http://www.brighthubeducation.com/high-school-english-lessons/16333-persuasive-letter-writing-activity/

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  • 10. 

    When a memorandum format is used for a short report, it does not require a(n)

    • A.

      Specific date.

    • B.

      Businesslike tone.

    • C.

      Identified subject.

    • D.

      Handwritten signature.

    Correct Answer
    D. Handwritten signature.
    Explanation
    Handwritten signature. Some memos are signed, but a memorandum usually has the name of the sender typed rather than written. The sender may write his/her initials next to the typed name. A date and a businesslike tone are appropriate in all memorandums. The subject is identified in the heading of the memo.
    SOURCE: CO:094
    SOURCE: Locker, K.O. (2006). Business and administrative communication (7th ed.) [pp. 582, 584]. Boston: Irwin/McGraw-Hill.

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  • 11. 

    What do employees within a retail business often use as a means of communicating informally with each other?

    • A.

      Grapevine

    • B.

      Memorandum

    • C.

      Internet

    • D.

      Newsletter

    Correct Answer
    A. Grapevine
    Explanation
    Grapevine. The grapevine is an oral communication method in which information is passed around the company but not formally announced or verified. Employees often communicate with each other through the grapevine and pass on accurate information about developments within the business. The problem with the grapevine is that sometimes the message is incorrect. Businesses often communicate formally with employees through the company newsletter or an official memorandum. The Internet is a worldwide interconnection of computer networks.
    SOURCE: CO:014
    SOURCE: Wallace, H.R., & Masters, L.A. (2006). Personal development for life & work (9th ed.) [p. 68]. Mason, OH: South-Western Cengage Learning.

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  • 12. 

    What do employees often obtain by solving customers' problems quickly and satisfactorily?

    • A.

      Individual priority

    • B.

      Repeat business

    • C.

      Personal service

    • D.

      . Pleasant experience

    Correct Answer
    B. Repeat business
    Explanation
    Repeat business. Employees who solve customers' problems quickly and satisfactorily often are able to obtain repeat business from those customers. Customers who are well treated will likely return to the business, in spite of previous problems, because they know the employees will resolve whatever problems arise. Customers, not employees, obtain individual priority, personal service, and a pleasant experience when employees quickly handle problems and complaints.
    SOURCE: CR:004
    SOURCE: Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2008). Basic marketing: A marketing strategy planning approach (16th ed.) [pp. 20-21]. Boston: McGraw-Hill/Irwin.

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  • 13. 

    Eva works at a hotel registration desk. When a customer was checking in tonight, Eva reminded him that checkout time would be 11:00 a.m. "No, it's not!" he exclaimed. "It's always at 11:30!" Eva's customer is a(n) __________ customer.

    • A.

      Impatient

    • B.

      Suspicious

    • C.

      Argumentative

    • D.

      Leave-me-alone

    Correct Answer
    C. Argumentative
    Explanation
    Argumentative. Eva's customer is argumentative. He's trying to pick a fight with her and tell her that she's wrong. A suspicious customer questions everything and is constantly worried that your business might take advantage of him/her. A leave-me-alone customer does not want your advice or assistance even though you might be able to help. An impatient customer shows verbally or nonverbally that s/he does not want to wait in line.
    SOURCE: CR:009
    SOURCE: CR LAP 3—Making Mad Glad (Handling Difficult Customers)

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  • 14. 

    What can a cruise ship provide its customers to improve its service image and give itself a competitive advantage?

    • A.

      Personalized activity schedules

    • B.

      Room service

    • C.

      Standard products

    • D.

      Open-door policy

    Correct Answer
    A. Personalized activity schedules
    Explanation
    Personalized activity schedules. A competitive advantage is the edge that businesses achieve when they can offer something better than their competitors. A business that provides a service, or a better type of service, often has an advantage over competitors that do not provide the same service. Offering personalized activity schedules may persuade customers to buy from that cruise line. A business that does not have a competitive advantage if it offers room service or standard products that are provided by other, similar businesses. Open-door policy is a business practice whereby management encourages communication between employees and management by indicating that their doors are always open.
    SOURCE: DS:029
    SOURCE: Soloman, M.R., Marshall, G.W., & Stuart, E.W. (2008). Marketing: Real people, real choices (5th ed.) [p. 315]. Upper Saddle River, NJ: Pearson Prentice Hall.

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  • 15. 

    What economic activity is necessary for consumption to occur?

    • A.

      Production

    • B.

      Opportunity

    • C.

      Financing

    • D.

      Management

    Correct Answer
    A. Production
    Explanation
    Production. The movement of goods, services, and resources is possible because of four economic activities: consumption, production, exchange, and distribution. In order for consumption to occur, goods and services must be made or produced. Production relies on consumers to provide resources, and consumption relies on producers to provide goods and services. Opportunity is a chance or benefit. Financing is a marketing function that involves understanding the financial concepts used in making business decisions. Management is the process of coordinating resources in order to accomplish an organization's goals.
    SOURCE: EC:001
    SOURCE: EC LAP 6—Are You Satisfied? (Concept of Economics)

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  • 16. 

    What do consumers, producers, and resource owners need to have in order to make economic decisions?

    • A.

      Economic incentives

    • B.

      Information about prices

    • C.

      Rationing skills

    • D.

      Limited liability

    Correct Answer
    B. Information about prices
    Explanation
    Information about prices. Information about prices is necessary in deciding whether to buy, what to buy, and how much to buy. Information is one of the functions of relative prices. Economic incentives are monetary motivators that encourage producers to change and reallocate their resources. In our economy, these incentives are profit. Rationing is a function of relative prices that determines who gets the goods and services produced or how scarce resources will be distributed. Limited liability is a condition in which business owners risk only the amount of their investment.
    SOURCE: EC:006
    SOURCE: EC LAP 12—When More Is Less (Functions of Prices)

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  • 17. 

    A person who locates workers for a business and monitors their work effort is performing which basic business activity?

    • A.

      Financial analysis

    • B.

      Human resources management

    • C.

      Marketing

    • D.

      Operations management

    Correct Answer
    B. Human resources management
    Explanation
    Human resources management. This activity involves planning, staffing, leading, and organizing. It includes locating employees, organizing work, and monitoring employees. Financial analysis is the process of planning, maintaining, monitoring, controlling, and reporting the use of financial resources. Marketing is a primary business activity that involves creating, communicating, and delivering value to customers and managing customer relationships in ways that benefit the organization and its stakeholders. Operations management is the process of planning, controlling, and monitoring the day-to-day activities required for continued business functioning.
    SOURCE: EC:071
    SOURCE: EC LAP 19—Strictly Business (Business Activities)

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  • 18. 

    When employees are working faster or better, they are increasing their

    • A.

      Efficiency

    • B.

      Wages.

    • C.

      Benefits.

    • D.

      Value

    Correct Answer
    A. Efficiency
    Explanation
    Efficiency. When employees are working faster or better, they are increasing their efficiency. They may increase their value to the firm in the process—and perhaps their wages and benefits, too. But their efficiency is directly tied to how fast and how well they do their work.
    SOURCE: EC:010
    SOURCE: EC LAP 2—Risk Rewarded (Profit)

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  • 19. 

    Which of the following work situations would best demonstrate a job with high depth and high scope:

    • A.

      The manager evaluates employee performance according to the owner's standard.

    • B.

      The manager of a restaurant selects the monthly menu and designs a newspaper advertisement.

    • C.

      A manager is responsible for developing the monthly work schedule for employees.

    • D.

      The manager signs the employee time cards at the end of each work week.

    Correct Answer
    B. The manager of a restaurant selects the monthly menu and designs a newspaper advertisement.
    Explanation
    The manager of a restaurant selects the monthly menu and designs a newspaper advertisement. Selecting the menu and designing an advertisement represent a variety of tasks and also a high degree of latitude concerning decision making. The relationship of scope and depth can change with a specific task, so the amounts of scope and depth vary at different times. A manager developing a monthly work schedule is an example of high depth. Signing time cards is low scope. Following guidelines to evaluate performance is an example of low depth.
    SOURCE: EC:014
    SOURCE: EC LAP 7—Divide and Conquer (Specialization of Labor)

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  • 20. 

    Kyle is part of a group of employees who are close friends and like to spend their lunch hours together, eating or playing cards. This group is considered a(n)

    • A.

      Organizational culture

    • B.

      Subculture

    • C.

      Religious committee.

    • D.

      Collective.

    Correct Answer
    B. Subculture
    Explanation
    Subculture. Kyle's group is a subculture at his work—a smaller culture that develops under the dominant organizational culture. The organizational culture is the overall culture of the entire company. His group is not based on religion. A collective society strongly relies on groups, but it is not the term used within organizations.
    SOURCE: EC:045
    SOURCE: EC LAP 24—On Top of the World (Impact of Culture on Global Trade)

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  • 21. 

    An important personality trait in hospitality and tourism is leadership, which is demonstrated by individuals when they

    • A.

      Analyze employee productivity.

    • B.

      Feel what others are feeling

    • C.

      Plan and organize their work.

    • D.

      Guide the actions of others.

    Correct Answer
    D. Guide the actions of others.
    Explanation
    Guide the actions of others. Individuals who are leaders not only have the ability to decide what needs to be done, but they can guide the actions of others to do the work. Good leaders generally plan and organize their work, but that is not what makes them good leaders. Analyzing employee productivity is often a responsibility of leaders rather than a personality trait. Displaying empathy by feeling what others are feeling is a desirable personality trait but does not indicate leadership.
    SOURCE: EI:018
    SOURCE: EI LAP 9—You've Got Personality (Personality Traits in Business)

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  • 22. 

    Interest and enthusiasm are very important parts of a(n)

    • A.

      Business cycle.

    • B.

      Positive attitude.

    • C.

      Orderly environment

    • D.

      Partnership agreement.

    Correct Answer
    B. Positive attitude.
    Explanation
    Positive attitude. Interest and enthusiasm are part of a positive attitude which gives you a good outlook on life. Although you will still encounter frustrations and disappointments, you won't be kept down very long by them. Your interest in life and your enthusiasm will soon reassert themselves. Business cycles are periods of expansion and contraction in economic activities. An orderly, systematic environment can be obtained without interest and enthusiasm. A partnership agreement is a written agreement signed by business partners which specifies the terms of the partnership.
    SOURCE: EI:020
    SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (p. 198). New York: Glencoe/McGraw-Hill

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  • 23. 

    A good indication that you may be making an unethical choice is if you

    • A.

      Maintain confidential information.

    • B.

      Attempt to be objective

    • C.

      Make excuses to justify your behavior.

    • D.

      Disagree with the rules.

    Correct Answer
    C. Make excuses to justify your behavior.
    Explanation
    Make excuses to justify your behavior. Making excuses means that you are trying to convince yourself that what you are doing or thinking of doing is okay—that you are justifying a wrong or inappropriate choice. Maintaining confidential information (unless it is harmful to others) and being objective are ethical behaviors. Simply disagreeing with certain rules does not always indicate that you are making an unethical choice.
    SOURCE: EI:004
    SOURCE: EI LAP 4—Work Right (Ethical Work Habits)

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  • 24. 

    In business, economic downturns and technological changes are likely to cause businesses to

    • A.

      Make changes of their own.

    • B.

      Hire unskilled workers.

    • C.

      Expand their operations.

    • D.

      Resist beneficial changes.

    Correct Answer
    A. Make changes of their own.
    Explanation
    Make changes of their own. Some outside changes create problems for businesses and make it necessary for them to make changes of their own. These may be changes in the organizational structure, work loads, or functions. Most successful businesses realize that change is a fact of life and that they should not resist changes that will benefit the company. Economic changes would only prompt the business to expand if the economic change is for the better. Technological changes would cause the business to hire more skilled workers with special training.
    SOURCE: EI:026
    SOURCE: QS LAP 15— Stuff Happens! (Adaptability)

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  • 25. 

    Pat was listening to the training lecture, but there was a part of the lecture that he did not understand. Pat asked the teacher to clarify that point. Pat is practicing which kind of behavior?

    • A.

      Avoidance

    • B.

      Offensive

    • C.

      Verbal, assertive

    • D.

      Nonverbal, assertive

    Correct Answer
    C. Verbal, assertive
    Explanation
    Verbal, assertive. Verbal, assertive behavior is a confident attitude that involves the use of words, such as speaking up when you don't fully understand something or asking questions to get information. Nonverbal, assertive behavior is a confident attitude expressed through body language. Avoidance behavior is conduct with the goal of avoiding conflict at any cost. Offensive behavior is anything that causes others to feel discomfort, embarrassment, or anger.
    SOURCE: EI:008
    SOURCE: EI LAP 18—Assert Yourself (Assertiveness)

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  • 26. 

    People who value and appreciate the differences in others usually

    • A.

      Avoid each other.

    • B.

      Argue about politics.

    • C.

      Work well together.

    • D.

      Live in the same area

    Correct Answer
    C. Work well together.
    Explanation
    Work well together. Valuing the differences in others helps people get along and work well together. They understand the differences and appreciate them. Arguing about politics is a common characteristic among all people and is not limited to those with different backgrounds. People who value the differences in others do not avoid them. Valuing the differences in others does not depend upon living in the same area.
    SOURCE: EI:036
    SOURCE: EI LAP 20—Fair and Square (Treat Others Fairly at Work)

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  • 27. 

    In every work environment, employees need to rely on one another for various reasons. This means that these workers are

    • A.

      Interdependent.

    • B.

      Independent.

    • C.

      Interrelated.

    • D.

      Dependable.

    Correct Answer
    A. Interdependent.
    Explanation
    Interdependent. People who depend upon one another are interdependent, rather than independent. They may or may not be dependable, or reliable. They would not be interrelated or related to each other.
    SOURCE: EI:037
    SOURCE: EI LAP 5—Can You Relate? (Positive Working Relationships)

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  • 28. 

    After Mrs. Green provided the cashier with $2.50 in cash and coins, she left the grocery store with a gallon of milk. In this situation, money is being used as a

    • A.

      Bartering mechanism.

    • B.

      Store of wealth.

    • C.

      Negotiating tool.

    • D.

      Medium of exchange.

    Correct Answer
    D. Medium of exchange.
    Explanation
    Medium of exchange. A medium of exchange is something of value that can be used to obtain goods and services. Money is a common form of exchange. Individuals, businesses, and governments use money to purchase the products (e.g., milk) they need. When money is saved rather than spent, it is functioning as a means of accumulating wealth. Negotiating is the process of resolving a disagreement. Bartering involves trading one good or service for another good or service.
    SOURCE: FI:060
    SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 34-35). Tinley Park, IL: Goodheart-Willcox.

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  • 29. 

    Which of the following is a type of credit card that can be used to make purchases from a variety of participating businesses:

    • A.

      Hotel

    • B.

      Retail store

    • C.

      Bank

    • D.

      Petroleum

    Correct Answer
    C. Bank
    Explanation
    Bank. Bank credit cards can be used at any business that is affiliated with the system. This gives cardholders a wide range of businesses from which to choose. Retail store, hotel, and petroleum cards are issued by individual companies and may be used only at their facilities.
    SOURCE: FI:002
    SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (pp. 684-687). Woodland Hills, CA: Glencoe/McGraw-Hill.

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  • 30. 

    Individuals can verify the accuracy of their credit histories by reviewing a ____________ that is obtained from a ___________.

    • A.

      Credit certificate, credit union

    • B.

      Bank statement, financial institution

    • C.

      Lending statement, tax agency

    • D.

      Credit report, credit bureau

    Correct Answer
    D. Credit report, credit bureau
    Explanation
    Credit report, credit bureau. Because businesses often base their decisions about extending credit or providing a loan on credit history, it is important for individuals and businesses to periodically check and ensure that their credit information is accurate. Credit history is provided in the form of a credit report. By reviewing the credit report, individuals and businesses can determine if there are any problems (e.g., identity theft) or discrepancies on the report that need resolved. Credit reports are available through recognized credit bureaus or agencies, which maintain files of credit information on individuals and businesses. Credit histories are not documented on bank statements, lending statements, or credit certificates. The primary purpose of financial institutions, tax agencies, and credit unions is not to maintain comprehensive credit histories for individuals and businesses.
    SOURCE: FI:072
    SOURCE: Credit.com. (199

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  • 31. 

    Which of the following is a possible consequence of having one's identity stolen: 

    • A.

      Need for new identity

    • B.

      Damage to credit history

    • C.

      Unemployment

    • D.

      Homelessness

    Correct Answer
    B. Damage to credit history
    Explanation
    Damage to credit history. If steps are not immediately taken to rectify any damages caused by identity theft, the victim of the theft could spend years trying to rebuild his/her credit and savings. If one's identity is stolen, s/he will not need to get a new identity. Unemployment and homelessness are not results of having one's identity stolen.
    SOURCE: FI:073
    SOURCE: Kapoor, J.R., Dlabay, L.R., & Hughes, R.J. (2009). Personal finance (9th ed.) [pp. 176-178, 182-184]. New York: McGraw-Hill Irwin.

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  • 32. 

    Which of the following is a way that businesses often use the information provided by the accounting department:

    • A.

      To prepare work orders

    • B.

      To hire additional staff

    • C.

      To organize inventory

    • D.

      To monitor procedures

    Correct Answer
    B. To hire additional staff
    Explanation
    To hire additional staff. Managers use accounting information in making effective financial decisions involved in carrying out such management functions as staffing. For example, managers responsible for staffing may decide not to hire additional staff if the accounting information they receive shows the business's profits have decreased. However, positive accounting information might help managers decide to hire additional staff because profits have increased. Businesses do not use the information provided by the accounting department to prepare work orders, monitor procedures, or organize inventory.
    SOURCE: FI:085
    SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting)

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  • 33. 

    Which of the following is one of the main components of an income statement:

    • A.

      Liabilities

    • B.

      Assets

    • C.

      Taxes

    • D.

      Revenue

    Correct Answer
    D. Revenue
    Explanation
    Revenue. Revenue is the money received by resource owners and by producers for supplying goods and services to consumers. Revenue is an important component of an income statement because it indicates the total amount of money a business earns from all sources such as sales, interest, and dividends. A business's revenue should exceed its expenses in order for the business to make a profit. Taxes are calculated on the net income determined by the income statement. Assets are anything of value that a business owns. Liabilities are debts that a business owes.
    SOURCE: FI:094
    SOURCE: FI LAP 4—Watch Your Bottom Line (Income Statements)

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  • 34. 

    Which of the following is a characteristic of groupthink that may hinder ethical decision making in relation to financial issues:

    • A.

      Independence

    • B.

      Objectivity

    • C.

      Censorship

    • D.

      Empathy

    Correct Answer
    C. Censorship
    Explanation
    Censorship. Although collaboration and cooperation among individuals can be used to achieve a common goal, groupthink conditions can be detrimental to ethical decision making. Groupthink is an extreme form of cohesiveness in which all members of the group strive for unanimity (harmony) at any cost. This condition stifles independent thinking and objectivity. Group members who question another member's idea or action may be censored or cut off by the group majority. In addition, individuals begin to self-censor, which means they quiet their own conflicting thoughts for the "good of the group." Groupthink can erode personal ethics and lead group members to do things they normally wouldn't do. In today's competitive business environment, the pressure to earn high profits has often resulted in fraudulent behavior, embezzlement, money laundering, etc. Such actions are often a result of groupthink conditions. Empathy is the ability to place oneself in another person's place or circumstances. Empathy is not a characteristic of groupthink, which embraces harmonious or like-minded thinking.
    SOURCE: FI:355
    SOURCE: Griffin, R.W., & Moorhead, G. (2010). Organizational behavior: Managing people and organizations (9th ed.) [pp. 239-242]. Mason, OH: South-Western Cengage Learning.

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  • 35. 

    An important function of human resources management in business is 

    • A.

      Employee recruitment.

    • B.

      Capital investment.

    • C.

      Domain development.

    • D.

      Social media.

    Correct Answer
    A. Employee recruitment.
    Explanation
    Employee recruitment. Human resources management is the process of planning, staffing, leading, and organizing the employees of the business. An important aspect of the human resources function is seeking out and attracting qualified potential employees, which is employee recruitment. capital investment, domain development, and social media are not primary activities of the human resources function in business.
    SOURCE: HR:410
    SOURCE: Gaspar, J., Bierman, L., Kolari, J., Hise, R., Smith, L., & Arreola-Risa, A. (2006). Introduction to business (p. 199). Boston: Houghton Mifflin.

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  • 36. 

    Analyzing relevant marketing information can help a tour company make favorable business decisions, which may provide the tour company with

    • A.

      Guaranteed recognition.

    • B.

      Quality assurance.

    • C.

      A balance of trade.

    • D.

      A competitive advantage

    Correct Answer
    D. A competitive advantage
    Explanation
    A competitive advantage. When a tour company acquires up-to-date, relevant marketing information from reputable sources, it can make thoughtful business decisions and take action to offer new travel products, increase its profits, and gain market share. A tour company that takes steps to increase its market share may gain a competitive advantage, which is the edge achieved by the business for offering something better or different from its competitors. Quality assurance is the process by which a business achieves its desired level of quality. Balance of trade is the difference between the value of a nation's exports and its imports. Although favorable business decisions should provide the business with more brand recognition, recognition is not guaranteed.
    SOURCE: IM:420
    SOURCE: Raza, I. (2005). Heads in beds: Hospitality and tourism marketing (pp. 18-22, 217-218, 237). Upper Saddle River, NJ: Pearson Education.

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  • 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.

      Secondary

    • B.

      Supportive

    • C.

      Preparatory

    • D.

      Primary

    Correct Answer
    D. Primary
    Explanation
    Primary. Primary information is information collected for the purpose at hand. Because the resort collected feedback for a specific purpose—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 feedback was collected to support a theory or hypothesis or if the feedback was collected as a preliminary or preparatory step for a larger project.
    SOURCE: IM:422
    SOURCE: Kotler, P., Bowen, J.T., & Makens, J.C. (2010). Marketing for hospitality and tourism (5th ed.) [pp. 126-130]. Upper Saddle River, NJ: Prentice Hall.

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  • 38. 

    Which of the following is an example of a regulatory issue that may impact the hospitality and tourism industry:

    • A.

      Natural disaster

    • B.

      Tax change

    • C.

      Unemployment rate

    • D.

      Terrorism alert

    Correct Answer
    B. Tax change
    Explanation
    Tax change. Governments that raise hotel or sales tax rates can affect a region's hospitality and tourism. If the tax rates are too high, vacationers or tourists are more likely to travel to destinations that have lower tax rates, which will reduce their travel expenses. Natural disasters (e.g., hurricanes) and the unemployment rate are economic factors that can affect the hospitality and tourism industry. Terrorism is a political factor.
    SOURCE: IM:425
    SOURCE: Kotler, P., Bowen, J.T., & Makens, J.C. (2006). Marketing for hospitality and tourism (4th ed.) [pp. 132-133]. Upper Saddle River, NJ: Pearson Prentice Hall.

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  • 39. 

    Determine the percentage of international visitors for a tourist destination's peak season if the total market is 750,500, and the number of domestic tourists who visit the destination during peak season is 562,875.

    • A.

      30%

    • B.

      25%

    • C.

      20%

    • D.

      15%

    Correct Answer
    B. 25%
    Explanation
    25%. It is important for hospitality and tourism businesses and organizations to measure and analyze the composition of various markets to determine how to best market their services to different market segments. The businesses or organizations' objectives, the market segment's demographics, and the size of the market segment affect how much money they will allocate to various marketing activities for a particular market segment. To determine the percentage size of the international market during peak season, first divide the number of domestic tourists during peak season by the total market to obtain the percentage of domestic visitors during peak season (562,875 ÷ 750,500 = .75 or 75%). Then, subtract the percentage of domestic visitors during peak season by the total market to obtain the percentage of international visitors during peak season (100 % - 75% = 25%).
    SOURCE: IM:427
    SOURCE: Kotler, P., Bowen, J.T., & Makens, J.C. (2010). Marketing for hospitality and tourism (5th ed.) [pp. 210-212]. Upper Saddle River, NJ: Prentice Hall.

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  • 40. 

    A resort is conducting telephone interviews with former guests to determine how it can improve its services. How can the resort minimize interviewer bias and procedural errors during the interview process?

    • A.

      Ask only close-ended questions

    • B.

      Provide the interviewers with training

    • C.

      Allow interviewers to develop their own sets of questions

    • D.

      Option 4

    Correct Answer
    B. Provide the interviewers with training
    Explanation
    B Provide the interviewers with training. It is important for hospitality businesses (e.g., resorts) to train interviewers to ask the appropriate questions in the appropriate manner. Training helps to reduce the risks associated with interviewer bias and error, which can affect the interviewees' answers. Asking only close-ended questions will not provide in-depth, qualitative feedback. Limiting the length of the interview and allowing the interviewers to develop and ask their own questions can negatively affect the integrity of the information the interviewers collect.
    SOURCE: IM:328
    SOURCE: Zikmund, W.G., & Babin, B.J. (2010). Exploring marketing research (10th ed.) [pp. 474, 483-487]. Mason, OH: South-Western Cengage Learning.

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  • 41. 

    Which of the following is research information that might be included in a written report that will help business managers make decisions:

    • A.

      Product announcements

    • B.

      Survey results

    • C.

      Brand names

    • D.

      Committee notes

    Correct Answer
    B. Survey results
    Explanation
    Survey results. The research process often involves surveying customers or vendors to find out how they feel about the company and its products. The survey results are often included in a written report to support the report findings and the recommendations. The survey results are research information that will help business managers make decisions because the surveys ask questions that usually pertain to a specific problem or issue that the managers are considering. Product announcements, brand names, and committee notes are not types of research information that would be included in a written report to help business managers make decisions.
    SOURCE: IM:390
    SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 190). New York: Glencoe/McGraw-Hill.

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  • 42. 

    What should you talk about first when presenting research findings orally?

    • A.

      Description of participants and how they were selected

    • B.

      Overview of others' work on the research topic

    • C.

      Problem/issue being addressed

    • D.

      Graphs depicting main findings

    Correct Answer
    C. Problem/issue being addressed
    Explanation
    Problem/issue being addressed. There is a logical sequence for presenting research orally. The presenter needs to first discuss why the study was conducted. This involves explaining the problem/issue. The researcher then moves on to explain what was done, what was found out, and what is recommended.
    SOURCE: IM:391
    SOURCE: Miculka, J. (2007). Speaking for success (2nd ed.) [p.152]. Mason, OH: Thomson South-Western.

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  • 43. 

     By involving customers on a personal level and creating a feeling of ownership, business employees often are able to motivate customers to

    • A.

      Participate in a demonstration.

    • B.

      Decide to buy.

    • C.

      Handle a product.

    • D.

      Pay a higher price.

    Correct Answer
    B. Decide to buy.
    Explanation
    Decide to buy. There are several techniques that business employees can use to motivate customers to make the decision to buy. One of these involves appealing to customers on a personal level by creating a feeling of ownership for a product. When employees use this technique, they talk about the product in terms of the customer using the product by including words such as "you" and "your." Customers often feel a sense of ownership and are motivated to buy. Other ways to involve customers on a personal level to motivate them to buy is by having them participate in a demonstration or handle a product. Employees do not motivate customers to pay a higher price for a product.
    SOURCE: MK:015
    SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 316). New York: Glencoe/McGraw-Hill.

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  • 44. 

    Which of the following is a characteristic of travel and tourism marketing:

    • A.

      Precise

    • B.

      Controllable

    • C.

      Variable

    • D.

      Standard

    Correct Answer
    C. Variable
    Explanation
    Variable. Travel and tourism marketing involves the marketing of services to customers who participate in producing and experiencing the services. As a result, the service varies for each customer. For example, one person's experience with an escorted tour might be completely different from another person's experience. Furthermore, the way the service is marketed varies depending on the target market. For example, a travel agency might market a luxury cruise to senior citizens and a Disney cruise to families with young children. Consequently, the marketing varies, and the outcome is often unpredictable. It is not a precise, controllable, or standard process because of the many variables.
    SOURCE: MK:013
    SOURCE: Silva, K.E. & Howard, D.M. (2006). Hospitality & tourism (pp. 8-9). Woodland Hills, CA: Glencoe/McGraw-Hill.

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  • 45. 

    A purpose of keeping a hotel's guest-history records up-to-date is to

    • A.

      Control expenses.

    • B.

      Reduce advertising needs.

    • C.

      Identify a target market.

    • D.

      Improve housekeeping.

    Correct Answer
    C. Identify a target market.
    Explanation
    Identify a target market. Many hotels maintain guest-history records from information guests provide on their registration cards. When these records are kept up-to-date, the hotel has an accurate profile of its target market to whom it can send promotional materials. This does not reduce the need for advertising or control the hotel's expenses. Housekeeping may be improved if guest complaints are recorded and acted upon, but that is not a purpose of guest records.
    SOURCE: MP:034
    SOURCE: Kotler, P., Bowen, J.T., & Makens, J.C. (2010). Marketing for hospitality and tourism (5th ed.) [pp. 116-120]. Upper Saddle River, NJ: Prentice Hall.

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  • 46. 

    Which of the following is a true statement about a management information system (MIS):

    • A.

      It includes people, processes, and practices.

    • B.

      It is the same thing as an information management program.

    • C.

      It does not assist with a business's information management program.

    • D.

      It may be one part of a business's overall information management program.

    Correct Answer
    D. It may be one part of a business's overall information management program.
    Explanation
    It may be one part of a business's overall information management program. A management information system (MIS) is a form of technology that assists with a business's information management needs. It is not the same thing as an information management program; however, it may be one part of an overall information management program. An MIS is just hardware and software, but an overall information management program involves people, processes, and practices.
    SOURCE: NF:110
    SOURCE: NF LAP 3—In the Know (Nature of Information Management)

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  • 47. 

    When a business uses computer technology to manage its money and move it among different accounts, it is taking advantage of

    • A.

      Electronic data interchange.

    • B.

      Hardware.

    • C.

      Expert systems

    • D.

      Electronic transfer of funds.

    Correct Answer
    D. Electronic transfer of funds.
    Explanation
    Electronic transfer of funds. When a business uses computer technology to manage its money and move it among different accounts, it is taking advantage of the electronic transfer of funds. This is the same technology you use at the ATM. Hardware refers to the physical components of a computer. Expert systems are software programs that mimic the knowledge of human experts. Electronic data interchange refers to documents rather than money.
    SOURCE: NF:003
    SOURCE: NF LAP 4—TECH-tastic (Technology's Impact on Business)

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  • 48. 

    Which of the following types of software programs would an employee use to prepare a form letter informing the company's clients of a change in product pricing:

    • A.

      Word processing

    • B.

      Spreadsheet

    • C.

      Presentation

    • D.

      Database

    Correct Answer
    A. Word processing
    Explanation
    Word processing. Word-processing software programs are used to create documents that are primarily text but may contain some graphics. Database and spreadsheet programs are used to organize and analyze different types of data. Presentation software programs are used to develop visual presentations.
    SOURCE: NF:007
    SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (p. 199). Woodland Hills, CA: Glencoe/McGraw-Hill.

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  • 49. 

    A benefit to a business that uses collaborative computer software is that it enables the employees to

    • A.

      Search the Web.

    • B.

      Share information quickly.

    • C.

      Prepare written reports

    • D.

      Develop keyboarding skills.

    Correct Answer
    B. Share information quickly.
    Explanation
    Share information quickly. Collaborative computer software allows many employees to access and share the same business information. Some applications, such as e-mail, allow employees to instantly transmit messages and business documents to coworkers who are traveling or working in other facilities, which can facilitate a quick response. By sharing information quickly, employees can take immediate action and then proceed to work on other tasks. Businesses do not use collaborative computer software to enable employees to search the Web, prepare written reports, or develop keyboarding skills.
    SOURCE: NF:011
    SOURCE: wiseGeek. (2003-2012). What is groupware? Retrieved November 1, 2012, from http://www.wisegeek.com/what-is-groupware.htm

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  • 50. 

    While conducting an environmental scan, a convention bureau obtained information revealing that consumer confidence was gaining strength in the nation. This is an example of a(n) __________ factor.

    • A.

      Technological

    • B.

      Demographic

    • C.

      Economic

    • D.

      Political

    Correct Answer
    C. Economic
    Explanation
    Economic. An environmental scan is an analysis of external forces that influence a business's success. By examining political, economic, socio-cultural, and technological factors that affect it, the business can take steps to ward off threats and to take advantage of opportunities based on the information that the scan provides. Economic factors provide information about the way a country earns and spends its money. Information that reveals information about consumer spending habits is an economic factor. Political factors that a business might examine include changes in regulations and the laws that govern how the business operates. Information about demographics or lifestyles falls into the socio-cultural category. Technological factors often include information about advancements in technology, such as computers and satellites.
    SOURCE: NF:015
    SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 30-32, 84-86). New York: Glencoe/McGraw-Hill.

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