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2008 DECA Ontario Regionals Test 984A HOSPITALITY MANAGEMENT 1

1. Environmental regulations are often developed to encourage hospitality businesses to participate in A. law enforcement. C. resource identification. B. recycling programs. D. ethical contracts.

2. Erick and Hannah were college graduates who wanted to open a bed and breakfast. However, Erick had a full-time position that he planned to continue but still wanted to be a part of this business venture. Which form of business ownership would you recommend to Erick and Hannah? A. General partnership C. Consolidation B. Limited partnership D. Open corporation

3. A community experiences an increase in food and beverage taxes. How might the tax increase impact the hospitality industry in the community? A. Most hospitality businesses are not affected by changes in taxation rates. B. The tax increase forces hotels to increase their room rates on a seasonal basis. C. Hotels have more unoccupied rooms because consumers have less discretionary income. D. Hotel restaurants and banquet facilities generally increase the prices of their products.

4. Efficient inventory control can keep a resort gift shop from having too much of its ______tied up in stock. A. utility B. accounts receivable C. sales volume D. capital

5. A business that has the capability of monitoring the location of delivery trucks to determine if shipments are on time is using the technology of A. artificial intelligence. C. data interchange. B. satellite tracking. D. electronic imaging.

6. A hotel supply business taking back its used products and recycling or properly disposing of those products is an example of the ethical practice of ______distribution. A. reverse B. internal C. joint D. closed

7. Which of the following is a situation that might cause horizontal conflict between several channel members: A. A manufacturer begins to sell hospitality products online. B. An intermediary sells directly to consumers. C. A manufacturer sells the same hospitality product to many competing businesses. D. An intermediary returns defective hospitality products for credit on future purchases.

8. Three types of communication usually found in a hotel chain with a formal communication network are A. informational, official, and conversational. C. upward, horizontal, and diagonal. B. grapevine, informal, and standard. D. downward, upward, and lateral.

9. What factor should a hotel manager consider when giving directions for completing job tasks? A. The industry B. The organization C. The audience D. The profession

10. Which of the following is a disadvantage of conducting a staff meeting: A. Shy employees may not speak up. B. People may communicate directly with each other. C. Employees have the opportunity to provide feedback. D. People may not comprehend the information covered.

11. Mrs. Fairmont has called Karen, the front desk clerk, to request a wake-up call for the next day. Karen's most important responsibility in taking this call is to A. record all the information accurately. C. ask if Mrs. Fairmont has any complaints. B. send the information to housekeeping. D. have a friendly chat with Mrs. Fairmont.

12. The hotel front desk clerk should be prepared to answer guest inquiries about A. room rates of competitors. C. the hotel's yearly income. B. reservations at other properties. D. hours of the hotel's restaurant. 2008 DECA Ontario Regionals Test 984A HOSPITALITY MANAGEMENT 2

13. Which of the following is a reason why a resort might buy and store larger amounts of housekeeping supplies than they need: A. To obtain special discounts C. To reduce profit margins B. To spend operating capital D. To increase interest payments

14. In order to determine when and how much to buy, purchasers for a hotel restaurant rely on A. industry forecasts. C. standard purchase specifications. B. quality control guidelines. D. standard recipe files.

15. Which of the following is a reason that natural resources are considered limited: A. The earth has certain boundaries. C. Some countries are unable to manufacture them. B. Technology has advanced faster than training. D. People lack training or skills needed to do a job.

16. If the price of a nonessential product rises, people will probably buy less of it. If the price of an essential product rises, people will probably continue to purchase the same amount of it. These examples illustrate the A. law of demand. C. effects of government regulation. B. way prices are set by wholesalers. D. use of discretionary income.

17. Why do many socially responsible hotels offer their employees benefits such as counseling, retirement planning, and additional training? A. To comply with government regulations C. To promote community involvement B. To increase employee satisfaction D. To improve personal relationships

18. In a private enterprise economic system, hospitality businesses are free to choose all of the following except A. which resources to purchase. C. how much tax they will pay. B. what they wish to produce. D. what price(s) they will charge.

19. All night-shift workers at the Gates Hotel have reported for work, but they are refusing to do their assigned jobs. What kind of pressure strategy is being used by the workers? A. Lockout B. Injunction C. Sit-down strike D. Sympathetic strike

20. The low point of economic activity occurs during which phase of the business cycle? A. Trough B. Recession C. Peak D. Valley

21. What is one factor that determines a hotel manager's credibility with employees? A. Creativity B. Reputation C. Patience D. Aptitude

22. Which of the following is an example of effective negotiations: A. Business owners offer workers a pay raise. B. Customer agrees to a higher price. C. Department heads and staff share company goals. D. Supervisors discourage questions regarding a policy change.

23. Ben and Tasha are coworkers who are applying for the same supervisory position in the motel chain and now they are not speaking to each other. The reason for the conflict is A. unclear boundaries. C. exclusion. B. authority. D. unclear expectations.

24. A group of skilled hospitality workers who are completely in charge of handling a significant segment of work is a ______work team. A. self-directed C. task-force B. supervisor-directed D. cross-functional

25. Which of the following is a benefit gained from practicing effective human relations skills at your place of employment: A. Improved self-understanding C. More objective point of view B. Increased cooperation from others D. Higher personal standards 2008 DECA Ontario Regionals Test 984A HOSPITALITY MANAGEMENT 3

26. When maintaining waiting lists, which of the following is a reason why hotel restaurants often seat some groups ahead of other groups that arrived first: A. To fill up unpopular space C. To match groups to table size B. To accommodate special requests D. To give equal work to servers

27. A hospitality business that raises capital by obtaining an unsecured loan would be required to A. surrender its accounts receivable. C. provide collateral to the lender. B. sign a promissory note. D. obtain government approval.

28. A hospitality business has accounts receivable valued at $12,500. This amount would appear in the business's balance sheet under the category of A. cash. C. income. B. liabilities. D. current assets.

29. What does an accurate income statement often help a resort and conference center to identify? A. Excessive income C. Potential sales B. Trouble spots D. Problem vendors

30. If a hotel has 500 rooms and expects to sell 316, it is forecasting an occupancy rate of A. 43%. C. 60%. B. 63%. D. 31%.

31. A hotel gift shop had net sales of $48,000 and net income of $6,250. What percentage of sales is net income? A. 15% C. 14.5% B. 11.6% D. 13%

32. Which of the following is the most common way for hotels to collect payment from guests: A. Traveler's check C. Cash in advance B. Credit card D. Direct bill

33. A primary reason that lodging businesses prepare night audit reports is to A. determine the data needed to develop the SWOT analysis. B. track the credit rating for each of the facility's guests. C. create an annual profit-and-loss statement for stockholders. D. verify the accuracy of the front office daily accounting practices.

34. Which of the following situations is an example of a hotel gift shop maintaining financial records of its accounts receivables: A. A shop keeps a copy of a credit-card receipt for a customer's purchase. B. A cashier gives a customer change for a cash sales transaction. C. A shop issues a check to a vendor for office supplies it purchases. D. A customer requests a cashier's check so s/he can make a loan payment.

35. When reviewing résumés to set up job interviews, a hotel's human resources department often uses a(n) ______to qualify applicants. A. employment report C. memorandum B. application form D. checklist

36. When a hotel housekeeping supervisor notifies employees that their performance is below standards and their jobs are in jeopardy, the supervisor should A. post the notice on the bulletin board. C. give verbal notification only. B. e-mail the employees. D. put the notice in writing.

37. What should hotel supervisors do in order to ensure that new employees understand their job duties? A. Assign menial tasks C. Follow up on orientation B. Limit number of questions D. Conduct orientation quickly 2008 DECA Ontario Regionals Test 984A HOSPITALITY MANAGEMENT 4

38. Which of the following is a reason that the number of workers with disabilities in the workforce has increased: A. Government legislation requires businesses to hire a certain number of workers with disabilities. B. Businesses are allowed to ask job applicants for complete information about their disabilities. C. Workers with disabilities have shown that they can perform a variety of jobs. D. New civil rights laws allow workers to sue for unlimited amounts if workers suffer discrimination.

39. What type of remedial action should a hotel chain take to encourage employees to follow standards and rules so that violations don't occur? A. Progressive B. Constructive criticism C. Preventive D. Corrective

40. If one server can effectively serve 20 customers at one time, how many servers should a hotel restaurant schedule if it has 60 tables that each seat four people? A. 16 B. 10 C. 12 D. 20

41. One of the benefits of a marketing-information management system is that it provides hospitality businesses with A. a broad view of customers' changing buying patterns. B. enhanced accounting and payroll procedures. C. up-to-date financial statements about competitors. D. greater control of the product life cycle.

42. A hotel chain that publishes marketing information but ignores pertinent data and misuses statistics often compromises its A. credibility. B. confidentiality. C. elasticity. D. availability.

43. Which of the following is an important factor that motel chains should consider when developing a marketing- information management system: A. Type of system used by competitors C. Hours the system will operate B. Where the system is located D. Who has access to the system

44. What type of information is often included in a salesperson's lost-business reports that a hotel supply business might use to change its marketing strategy? A. Quality of promotional materials C. Reasons for local unemployment B. Design of competitors' products D. Why customers no longer buy

45. What type of data do descriptive statistics summarize? A. Subjective B. Sample C. Synectic D. Solitary

46. The Sleep-Well Hotel receives supply shipments each week from the chain's regional warehouse, which stores and ships the supplies on trucks. The handling and shipping of these supplies is part of the marketing function of A. pricing. B. distribution. C. planning. D. promotion.

47. In the hospitality industry, what is the relationship between the elements of the marketing mix and marketing strategies? A. The marketing mix elements enable marketers to change marketing strategies frequently. B. Development of effective marketing strategies requires consideration of the marketing-mix elements. C. The marketing mix elements enable marketers to avoid changing marketing strategies. D. Marketing strategies cannot be developed until the marketing mix elements are developed and implemented.

48. Which of the following represents division of a market on the basis of consumers' lifestyles and personalities: A. Psychographic segmentation C. Geographic segmentation B. Demographic segmentation D. Behavioral segmentation

49. A start-up hotel chain is most likely to enter which of the following target markets: A. The target market that most closely matches its customer profile B. The market with the most direct competitors C. The international market in undeveloped countries D. All of the potential target markets the business might have in the future 2008 DECA Ontario Regionals Test 984A HOSPITALITY MANAGEMENT 5

50. What do bed and breakfasts often conduct in order to be able to forecast sales and plan for the future? A. Market analysis C. Case study B. Performance evaluation D. Financial review

51. Which of the following is an internal factor that a hotel supply business should consider when conducting a SWOT analysis: A. Location of target market C. Rate of productivity B. Type of industry D. Amount of competition

52. Which of the following is an example of how a hotel restaurant uses sales forecasts: A. To manage staff C. To plan purchases B. To organize inventory D. To control trends

53. What does a bed and breakfast need to consider when developing a marketing budget? A. Cost of performing marketing activities C. Value of spending money on advertising B. Forecasts of future sales figures D. Expense associated with offering credit

54. Which of the following is a measure that hospitality businesses take in order to control the implementation of activities required by the marketing plan: A. Scheduling B. Forecasting C. Training D. Positioning

55. Which of the following is a problem that a hotel supply business might identify as a result of evaluating the performance of its marketing plan: A. Intangible resources C. Specific strategies B. Unrealistic objectives D. Targeted activities

56. To appeal to business travelers, which of the following forms of technology might a lodging facility offer: A. Cable television C. DVD rental B. Wireless Internet D. Automated lighting

57. Hotel employees can track the number of guests who arrive without a guaranteed reservation by maintaining a ______reservation sheet. A. split-folio B. nonaffiliate C. walk-in D. property-management

58. What is the first thing that a hotel employee should do if a guest trips over a box and falls in the hotel lobby? A. Call the emergency squad. C. Notify the department manager. B. Determine severity of the injury. D. Complete an accident report form.

59. The owner of the Bahama Resort Gift Shop noticed one of her customers switching price tickets on a lead crystal vase. This customer is carrying out A. shoplifting. B. pilferage. C. robbery. D. fraud.

60. What should a hotel always provide for when developing a project plan? A. Secrecy B. Publicity C. Research D. Change

61. An example of a production activity is the combining of raw materials to create A. joint assets. C. hotel supplies. B. economic resources. D. finished goods.

62. What is often the role of management in the achievement of quality in a business? A. To assign blame C. To judge the staff B. To lead the effort D. To eliminate conflict

63. The main purpose of developing a budget for a hospitality business is as a A. short-term forecast. C. directional guideline. B. legal requirement. D. rigid format. 2008 DECA Ontario Regionals Test 984A HOSPITALITY MANAGEMENT 6

64. Which of the following is an example of preventive maintenance in a hotel: A. Checking the fire extinguishers C. Installing a security system B. Repairing the cash registers D. Replacing a broken window

65. To calculate total cash received for the day, what should a hotel gift-shop employee remember to subtract from the total cash drawer amount on the daily balance form? A. Opening change fund C. Voids B. Charges D. Paid-outs and/or refunds

66. When handling cleaning chemicals, hotel housekeeping attendants should A. avoid direct skin contact and wear disposable gloves. B. complete a purchase order when inventory is low. C. avoid using eye goggles or ventilation masks. D. keep a log of ingredients found in the cleaning materials.

67. As a hotel front-desk employee, getting rid of clutter in your work area and keeping adequate supplies on hand are effective ways to A. discourage dishonest guests. C. avoid burglaries. B. close the point-of-sale register. D. improve your productivity.

68. One way that some hotels handle emergency fire situations is by using automated systems that A. prevent bomb threats. C. identify hazardous materials. B. open the fire doors. D. contact all guest rooms.

69. Jacob is interested in pursuing a specific career in the hospitality industry and sets up a time to talk with a person who works in his field of interest. Jacob is obtaining career information by initiating a(n) A. job evaluation. C. discussion forum. B. internship. D. exploratory interview.

70. Which of the following is appropriate to include in a letter of application that is addressed to a hotel and conference center: A. The reasons for frequent job changes C. Your work experiences that relate to the job opening B. The ages of your children D. Your list of references

71. Full-service hotels that provide upscale services and amenities usually charge high rates because their guests associate price with A. supply. B. economy. C. quality. D. value.

72. A pricing tactic used by some hospitality businesses that might be unethical is one that A. offers rebates. C. confuses customers. B. advertises discounts. D. is competitive.

73. To identify product opportunities, Corrine tries to make connections between two unrelated items, which is an example of A. decision making. C. creative thinking. B. idea testing. D. problem solving.

74. How do hospitality marketers measure the feasibility of a product idea? A. Write a marketing proposal. C. Develop a customer survey. B. Make a prototype of the product. D. Evaluate it against general criteria.

75. So the Wentworth Hotel can evaluate how guests really feel about its goods and services, the hotel should A. plan an off-site focus group for employees and guests. B. require its employees to complete guest surveys. C. ask its guests for positive and negative feedback. D. develop and implement a guest complaint rating scale. 2008 DECA Ontario Regionals Test 984A HOSPITALITY MANAGEMENT 7

76. What term refers to the number of product lines carried by a company? A. Depth B. Width C. Class D. Consistency

77. Hotels offering guests a weekend package that includes accommodations, meals, and a sightseeing trip is an example of A. individual selling. C. product bundling. B. price positioning. D. target advertising.

78. When selecting specific product mix strategies, a resort gift shop must consider its resources and A. credit. B. applications. C. staff. D. objectives.

79. Hotels that offer dining facilities on the premises have a competitive edge over those that do not because this service A. reduces the number of dissatisfied guests. C. is a convenience to guests. B. allows guests to order room service. D. increases employee productivity.

80. Why should motels cultivate their touch points? A. Consumers select brands based on which ones have the most touch points. B. Well-developed touch points guarantee the success of the motel. C. Motels get significant tax breaks based on touch points. D. Each touch point is an opportunity to reinforce the brand with guests.

81. Rather than repositioning a product by changing its physical characteristics, price, or method of distribution, a hospitality business may decide to change the product's A. image. B. supply. C. profit. D. packaging.

82. A convention hotel's strengths and competitive advantages are critical in brand development and can often be found in the hotel's A. business plan. B. FAQs on the Internet. C. name and slogan. D. press releases.

83. The Canyon Tree Spa is a resort targeted at individuals interested in maintaining and optimizing their levels of health. An important consideration when selecting menu items for the spa's restaurant is to choose ones that are A. low in fat and calories. C. similar to home-style cooking. B. quick to prepare. D. focused on one portion of the food pyramid.

84. An upscale hotel restaurant is planning a new location and intends to allocate 16 square feet per person in the dining area. If the maximum seating capacity will be 125 customers, the dining area will need to contain at least ______square feet of space. A. 1,600 B. 2,000 C. 1,250 D. 2,125

85. The communication of information about goods, services, images, and/or ideas defines A. cultural trends. C. message channels. B. promotion. D. demand.

86. A coupon for $2 off the guest's next purchase from the hotel gift shop would be an example of sales promotion known as A. public relations. B. publicity. C. a rebate. D. a premium.

87. A hospitality business that develops an advertisement which presents a woman in a traditional female role is reinforcing the concept of A. equity labels. B. stereotypes. C. age discrimination. D. socialization.

88. Technological advancements have made it possible for a resort to use promotional activities to target specific markets so the resort can A. decrease the use of guest loyalty programs. B. gain mass advertising exposure for less money. C. maintain a competitive edge in the global marketplace. D. build close and ongoing guest relationships. 2008 DECA Ontario Regionals Test 984A HOSPITALITY MANAGEMENT 8

89. A hotel chain that includes broadcast media in its promotional mix might coordinate commercial development activities with a(n) A. interactive agency. C. creative boutique. B. marketing-research firm. D. production house.

90. One way that a hotel catering to convention business could build a loyal clientele is by providing A. efficient services. C. free samples. B. quality training. D. promotional materials.

91. What is the foundation of the relationship between hotel supply salespeople and customers? A. Law B. Friendship C. Trust D. Entertainment

92. What should hotel supply salespeople do with the various types of information that they obtain about the products they sell? A. Develop a sales catalog C. Organize a training seminar B. Write a promotional brochure D. Prepare a feature-benefit chart

93. One of a hotel supply salesperson's primary responsibilities is to A. differentiate her/his product from competitors' products. B. gain the highest sales of his/her division or region. C. sell those items that generate the highest profit margin. D. present a product that fulfills the customer's needs.

94. Lee is a front desk clerk at a property that is so large it provides maps for guests. When Lee checks in guests and gives them their room keys, she should also give the guests a map and A. write in the telephone number for the front desk on the map. B. circle the guest's room location or write in the room number. C. draw a circle around any areas the guest might like to visit. D. tell the guest the room number and show where it is on the map.

95. The Canyon Tree Spa is a resort that sells gift certificates to individuals who want to give a day of pampering to their loved ones. What piece of equipment could the spa use to prepare the gift certificates? A. Point-of-sale terminal C. Ledger B. Modem D. Scanner

96. As a hotel reservation clerk, you made a reservation by telephone for Mr. John Samson, who gave you his credit card number to hold the room past 6:00 p.m. What type of reservation did Mr. Samson make? A. Confirmed B. Anonymous C. Guaranteed D. Modified

97. Which of the following sales management functions focuses on hiring sales personnel: A. Staffing B. Organizing C. Leading D. Planning

98. One reason a hotel manager reviews sales income reports for the food and beverage department is to determine if A. the department is generating enough business in relation to the financial investment. B. banquet services needs to promote other hotel services to increase business. C. the department should conduct a physical inventory of stock dry goods. D. it is necessary to eliminate the need to record controllable expenses for the department.

99. Asking hotel guests to countersign checks in your presence is an accepted procedure for processing ______checks. A. cashier's B. traveler’s C. bank D. certified

100. Why do top-level hotel chain managers usually receive high salaries? A. Their responsibilities involve hands-on supervision. C. They have more experience than others in the chain. B. They are required to attend a great many meetings. D. Their decisions affect the entire chain. 2008 DECA Ontario Regionals Test 984A HOSPITALITY MANAGEMENT 9

1. B Recycling programs. Environmental regulations set pollution standards that hospitality businesses must meet, establish rules for disposing of waste, encourage recycling, and monitor illegal dumping. The goal is to protect the environment. By encouraging hospitality businesses to participate in recycling programs, environmental regulations help to conserve natural resources and control waste. Agencies that oversee environmental regulations are the ones that enforce the laws. Environmental regulations do not encourage hospitality businesses to participate in resource identification or ethical contracts. SOURCE: BL:073 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 41-43]. Cincinnati: South-Western.

2. B Limited partnership. A limited partnership permits a partner to invest in a business (e.g., bed and breakfast) but have limited liability and responsibility. General partnership agreements are designed to combine capital, experience, and the abilities of two or more people. An open corporation sells millions of shares of stock to many stockholders. Consolidation would be the joining of two or more companies to form a new company. SOURCE: BL:003 SOURCE: BA LAP 7—Own It Your Way

3. D Hotel restaurants and banquet facilities generally increase the prices of their products. When a community's leaders create legislation to increase taxes for food and beverage products, the businesses that supply the products pass the tax increase to the consumer by raising prices on the products. The types of businesses that provide food and beverage products include hotel restaurants and banquet facilities. A tax increase in a certain community does not necessarily lead to less discretionary income for all consumers of the hospitality product. If the hospitality segment in the community is comprised of more restaurants than lodging facilities, then most of the hospitality businesses in the community are affected by the tax increase. Food and beverage tax increases do not necessarily affect the price of the lodging product since some lodging facilities (e.g., economy) do not offer food and beverage products. Because some lodging facilities do not offer food and beverage product, tax increases do not necessarily force lodging facilities to increase room rates on a seasonal basis. SOURCE: BL:064 SOURCE: Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [pp. 22, 39). Albany, NY: Delmar/Thomson Learning.

4. D Capital. Resort gift shops cannot afford to invest in too much stock or too little. If too much stock is on hand, storage costs add to the cost of the goods, and goods that are held too long may become outdated or stale. If too little stock is on hand, customers' needs cannot be met. Sales volume is the amount of a business's sales—usually expressed in dollars. A resort gift shop needs to maintain adequate stock to satisfy its volume of sales. Accounts receivable are the monies owed to a business by its customers. Distribution provides products with time and place utility. SOURCE: CM:001 SOURCE: Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2008). Business (9th ed.) [pp. 290-291]. Boston: Houghton Mifflin. Test 984A HOSPITALITY SERVICES—KEY 10

5. B Satellite tracking. Satellite tracking technology is based on the use of orbiting satellites, and enables businesses to monitor the location of delivery trucks. Once a shipment is placed on a truck, the shipment can be tracked by satellite so businesses know where the shipment is at all times. This technology makes it possible for businesses to tell customers exactly where the shipment is and when it will be delivered. Artificial intelligence is technology that is used to make computers perform functions that people perform. Data interchange involves the exchange of information between one business's computer system and another business's computer system. Electronic imaging makes it possible for businesses to scan or take electronic photographs of documents. SOURCE: CM:004 SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics: A supply chain perspective (7th ed.) [pp. 464-465]. Mason, OH: South- Western.

6. A Reverse. Reverse distribution involves customers returning used products to the manufacturer. This process allows businesses to retrieve products, such as automobiles, refrigerators, and glass bottles, in order to reuse them, recycle them, or properly dispose of them. Reverse distribution is considered ethical because it helps to save natural resources and protect the environment. Taking back used products and recycling or disposing of them is not an example of internal, joint, or closed distribution. SOURCE: CM:006 SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 439- 440]. Mason, OH: Thomson/South-Western.

7. C A manufacturer sells the same hospitality product to many competing businesses. Horizontal conflict occurs between businesses at the same level in the distribution channel. Competing businesses that sell the same hospitality product are on the same level. Conflict may occur between the competing businesses if a manufacturer sells the same product to all of them, and they are all trying to sell the product to customers. For example, hosiery is sold by drugstores, department stores, discount stores, mail-order businesses, etc. Some of these businesses might complain to the manufacturer that the others are using unfair sales tactics or offering more discounts. If this happens, these businesses are involved in horizontal conflict. An intermediary selling directly to consumers, or a manufacturer beginning to sell products online, might result in vertical conflict. An intermediary returning defective products for credit does not cause horizontal conflict. SOURCE: CM:008 SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (p. 402). Mason, OH: South-Western.

8. D Downward, upward, and lateral. Communication in a hotel chain with a formal staff communication system usually moves in three directions—up, down, and sideways. Upward communication is from employees to management, downward communication is from management to employees, and lateral is communication between staff members on the same level. Grapevine communication is unofficial information passed from one person to another in writing or through conversation. An informal communication system usually has an active grapevine. The other alternatives are not types of communication. SOURCE: CO:014 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 250-251]. Cincinnati: South-Western. Test 984A HOSPITALITY SERVICES—KEY 11

9. C The audience. The type of audience is an important factor that hotel managers should consider when giving directions for completing job tasks. The audience's educational level and amount of professional experience have an effect on how a manager will give directions. An experienced audience might need very little instruction, while a group of new hotel employees might need very explicit directions on how to complete a job. This is true no matter what organization, profession, or industry is involved. SOURCE: CO:139 SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for success (2nd ed.) [pp. 108-110]. Cincinnati: South-Western Educational.

10. A Shy employees may not speak up. Disadvantages of conducting a staff meeting include not hearing from shy employees because they do not want to speak out in a large group. Advantages include person-to-person communication and the opportunity for questions and feedback. Whether in a staff meeting, in an e-mail, or in a formal letter, communicated information may not be understood, regardless of the precautions managers take. SOURCE: CO:140 SOURCE: The how-to's of communicating with staff. (2002, June). Civil Engineering: Magazine of the South African Institution of Civil Engineering, 10 (6), [p. 31].

11. A Record all the information accurately. The front desk clerk who takes requests for wake-up calls should make sure that s/he obtains the guest's name, room number, day or date, and the exact time that the guest would like to receive a call. Recording this information accurately helps to ensure that the call will be made correctly. A friendly attitude is important, but it is not necessary to have a friendly chat or inquire about problems/complaints. Housekeeping does not need to know what time a guest has asked to be awakened. SOURCE: CO:048 SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 59-62). Mason, OH: South-Western.

12. D Hours of the hotel's restaurant. Front-desk employees should be fully informed about the hotel and its services. This might also include information about exercise equipment, barber and beauty shops, room service, airport transportation, or laundry/dry-cleaning service. Most hotels or motels would emphasize the need for this knowledge in their training programs. Front desk clerks usually cannot answer questions about reservations at other properties, room rates of competitors, or the hotel's annual income. SOURCE: CR:006 SOURCE: Rokes, B. (2000). Customer service: Business 2000 (p. 44). Mason, OH: South-Western.

13. A To obtain special discounts. Some resorts buy larger amounts of housekeeping than they need because the price is very attractive at that time. They may want to take advantage of special discounts by buying in bulk or in the off-season. Resorts do not buy more than they need in order to spend operating capital, to reduce profit margins, or to increase interest payments. SOURCE: DS:013 SOURCE: Burrow, J.L. (2006). Marketing: Instructor's wraparound edition (2nd ed.) [pp. 33-39]. Mason, OH: Thomson/South-Western. Test 984A HOSPITALITY SERVICES—KEY 12

14. C Standard purchase specifications. These are standards of food quality established by the hotel restaurant that enable purchasers to determine the quantity to buy and when to buy it, as well as measure the quality of purchases. Standard recipe files are important to the food-preparation process and are considered in purchasing. Quality control guidelines focus on the quality of what the restaurant buys. Forecasting is done on an individual basis depending on such factors as seasonal patterns, long-term projections, and past records. SOURCE: DS:067 SOURCE: Chon, K., & Sparrowe, R. (2000). Welcome to hospitality: An introduction (2nd ed.) [p. 266]. Mason, OH: South-Western.

15. A The earth has certain boundaries. Currently, the earth provides most of our natural resources. As the population of the world increases, there will be more and more people living within those boundaries and demanding more resources. Therefore, there will be fewer resources per person. Lack of training and technology advancing faster than training are reasons for limited human resources. Natural resources are found in nature, rather than being manufactured. SOURCE: EC:001 SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 32-33). Tinley Park, IL: Goodheart-Willcox.

16. A Law of demand. The law of demand is an economic principle which states that the quantity of a good or service that people will buy varies inversely with the price of the good or service. Government regulations apply to some aspects of pricing but not to economic pricing principles. Discretionary income is the income consumers have left after paying their taxes. Wholesalers' selling prices are set to cover the cost of the product, operating expenses, and profit. SOURCE: EC:005 SOURCE: EC LAP 11—It's the Law (Supply and Demand)

17. B To increase employee satisfaction. Many hotels recognize that they have a social responsibility to the overall well-being of employees. They want their employees to be mentally satisfied with their jobs. Many hotels offer benefits, such as counseling, retirement planning, and additional training, in order to increase employee satisfaction so that employees can focus their attention on work. Hotels do not offer such benefits in order to comply with government regulations, promote community involvement, or improve personal relationships. SOURCE: EC:070 SOURCE: EC LAP 20—Business Connections (Business and Society)

18. C How much tax they will pay. Government decides what taxes hospitality businesses will pay. Hospitality businesses operating in a private enterprise economy may choose what they wish to produce, which resources to purchase, and what prices they will charge. SOURCE: EC:009 SOURCE: EC LAP 15—People Power (Private Enterprise) Test 984A HOSPITALITY SERVICES—KEY 13

19. C Sit-down strike. A sit-down strike is a pressure strategy in which employees stay on the job but refuse to work. A sympathetic strike is a pressure strategy in which employees of one local union walk off the job to support another union that is on strike. An injunction is a court order used by management to prohibit certain acts, such as picketing. A lockout is a pressure strategy used by management in which management temporarily closes a business and stops production. SOURCE: EC:015 SOURCE: HistoricalVoices.org. (n.d.). The Flint sit-down strike: Audio gallery. September 9, 2008, from, http://www.historicalvoices.org/flint/organization.php

20. A Trough. A trough is the final phase of a business cycle and occurs when economic activities stop their decline. This is the low point of economic activity because many more businesses fail, and unemployment is very high. The economy remains in a trough until consumers and producers once again become more hopeful about business and buy more goods and services. The high point of economic activity occurs during the peak phase of the business cycle. A recession may occur during the contraction phase of the business cycle. Valley is not a phase of the business cycle. SOURCE: EC:018 SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 64-67). Woodland Hills, CA: Glencoe/McGraw-Hill.

21. B Reputation. A hotel manager who has the reputation of being knowledgeable and experienced usually has credibility with employees. Credibility is believability, and employees are more likely to believe a hotel manager who has the appropriate background and ability. Hotel managers who have a reputation of being unethical or poorly informed often have difficulty persuading employees because the hotel managers lack credibility. Aptitudes are natural talents for learning specific skills. Creativity is the ability to generate unique ideas, approaches, or solutions. Patience is the ability to endure life's aggravations and difficulties calmly. SOURCE: EI:012 SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for success (2nd ed.) [pp. 326-327]. Cincinnati: South-Western Educational.

22. B Customer agrees to a higher price. Effective negotiations reach agreements that are satisfactory to both parties. In this example, seller and buyer were able to negotiate a higher price that was agreeable to both. Each of the other examples represents unilateral actions or release of information. Discouraging questions would lead to ineffective negotiations. SOURCE: EI:062 SOURCE: EI LAP 8—Make It A Win-Win! (Negotiation)

23. B Authority. Conflicts occur for many reasons. Power struggles can arise when people want to control, or be in charge of, the same situation. In the example, Ben and Tasha want the same job, so the reason for their disagreement is authority. Disagreements about what constitutes appropriate behavior are conflicts due to unclear boundaries. When people don't know what they're supposed to do, or what someone else expects them to do, the conflict is due to unclear expectations. Exclusion is a reason for a conflict that stems from a feeling of being left out of an activity. SOURCE: EI:015 SOURCE: QS LAP 12—Stop the Madness Test 984A HOSPITALITY SERVICES—KEY 14

24. A Self-directed. A self-directed work team is comprised of skilled workers who are completely in charge of a segment of work including planning, performing, and evaluating the work. Task-force and cross-functional teams refer to teams made up of workers from different functional areas of the business. A supervisor-directed team would not leave employees in charge of the work assignment. SOURCE: EI:044 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [p. 343]. Cincinnati: South-Western.

25. B Increased cooperation from others. Practicing effective human relations skills often has a mirror effect. When you are helpful to others, they will generally be helpful to you. This creates an atmosphere of cooperation among workers that helps to get the work done. Ways that you can develop good human relations skills are by improving your self- understanding, setting higher personal standards, and having a more objective point of view. SOURCE: EI:037 SOURCE: EI LAP 5—Can You Relate?

26. C To match groups to table size. Hotel restaurants have only so many tables of each size, such as 10 tables for 2, 20 tables for 4, 15 tables for 6, etc. Therefore, when guests are on a waiting list, hotel restaurants match the group with the appropriate table size that is available. For example, if a party of four is next on the waiting list and a table for four becomes available, that party will be seated next. However, in some cases a table for six will become available first. Then, the hotel restaurant will seat the next group of six on the waiting list. This might mean that the party of four will wait longer even though that group was first on the waiting list. Although guests are sometimes dissatisfied with this arrangement, it is not cost effective for a hotel restaurant to put a party of four at a table for six unless there are no other guests waiting. Hotel restaurants do not seat some groups ahead of other groups who arrived first to accommodate special requests, to fill up unpopular space, or to give equal work to servers. SOURCE: EI:054 SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.) [p. 171]. Upper Saddle River, NJ: Prentice Hall.

27. B Sign a promissory note. Some lenders will make unsecured loans to borrowers who have a history of honesty and prompt repayment. The loan is made solely on the borrower's signed promise to repay the loan. No government approval is required as the arrangement is between the business and the lender. A secured loan requires the borrower to provide collateral, or security, to the lender. Collateral might be in the form of the hospitality business's accounts receivable which the lender can collect if the hospitality business fails to repay its loan. SOURCE: FI:001 SOURCE: American Bankers Association (2005). Today's teller: Developing basic skills (p. 198). Washington: Author.

28. D Current assets. Assets are anything of value that the hospitality business owns. Assets are classified as either current assets or fixed assets. Current assets are items such as accounts receivable, the monies owed to a hospitality business by its customers that change throughout the year. Liabilities are debts that the hospitality business owes. Accounts receivable are a source of income. Cash is currency and coins. SOURCE: FI:085 SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting) Test 984A HOSPITALITY SERVICES—KEY 15

29. B Trouble spots. The information in an income statement is cumulative, which means that it covers a specific period of time, usually one year. A business (e.g., resort and conference center) needs to be able to see cumulative totals of income and expenses to know where it is having successes and where there might be trouble brewing. If a business detects that it is spending too much on expenses compared to the amount of net profit, it knows that the category of operating expenses is a trouble area that must be corrected. Businesses do not use income statements to identify potential sales or problem vendors. Most businesses probably do not think that income can ever be excessive. SOURCE: FI:094 SOURCE: FI LAP 4—Watch Your Bottom Line (Income Statements)

30. B 63%. To calculate the forecasted rate of occupancy, divide the number of rooms expected to be sold by the number of rooms available (316 ÷ 500 = .63 or 63%). Calculating rate of occupancy is a way of forecasting sales. SOURCE: FI:096 SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [p. 212]. Upper Saddle River, NJ: Prentice Hall.

31. D 13%. Hotel gift shops can determine the relationship of sales to income by calculating the percentage of sales that is net income. This figure is found by dividing net sales into net income. In this case, $6,250 ÷ $48,000 = .13 or 13%. SOURCE: FI:102 SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (p. 241). Cincinnati: South-Western Educational.

32. B Credit card. Most hotels ask guests to establish credit during the check-in process by having a credit card imprinted. This method enables a hotel to keep track of a guest's charges and then settle the account when the guest departs. Even if a guest wants to pay in cash, hotels usually ask for a credit card imprint to cover any additional charges in the event that the guest leaves without paying for them. Some guests pay with cash in advance or with traveler's checks and allow the hotel to imprint a credit card. Regular or business guests sometimes establish an account with a hotel and are billed for room expenses. SOURCE: FI:014 SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 255-256]. Upper Saddle River, NJ: Prentice Hall.

33. D Verify the accuracy of the front office daily accounting practices. An audit is an investigation or verification of information. Lodging facilities conduct nightly audits to verify that all information posted to guest and non-guest accounts is correct. By conducting the audit each night, the lodging facilities can isolate and solve any problems quickly. The primary purpose of a night audit does not include the development of a SWOT analysis. A night audit might track a guest's credit limit rather than the guest's credit rating. Since it cannot be assumed that all lodging facilities are corporations, the night audit reports are not used to create profit-and-loss statements for stockholders. SOURCE: FI:313 SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging management program: Year one (pp. 198-199). Lansing, MI: Author. Test 984A HOSPITALITY SERVICES—KEY 16

34. A A shop keeps a copy of a credit-card receipt for a customer's purchase. Financial records are documents containing information related to the amount of money going into and out of a hotel gift shop. A receipt is a written or printed document that acknowledges a financial transaction. Accounts receivable refers to all monies owed to a gift shop by its customers. When a shop keeps a copy of a customer's merchandise receipt, it is keeping a record of a financial transaction that involves the monies coming into the shop. Providing customers with change and requesting cashier's checks are not examples of accounts receivable. Issuing a vendor a check is an example of accounts payable. SOURCE: FI:089 SOURCE: Bankrate. Com (2005, September 13). What financial records to keep, how long to keep them. Retrieved September 17, 2008, from http://www.bankrate.com/brm/news/mtg/20000518h.asp

35. D Checklist. A checklist is a listing of information. Human resources departments in hotels often construct checklists that contain information about a job's responsibilities and tasks. The list also includes data about special skills, training, or knowledge that are needed to perform the job. This checklist helps human resources personnel to check the applicants' résumés to make sure that they meet the criteria that are required to perform the job. An application form is a document that the job applicant completes and contains information about the applicant's education, skills, training, and employment history. A memorandum is a short report. An employment report is too general in nature to determine its purpose. SOURCE: HR:354 SOURCE: Gatewood, R.D., & Field, H.S. (2001). Human resource selection (5th ed.) [pp. 426-427]. Orlando, FL: Harcourt, Inc.

36. D Put the notice in writing. Putting the notice in writing provides documentation that the hotel housekeeping employee has been given notice if termination becomes necessary. The written notice serves as a warning and gives employees an opportunity to improve. E-mail notification would not provide a permanent written record and may violate confidentiality. Giving verbal notification only would not provide a record in case of termination. Posting the notice on the bulletin board would violate employee confidentiality. SOURCE: HR:358 SOURCE: Jackson, S., & Schuler, R. (2003). Managing human resources through strategic partnerships (8th ed.) [pp. 460-461, 486-487]. Cincinnati: Thomson/South-Western.

37. C Follow up on orientation. To ensure that new employees understand their job duties, hotel supervisors should follow up on the orientation. Research indicates that effective time periods for follow-ups are at the end of the first day, after one week of employment, and periodically throughout the first year. Hotel supervisors should encourage questions to make sure that new employees understand their duties. They should assign meaningful tasks rather than menial tasks and spend as much time on orientation as is necessary. SOURCE: HR:361 SOURCE: MN LAP 44—Orienting New Employees

38. C Workers with disabilities have shown that they can perform a variety of jobs. These workers have proved that their disabilities do not prevent them from carrying out a wide range of job tasks. Government legislation has been passed to protect the rights of workers with disabilities, but it does not require businesses to hire certain numbers of such workers. The law forbids businesses from asking job applicants about present or previous disabilities. There are dollar limits to the lawsuits that employees may file. SOURCE: HR:367 SOURCE: MN LAP 55—Managing Diversity in the Workplace Test 984A HOSPITALITY SERVICES—KEY 17

39. C Preventive. Preventive discipline is intended to prevent violations before they occur. Corrective discipline focuses on discouraging further rule or performance violations after infractions have occurred. Progressive discipline calls for administering progressively more severe penalties each time an offense is repeated. Constructive criticism involves providing feedback on workplace behavior to employees as a means of fostering improved performance. SOURCE: HR:369 SOURCE: Mathis, R.L., & Jackson, J.H. (2003). Human resource management (10th ed.) [pp. 533-535]. Cincinnati: Thomson/South-Western.

40. C 12. Depending on the type of hotel restaurant, servers can effectively serve only a certain number of customers at one time. For example, servers at upscale hotel restaurants usually need to spend more time serving individual customers than servers at a hotel sandwich shop. In this example, servers can effectively serve 20 customers at one time. To determine the number of servers needed, the restaurant first calculates the total number of potential customers by multiplying the number of tables by the size of the tables (60 x 4 = 240). Then, divide that number by the number of customers one server can serve (240 ÷ 20 = 12). The restaurant needs to schedule 12 servers to effectively serve all customers. SOURCE: HR:381 SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging management program: Year one (pp. 226-227). Lansing, MI: Author.

41. A A broad view of customers' changing buying patterns. The scope of marketing has become wider and more complicated, and product life cycles have become shorter and unpredictable. A marketing-information management system helps hospitality businesses to track buying trends and develop new products to meet consumer demand. A marketing- information management system does not provide up-to-date financial statements about competitors, nor does it always provide greater control of the product life cycle. A marketing-information management system does not enhance a hospitality business's accounting and payroll procedures, which are business functions rather than marketing functions. SOURCE: IM:001 SOURCE: Ebert, R. J., & Griffin, R. W. (2007). Business essentials (6th ed.) [pp. 107-108, 111]. Upper Saddle River, NJ: Pearson Prentice Hall.

42. A Credibility. To protect its integrity, a hotel chain should report findings in a truthful manner. By misrepresenting material, the chain runs the risk of losing the public's trust. A loss of trust might lead to financial losses or closure for the chain. Availability refers to the level of accessibility or the ability to obtain something. Confidentiality refers to the level of one's privacy. Elasticity is a term used to describe the economic condition of how changes in price affect changes in the amounts of products that are demanded and supplied. SOURCE: IM:025 SOURCE: Churchill, G. (2001). Basic marketing research (4th ed.) [p. 65]. Mason, OH: South-Western. Test 984A HOSPITALITY SERVICES—KEY 18

43. D Who has access to the system. When developing a marketing-information management system, a motel chain should consider who will have access to the information in the system. Some chains accumulate confidential information that they do not want to be accessible to all employees. These chains might restrict access to specific employees who compile the information or to managers who use the information. Other chains gather information that is not confidential or secret and is accessible to all employees. Where the system is located, the hours the system will operate, and the type of system used by competitors are not important factors that a chain considers when developing a marketing- information management system. SOURCE: IM:163 SOURCE: Soloman, M. R., Marshall, G. W., & Stuart, E. W. (2008). Marketing: Real people, real choices (5th ed.) [pp. 107-108]. Upper Saddle River, NJ: Pearson Prentice Hall.

44. D Why customers no longer buy. Hotel supply businesses usually require salespeople to complete a variety of sales reports, including lost-business reports. Businesses monitor lost-business reports because they usually contain an explanation of why customers no longer buy from the business. The reports might indicate that customers are dissatisfied with the product, dissatisfied with the business's credit policies, or are getting better prices and more service from competitors. A business might use this information to make changes to its marketing strategy in an attempt to regain customers or to prevent other customers from taking their business elsewhere. The more information a business obtains from lost-business reports, the better able it is to make useful and effective marketing decisions. Lost-business reports do not include information about the design of competitors' products, reasons for local unemployment, or quality of promotional materials. SOURCE: IM:184 SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 47, 633-634]. Upper Saddle River, NJ: Prentice Hall.

45. B Sample. Descriptive statistics are information that is presented in numerical form and is related to a specific issue, situation, or concern. Marketing researchers often collect this type of information by surveying a sample group—a representative group of the target market. After collecting the information, marketing researchers assign numerical values to survey responses and compile the responses into descriptive statistics, which help the researchers summarize the information for analysis. The descriptive statistics should provide the researchers with objective information rather than subjective data. Synectics refer to a creative-thinking technique that businesses often use for product development. Descriptive statistics do not summarize solitary data. SOURCE: IM:191 SOURCE: Shao, A. (2002). Marketing research: An aid to decision making (2nd ed.) [pp. 416-417]. Mason, OH: South-Western.

46. B Distribution. Distribution involves moving, storing, locating, and/or transferring ownership of goods and services. Pricing involves determining and adjusting prices to maximize return and meet customers' perceptions of value. Planning is the first step in the management process, involving deciding what will be done and how it will be accomplished. Promotion involves communicating information about goods, services, images, and/or ideas to achieve a desired outcome. SOURCE: MK:001 SOURCE: BA LAP 11—Have It Your Way (Marketing) Test 984A HOSPITALITY SERVICES—KEY 19

47. B Development of effective marketing strategies requires consideration of the marketing-mix elements. Marketing strategies are plans of action for achieving marketing goals and objectives. Even though strategies are often planned before the selection of a hotel's marketing mix is finalized, the elements of the marketing mix must be considered in the planning process if the strategies are to be successful. Marketing strategies tend to provide long-term direction for a hotel's marketing efforts, rather than being changed frequently. However, even successful marketing strategies may need to be changed when the environment changes. SOURCE: MP:001 SOURCE: IM LAP 7—Pick the Mix (Marketing Strategies)

48. A Psychographic segmentation. Psychographic segmentation groups consumers by lifestyle (e.g., interest in running, health products) and personality (e.g., aggressive, passive). Behavioral segmentation is based on consumers' response to a product. Geographic segmentation is based on where the consumer lives. Demographic segmentation is based on the characteristics people have in common that affect their purchasing power. SOURCE: MP:003 SOURCE: IM LAP 9—Have We Met? (Market Identification)

49. A The target market that most closely matches its customer profile. Start-up hotel chains want to first focus on target markets where they will find it easiest to make sales. Those markets are the ones that match their customer profile. Then, these sales provide for future growth and expansion into other markets. The international market in undeveloped countries is appropriate only for certain businesses. A start-up hotel chain would look for a market that was not filled with direct competitors. Future markets are important after a chain has successfully entered its original market. SOURCE: MP:005 SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management: Teacher's manual (2nd ed.) [p. 94]. New York: Glencoe/McGraw-Hill.

50. A Market analysis. Bed and breakfasts need to gather and analyze marketing information in order to make decisions about what to do in the future. A main concern for most bed and breakfasts is forecasting sales. They want to be prepared to sell the right products in the right amount to the right market over a period of years. To do that, they must understand changes in the market and in economic conditions. By analyzing current market information, bed and breakfasts often are able to make fairly accurate sales forecasts that allow them to plan for the future. A performance evaluation is a formal assessment by the supervisor of a worker's job performance that lets the worker know how s/he is doing on the job. A case study is an instructional method that involves giving trainees a written description of an organizational problem and asking the trainees to determine the problem and potential solutions. A financial review analyzes a bed and breakfast's financial situation. SOURCE: MP:009 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 143-144]. Mason, OH: South-Western. Test 984A HOSPITALITY SERVICES—KEY 20

51. C Rate of productivity. A hotel supply business conducts a SWOT analysis to identify its internal strengths and weaknesses as well as the external threats and opportunities. An important factor to consider is the business's rate of productivity. Depending on how the rate of productivity compares to other businesses in the same industry, productivity may be a strength or a weakness. A high rate of productivity is a strength, while a mediocre or low rate of productivity is a weakness. It is important for a business to consider its rate of productivity because high productivity may help the business to take advantage of external opportunities. If the business finds that its productivity is low, it can take steps to correct the problem. The type of industry, the location of the target market, and the amount of competition are external factors that a business might consider when conducting a SWOT analysis. SOURCE: MP:010 SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (pp. 187-189). Mason, OH: South-Western.

52. C To plan purchases. Many hotel restaurants consider the sales forecast as the cornerstone of their planning. One way that hotel restaurants use the sales forecast is to plan purchases. The projected sales figures guide the hotel restaurants when ordering the food and ingredients that it will need to produce the menu items it expects to sell. These figures help hotel restaurants decide whether to increase or decrease the amount of their purchases. Hotel restaurants do not use sales forecasts to organize inventory, manage staff, or control trends. SOURCE: MP:013 SOURCE: Burrow, J.L. (2006). Marketing: Instructor's wraparound edition (2nd ed.) [pp. 538-539]. Mason, OH: Thomson/South-Western.

53. A Cost of performing marketing activities. Bed and breakfasts need to develop budgets to set aside the funds that will be needed to perform marketing activities. Before they can develop budgets, they need to determine the cost of performing those marketing activities. For example, bed and breakfasts need to consider wages paid to employees and the cost of buying supplies. Once a bed and breakfast calculates all the costs involved, it can develop a budget to fund the marketing activity. It is not effective to develop marketing activities without setting a budget to pay for the activities. Bed and breakfasts do not consider forecasts of future sales figures, value of spending money on advertising, or the expense associated with offering credit when developing a marketing budget. SOURCE: MP:017 SOURCE: Burrow, J.L. (2002). Marketing (p. 542). Mason, OH: South-Western.

54. A Scheduling. Scheduling involves setting a timetable for implementing the various activities that need to be completed in order to achieve the objectives of a marketing plan. Once the activities are identified, a hospitality business needs to decide who will perform each activity, how long each activity will take to complete, and in what order each activity should be performed. Scheduling helps a business to control the implementation of marketing activities in order to make sure they are completed effectively and on time. Positioning is a product-mix strategy in which a business creates a certain image or impression of a product in the minds of consumers. Forecasting involves predicting what will happen in the future. Training is teaching or developing a specific skill. SOURCE: MP:019 SOURCE: Soloman, M. R., Marshall, G. W., & Stuart, E. W. (2008). Marketing: Real people, real choices (5th ed.) [pp. 54-56]. Upper Saddle River, NJ: Pearson Prentice Hall. Test 984A HOSPITALITY SERVICES—KEY 21

55. B Unrealistic objectives. Objectives are the goals that a hotel supply business seeks to reach with its marketing plan. During the process of evaluating the plan, a business might find that its objectives are not being met. One reason for this might be that the objectives are unrealistic and not possible for the business to achieve at that time. For example, an objective of increasing sales by 50% in six months may be completely unrealistic based on the product the business sells and the number of salespeople. If a business determines that its objectives are unrealistic after evaluating the performance of its marketing plan, the business should modify the objectives to make them more attainable. The use of targeted activities and specific strategies often helps a business to achieve its marketing objectives. Intangibles are not capable of being detected through the senses, whereas resources are items that can be used to produce goods and services. SOURCE: MP:022 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 48-49]. Mason, OH: South-Western.

56. B Wireless Internet. To attract business travelers, a lodging facility might consider offering wireless Internet. Because business travelers often depend on their computers to retrieve business-related information (e.g., e-mail), wireless Internet is a good service to offer because it allows business travelers to retrieve this information from their hotel rooms. Cable television, DVD rental, and automated lighting are not options that would help a business traveler to conduct business activities. SOURCE: NF:032 SOURCE: Silva, K.E., & Howard, D.M. (2006). Hospitality & tourism (p. 175). Woodland Hills, CA: Glencoe/McGraw-Hill.

57. C Walk-in. Walk-in guests are people who request rooms without making reservations in advance. By tracking these guests, hotel managers can better forecast room sales. Tracking the walk-in guests can be done manually by maintaining a tally or reservation sheet, or by coding the guest's folio in the computer system. Split-folios refer to guests' bills that are charged to more than one account. Nonaffiliate and property-management are not common terms used to describe ways to track guests without reservations. SOURCE: NF:069 SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging management program: Year one (pp. 79, 116, 118, 129, 132, 136). Lansing, MI: Author.

58. B Determine severity of the injury. The first thing a hotel employee should do if an accident occurs and a guest is injured is to determine the severity of the injury and decide quickly whether the injury is life threatening. If the injury appears to be life threatening, the hotel employee should then call the emergency squad. If the injury does not appear to be life threatening, the hotel employee should notify the department manager who will then handle the situation. Once the guest has been cared for, the hotel employee should complete an accident report form. SOURCE: OP:009 SOURCE: Spears, M.C., & Gregoire, M.B. (2004). Foodservice organizations: A managerial and systems approach (5th ed.) [pp. 406-410]. Upper Saddle River, NJ: Prentice Hall. Test 984A HOSPITALITY SERVICES—KEY 22

59. D Fraud. Fraud is deceiving or cheating a business out of money or property. Price-ticket switching is one form of fraud. Robbery is theft that involves the use of force, violence, or fear. Shoplifting is the theft of goods by customers. Pilferage is the theft of small sums of money or inexpensive items from the business or office supplies for home usage. SOURCE: OP:013 SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.) [pp. 383-385]. Upper Saddle River, NJ: Prentice Hall.

60. D Change. Change is something that occurs constantly and usually without warning. When developing a project plan, a hotel should always provide for change because it is inevitable that something will change. Being prepared to deal with any changes that may take place during the course of the project will help to make the project successful. Not all projects require research or secrecy. Hotels don't provide for publicity unless the project is unique and of interest to the public. SOURCE: OP:001 SOURCE: Haughey, D. (n.d.). Project planning: A step by step guide. Retrieved September 17, 2008, from http://www.projectsmart.co.uk/project-planning-step- by-step.html

61. D Finished goods. Production is the process or activity of producing goods and services. An example of a production activity is the combining of raw materials to create finished goods, which are the completed products that are ready for a business to market. Economic resources are the human and natural resources and capital goods used to produce goods and services. Supplies are economic resources. Assets are anything of value the business owns. However, combining raw materials usually does not create joint assets. SOURCE: OP:018 SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 290-291, 296). Tinley Park, IL: Goodheart-Willcox.

62. B To lead the effort. Management sets the tone for quality in a business and leads the effort. If managers do their best to achieve quality and set an example for employees, the employees usually follow. Managers lead by setting clear goals, by making sure employees understand the goals, by giving employees the information and tools they need, and by being supportive. They also lead by behaving the way they expect employees to behave. The role of management in the achievement of quality in a business is not to assign blame or judge the staff. Management should direct and guide. It is not possible to eliminate conflict, although management often can control conflict. SOURCE: OP:020 SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 282-286). New York: Glencoe/McGraw-Hill.

63. C Directional guideline. A budget establishes flexible bounds within which the hospitality business should operate and gives management the financial information necessary to plan the business year. A budget is not a legal requirement or a short-term forecast. Budgets are not rigid because financial situations often change. SOURCE: OP:030 SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003). Small business management: An entrepreneurial emphasis (12th ed.) [pp. 453, 460-461]. Cincinnati: Thomson/South-Western. Test 984A HOSPITALITY SERVICES—KEY 23

64. A Checking the fire extinguishers. Most hotels are required to have a certain number of fire extinguishers, which should be checked on a regular basis in order to make sure that they will work properly in case of fire. Replacing a broken window or repairing cash registers are not preventive measures since the damage has already occurred. Installing a security system is not preventive maintenance but an attempt to reduce the risk of burglary and theft. SOURCE: OP:032 SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 592-593]. Upper Saddle River, NJ: Prentice Hall.

65. A Opening change fund. The opening change fund is money placed in the cash drawer at the beginning of the day and is not part of sales. Charges, paid-outs, and/or refunds are added to the cash drawer amount. Voids are cancellations of incorrect sales entries and do not affect calculations of cash. Hotel gift-shop employees received the opening change fund from the gift-shop, not the customers or guests. SOURCE: OP:195 SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 152-154). Cincinnati: South-Western Educational.

66. A Avoid direct skin contact and wear disposable gloves. To protect from bacteria transmission and skin irritation, hotel housekeeping attendants should wear disposable gloves when using cleaning chemicals. Housekeeping attendants generally alert their manager when cleaning-chemical inventory is low and do not complete the purchase order. When mixing or using toxic or strong cleaning chemicals, eye goggles or ventilation masks may need to be used. It is not necessary for attendants to keep a log of ingredients found in the cleaning materials; the ingredients are listed on the cleanser storage containers. SOURCE: OP:134 SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging management program: Year one (p. 327). Lansing, MI: Author.

67. D Improve your productivity. Establishing good work habits is an important part of the job. Keeping your work area clutter-free and keeping the supplies you need at hand are two of the most important work habits and let others know you are focused and organized. Not having to "dig" to find something or leave your work area to find supplies keeps you focused on the job at hand and keeps your productivity high. Closing a point-of-sale register involves settling the transactions for the day and putting cash in the bank or safe. Safety habits, such as keeping coin and currency in the cash drawer and being alert for suspicious-looking persons, will help avoid burglaries and can help discourage dishonest guests as well. SOURCE: OP:082 SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 366-367). New York: Glencoe/McGraw-Hill.

68. D Contact all guest rooms. To increase the safety of their guests, many hotels have installed automated systems to assist with fire control and fire emergencies. One feature of most automated systems is that they are able to contact all guest rooms and notify the occupants of the fire emergency. These systems usually provide specific instructions as to how to safely exit the hotel. Another feature of most systems is that they automatically close the fire doors in an attempt to control the spread of fire. These systems do not identify hazardous materials or prevent bomb threats. SOURCE: OP:119 SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 90-91, 592-593]. Upper Saddle River, NJ: Prentice Hall. Test 984A HOSPITALITY SERVICES—KEY 24

69. D Exploratory interview. An exploratory interview is a meeting in which the purpose is to gather information about a specific topic. Jacob wants to gather information about a specific career in the hospitality industry, so he sets up a meeting or exploratory interview with someone who works in the field. A person who obtains a position with an organization for the purpose of gaining work experience in a certain field is participating in an internship. A forum is a meeting that is open to many people. To evaluate the job, Jacob must first obtain information about the position, which is done by holding an exploratory interview. SOURCE: PD:022 SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 54- 56). Woodland Hills, CA: Glencoe/McGraw-Hill.

70. C Your work experiences that relate to the job opening. The letter of application is intended to provide information about the job applicant so that the reader understands how the applicant is qualified for a specific job opening. It should stress the applicant's strengths so that the reader knows the person's qualifications and feels positively about them. Negative subjects, such as frequent job changes, should be avoided. References should be cited in the resume. Only relevant information should be presented in the letter of application. The ages of the applicant's children are not considered relevant for most job openings. SOURCE: PD:030 SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 125-126). New York: Glencoe/McGraw-Hill.

71. C Quality. Customers often associate price with quality. For example, customers assume if the price of a hotel room is high, that the the quality is high. Full-service hotels that provide upscale services and amenities usually charge high rates for their rooms because guests expect to pay high prices for the quality services. High prices are realistic to guests who stay in full-service hotels. If the hotels lowered their prices, guests might not stay there because the rates are lower than expected, and they might assume that the quality is also low. Guests of full-service hotels do not associate high prices with value or economy. Supply is the quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period. SOURCE: PI:001 SOURCE: PI LAP 2—The Price is Right (Pricing)

72. C Confuses customers. A hospitality business that deliberately tries to confuse customers about the price of goods and services may be behaving unethically. Some pricing structures may be complex, which makes them difficult for customers to understand. As a result, customers usually are unable to figure out how to get a lower price and end up spending more than they should. This practice is considered unethical because customers don't have a fair chance to get the best price. Most pricing tactics are intended to be competitive. It is also common for businesses to advertise discounts and offer rebates. These tactics are not unethical. SOURCE: PI:015 SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 536-537). Woodland Hills, CA: Glencoe/McGraw-Hill. Test 984A HOSPITALITY SERVICES—KEY 25

73. C Creative thinking. A product opportunity is a favorable circumstance that presents itself to provide a good or service that consumers are willing to buy. Some product opportunities are identified by using creative thinking techniques, one of which involves making a connection between two unrelated items, ideas, or approaches. Decision making and testing take place after the product opportunity has been identified through creative- thinking techniques. Businesspeople often use creative-thinking techniques to solve problems. SOURCE: PM:134 SOURCE: Meyer, E.C., & Allen, K.R. (2006). Entrepreneurship and small business management (p. 51). New York: Glencoe/McGraw-Hill.

74. D Evaluate it against general criteria. Before a hospitality business invests time, personnel, and money to take an idea and turn it into a product, it must determine if the product is feasible or reasonable to make and market successfully. By establishing criteria (judgment statements or standards), the business can weigh the pros and cons of the idea before going forward with product development. A business develops a product prototype after determining that the idea is feasible. A survey is a marketing-research tool that a business uses to obtain information about a good or service. Simply developing a customer survey does not establish the feasibility of the product idea. Additionally, writing a marketing proposal does not help the business determine the product idea's feasibility. SOURCE: PM:129 SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 281). Tinley Park, IL: Goodheart-Willcox.

75. C Ask its guests for positive and negative feedback. It is important for a hotel to know if it is meeting its customers' needs, wants, and expectations. If guests are unhappy with a hotel, it will likely lose business to its competitors. Therefore, the hotel needs to determine what it is doing right and what it is doing wrong by obtaining both positive and negative feedback. Because many employees are in direct contact with hotel guests, they are often good sources of information. However, requiring employees to complete guest surveys will not provide the hotel with the most reliable information. Merely planning a focus group will not provide the hotel with feedback—the company must hold the focus group. A complaint rating scale is one tool that the hotel might use to evaluate positive and negative feedback. SOURCE: PM:138 SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 36-37). Mason, OH: South-Western.

76. B Width. Width, or breadth, refers to the number of product lines carried by a company. Width is often described as being broad or narrow. Depth refers to the number of products and the assortment of sizes, colors, and models offered in the product lines. Class refers to a product line's similar characteristics. Consistency refers to the relationship between the products in the product mix. SOURCE: PM:003 SOURCE: PM LAP 3—Mix and Match (Product Mix) Test 984A HOSPITALITY SERVICES—KEY 26

77. C Product bundling. Product bundling involves combining several goods and services and offering them to customers as one product. Usually, the bundled products are offered for one, all-inclusive price. Offering a package that includes accommodations, meals, and a sightseeing trip is an example of product bundling. In the hospitality industry, it is common for hotels to develop weekend packages to encourage guests to stay at the properties during times when the hotels are not filled. Offering a weekend package is not an example of price positioning, individual selling, or target advertising although hotels might target the package to a specific audience. SOURCE: PM:041 SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 333- 334]. Upper Saddle River, NJ: Prentice Hall.

78. D Objectives. Objectives are goals or desired outcomes. Product mix is the particular assortment of goods and services that a hotel gift shop offers in order to meet its market's needs and its company's goals. The strategies are the plans of action for achieving its product mix goals. To initiate appropriate strategies, the gift shop must know its goals and also consider its resources (e.g., time, money, personnel). Application is defined as how something functions. Staff refers to a company's personnel. Staff is considered a company resource. Credit is the arrangement by which businesses or individuals can purchase now and pay later. SOURCE: PM:006 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 636). New York: Glencoe/McGraw-Hill.

79. C Is a convenience to guests. Hotels with restaurants provide guests the opportunity to relax and dine—both of which are important to weary travelers. Hotel dining facilities are conveniences for guests because they do not need to leave the premises to eat their meals. Guests who appreciate these types of services are more likely to return to the hotel, which gives it a competitive edge over other nearby hotels. In addition, groups that are planning meetings or conventions usually choose a facility that provides complete service. This can increase a hotel's revenues substantially, thereby increasing its competitive edge. Not all hotels offer room service, or the delivery of meals to the guests' rooms. Hotels with dining facilities do not necessarily reduce the number of dissatisfied guests if other services (e.g., clean rooms) do not meet their expectations. Dining facilities do not necessarily increase the employees' productivity. SOURCE: PM:036 SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 36, 208-209). Upper Saddle River, NJ: Prentice Hall.

80. D Each touch point is an opportunity to reinforce the brand with guests. Every day, hospitality businesses (e.g., motels) have hundreds, even thousands, of opportunities to touch customers with their brand values and to build brand equity. These touch points include virtually every way in which the motel has contact with a guest—be it an invoice, a promotional message, or the way something is positioned on the shelf. Customers (guests) do not select brands based on which have the most touch points; in fact, they have no way of knowing this. They select brands that consistently meet and exceed their expectations. Motels do not get tax breaks based on touch points. Well-developed touch points are a major factor in building a hospitality business's success; however, touch points alone are no guarantee. There are a whole host of other factors that influence a motel's success, including its management, its location, its competition, and the economic environment in which it operates. SOURCE: PM:021 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding) Test 984A HOSPITALITY SERVICES—KEY 27

81. A Image. Changing image through promotional efforts is a common way to reposition products in the consumer's mind. Supply is a change in distribution. Profit is an element of price. Packaging is a physical characteristic. SOURCE: PM:043 SOURCE: Pride, W. M., & Ferrell, O. C. (2000). Marketing: Concepts and strategies (2000e) [pp. 284-285]. Boston: Houghton Mifflin.

82. A Business plan. Developing a successful brand depends on clearly identifying and defining the convention hotel's strengths and competitive advantages. It is often helpful for hotels to go back and review (or write, if they don't exist) their business plans to glean this information. Press releases may describe the hotel's strengths, and as representations of the brand, a hotel's name and slogan may imply its strengths or competitive edge. Although some hotels allude to their strengths and competitive advantages on the Internet, they would not use their FAQs to address these issues. SOURCE: PM:126 SOURCE: PM LAP 10—Building Your Business's Brand

83. A Low in fat and calories. Guests who are health conscious typically desire menu items that are low in fat and calories, such as skinless chicken and steamed vegetables. Recipes that are healthy and appetizing do not necessarily have a quick preparation time, especially in comparison to boxed and canned convenience foods. Home-style menu items typically include items such as fried chicken, meatloaf, sausage, mashed potatoes, and gravy that would be avoided by people watching their diet. For menu items to be nutritionally balanced, they should come from all sections of the food pyramid. SOURCE: PM:059 SOURCE: Kaser, K., & Freeman, J.T. (2002). Hospitality marketing (pp. 187-188). Mason, OH: South-Western.

84. B 2,000. Upscale hotel restaurants usually provide more square footage per customer than other types of restaurants because their customers expect to have privacy when they are dining. Upscale hotel restaurants usually are not crowded and offer their customers a lot of personal space. To calculate the space requirements in this example, multiply the maximum seating capacity by the square footage (125 x 16 = 2,000 square feet). SOURCE: PM:012 SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.) [pp. 182-183]. Upper Saddle River, NJ: Prentice Hall.

85. B Promotion. Promotion is personal if it involves contact between people and nonpersonal if other means of communicating the message are used. Message channels are the media used by sellers to promote goods, e.g., radio, television. Demand is the quantity of a good or service that buyers are ready to buy at a given price at a particular time. Cultural trends are the direction of changes in people's beliefs, behavior patterns, and attitudes. SOURCE: PR:001 SOURCE: PR LAP 2—Promotion Test 984A HOSPITALITY SERVICES—KEY 28

86. D A premium. Premiums, such as coupons, trading stamps, and free gifts, are incentives used in sales promotion to increase purchases. Sales promotion is promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases. Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual that receives it. A rebate is a return of part of the price a customer pays for a product, usually offered by the manufacturer of the product. Public- relations promotions are created to deal with controversial issues that are in the public's interest but also somehow related to the company or its products. SOURCE: PR:003 SOURCE: PR LAP 1—Promotional Mix

87. B Stereotypes. A stereotype is a set image or an assumption about a person or thing. An advertisement that portrays a woman in a traditional female role (e.g., mopping the kitchen floor) is reinforcing a stereotype. Stereotyping women in such roles may offend some people because many males and females now share the responsibility of household chores. Discrimination is the unfair treatment of a person or group based on the person's or group's characteristics. Some people consider an advertisement that portrays a woman in a traditional female role as a gender-based form of discrimination rather than age-based discrimination. Socialization refers to the way in which a community organizes itself. Equity label is a fictitious term. SOURCE: PR:099 SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (p. 216). Mason, OH: South-Western.

88. D Build close and ongoing guest relationships. Technological advancements, such as the Internet and computer software programs, allow a resort to efficiently track its guests' purchasing behavior and preferences. By understanding the guest's purchasing behavior and preferences, the resort can develop plans and take action to accommodate the guest in an appropriate manner. By providing appropriate service options, the resort is more likely to build close and ongoing relationships with guests. Depending on the medium, mass advertising is often more expensive than advertising to targeted markets. Many resorts do not compete with other resorts on a global (international) level. Generally, resorts are increasing their use of customer loyalty programs rather than decreasing them. SOURCE: PR:100 SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 437, 511-512]. Upper Saddle River, NJ: Prentice Hall.

89. D Production house. Most hotel chains do not have the in-house capabilities to develop professional television commercials. Hotel chains often look to advertising agencies for creative ideas and production houses for commercial production. It often takes many people to film a commercial, including filming crews, directors, and actors. A marketing- research firm might be used to find or compile information that a hotel chain requests. A creative boutique is a firm that specializes in graphic design. An interactive agency is a business that provides services for web-based promotional activities. SOURCE: PR:076 SOURCE: Arens, W.F. (1999). Contemporary advertising (7th ed.) [pp. 97, 111, 176-179]. Boston: Irwin/McGraw-Hill. Test 984A HOSPITALITY SERVICES—KEY 29

90. A Efficient services. By offering efficient services, a hotel provides an environment that helps to build a loyal clientele. Efficient services make an important contribution to the creation of goodwill and the cultivation of client loyalty. Convention guests usually appreciate the good service they receive from a hotel, which will encourage them to return and to become regular guests. Hotels usually do not offer free samples. The complimentary items provided in rooms are considered to be amenities rather than free samples. Hotels do not provide training to guests. Hotels use promotional materials as selling tools to attract guests. SOURCE: SE:828 SOURCE: SE LAP 115—Keep Them Loyal

91. C Trust. Trust is the ability to rely on the character, integrity, or truthfulness of someone. Hotel supply salespeople should acknowledge that trust is the foundation in any relationship, especially customer relationships. When customers know that they can rely on the truthfulness of a particular salesperson, they trust what that person is telling them. Friendship is not the foundation of the relationship between salespeople and customers, even though salespeople and customers may become friends. Law and entertainment are not the foundations of the relationship between salespeople and customers. SOURCE: SE:106 SOURCE: SE LAP 129—Keep It Real - in Sales

92. D Prepare a feature-benefit chart. A feature-benefit chart is a list that may be arranged alphabetically to show product features and corresponding benefits. Once hotel supply salespeople have obtained important product information, they should arrange the information in a chart that will help them explain it to customers. Preparing such a chart will help salespeople remember the features and benefits and should aid them in developing meaningful selling sentences. Salespeople do not usually develop catalogs, write brochures, or organize training. However, reading sales catalogs and promotional brochures and attending training seminars are ways that salespeople can obtain product information. SOURCE: SE:109 SOURCE: SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)

93. D Present a product that fulfills the customer's needs. This is one of the primary responsibilities of the salesperson. Differentiating the product from competitors' products is not always required. Gaining the highest sales can be a negative if the salesperson is not providing the customer with what s/he needs. The focus should not be on selling the products that provide the highest profit margin, but on providing the customer with what s/he needs. SOURCE: SE:048 SOURCE: SE LAP 126—The Selling Process

94. B Circle the guest's room location or write in the room number. The front desk clerk should never say the guest's room number out loud for security reasons. Instead, s/he should write the number down and say to the guest, "This is your room number." This protects the guest from unwanted callers or other unpleasant experiences and allows the guest to give the number to those s/he would like to have it. The number of the front desk is on the telephone in the guest's room. It would be too time-consuming to circle any areas the guest might like to visit. SOURCE: SE:226 SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 322, 485]. Upper Saddle River, NJ: Prentice Hall. Test 984A HOSPITALITY SERVICES—KEY 30

95. A Point-of-sale terminal. A point-of-sale terminal is capable of more than automatically transmitting data about each transaction directly to a computer. It can also be used to prepare gift certificates when a cashier keys in information related to the sale. A modem is computer hardware that transmits electronic information. A ledger is the accounting record for a specific department or area of a business. A scanner is a wand or electronic screen that "reads" UPC codes found on products. SOURCE: SE:016 SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.) [pp. 325-326]. Upper Saddle River, NJ: Prentice Hall.

96. C Guaranteed. By giving the credit card number, the guest agrees to pay for the room even if s/he is not able to use it. A confirmed reservation is one made in enough time to allow the hotel to acknowledge the request in writing or by giving a confirmation number over the phone. A modified reservation is one that is changed after it has been made. Anonymous is not a type of reservation. SOURCE: SE:260 SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 148-149]. Upper Saddle River, NJ: Prentice Hall.

97. A Staffing. Staffing is the management function of finding workers for the sales department. Organizing is the management function of setting up the way the sales department's work will be done. Leading activities encompass the manager's ability to guide or direct sales personnel in a desired manner. Planning is the management function of deciding what will be done and how it will be accomplished. SOURCE: SE:079 SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.) [p. 5]. Mason, OH: South-Western.

98. A The department is generating enough business in relation to the financial investment. The financial investment is the money that a company pays (e.g., payroll, menus, food, and supplies) to maintain the department. If the department is doing high volumes of events and if the events are profitable, then the financial investment should be lower than the sales generated, which is good for the food and beverage department. Physical inventories are done on a regular basis in most food service facilities. Therefore, the hotel manager does not generally determine if a physical inventory should be conducted based on findings in the sales income report. Each department has controllable expenses that need to be recorded in some manner. For example, payroll is a controllable expense. Payroll must be recorded (usually in the human resources or payroll department) for tax purposes. The banquet services department is not generally responsible for the promotional activities of other hotel services. SOURCE: SE:279 SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.) [pp. 292-293]. Upper Saddle River, NJ: Prentice Hall. Test 984A HOSPITALITY SERVICES—KEY 31

99. B Traveler's. Traveler's checks are frequently used by people who are traveling. They have been paid for in advance, and contain the purchaser's signature as well as a line for the purchaser to countersign when cashing them. To make sure that the person cashing the check is the legitimate owner, ask the hotel guest to countersign the check in your presence. Watch as the guest countersigns each check and compare that signature to the original. Bank checks, certified checks, and cashier's checks are issued by a financial institution and are already made out to a particular business or person. They do not need to be countersigned. SOURCE: SE:246 SOURCE: American Bankers Association (2005). Today's teller: Developing basic skills (pp. 29, 132-133). Washington: Author.

100. D Their decisions affect the entire chain. Top-level management is composed of all managers who are responsible for the entire hotel chain. They receive higher salaries than other managers because they make important decisions that affect the whole chain. They may or may not have more experience than others in the chain or be required to attend a great many meetings. Top-level management is not involved in hands-on supervision. SOURCE: SM:001 SOURCE: BA LAP 6—Manage This!

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