HS Hospitality Tourism Cluster Sample Exam 20

SAMPLE
EXAM
HOSPITALITY + TOURISM
CAREER CLUSTER
THE HOSPITALITY AND TOURISM CAREER CLUSTER

EXAM IS USED FOR THE FOLLOWING EVENTS:
HOSPITALITY AND TOURISM PROFESSIONAL SELLING HTPS
HOSPITALITY SERVICES TEAM DECISION MAKING HTDM
HOTEL AND LODGING MANAGEMENT SERIES HLM
QUICK SERVE RESTAURANT MANAGEMENT SERIES QSRM
RESTAURANT AND FOOD SERVICE MANAGEMENT SERIES RFSM
TRAVEL AND TOURISM TEAM DECISION MAKING TTDM
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Posted online March 2020 by DECA Inc.

Test 1206 HOSPITALITY AND TOURISM CLUSTER EXAM 1
1. Janelle owns a fast-food restaurant that is part of a larger chain of restaurants. She paid an initial fee to
the owner of the chain when she opened the restaurant. She also has to pay a royalty fee to the parent
company based on a percentage of her profits. Janelle is a
A. licensee.
B. franchisor.
C. licensor.
D. franchisee.
2. When Arthur travels out of the country, he picks up some souvenirs. When he tries to bring them back
home with him, he discovers that he has to pay a tax on them. Arthur must pay the
A. travel tax.
B. customs duty.
C. travel duty.
D. souvenir tax.
3. Which of the following is a controversial legal issue pertaining to airport security:

A. Passport purchasing procedures
B. Intrusive personal searches
C. Airline overbooking practices
D. Baggage fees and claims
4. A month ago, Carmen volunteered to bring cookies to her school's bake sale. She waited until the
morning of the bake sale to bake the cookies, and now she has to get them done as quickly as she can.
She tries a cookie when it comes out of the oven, and it tastes terrible. Carmen looks back at the recipe
and realizes she left out several key ingredients because she was in such a hurry. Which of these steps
for following written instructions did Carmen ignore?
A. Know the end result.
B. Accept responsibility.
C. Don't rush.
D. Go in order.
5. Derek is listening to Amir talk about his new job working at a fast-food place. Amir says, “I'm looking
forward to my first full-time job.” He is slumped in his seat and staring at the floor. Which of the following
is a good interpretation of Amir's message:
A. He is excited, but he has poor communication skills.
B. He is not excited because no one likes working in fast food.
C. He is excited because he clearly said that he is looking forward to the job.
D. He is not excited because his body language doesn't match his words.
6. Which of the following is an example of formal communication in the workplace:

A. Susan tells a coworker that she thinks her manager is going to be fired.
B. Tessa asks Ken for his opinion about an article that she has written.
C. Phil asks Mark if he has an extra product brochure that he can give to a customer.
D. Melinda meets with her manager to discuss a possible promotion.
7. Corey is writing an online banner advertisement to sell her new line of handmade toys. What type of
writing is Corey doing?
A. Responsive
B. Persuasive
C. Informative
D. Passive
8. Why should an independent business consultant avoid using email to share a negative evaluation of an
IT company with a client?
A. The email would legally be considered intentional slander or defamation.
B. It is illegal to share negative information about other businesses via email.
C. Using email can create reputational risk for him/her if it is shared with others.
D. The email would make him/her appear negative and judgmental.
Copyright © 2020 by MBA Research and Curriculum Center®, Columbus, Ohio

9. You have to let one of your employees know you must reduce his hours because of budget cuts. You
should deliver this information to your employee in a(n)
A. letter.
B. phone call.
C. email.
D. in-person meeting.
10. Olivia's manager asked her to attend a meeting that will be held next Tuesday and provided her with an
outline that describes the meeting topics. What can Olivia do to prepare for the meeting?
A. Review the meeting agenda to gather necessary information
B. Summarize the status of all of her current work projects
C. Ask a coworker about the meeting's purpose
D. Set priorities for discussion points
11. David works for a busy travel agency. On Thursday, a client calls David and requests information about a
two-week Caribbean cruise. David needs to do some research before he can provide the client with the
desired information. Which of the following is the best way for David to respond to the client's inquiry:
A. "I don't have information about this cruise. I'll ask my supervisor to call you next week."
B. “I'm very busy right now, so I'll get back to you when I have time.”
C. “I need to look into this, but will call you back by the end of the day with an answer.”
D. “I'm in the middle of something right now. Call me back in 15 minutes.”
12. The executives of an airline recently determined that the cost of their extensive employee training
program was too high and decided to terminate the program. What is a possible consequence of this
decision?
A. Stronger financial standing
B. Increased number of repeat customers
C. Decreased quality of customer service
D. Reduced focus on productivity by management
13. Which of the following is a good strategy for resolving a customer service issue:
A. Allow the customer to express his/her feelings
B. Agree with the customer's complaints
C. Keep the conversation in a public space
D. Disagree with each negative statement
14. When a business is successful in carrying out its brand promise, it provides its customers with
A. a single touchpoint.
B. above-average product quality.
C. a variety of messages.
D. consistent experiences.
15. Which of the following is a true statement regarding the relationship between customer service and the
hospitality and tourism industry:
A. Business success or failure depends on customer service.
B. Customer service is important, but less so than price.
C. Customer service cannot be taught through training.
D. Greater customer satisfaction leads to lower revenue.
16. You are a hotel event planner in charge of a business conference. One of your guest speakers calls you
to explain he is running late and will miss the pre-conference dinner. Instead, he explains, he is going to
get something fast to eat on the way to the hotel. He still plans to arrive in time for his scheduled
presentation, though. Which of the following would be the best thing for you to do to assist him:
A. Ask the staff to keep his entrée warm so he can eat when he arrives.
B. Ask a valet to help him with parking and luggage when he arrives.
C. Cancel his presentation and let attendees know that he won't be there.
D. Arrange for a video conference call in case he is late for his presentation.
17. Which of the following is an example of using social media to enhance a customer's post-sale
experience:
A. Offering discounts for first-time customers
B. Posting about the release of a product line
C. Obtaining new followers that could make a purchase
D. Responding to negative and positive online reviews
18. Paul's Pizza had to close its doors because management couldn't find enough employees. Paul's Pizza
company was experiencing a shortage of
A. natural resources.
B. human resources.
C. capital goods.
D. economic wants.
19. A gas station sells close to the same amount of gas every month, even if the price of gasoline goes up or
down. This is because demand for gasoline is
A. inessential.
B. elastic.
C. discretionary.
D. inelastic.
20. A luxury spa has experienced decreased sales. The owner believes the reason is a rise in unemployment
in the area. What external environmental factor does this represent?
A. Economic
B. Sociocultural
C. Technological
D. Governmental
21. When Marlon buys a new oven for his bakery, he receives a three-year warranty from the oven company.
If the oven breaks or has any problems within three years, the company promises to repair or replace it
free of charge. This is an example of ___________ business risk.
A. avoiding
B. transferring
C. preventing/controlling
D. retaining
22. Which of the following is a true statement regarding hyperinflation's effect on businesses:
A. Hyperinflation raises the value of the products a business exports.
B. Hyperinflation lowers interest rates, making business expansion easier.
C. Hyperinflation makes running a business more difficult and unpredictable.
D. Hyperinflation is good for businesses because prices go up.
23. Apple produces its MacBook computers in China. In calculating GDP, these computers would be part of
A. the GDP for the U.S.
B. community revitalization.
C. the GDP for China.
D. government purchases.
24. Avoiding the use of slang falls under which guideline for dealing effectively with people from different
cultures?
A. Expect differences to arise.
B. Show respect.
C. Strive to communicate clearly.
D. Be patient.
25. Despite being very busy, a server at a restaurant kept his pace steady, his head up, and smiled at each
diner with whom he made eye contact. This server was demonstrating interest and enthusiasm for the job
through
A. body language.
B. personality.
C. boredom.
D. verbal communication.
26. Dion sometimes says he's sick when he actually just doesn't want to go to work. He convinces himself
that what he's doing is okay by saying, "Everyone else is doing it, and my boss will never know." Dion is
A. acting with integrity.
B. behaving ethically.
C. being accountable.
D. making excuses.
27. What is often a positive result of accepting responsibility for a poor decision?
A. You control others' opinions.
B. You gain others' respect.
C. You demonstrate self-importance.
D. You reinforce skeptical attitudes.
28. Siobhan always treats others the way that she'd like to be treated. She is building trust by
A. taking responsibility for her mistakes.
B. keeping her promises.
C. communicating often and openly.
D. being fair.
29. If a person knows that s/he will not be punished for unethical behavior, his/her ethical dilemma could be
motivated by
A. pressure from others.
B. a lack of consequences.
C. the desire to prove her/himself.
D. bad role models.
30. Practicing effective listening skills is courteous, and it benefits you by

A. giving you time to plan your schedule.
B. encouraging the speaker to give you all the facts.
C. helping you maintain control of the conversation.
D. demonstrating your command of body language.
31. When Kaitlin walked into the office's conference room, she saw a coworker speaking on the telephone.
To respect her coworker's privacy, Kaitlin should
A. stand quietly until her coworker notices her.
B. leave the room immediately and shut the door.
C. cough loudly to let her coworker know that she is in the room.
D. shut the door and wait quietly in the room until the phone call is over.
32. Which of the following situations most likely requires confidentiality:

A. A coworker asks you to tell him how a meeting went.
B. You overhear a coworker discussing her salary.
C. A manager wants to recognize an employee's performance.
D. You see a coworker's personal social media post.
33. When confronting a conflict, it's important to

A. avoid apologizing.
B. focus on your overall feelings about the other person.
C. ask for feedback and listen.
D. use “you” statements whenever possible.
34. Kaya is in charge of planning an upcoming fundraiser for an animal shelter. She needs to make posters,
call donors, and set up the venue in a week's time. With the help of other volunteers, Kaya is able to
delegate tasks, use time well, and accomplish everything in time for the event. Which benefit of teamwork
does this scenario describe most accurately?
A. Accountability
B. Efficiency
C. Innovation
D. Social contact
35. Andrea grew up near the mountains and loves to ski. Her coworker Stephen grew up near the beach and
enjoys surfing. Which of the following differences between Stephen and Andrea is being illustrated in this
example:
A. Geographic origin
B. Race
C. Language usage
D. Age
36. Cornell wants to start his own business, but he isn't exactly sure what product or service he wants to
pursue at the moment. The first step of the entrepreneurial process that Cornell should focus on is
A. idea generation.
B. a feasibility study.
C. illumination.
D. verification.
37. Matthew received a loan for $20,000 from a financial institution to help him pay for his college education.
The loan helped him cover the cost of his tuition while he was in school, and when he graduates, he will
repay the financial institution. This is an example of which form of financial exchange?
A. Credit
B. Cash
C. Debit
D. Bitcoin
38. Under which of the following circumstances is a cosigner held legally responsible for paying the balance
owed on a bank loan:
A. The borrower defaults on the loan.
B. The lender defaults on the loan.
C. The borrower's interest rate increases.
D. The lender's interest rate increases.
39. What are you doing when you compare your bank statement with your checkbook register?
A. Endorsing your paycheck
B. Managing your mutual funds
C. Reviewing your credit card balances
D. Reconciling your checking account
40. How can you be sure that your bank statement is error-free?
A. Pay only with cash rather than using credit cards.
B. Avoid using financial management software.
C. Reconcile the bank statement with your own records.
D. Balance your checkbook regularly.
41. Certificates of deposit and municipal bonds are types of

A. value stocks.
B. ownership securities.
C. commodities.
D. lending investments.
42. Mariana works in the accounting department of a large company. Her boss is pressuring her not to record
all of the company's revenue in the business's financial records. If she follows his instructions, the
company will appear to have a smaller income and won't have to pay as much in taxes. He tells Mariana
that this is a normal thing to do, but Mariana's pretty sure it's wrong. Is this practice legal?
A. No; this practice is known as underreporting.
B. Yes; this is a common business practice.
C. No; this practice is known as money laundering.
D. Yes; if Mariana's boss requires her to do something, she should do it.
43. Dwayne is working on an income statement for his business. When he finishes it, he's left with his
business's “bottom line,” which represents the business's
A. net income.
B. operating expenses.
C. gross profit.
D. profit-and-loss statement.
44. What do businesses often develop to reduce the possibility of employees accepting payment from
customers without recording the sale?
A. Break-even requirements
B. Credit card restrictions
C. Two-person teams
D. Internal control procedures
45. A company's cash flow is $1,680,500, its current stock price is $45.50, and there are 570,000 shares
outstanding. What is the company's price-to-cash-flow ratio? (Round all calculations to the nearest
hundredth.)
A. 43.21
B. 29.48
C. 36.93
D. 15.42
46. A primary reason for developing an employee orientation program is to

A. help new employees learn about the company.
B. reduce the need for on-the-job training.
C. assign a mentor to help each experienced employee.
D. evaluate the employees' work performance.
47. What can happen when employees do not respect one another's lifestyles?
A. An increase in productivity
B. Language barriers
C. Generational misunderstandings
D. An uncomfortable work environment
48. Which of the following is an action that can help a business safeguard its reputation:
A. Implementing minimal touchpoints to connect with customers
B. Delivering products with unpredictable quality
C. Using high-pressure sales techniques
D. Fixing mistakes consistently and quickly
49. Jake is a high school soccer player who is about to begin the fall season. While he is getting ready for his
first practice, he realizes that his cleats from last year are too small and that he needs to buy a new pair.
The soccer specialty store near Jake's house would consider Jake to be a member of its
A. target market.
B. market segment.
C. industrial market.
D. geographic segmentation.
50. A well-known author and professor of literature wrote the following blog entry: “While some might find
Margo Green's latest book entertaining, the plot is weak and unrealistic, and the characters lack depth
and complexity.” This is an example of
A. data.
B. a fact.
C. a theory.
D. criticism.
51. Cocoa Bean Coffee Café posts the following statement on its website: “Cocoa Bean Coffee Café does
not share its customers' names, email addresses, and telephone numbers with others without obtaining
customers' consent.” This is an example of a business exhibiting __________ behavior in relation to
__________.
A. cautious; product promotion
B. ethical; information management
C. questionable; marketing research
D. judicious; production procedures
52. What is the primary function of the Random Access Memory (RAM) component of a computer?
A. Reads the computer code that provide visual effects
B. Serves as a temporary holding area for files and programs
C. Stores data and programs permanently
D. Enables the user to apply point-and-click commands
53. What presentation software function allows the user to move and change the order of existing slides?
A. Slide sorter
B. Transition
C. Promote paragraph
D. Note master
54. The Breckenridge Hotel installed a kiosk in its lobby that allows guests to check in and check out quickly
without assistance from hotel staff members. This automated service benefits the hotel because it lowers
A. security needs.
B. maintenance problems.
C. labor costs.
D. billing errors.
55. Determine the number of customers who live in the Northeast and purchased $50 or more worth of goods
last month based on the following information compiled from a mail-order business's database: 3,000
total customers; 21% live in the Northwest, 28% live in the Southwest, 27% live in the Southeast, and the
remainder live in the Northeast. Half of the customers in each area purchased $50 or more worth of
goods last month.
A. 350
B. 360
C. 330
D. 390
56. Which of the following is a benefit that comes from tracking analytics:
A. Measuring the success of marketing campaigns
B. Preventing page bounces
C. Discovering new sales tactics
D. Saving money on web hosting costs
57. Arthur's boss asked him to study his company's sales data from the previous five years to see if there
were any trends. After his research, Arthur presented his findings to his boss along with his predictions
for the future. This is an example of the process of
A. customer retention.
B. the selling process.
C. competitive analysis.
D. data mining.
58. A ski resort that is mining data from its database has detected an anomaly (a deviation from standard
behavior) that occurred on a holiday weekend. Which of the following is most likely to be the anomaly:
A. Visitors to the website also viewed nearby holiday attractions.
B. The resort was booked to full capacity, predominately by families.
C. Visitors to the website also viewed nearby hotels and restaurants.
D. Food service decreased when the resort was filled to capacity.
59. Trends indicate that a large segment of the population is between 60 and 70 years old. A
hospitality/tourism business can act on this trend by
A. selling international vacation packages to recent college graduates.
B. developing tour products specifically designed to appeal to retirees.
C. offering discounted hotel rates for guests who have children under the age of five.
D. implementing a loyalty program for corporate business accounts.
60. A resort recently added a state-of-the-art gym, a healthy dining option, and an on-staff personal trainer.
These actions are examples of
A. becoming a globalized business.
B. dealing with economic impact.
C. avoiding regulatory penalties.
D. responding to guests' lifestyle trends.
61. A hotel's general manager tells the IT director that he wants to learn about recent technological changes
in the industry. The IT director should
A. present analytical data.
B. make a recommendation presentation.
C. purchase new software.
D. write an exploratory report.
62. Hospitality businesses are developing strategies to accommodate niche markets. Skydivers are an
example of a group in a growing segment called the _________ market.
A. geotourism
B. environmental
C. agritourism
D. adventure
63. A hotel guest gives the front desk clerk a credit card to guarantee payment for a room. The clerk uses a
credit authorization service to
A. charge the cost of the entire stay with an additional $100 for room service.
B. determine if the guest has enough available credit to pay for the room.
C. make a reservation for the guest at the hotel restaurant.
D. create a voucher for the guest that includes the guest's information.
64. Businesses must learn to balance their ethical obligations with their
A. legal obligations.
B. desire for profit.
C. productivity requirements.
D. employees' schedules.
65. Although your coworker Edward has always been a pessimistic person, his attitude has been very
negative lately. He obviously has an extreme dislike for the new manager, and recently, his favorite
topics of conversation have been guns and knives. Knowing all this, what should you do?
A. Accuse Edward of plotting violence during a staff meeting.
B. Say nothing because Edward will probably calm down soon.
C. Call the local sheriff or police chief to discuss Edward's mood.
D. Share this information with your supervisor or the HR department.
66. Businesses rely on projects because the business environment is

A. inflexible.
B. dynamic.
C. free from competition.
D. hard to understand.
67. What is the end result of identifying project resources?

A. Eliminating unforeseen problems
B. Becoming a better, more cooperative team member
C. Gaining a clear understanding of what is needed
D. Becoming more independent
68. Purchasing's ultimate goal and purpose is always to obtain the right goods and services from the right
suppliers at the right price. To reach this goal, purchasing specialists must be sure to
A. locate backup sources of goods and services.
B. purchase as much as possible when goods are needed.
C. get the best price from suppliers, even if it damages relationships.
D. select the supplier with the lowest bid.
69. Jack is measuring how well the purchasing department is performing against the department's budget.
Jack is measuring the __________ of the department.
A. purchasing efficiency
B. purchasing functionality
C. supplier relationships
D. purchasing improvements
70. A local hotel keeps a large supply of cleaning products, office supplies, and repair tools. These items are
known as __________ inventory.
A. raw materials
B. finished goods
C. work-in-process
D. MRO
71. A price markup is the difference between how much it costs to make a product and
A. its selling price.
B. how much employees make.
C. what was estimated in the budget.
D. the company's gross profit.
72. When Kara reviews an invoice from one of her suppliers, she notices an error in the discount amount for
the order. Which of the following is the most appropriate action for Kara to take:
A. File a complaint with the supply company's president.
B. Pay the invoice now and notify the supplier about the problem later.
C. Contact the supplier to resolve the discrepancy.
D. Generate a new invoice with the corrected information.
73. Which of the following is a major financial benefit that a company can gain by collaborating with its supply
chain members:
A. Good relationships with suppliers
B. Procurement history information
C. Volume discounts on supplies
D. Elimination of transportation costs
74. Which of the following is a good strategy for protecting digital customer data:
A. Limit installation of outside software programs
B. Use the same password for all accounts
C. Avoid backing up your work
D. Give employees equal access to customer information
75. It is important for hotel employees to wear disposable gloves when emptying trash containers to
A. prevent damage to the floors and furniture.
B. avoid direct contact with sharp objects and bacteria.
C. reduce the risk of inhaling dangerous fumes.
D. decrease the risk of security breaches.
76. Which of the following security measures is often found in lodging establishments:
A. Property management system
B. Radio frequency tags
C. Metal detectors
D. Electronic key cards
77. We need creativity in communication because

A. email makes communication very difficult.
B. most people don't know how to communicate.
C. not everyone communicates the same way.
D. people get tired of the usual communication methods.
78. Which of the following individuals is most likely to meet her/his employer's expectations for proper
employee behavior:
A. Penelope, who asked a successful veteran coworker to serve as her mentor
B. Charlene, who oversleeps and is late to work once or twice a month
C. Dave, who has a tendency to take credit for his team's work
D. Tim, who waits a week or more before replying to his manager's emails
79. Which of the following statements is true regarding training for entrepreneurial ventures:
A. Most entrepreneurs must pass state-mandated exams to operate their businesses.
B. Most successful entrepreneurs have degrees from four-year colleges or universities.
C. Once entrepreneurs are educated or trained in their business field, they don't need further
education.
D. The type of training and education that entrepreneurs need depends on the nature of the startup
business.
80. For what aspect of a job-search strategy would you be most likely to use the Internet?
A. Searching for a company's product review
B. Researching prospective employers
C. Determining pending lawsuits against a company
D. Using a search engine to find out what careers pay the most
81. Which of the following is an example of a businessperson obtaining professional development:

A. Zoe reviews online publications to obtain information for a report that she is writing.
B. Theo attends a seminar about product-standard changes that are affecting his industry.
C. Nick asks his manager if he should attend a company meeting that is being held next month.
D. Talia organizes a community-service event that her employer sponsors every year.
82. Which of the following statements is true regarding the development of the hospitality industry:
A. Transportation advancements increase the demand for hospitality services.
B. Political factors do not influence the need for hospitality services.
C. The hospitality industry has experienced little change in the past century.
D. Increased tourism activity has created a lower demand for hospitality services.
83. Which of the following are services that the travel industry provides:
A. Airline, cruise ship, and recreation
B. Bus, lodging, and convention
C. Train, car rental, and airline
D. Cruise ship, lodging, and car rental
84. In the hospitality industry, price is the amount of money that a guest pays
A. to prevent possible cancellations.
B. to make future reservations.
C. for the use of a hotel's services.
D. for requesting additional towels.
85. At what point in the new-product development process does a product's life cycle begin?
A. Idea generation
B. Commercialization
C. Test marketing
D. Product development
86. A fast-food restaurant decides to add a new line of salads to its menu. The company is using a(n)
___________ product-mix strategy.
A. expansion
B. contraction
C. trading-up
D. trading-down
87. Hotels offering guests a weekend package that includes accommodations, meals, and a sightseeing trip
is an example of
A. target advertising.
B. price positioning.
C. individual selling.
D. product bundling.
88. Which of the following is an example of a service provided by the hospitality industry:
A. Airline tickets
B. Restaurant meals
C. Valet parking
D. Electronic room keys
89. When the Marriott hotel chain launched the Fairfield by Marriott line of hotels, this was an example of
A. product extension.
B. product bundling.
C. product contraction.
D. product modification.
90. A popular hotel gives all of its guests a goodie bag that includes pens and a coffee cup with its logo and
address on them. Most likely, the hotel is using these promotional materials to
A. inform customers.
B. remind customers.
C. get customer feedback.
D. identify customers.
91. Motels often use printed certificates that offer discounts to increase business. What type of promotional
technique is this?
A. Prizes
B. Coupons
C. Contests
D. Awards
92. A potential benefit to businesses that implement continuous quality improvement processes is
A. increased sales.
B. increased costs.
C. decreased outputs.
D. decreased profits.
93. Which of the following is a barrier to effective internal risk control:

A. Control processes include detailed audit trails.
B. Managers override control processes.
C. Employees understand the need for control.
D. The company monitors control efforts continuously.
94. Salespeople who want to talk to others in their industry to obtain additional information about new and
existing products might attend
A. union events.
B. trade shows.
C. open houses.
D. sales meetings.
95. Which of the following is a technique that a salesperson can use to reaffirm the buyer-seller relationship:
A. Handle the customer's objections quickly
B. Develop a scripted sales presentation
C. Put the customer at ease by being objective
D. Follow up with the customer to ensure satisfaction
96. Kaylee is the event coordinator for the Houghton Hotel. She is placing an order for unique table
centerpieces with a vendor on behalf of a client who is holding a wedding reception at the hotel. What
type of order is Kaylee placing?
A. Special
B. Standing
C. Open
D. Blanket
97. Taking a customer's order over the phone and accepting payment with a credit card is an example of
A. reducing the possibility of counterfeiting.
B. guaranteeing product satisfaction.
C. implementing a mailing system.
D. processing a financial transaction.
98. A pizza restaurant is offering $1 off any large pizza, 20% off the price of wings, and medium-sized soft
drinks for $1.25 on Monday nights. If a group orders three large pizzas priced at $10.95 each, one $6.95
order of wings, and seven soft drinks, what amount will the restaurant charge?
A. $48.55
B. $42.21
C. $40.90
D. $44.16
99. What is the overall focus of managerial planning?

A. Strategy development
B. Capital fundraising
C. Staff recruitment
D. Task performance
100. What might result if an event promoter scheduled a major concert in a facility that consumers considered
to be located in an unsafe area?
A. Reduced sales
B. Decreased parking
C. Limited access
D. Shortened hours
Test 1206 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 13
1. D
Franchisee. Franchising is a method of distributing recognized goods and services through a legal
agreement between two parties. The franchisee (in this case, Janelle) acquires the rights to operate the
business using the parent company's name. That parent company is known as the franchisor. For
someone who wants to be a business owner, purchasing a franchise is often a desirable ownership
option because the product has an established brand with a solid reputation. Licensing refers to an
owner's authorization or permission for another entity to use trademarked, copyrighted, or patented
material for a specific activity, during a specific time period, for the profit of both parties. The licensor is
the owner of the material, and the licensee is the buyer.
SOURCE: BL:003
SOURCE: LAP-BL-001—Own It Your Way (Types of Business Ownership)
2. B
Customs duty. Goods that are brought across international borders are often subject to a tax called a
customs duty. This is meant to control the flow of goods. It is not called a travel tax, a travel duty, or a
souvenir tax.
SOURCE: BL:126
SOURCE: U.S. Customs and Border Protection. (n.d.). Customs duty information. Retrieved August 9,
2019, from http://www.cbp.gov/travel/international-visitors/kbyg/customs-duty-info
3. B
Intrusive personal searches. Air transportation is regulated by specific government agencies. Airports and
airlines are required to abide by regulations concerning safety, routes, passenger rights, etc. Due to an
increased concern about terrorism, airports have increased their security measures to reduce the risk of
potential terrorists accessing airplanes as passengers. These measures include luggage and clothing
inspections, pat downs, and body scanners to detect weapons that a person might have. Some travelers
feel violated by the use of these techniques, and in the United States, some people believe the searches
violate the U.S. Constitution's Fourth Amendment—the right to be secure of unreasonable searches and
seizures. Some people may be annoyed with passport purchasing procedures, airline overbooking
practices, and baggage fees; however, these issues do not relate directly to airport security.
SOURCE: BL:065
SOURCE: Nixon, R. (2015, May 8). Airport security advances clash with privacy issues. Retrieved
August 9, 2019, from https://www.nytimes.com/2015/05/09/us/airport-security-advances-
clash-with-privacy-issues.html
4. C
Don't rush. Remember that reading and following directions is not a race! It's important to take your time
and follow the steps provided. Even if you're in a hurry, like Carmen, rushing through directions can
actually end up taking more time if you have to spend time fixing your mistakes. It's important to accept
responsibility, know the end result, and go in order, but Carmen did not ignore these steps in this
example.
SOURCE: CO:119
SOURCE: UA Management Information Systems. (2011, August 31). 101 ways to make yourself
indispensable at work: Follow directions. Retrieved August 9, 2019, from
https://uamis.wordpress.com/2011/08/31/101-ways-to-make-yourself-indispensable-at-work-
follow-directions/
5. D
He is not excited because his body language doesn't match his words. It's important for a listener to
observe a speaker's body language to look for any mixed messages. If Amir says he is excited and
looking forward to the job, but his body language doesn't show enthusiasm, he may be pretending to be
excited. Thinking Amir is not excited because no one likes working in fast food is an assumption. Just
because Amir said he is excited does not mean it is true. If a speaker's body language does not match
his words, it does not necessarily mean he has poor communication skills.
SOURCE: CO:017
SOURCE: LAP-CO-017—Listen Up! (Demonstrating Active Listening Skills)
6. D
Melinda meets with her manager to discuss a possible promotion. A discussion between an employee
and a supervisor about work-related issues is formal communication. Formal communication in the
workplace involves behaving professionally and using a respectful tone. It also refers to communication
that follows channels predetermined by the organization, such as those established in an organizational
chart. Asking another person (coworker) for an opinion or brochure are informal forms of workplace
communication. A possible firing in the workplace is an example of gossip, which is a type of informal
communication that should be avoided.
SOURCE: CO:084
SOURCE: Cameron, S. (2018, June 7). Definition of formal and informal communication methods.
Retrieved August 9, 2019, from https://bizfluent.com/info-8182249-definition-formal-informal-
communication-methods.html
7. B
Persuasive. Persuasive writing attempts to convince an audience to perform a certain action, such as
buying a product. Responsive writing is used to respond to some prior communication. Informative writing
is used to transfer information to an audience. Writing in the passive voice transfers the object of the
action into the subject position. Although the banner ad transfers information about the handmade toys,
the purpose of the ad is to persuade people to buy the toys.
SOURCE: CO:039
SOURCE: Traffis, C. (2019). Learn the types of writing: Expository, descriptive, persuasive, and
narrative. Retrieved August 9, 2019, from https://www.grammarly.com/blog/types-of-writing/
8. C
Using email can create reputational risk for him/her if it is shared with others. Email can easily be
intercepted and shared with others, so it is typically wise to avoid using email to share confidential
information. It is legal to share negative information about a company with others. Slander and
defamation are intentional acts to damage an individual or organization and do not apply to the situation
described. Since consultants are hired to give expert and honest evaluations, an unfavorable review of a
company is not likely to cause the consultant to be perceived as a negative or judgmental individual.
SOURCE: CO:202
SOURCE: Duncan, G. (2013, August 24). Here's why your email is insecure and likely to stay that way.
Retrieved August 9, 2019, from http://www.digitaltrends.com/computing/can-email-ever-be-
secure/#ixzz4H8g1HSEp
9. D
In-person meeting. How you communicate information in the workplace is often as important as the
information itself. Phone calls, emails, and letters can all be good ways to communicate with employees,
but a face-to-face meeting is the best way to deliver bad news (or anything else personal). You can more
easily communicate your sincerity when you meet with an employee face-to-face.
SOURCE: CO:092
SOURCE: Inc. (2010, May 1). How to communicate with employees. Retrieved August 9, 2019, from
http://www.inc.com/magazine/20100501/guidebook-how-to-communicate-with-
employees.html
10. A
Review the meeting agenda to gather necessary information. The agenda is a document that outlines or
briefly describes the topics that are to be discussed during a meeting. Often, the meeting leader will
distribute the agenda to meeting participants several days before the meeting. This enables the meeting
participants to review the agenda so they can do research or gather information that will help them be
prepared to discuss the meeting topics. The purpose of meeting may involve providing work-related
status reports. Coworkers may not be part of the meeting, so they may not be able to help Olivia prepare
for the meeting. Meeting leaders set the priorities (agenda) for the discussion.
SOURCE: CO:063
SOURCE: Ashe-Edmunds, S. (2014). Six tips on how to participate in a meeting. Retrieved August 12,
2019, from http://work.chron.com/six-tips-participate-meeting-2014.html
11. C
“I need to look into this, but will call you back by the end of the day with an answer.” Clients expect
prompt, courteous service. If David needs to obtain more information, he should advise the client that he
will call back with the correct information as soon as possible. David should be able to call the client back
himself for routine questions instead of asking his supervisor to make the call. Asking the client to call
back or telling the client to expect a call at David's convenience is rude and is providing poor customer
service.
SOURCE: CR:006
SOURCE: Means, T. (2019). Business communication (3th ed.) [Lesson 14-1]. Boston, MA: Cengage
Learning, Inc.
12. C
Decreased quality of customer service. The costs of customer service training programs are a challenge
for the hospitality and tourism industry, especially with high turnover rates. However, training is essential
to customer service, and without it, quality is sure to suffer. Terminating a customer service training
program is not likely to lead to an increased number of repeat customers or a stronger financial standing.
Although the training program has been terminated, management will not reduce its productivity focus.
SOURCE: CR:043
SOURCE: Freeman, R., & Glazer, K. (2015). Chapter 9: Customer service. Retrieved August 12, 2019,
from https://opentextbc.ca/introtourism/chapter/chapter-9-customer-service
13. A
Allow the customer to express his/her feelings. Sometimes, frustrated customers want to complain and
release anger. Allowing them to express their feelings might help them calm down and make a resolution
more likely. Agreeing with a customer's complaints is not a good idea because it undermines the
authority of the company. Keeping the conversation in a public space is not a good idea because other
employees or customers might hear the conversation, which could damage morale and reputation.
Finally, disagreeing with each negative statement is likely to upset the customer rather than helping
resolve the conflict.
SOURCE: CR:046
SOURCE: Geraghty, S. (2018, February 22). 12 conflict resolution tips for excellent customer service.
Retrieved August 12, 2019, from https://www.talkdesk.com/blog/12-conflict-resolution-tips-
for-excellent-customer-service-2/
14. D
Consistent experiences. A brand promise is a business's agreement (spoken or unspoken) with
customers that it will consistently meet their expectations and deliver on its brand characteristics and
values. All messages and touchpoints should reinforce the brand promise in a consistent way. Brand
characteristics vary among businesses and products but may focus on product quality. Businesses use
many touchpoints to communicate their brand promises—employees, website, advertising, public
relations activities, etc. All of the touchpoints and messages form the customers' impressions of the
business and influence their experiences with the business.
SOURCE: CR:001
SOURCE: FrogDog. (2011, February 18). How to develop a brand promise. Retrieved August 12, 2019,
from http://frog-dog.com/how-to-develop-a-brand-promise/
15. A
Business success or failure depends on customer service. In the hospitality and tourism industry,
success or failure depends on the level and quality of customer service. Customer satisfaction is heavily
influenced by service, and the greater the customer satisfaction, the higher the revenues for the
business. Customer service has a greater impact than price when it comes to a customer's buying
decision in this industry. Also, customer service can be taught through employee training programs; in
fact, training is a crucial tool when it comes to ensuring high-quality customer service.
SOURCE: CR:049
SOURCE: Freeman, R., & Glazer, K. (2015). Chapter 9: Customer service. Retrieved August 12, 2019,
from https://opentextbc.ca/introtourism/chapter/chapter-9-customer-service
16. B
Ask a valet to help him with parking and luggage when he arrives. A guest speaker is an important part of
a conference, so you should arrange to make his arrival as easy and stress-free as possible. He plans to
eat something on the way to the hotel, so there's no need to keep his entrée warm. Cancelling his
presentation or arranging for a video conference call would not be helpful because the speaker is
planning to arrive on time for his speech.
SOURCE: CR:053
SOURCE: Reynolds, J.S., & Chase, D.M. (2014). Hospitality services (3rd ed.) [pp. 185, 210]. Tinley
Park, IL: Goodheart-Willcox.
17. D
Responding to negative and positive online reviews. Online reviews of products on social media can
have a huge impact. A business can increase customer satisfaction post-sale by responding to online
reviews. This shows that the business cares about its customers and can lead to repeat business.
Posting about the release of a product line, obtaining new followers that could make a purchase, and
offering discounts for first-time customers are not related to customers' post-sale experiences.
SOURCE: CR:028
SOURCE: Boitnott, J. (2016, March 21). 5 ways marketing can improve the post-sale customer
experience. Retrieved August 12, 2019, from http://www.pardot.com/blog/5-ways-marketing-
can-improve-post-sale-customer-experience
18. B
Human resources. Human resources are people, or employees, valued for mental and physical labor.
Paul's Pizza lacked the employees, or human resources, needed to continue business operations.
Natural resources are found in nature and used to produce goods and services. Capital goods are
manufactured materials used in the production of goods and services. Economic wants are desires for
items that can be valued in terms of money.
SOURCE: EC:001
SOURCE: LAP-EC-006—Are You Satisfied? (Economics and Economic Activities)
19. D
Inelastic. Inelastic demand exists if the demand for a good or service is constant, even if the product's
price changes. Some products are considered necessities that consumers must purchase regardless of
their cost. For most consumers, gasoline is a necessity because they need to drive their cars. Elastic
demand changes when prices change. Discretionary and inessential are not terms commonly used to
describe demand.
SOURCE: EC:005
SOURCE: LAP-EC-011—It's the Law (Supply and Demand)
20. A
Economic. Economic trends, including unemployment, have an impact on business. The salon's sales
are likely to decline in a time of high unemployment because fewer people have money to spend on
luxury goods. Sociocultural factors include population changes, fashion trends, etc. If the business
specialized in spa services that became unfashionable, it may see sales decline for sociocultural
reasons. Technological factors deal with shifts in the type of technology available/used. Governmental
factors are controlled by the government, such as changes in the tax rate or government regulations.
SOURCE: EC:105
SOURCE: LAP-EC-105—What's Shakin'? (Factors Affecting the Business Environment)
21. B
Transferring. Contractual agreements, such as warranties, are one way to transfer risks to another
person or business. This option enables businesses to move forward with their decisions without bearing
the risks involved. Marlon might not be able to afford to pay for a new oven if this one breaks, but
because he's transferred the risk to the oven company, he knows they'll replace it if he has any problems.
Avoiding risk is demonstrated by not taking a chance, as a risk not encountered presents no danger.
Preventing or controlling a risk happens when a business takes measures to prevent or reduce the risk.
Businesses retain a risk if they do nothing to reduce or eliminate it.
SOURCE: EC:011
SOURCE: LAP-EC-003—Lose, Win, or Draw (Business Risk)
22. C
Hyperinflation makes running a business more difficult and unpredictable. Hyperinflation makes running a
business more difficult and unpredictable. Prices may go up, but costs also rise, and profits fall, limiting
business potential. Inflation raises interest rates; it doesn’t lower them. Hyperinflation would likely lower
the value of exports as well.
SOURCE: EC:083
SOURCE: LAP-EC-083—Up, Up, and Away (Inflation)
23. C
The GDP for China. MacBook computers produced in China would be part of the GDP for China, not for
the U.S., because their production occurred outside the boundaries of the U.S. Government purchases
include everything purchased by local, state, and federal governments. The manufacturing of computers
in China contributes to China's economy but does not automatically create improvements to the
community known as community revitalization.
SOURCE: EC:017
SOURCE: LAP-EC-001—Measure Up? (Gross Domestic Product)
24. C
Strive to communicate clearly. Avoiding the use of slang is a way to communicate more clearly with those
from other cultures who might not understand the hidden meaning of the words. This is a communication
issue, not necessarily an issue of respect, patience, or expecting differences to arise.
SOURCE: EC:045
SOURCE: LAP-EC-045—On Top of the World (Impact of Culture on Global Trade)
25. A
Body language. One of the ways that interest and enthusiasm can be demonstrated is through body
language, which includes body movement. Verbal communication involves the use of words. Boredom is
the opposite of interest and enthusiasm. Only a part of the server's personality is indicated in this
situation.
SOURCE: EI:020
SOURCE: Means, T. (2019). Business communication (3th ed.) [Lesson 3-1]. Boston, MA: Cengage
Learning, Inc.
26. D
Making excuses. Making excuses often means you are trying to convince yourself that what you are
doing is okay. Dion may be tempted to think that it's all right to skip work because everyone is doing it or
because his boss will never know. However, these are just excuses to justify making the wrong choice.
Dion is not behaving ethically, being accountable, or acting with integrity.
SOURCE: EI:004
SOURCE: LAP-EI-004—Work Right (Demonstrating Ethical Work Habits)
27. B
You gain others' respect. Most people do not like to make mistakes, but everyone makes them from time
to time. It's the way that a person handles a mistake or poor decision that is important. Taking
responsibility means admitting the wrongdoing, accepting the consequences of the decision, and trying to
do better the next time. When a person admits making a mistake, s/he is likely to gain the respect of
others and gain trust. When people do not admit their mistakes or they blame others for mistakes, they
are showing that they value their well-being over others, which is demonstrating self-importance. Most
people do not trust individuals who do not accept responsibility for their actions or decisions, and are
likely to be skeptical about those individuals' true motives. People cannot control others' opinions.
SOURCE: EI:075
SOURCE: LAP-EI-075—It's Up to You (Taking Responsibility for Decisions and Actions)
28. D
Being fair. Fairness means treating others the way that you'd like to be treated. Creating equal
relationships encourages other people to trust you. People will be more likely to trust you if they know
you treat everyone equally. Keeping promises, communicating often and openly, and taking responsibility
for her mistakes are important techniques, but Siobhan is not demonstrating them in this example.
SOURCE: EI:128
SOURCE: LAP-EI-128—Trust in Me (Building Trust in Relationships)
29. B
A lack of consequences. The threat of punishment is one reason why most people behave properly. If a
person knows that s/he won't be punished for unethical behavior, s/he may consider acting unethically.
This is not an example of pressure from others, the desire to prove oneself, or bad role models.
SOURCE: EI:124
SOURCE: LAP-EI-124—What's the Situation? (Reasons for Ethical Dilemmas)
30. B
Encouraging the speaker to give you all the facts. Listening carefully to others allows them to express
their point of view and encourages them to provide you with complete information about the problem or
situation. This should help you solve it. Demonstrating your command of body language is not a benefit
of practicing effective listening. When listening carefully to others, you should not be thinking about
unrelated things, such as your schedule for the day. Effective listening skills do not help you maintain
control of the conversation.
SOURCE: EI:025
SOURCE: LAP-EI-014—Control Yourself! (Demonstrating Self-Control)
31. B
Leave the room immediately and shut the door. An employee who respects others' privacy would leave
the room when a coworker is on the telephone. Standing quietly until being noticed, coughing loudly, and
shutting the door and waiting for the telephone call to end are not ways of respecting a coworker's
privacy.
SOURCE: EI:029
SOURCE: Kimbrell, G. (2012). Succeeding in the world of work (p. 170). Columbus, OH: McGraw-Hill
Education.
32. B
You overhear a coworker discussing her salary. Certain information about other people should be kept
confidential to build trust, protect privacy, and abide by the law. In the workplace, individuals' salaries
should be treated as confidential. Therefore, if you overhear someone disclosing her salary, you should
not share that information with anyone; rather, you should keep it to yourself. You do not have to keep
information about a meeting confidential, unless information discussed in the meeting was specifically
stated as confidential. Recognizing an employee's performance does not require confidentiality, unless
that employee chooses to remain anonymous. Finally, if a coworker has knowingly shared something on
social media, s/he cannot expect that information to remain confidential.
SOURCE: EI:103
SOURCE: Mayhew, R. (2018, June 30). Can an employer speak to other employees about other
coworkers? Retrieved August 12, 2019, from http://work.chron.com/can-employer-speak-
other-employees-other-coworkers-11266.html
33. C
Ask for feedback and listen. It's very important to not only ask the other person for their feedback but to
listen to what they have to say as well. You can then verify your understanding by summarizing the other
person's comments or by asking additional questions. You don't want to focus on your overall feelings
about the other person—instead, you should focus on your feelings about the person's behavior. You
should apologize if you've yelled at or insulted a coworker. Avoid using "you" statements, as they tend to
place blame and fault on the other person. Instead, try to use "I" statements, which convey your beliefs,
perceptions, and feelings.
SOURCE: EI:015
SOURCE: LAP-EI-007—Stop the Madness (Conflict Resolution in Business)
34. B
Efficiency. When people with varying skills become accustomed to working together, they develop
efficient practices and procedures that allow them to complete projects quickly and with few errors. Kaya
could have tried to finish all of the work herself, but she would have been overwhelmed and unlikely to
finish in time. Kaya's team of volunteers was more efficient and able to use their different skills to
accomplish their goals in time. This situation does not depict the benefits of accountability, innovation, or
social contact.
SOURCE: EI:045
SOURCE: LAP-EI-045—Team Up (Participating as a Team Member)
35. A
Geographic origin. Andrea and Stephen differ in their geographic origins. This refers to the part of the
world and the type of area from which a person comes, and it influences who they are. The two
coworkers do not necessarily differ in race, language usage, or age.
SOURCE: EI:036
SOURCE: LAP-EI-036—Everyone's Worthy (Treating Others With Dignity and Respect)
36. A
Idea generation. Coming up with an idea is the first step in the entrepreneurial process; without an initial
idea, none of the other steps can be completed. A feasibility study is conducted to see if the idea is
viable. Two steps in the feasibility study are illumination (where the idea becomes realistic) and
verification (where the idea is found to be practical and useful).
SOURCE: EN:039
SOURCE: Chand, S. (2014, February 8). Entrepreneurship: Characteristics, importance, types, and
functions of entrepreneurship. Retrieved August 12, 2019, from
http://www.yourarticlelibrary.com/entrepreneur/entrepreneurship-characteristicsimportance-
types-and-functions-of-entrepreneurship/5228/
37. A
Credit. Credit is borrowed money that individuals can use to purchase goods and services when they
need them. You get credit from a credit grantor, whom you agree to pay back for the total cost of the
amount you spent (plus applicable interest charges) at an agreed-upon time. Matthew received $20,000
in credit from a financial institution to pay for college. He benefits from this credit because without it he
may not be able to afford tuition. This example does not demonstrate the use of cash, debit, or bitcoin.
SOURCE: FI:058
SOURCE: Experian Information Solutions, Inc. (2019). What is credit. Retrieved August 12, 2019, from
http://www.experian.com/blogs/ask-experian/credit-education/faqs/what-is-credit/
38. A
The borrower defaults on the loan. When borrowers agree to a loan, they are making a legal contractual
agreement to pay back the loan in a certain manner within a specific period of time. When the borrower
does not have the collateral or credit history to obtain the loan, the lender often requests that another
person cosign for the loan. A cosigner is responsible for paying the loan if the borrower defaults on it,
which means the borrower does not make the scheduled payments to the lender. Changes in interest
rates do not affect a cosigner's legal responsibility for paying the balance owed on a loan.
SOURCE: FI:063
SOURCE: Garman, E.T., & Forgue, R.E. (2018). Personal finance (13th ed.) [Lesson 7-4b]. Boston,
MA: Cengage Learning, Inc.
39. D
Reconciling your checking account. The check register is a central location to record and track all of the
checks that you write and the amount of money you spend in your checking account. Each month, you
receive a bank statement that details your checking account activity. You should reconcile your check
register with your bank statement to ensure that they match. This step is important for many reasons. For
example, if you forget to enter transactions in your checkbook register, you may overdraft your account
and be fined for insufficient funds. When you compare your bank statement with your checkbook register,
you are not managing your mutual funds, reviewing credit card balances, or endorsing your paycheck.
SOURCE: FI:069
SOURCE: TheMint. (2019). Tracking your checking account. Retrieved August 12, 2019, from
http://www.themint.org/kids/tracking-your-checking-account.html
40. C
Reconcile the bank statement with your own records. You should keep your own records of your
deposits, withdrawals, interest, and fees so that you can compare it to your bank statement. Comparing
your records to the bank statement can help you find mistakes or fraud. Avoiding financial management
software does not help you be sure that your bank statement does not have any errors. Paying with only
cash does not help you ensure that your bank statement does not have any errors, and it is also not
practical. Balancing your checkbook regularly is a good idea to help you maintain accurate financial
records, but it does not necessarily make sure that your bank statement does not have any errors in
itself.
SOURCE: FI:070
SOURCE: Burnette, M. (2018, March 8). What is a bank statement? Retrieved August 12, 2019, from
https://www.nerdwallet.com/blog/banking/banking-basics/understanding-bank-statement/
41. D
Lending investments. Investments in which individuals allow borrowers to use their money for a period of
time for a specified fee or rate of interest are lending investments. Certificates of deposit and municipal
bonds are types of lending investments. Ownership investments are those in which individuals purchase
a portion or all of an item (e.g., stocks). Value stocks trade at lower-than-average prices because they
have been overlooked or undervalued by investors. Commodities, which are often traded on stock
exchanges, are inputs or goods used to produce other products such as oil, grains, gold, etc.
SOURCE: FI:077
SOURCE: LAP-FI-077—Invest for Success (Types of Investments)
42. A
No; this practice is known as underreporting. Not recording all of a company's revenue to avoid paying
taxes is known as underreporting. Any sort of income tax evasion is a felony. Money laundering, which
involves taking money from illegal sources and passing it through a business to make it seem legal, is not
the same as underreporting. Even if other companies practice underreporting or if Mariana's boss asks
her to do it, that doesn't make it legal. It's still an illegal practice that qualifies as tax evasion.
SOURCE: FI:353
SOURCE: Kenton, W. (2018, May 18). Under reporting. Retrieved August 15, 2019, from
https://www.investopedia.com/terms/u/underreporting.asp
43. A
Net income. A business's net income consists of all the money remaining after operating expenses are
subtracted from gross profit. It's considered the “bottom line” because it's the final calculation on the
income statement. Operating expenses and gross profit are not referred to as the “bottom line.” A profit-
and-loss statement is another term for an income statement.
SOURCE: FI:094
SOURCE: LAP-FI-004—Watch Your Bottom Line (Income Statements)
44. D
Internal control procedures. Businesses often develop procedures to control cash or other assets in order
to prevent loss. These fall under the category of internal controls. These procedures might include
training employees on how to use the cash register, and requiring that they ring up each sale on the
register and give receipts to all customers. These procedures help control cash by reducing the
possibility of employees accepting payment from customers without recording the sale, charging the
wrong price, or giving customers too much change. Businesses do not develop credit card restrictions,
two-person teams, or break-even requirements to reduce the possibility of employees accepting payment
from customers without recording the sale.
SOURCE: FI:113
SOURCE: Sullivan, D. (2019). Internal control procedures for the receipt of cash. Retrieved August 15,
2019, from https://work.chron.com/internal-control-procedures-receipt-cash-6735.html
45. D
15.42. Investors use the price-to-cash-flow ratio to determine the relative worth of a potential investment.
A low price-to-cash-flow ratio is often an indication that the market has undervalued a particular stock,
while a high price-to-cash-flow ratio can be a sign that the stock has been overvalued. The formula used
to determine a company's price-to-cash-flow-ratio is Price-to-Cash-Flow Ratio = Current Stock Price /
Cash Flow per Share. First, to determine the cash flow per share, divide the company's cash flow by the
number of shares outstanding ($1,680,500 / 570,000 = $2.95). So, the cash flow per share is $2.95.
Next, divide the current stock price by the cash flow per share to determine the company's price-to-cash-
flow ratio ($45.50 / $2.95 = 15.42).
SOURCE: FI:541
SOURCE: Kenton, W. (2019, June 23). Price-to-cash-flow ratio. Retrieved August 12, 2019, from
http://www.investopedia.com/terms/p/price-to-cash-flowratio.asp
46. A
Help new employees learn about the company. Employee orientation consists of activities that help new
employees become acquainted with their surroundings. During orientation, the new employees typically
receive general information about the company and its policies, meet their coworkers, and tour the
facility. After orientation, the employees report to their new managers to obtain training and specific
information about their jobs. Often, the business may have an experienced employee help train and/or
mentor the new employee. Performance reviews are tools that businesses use to evaluate an employee's
work performance.
SOURCE: HR:360
SOURCE: Brown, J. (2019, April 12). Employee orientation: Keeping new employees on board.
Retrieved August 12, 2019, from https://www.thebalancecareers.com/employee-orientation-
keeping-new-employees-on-board-1919035
47. D
An uncomfortable working environment. Sometimes, employees do not respect each other's lifestyles
and discriminate against each other because of them. When this occurs, employees might experience an
uncomfortable work environment. This can damage productivity. Language barriers are a result of ethnic
or cultural differences, rather than differences in lifestyles. Generational misunderstandings are not a
result of disrespecting lifestyle choices.
SOURCE: HR:515
SOURCE: Renee, M. (2019, March 6). The top 10 diversity issues at work. Retrieved August 12, 2019,
from http://smallbusiness.chron.com/top-10-diversity-issues-work-24939.html
48. D
Fixing mistakes consistently and quickly. Customers who are pleased with the way the business handles
problems are likely to recommend the business to others, which results in a favorable reputation for the
business. On the other hand, a business that fails to apologize and fix mistakes is unlikely to keep
customers. As a result, customers tell others about their negative experiences with the business, which
can damage the business's reputation. The delivery of unpredictable product quality, the use of high-
pressure sales techniques, and the use of minimal touchpoints to connect with customers are actions that
are more likely to damage the business's reputation than safeguard it.
SOURCE: MK:019
SOURCE: LAP-MK-019—Just Do It…Right (Company Actions and Results)
49. A
Target market. A target market is the particular group of customers a business seeks to attract. Jake is a
soccer player with a need for new cleats—he fits the target market for a soccer specialty store perfectly.
A market segment is more specific—it is one of the groups into which the total target market is divided.
For example, female goalkeepers or male defensemen are both market segments within the larger target
population of soccer players. An industrial market includes customers or potential customers who
purchase items for use in the operation of a business, for resale, or for making other goods. Geographic
segmentation is the division of a market on the basis of where customers are located.
SOURCE: MP:003
SOURCE: LAP-MP-003—Have We Met? (Market Identification)
50. D
Criticism. When assessing information, it is important to discern fact from opinion and criticism. The
example is a statement of disapproval, which is criticism. It is based on opinion or beliefs rather than
facts. Facts contain information or data that are indisputable and true. A theory contains ideas that intend
to explain events or occurrences.
SOURCE: NF:077
SOURCE: Siegel, C. (2015, August 23). On opinion vs. criticism. Retrieved August 12, 2019, from
https://www.linkedin.com/pulse/opinion-vs-criticism-casey-siegel
51. B
Ethical; information management. Information management is the process of accessing, processing,
maintaining, evaluating, and disseminating the business's knowledge, facts, or data. The café is
exhibiting ethical, cautious, and judicious behavior by implementing policies to protect its customers'
information. Customers are more likely to trust the café with their personal information because the café
states its privacy policies on its website. The privacy statement does not relate to the cafe's product
promotion, marketing research, or production procedures.
SOURCE: NF:111
SOURCE: Lee, W.W., Zankl, W., & Chang, H. (2016). An ethical approach to data privacy protection.
Retrieved August 15, 2019, from https://www.isaca.org/Journal/archives/2016/volume-
6/Pages/an-ethical-approach-to-data-privacy-protection.aspx
52. B
Serves as a temporary holding area for files and programs. Random Access Memory, or RAM, is a
temporary workspace that stores data and programs that the user is actively using. A computer
containing a lot of RAM enables users to open and work on several files and programs at one time. When
the user has finished working with a file or program, s/he saves or stores the information permanently on
the hard drive. The video card is a component of the system that converts code so the user can view
items on the computer monitor. The computer mouse is a tool that enables computer users to enter
commands.
SOURCE: NF:084
SOURCE: Martindale, J. (2019, February 3). What is RAM? Retrieved August 12, 2019, from
https://www.digitaltrends.com/computing/what-is-ram/
53. A
Slide sorter. Presentation software programs allow users to present information by combining graphics,
text, animation, photographs, and sound. Presentation software is used in business to create slide
programs to support oral presentations. The slide sorter function allows you to view thumbnails of
existing slides and move them around to different sections of the presentation. The transition function
allows users to select different effects to move from one slide to the next. Promote paragraph is a
function that allows users to move sub points, and bullet points to higher positions (e.g., sub points to
bullet points or bullet points to titles) in the slide text. The note master function allows the user to create
speaking notes from the slide text.
SOURCE: NF:008
SOURCE: Russell, W. (2019, July 11). How to use the slide sorter view in powerpoint. Retrieved August
12, 2019, from https://www.lifewire.com/sort-slides-in-powerpoint-4178539
54. C
Labor costs. Automated guest check-in and check-out services reduce the need for staff. The need for
less staff lowers the hotel's labor costs. Lower labor costs benefit the hotel because it is not paying staff
to perform check-in and check-out tasks, which increases its profitability. Automated guest services do
not lower maintenance problems, security needs, or billing errors.
SOURCE: NF:106
SOURCE: Chamberlin Public Relations. (2018, November 5). Is automation the wave of the future for
hotels? Retrieved August 12, 2019, from https://www.hotel-
online.com/press_releases/release/is-automation-the-wave-of-the-future-for-hotels/
55. B
360. Businesses often analyze the information in customer databases to determine where customers live
and how much they spend. To determine the number of customers who live in the Northeast and
purchased $50 or more worth of goods last month, first calculate the percent of people living in that area
by adding the percentages that live in the other areas (21% + 28% + 27% = 76%). Then, subtract that
figure from 100% to determine the percent of customers in the Northeast (100% - 76% = 24%). Multiply
the total number of customers by 24% to find the number of customers (3,000 X 24% or .24 = 720). Half
of the 720 customers who live in the Northeast purchased $50 or more worth of goods last month.
Calculate this number by dividing 720 by 2 (720 / 2 = 360).
SOURCE: NF:185
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2012). Marketing essentials (pp. 658-659).
Woodland Hills, CA: Glencoe/McGraw-Hill.
56. A
Measuring the success of marketing campaigns. Web analytics allow you to collect data about visitors to
your website. One of the benefits of doing so is being able to measure the success of digital marketing
campaigns. You can track which campaigns lead to more page views and clicks, which allows you to
make smarter marketing decisions in the future. While tracking analytics can help you reduce page
bounces, it does not prevent them altogether. Tracking analytics is not necessarily related to discovering
new sales tactics. Finally, tracking analytics does not necessarily save money on web hosting costs.
SOURCE: NF:205
SOURCE: Holloway, G. (2014, March 4). The business benefits of Google Analytics. Retrieved August
12, 2019, from https://www.koozai.com/blog/analytics/google-analytics-business-benefits
57. D
Data mining. Data mining is the process of sorting through data to discover underlying connections and
predict future trends. By studying his company's sales data from the previous five years, Arthur was
engaging in data mining—not the selling process, competitive analysis, or customer retention. The selling
process is the process used by salespeople to convince customers to make a purchase. Competitive
analysis involves researching a company's competitors, and comparing the competition's strengths and
weaknesses to the company's strengths and weaknesses. The overarching activity of customer retention
is not generally defined by a single process.
SOURCE: NF:148
SOURCE: Twin, A. (2019, June 25). Data mining. Retrieved August 12, 2019, from
https://www.investopedia.com/terms/d/datamining.asp
58. D
Food service decreased when the resort was filled to capacity. A decrease in food service is an anomaly
because food service is much more likely to increase when the resort is filled to capacity. The resort is
likely to be booked on the busy holiday weekend by families free to travel during that time. It is common
for website visitors to view nearby hotels, restaurants, and nearby holiday attractions.
SOURCE: NF:149
SOURCE: The Atlantic. (2012, April 3). Everything you wanted to know about data mining but were
afraid to ask. Retrieved August 12, 2019, from
http://www.theatlantic.com/technology/archive/2012/04/everything-you-wanted-to-know-
about-data-mining-but-were-afraid-to-ask/255388/
59. B
Developing tour products specifically designed to appeal to retirees. Demographics are the physical and
social characteristics (e.g., age, gender, education) of a population or market segment. Businesses
consider demographic trends because changes in the population have an effect on the existing and
potential products they market. Because trends indicate that a large segment of the population is aging
and reaching retirement, hospitality/tourism businesses are developing products to attract retirees who
are no longer in the workforce and have more time to travel. Tour products designed for retirees would
not likely appeal to recent college graduates, families with young children, or business travelers.
SOURCE: NF:013
SOURCE: Feigenbaum, E. (2016). Definition of business trends. Retrieved August 12, 2019, from
http://smallbusiness.chron.com/definition-business-trends-3399.html
60. D
Responding to guests' lifestyle trends. Lifestyle trends are changes in the way people live their lives. One
example of a lifestyle trend is fitness and health. Hospitality businesses should track and respond to
lifestyle trends, such as the resort adding a state-of-the-art gym, healthy dining, and a personal trainer.
This example is not related to economic impact, regulatory penalties, or becoming a globalized business.
SOURCE: NF:287
SOURCE: Reynolds, J.S., & Chase, D.M. (2014). Hospitality services (3rd ed.) [pp. 44-53]. Tinley Park,
IL: The Goodheart-Willcox Company, Inc.
61. D
Write an exploratory report. Exploratory reports present facts so readers can understand an issue or
situation. They are useful when explaining concepts or results. The general manager wants to know
information about recent technological changes, so a written informational report would be appropriate.
The general manager has not asked for a recommendation, so the IT director should not make one.
Purchasing new software is not the most effective way to teach the general manager about recent
technological changes. Finally, the general manager has not requested analytical data because he has
not asked for the reasons why or how the technological changes have occurred.
SOURCE: NF:292
SOURCE: Purdue OWL. (2019). Introductions, body paragraphs, and conclusions for exploratory
essays. Retrieved August 15, 2019, from
https://owl.purdue.edu/owl/general_writing/common_writing_assignments/exploratory_paper
s/index.html
62. D
Adventure. The hospitality industry is developing ways to accommodate niche markets. Trends indicate
that many niche markets are growing. Some of these markets include the baby boomers, health-
conscious people, and adventure travelers. Adventure travelers include people who enjoy nature and
often enjoy taking risks. Adventure travelers enjoy activities such as skydiving, mountain biking, and race
car driving. Geotourism (or environmental tourism) refers to a market that is interested in unique or
threatened outdoor environments, such as the rainforest. Agriculture enthusiasts are members of a niche
market called the agritourists and often visit working farms.
SOURCE: NF:048
SOURCE: Baran, M. (2013, September 5). Study finds significant growth in adventure travel market.
Retrieved August 12, 2019, from https://www.travelweekly.com/Travel-News/Tour-
Operators/Report-finds-significant-growth-in-adventure-travel-market
63. B
Determine if the guest has enough available credit to pay for the room. Upon check-in, if the guest is
paying with a credit card, the clerk will use the information on the credit card to verify that the guest has
enough available credit to pay for the room for the entire stay. Even if the guest would prefer to have their
credit card charged in advance of their stay, the hotel would not charge the guest for any room service
until that service has been ordered by the guest. The clerk would not need any credit card information to
make a reservation at the hotel restaurant. Any voucher created at the front desk would not require the
addition of any credit card information.
SOURCE: NF:060
SOURCE: Reynolds, J.S., & Chase, D.M. (2014). Hospitality services (3rd ed.) [p. 200]. Tinley Park, IL:
The Goodheart-Willcox Company, Inc.
64. B
Desire for profit. Businesses must learn to balance their ethical obligations with their desire for profit.
Maximizing profit in ethical ways is the main ethical conflict in operations and in all of business.
Businesses should not need to balance ethical obligations with legal obligations, productivity
requirements, or employees' schedules.
SOURCE: OP:190
SOURCE: LAP-OP-190—Above Board (Ethics in Operations)
65. D
Share this information with your supervisor or the HR department. Discussing weapons at work and
displaying obvious signs of anger or hostility are indicators of potentially dangerous behavior. While there
is some chance that Edward will calm down soon, it would be wise to share your observations with your
supervisor or the HR department, especially given his recent attitude and behavior. Your supervisor or
the HR department can then decide how to handle the situation. Rather than contacting the local sheriff
or police chief to discuss Edward's mood, you should start by sharing your knowledge with someone
inside your company, such as your supervisor or a member of the HR department. Accusing Edward of
plotting violence during a staff meeting is likely to antagonize Edward, making the situation worse.
SOURCE: OP:152
SOURCE: Occupational Safety & Health Administration. (2017, March 13). Workplace violence.
Retrieved August 12, 2019, from https://www.osha.gov/SLTC/workplaceviolence/
66. B
Dynamic. Businesses rely on projects because the business environment is dynamic (always changing).
Projects allow businesses to take advantage of new opportunities at a moment's notice. The business
environment is not necessarily hard to understand nor is it inflexible. The business environment is full of
competition, another reason it's important for businesses to undertake projects.
SOURCE: OP:158
SOURCE: LAP-OP-158—Projected To Win (Nature of Project Management)
67. C
Gaining a clear understanding of what is needed. The end result of identifying resources should be a
clear understanding of what is needed for the project to succeed. This will help you be ready for
unforeseen problems, although it won't eliminate them. Identifying project resources will not necessarily
help you become a better, more cooperative team member or help you become more independent.
SOURCE: OP:003
SOURCE: LAP-OP-531—Get What You Need (Identifying Project Resources)
68. A
Locate backup sources of goods and services. It's important for purchasing specialists to be sure they
can get the goods and services they need when they need them. It's good to have backup sources
because if a purchasing specialist doesn't do his/her job correctly or get the items or services that the
business needs, then the business cannot produce its finished good or service. That could lead the
business to lose money or maybe even close. A purchasing specialist doesn't necessarily want to
purchase as much as s/he possibly can; instead, s/he should purchase in amounts that make sense
economically. Getting a good price is important, but a purchasing specialist does not want to do so at the
expense of his/her relationship with the supplier. Although some companies require purchasing
specialists to always choose the lowest bidder, buyers are often permitted to select the bidder with the
best overall terms, including quality and quantity, even if that supplier's price isn't the lowest.
SOURCE: OP:015
SOURCE: LAP-OP-002—Buy Right (Purchasing)
69. A
Purchasing efficiency. Purchasing efficiency is a performance measurement that relates to how well the
purchasing department is performing against the budget that is in place for the department. Purchasing
functionality is a performance measurement that measures the department against the functional
requirements to provide the correct item at the right time at the lowest cost. Supplier relationships are not
a performance measurement, although good supplier relationships should increase performance.
Purchasing improvements would be measured from past measurements.
SOURCE: OP:247
SOURCE: Murray, M. (2019, July 25). Measuring purchasing performance. Retrieved August 12, 2019,
from https://www.thebalancesmb.com/measuring-purchasing-performance-2221229
70. D
MRO. MRO (maintenance, repair, and operations) inventory refers to supplies consumed during
production, such as cleaning products, office supplies, and repair tools, that do not become part of the
finished product. Finished goods inventory refers to the completed products that are ready to be
marketed. Work-in-process inventory refers to products that are being used to make the finished goods.
Raw materials inventory refers to the component parts that have not yet been used in production.
SOURCE: OP:336
SOURCE: Magloff, L. (2016). Types of inventory for an organization. Retrieved August 12, 2019, from
http://smallbusiness.chron.com/types-inventory-organization-14109.html
71. A
Its selling price. A price markup is the difference between how much it costs to make a product and its
selling price. A product may go through several markups before it reaches its final selling price. A price
markup does not indicate anything about how much employees make, what was estimated in the budget,
or the company's gross profit.
SOURCE: OP:024
SOURCE: LAP-OP-009—Watch Your (Over) Head (Overhead/Operating Costs)
72. C
Contact the supplier to resolve the discrepancy. Businesses monitor and track their suppliers' invoices to
make sure they are billed correctly. If the business finds a discrepancy (e.g., incorrect discount amount)
on the invoice, the business should contact the supplier to make necessary adjustments. In many
situations, the supplier will send the business a revised invoice with the correct information. By paying an
invoice that is higher than stated in the original purchase order, Kara is tying up funds that the business
can use for other things. If the supplier does not take steps to correct the invoicing error, it might be
appropriate to send a complaint to the supply company's president; however, Kara should begin the
process by contacting the appropriate supply-company employee (e.g., salesperson). The supplier needs
to generate a corrected invoice, not the business itself.
SOURCE: OP:184
SOURCE: Hanson, M. (2010). Business math (17th ed.) [pp. 307, 337]. Mason, OH: South-Western
Cengage Learning.
73. C
Volume discounts on supplies. Supply chain members often have the opportunity to purchase supplies
together, which allows the companies to take advantage of volume discounts offered by suppliers.
Although collaborating with supply chain members may give companies access to detailed procurement
information and help them build good relationships with suppliers, those are not financial benefits of
supply chain collaboration. Supply chain collaboration can reduce transportation costs, not eliminate
them.
SOURCE: OP:444
SOURCE: Chopra, S., & Meindl, P. (2013). Supply chain management: Strategy, planning and
operation (5th ed.) [p. 259]. Upper Saddle River, NJ: Pearson Education.
74. A
Limit installation of outside software programs. Companies should set clear standards for what
employees can install and keep on their computers at work. Outside software programs can bring
security risks to a company's network and data. Using the same password for all accounts is not a good
strategy because it makes accounts more vulnerable to hacking. Backing up your work is a good strategy
for protecting customer data. Finally, giving all employees access to customer information is risky.
Instead, information should be restricted to only those who need it.
SOURCE: OP:518
SOURCE: National Cyber Security Alliance. (2019). CyberSecure my business - Protect. Retrieved
August 12, 2019, from https://staysafeonline.org/cybersecure-business/protect
75. B
Avoid direct contact with sharp objects and bacteria. Wearing disposable gloves when emptying trash
containers prevents direct skin contact with bacteria, sharp objects (e.g., broken glass), and dangerous
chemicals that can harm the employee's hands and spread blood-borne pathogens. Wearing disposable
gloves does not prevent damage to floors and furniture, decrease the risk of security breaches, or reduce
the risk of inhaling dangerous fumes. To reduce exposure to fumes, employees should wear ventilation
masks.
SOURCE: OP:134
SOURCE: Farina, D.A. (2017, April 6). How to safely dispose of office trash. Retrieved August 12, 2019,
from https://www.safeopedia.com/how-to-safely-dispose-of-office-trash/2/5545
76. D
Electronic key cards. These offer excellent security for hotel guests as they do not contain a hotel room
number, so that if one is lost or stolen it cannot be easily traced. Metal detectors are used in airports to
check passengers entering boarding areas. Retailers use radio frequency identification tags, which are
attached to expensive merchandise, to reduce the risk of shoplifting. A property management system is
used to store information about reservations, room availability, and room rates.
SOURCE: OP:115
The Goodheart-Willcox Company, Inc.
77. C
Not everyone communicates the same way. We need creativity in communication because not everyone
communicates the same way. For example, there are cultural differences in nonverbal communication
that may require you to get creative when sending and receiving messages from certain people. Most
people know the basics of communication and don't necessarily get tired of the usual methods. Email can
make communication more difficult, but it can also make it easier!
SOURCE: PD:012
SOURCE: LAP-PD-012—Imagine That (Demonstrating Creativity)
78. A
Penelope, who asked a successful veteran coworker to serve as her mentor. Employers expect their
employees to exhibit certain characteristics and behaviors. For example, they expect their employees to
possess good listening skills, work well with team members, be respectful, respond to requests for
information promptly, and have a positive attitude. Employees are more likely to meet their employers'
expectations if they look to others in the workplace for guidance and advice. A reliable, successful
veteran coworker can serve as a mentor to a new employee, sharing his/her wisdom and suggestions for
being an effective employee and meeting the employer's expectations for proper behavior. Charlene,
Dave, and Tim do not meet common employer expectations for employees.
SOURCE: PD:020
SOURCE: Snell, S.A., & Morris, S.S. (2019). Managing human resources (18th ed.) [Lesson 5.4c].
Boston, MA: Cengage Learning, Inc.
79. D
The type of training and education that entrepreneurs need depends on the nature of the startup
business. For example, the owner of a new bed-and-breakfast inn might want to get training in various
aspects of the hospitality industry. An entrepreneur who wants to be a self-employed architect needs to
have a background in drafting and design. Many successful entrepreneurs have college degrees, but it
cannot be assumed that most of them do. Successful entrepreneurs continue their professional
development throughout their careers. Some startup business owners, such as lawyers, need to pass
exams to practice their vocation, but it cannot be assumed that most entrepreneurs do.
SOURCE: PD:066
SOURCE: LAP-PD-066—Own Your Own (Career Opportunities in Entrepreneurship)
80. B
Researching prospective employers. By researching a company on the Internet, you can obtain a wealth
of information that would be useful to you in your job search. This research would probably include such
things as products offered, location, size of the company, sales, company image, problems, employee
benefits, etc. Knowing about a company can enable you to size up how well you'd fit in with the company.
Although you could use the Internet to search for a company's product reviews or if they have any
pending lawsuits, these should not necessarily influence a decision about whether or not to apply for a
job. Searching for careers that pay the most might result in useful information for career planning or
deciding on a course of study in college, but is probably not that useful in looking for a job.
SOURCE: PD:026
SOURCE: Arbuckle, D. (2019). 5 ways to use the internet for your job search. Retrieved August 15,
2019, from https://work.chron.com/5-ways-use-internet-job-search-4429.html
81. B
Theo attends a seminar about product-standard changes that are affecting his industry. Professional
development consists of steps that an individual takes to enhance or improve skills or traits that are
needed to excel in her/his career or profession. Attending a seminar to learn about changes that are
occurring in your field or industry is one form of professional development. Zoe and Talia are performing
work-related tasks, and Nick is asking a work-related question.
SOURCE: PD:036
SOURCE: Scholnik, J. (2013, September 19). 5 benefits of joining a professional association. Retrieved
August 12, 2019, from https://www.usatoday.com/story/college/2013/09/19/5-benefits-of-
joining-a-professional-association/37437533/
82. A
Transportation advancements increase the demand for hospitality services. The development of the
automobile and airplane, as well as roads and highway systems, in the past century has made travel
faster and easier. As a result, more people are traveling for business and pleasure, which increases the
demand for hospitality services. Political factors do, in fact, influence the development for hospitality
services. For example, the end of the cold war, marked by tearing down the Berlin Wall, increased
opportunities for travel to various countries. As travel increases, the need for hospitality services
increases. Because of advancements in the transportation industry (e.g., automobile and air travel), the
hospitality industry has grown and changed significantly in the past one hundred years. An increase in
tourism would create a higher demand for hospitality services.
SOURCE: PD:105
SOURCE: Westcott, M. (2015). Introduction to Tourism and Hospitality in BC. [Ch. 2]. Retrieved August
15, 2019, from https://opentextbc.ca/introtourism/
83. C
Train, car rental, and airline. The focus of the travel industry is transportation. Train, car rental, airline,
bus, cruise ship, taxi, and ferry services transport travelers from one place to another. Lodging provides
sleep accommodation for travelers. Convention planning and visitor services are components of the
tourism industry. Recreation services provide rest, relaxation, and enjoyment activities. These activities
vary greatly and include things such as spectator sports, spa services, museums, amusement parks,
camping, etc.
SOURCE: PD:111
SOURCE: Reynolds, J.S., & Chase, D.M. (2014). Hospitality services (3rd ed.) [pp. 8-12]. Tinley Park,
IL: The Goodheart-Willcox Co.
84. C
For the use of a hotel's services. Price in the hospitality industry is the amount that guests pay for the
primary services provided by a hotel. In most situations, the price is the amount guests pay for one
night's lodging, which is considered the main service. However, some hotels provide other services that
are included in the price of the room such as an exercise facility, swimming pool, shuttle service to the
airport, etc. The money that a guest pays to make a future reservation is a deposit, which is refundable if
the guest cancels within a certain period of time. Guests are not charged for requesting additional towels.
SOURCE: PI:029
SOURCE: Kotler, P., Bowen, J.T., Makens, J.C., & Baloglu, S. (2017). Marketing for Hospitality and
Tourism (7th ed.) [p. 293]. Boston, MA: Pearson Education, Inc.
85. B
Commercialization. Commercialization is the step in the new-product development process at which a
product goes into full-scale production, the marketing plan is put into place, service and sales training are
conducted, and the product's life cycle begins. Idea generation is the initial step in the new-product
development process and involves thinking up or creating new products and modifying existing products.
Product development is the step in the new-product development process in which a working model may
be tested, modified, and retested. Test marketing involves introducing a product to a limited market to
see what its acceptance will be.
SOURCE: PM:001
SOURCE: LAP-PM-017—Rapping Up Products (Nature of Product/Service Management)
86. A
Expansion. A business may expand its product mix by adding additional product items or lines. There are
a number of reasons why a business may choose an expansion product-mix strategy, including satisfying
customers' desire for variety, offering customers complementary products, spreading risk over a wider
area, appealing to a new market, increasing sales and profits, enhancing the company's reputation, and
making more efficient use of the company facilities. Contraction means removing product items or lines
from the product mix. When a company decides to add a higher priced product or line to its mix, it is
using a trading-up strategy. When a company decides to add a lower priced product or line to its mix, it is
using a trading-down strategy.
SOURCE: PM:003
SOURCE: LAP-PM-003—Mix and Match (The Nature of the Product Mix)
87. D
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: Kokemuller, N. (2018, October 23). Product bundling strategy. Retrieved August 13, 2019,
from http://smallbusiness.chron.com/product-bundling-strategy-41789.html
88. C
Valet parking. A service is an intangible product; one that can be felt, seen, heard, or experienced rather
than touched. Many hospitality businesses offer valet parking as a service for their guests. Valet parking
service occurs when a hotel or restaurant employee parks and retrieves the guests' vehicles upon the
guests' arrival or departure from the business (e.g., hotel, restaurant). Meals, airline tickets, and
electronic room keys are tangible items.
SOURCE: PM:095
Goodheart-Willcox.
89. A
Product extension. A product extension is an additional product related to, but different than, the main
travel product in which the company uses its established brand name to launch a new product line.
Product bundling refers to grouping products together for and offering a discounted price. Product
contraction refers to the removal of an existing product from the market. Product modification refers to
changing certain aspects about a product to make it more appropriate for a target market.
SOURCE: PM:099
SOURCE: Kukreja, S. (2019). Product mix modifications? Retrieved August 15, 2019, from
https://www.managementstudyhq.com/product-mix-modifications.html
90. B
Remind customers. Reminder promotions seek to reinforce a favorable company image that is already
present in customers' minds. Because the guest is already staying at the hotel and the promotional
materials do not include unknown information, the hotel would not be using the materials to inform. These
specific promotional materials are not being used to collect feedback or identify customers.
SOURCE: PR:001
SOURCE: LAP-PR-002—Razzle Dazzle (Nature of Promotion)
91. B
Coupons. A coupon is a certificate or part of a printed advertisement entitling the holder to a reduced
purchase price. Hotels and motels often use coupons as an effective method of promoting their facilities
to new customers. The objective is to attract new customers with reduced rates and encourage them to
become regular guests. Prizes, contests, and awards are other types of promotional methods that do not
involve discounts.
SOURCE: PR:082
SOURCE: Kotler, P., Bowen, J.T., Makens, J.C., & Baloglu, S. (2017). Marketing for Hospitality and
Tourism (7th ed.) [pp. 404-405]. Boston, MA: Pearson Education, Inc.
92. A
Increased sales. Continuous improvement is an ongoing process that looks for ways to increase the
levels of excellence in relation to a process, good, or service. A potential benefit of improved processes is
increased sales. When quality improves, customer satisfaction levels often increase, which often results
in a higher demand for the business's goods and services. Continuous quality improvement processes
can increase productivity (outputs), which lowers costs and increases profits.
SOURCE: QM:003
SOURCE: Taylor, H. (2017, September 26). Benefits of continuous quality improvement (CQI).
Retrieved August 15, 2019, from https://bizfluent.com/facts-5317408-benefits-continuous-
quality-improvement-cqi.html
93. B
Managers override control processes. An internal control system consists of procedures and practices
designed to ensure compliance, protect resources, and increase reliability of company data. When
managers fail to follow procedures, they hinder the company's ability to control internal risks. Maintaining
detailed audit trails, communicating the importance of internal risk control to employees, and continuously
monitoring the control efforts are actions that help the business control internal risks.
SOURCE: RM:058
SOURCE: Amato, N. (2014, June 20). Five barriers restricting risk management process. Retrieved
August 15, 2019, from
https://www.journalofaccountancy.com/news/2014/jun/201410315.html
94. B
Trade shows. Trade shows are sponsored by many businesses within the same industry as a way of
promoting their goods and services and generating customer interest. Salespeople often attend trade
shows to talk to their colleagues in the industry and obtain additional information about new and existing
products. Salespeople can see products being demonstrated and have the opportunity to ask questions
to obtain product information that will help them sell. Union events are sponsored by labor unions and
usually concern wage and benefit issues of interest to their members. Sales meetings are held within
individual businesses or departments of a business to discuss specific sales activities. Open houses are
primarily social events designed to introduce a business to the community.
SOURCE: SE:062
SOURCE: Entrepreneur.com. (2019). Trade shows. Retrieved August 15, 2019, from
https://www.entrepreneur.com/encyclopedia/trade-shows
95. D
Follow up with the customer to ensure satisfaction. The selling process consists of several phases. Each
phase is important and contributes to accomplishing the salesperson's goal of making a sale. The last
phase involves reaffirming the buyer-seller relationship. This phase is important because it helps
customers feel confident about their purchases, which may influence their decision to purchase from the
business in the future. To reaffirm the buyer-seller relationship, salespeople follow up with the customer
to make sure the customer is satisfied with the purchase. If the customer is not satisfied, the salesperson
can take corrective action to ensure customer satisfaction. A sales presentation occurs during the phase
in which the salesperson prescribes solutions to the customer's needs. Putting the customer at ease by
being friendly and approachable occurs during the phase in which the salesperson is establishing a
relationship with the customer. Taking the necessary time to handle the customer's objections occurs
during the phase in which the salesperson reaches closure.
SOURCE: SE:048
SOURCE: LAP-SE-048—Set Your Sales (The Selling Process)
96. A
Special. A special order is a request for a custom product or a product that the property does not
normally have on hand. A blanket order is an order that covers all or part of a retailer's seasonal
requirements. A standing order is an order that involves sending specific products at set intervals. An
open order is an order for staple goods that is placed with one of several available vendors who can meet
the business's immediate requirements (e.g., time, price, quantity). Blanket orders typically are placed
several months before the season and do not contain detailed specifications or shipping dates.
SOURCE: SE:478
SOURCE: Gordon, J. (2019, January 11). How to determine whether or not to accept a special order in
accounting. Retrieved August 15, 2019, from http://smallbusiness.chron.com/determine-
whether-not-accept-special-order-accounting-81542.html
97. D
Processing a financial transaction. When selling goods or services over the telephone, it is necessary to
process the financial transaction. Today, many customers order products over the phone and pay with a
credit card. When the business takes the credit card information from the customer, it then processes the
information to complete the transaction of transferring funds to the business's account. Once the
transaction is completed, the business has received payment for the tickets. Taking a customer's order
over the phone and accepting payment with a credit card does not guarantee product satisfaction or
reduce the possibility of counterfeiting. In many cases, products purchased over the phone are mailed to
customers. However, taking the order and accepting payment is not an example of implementing a
mailing system.
SOURCE: SE:329
SOURCE: Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.) [p.
547]. Tinley Park, IL: The Goodheart-Willcox Co.
98. D
$44.16. Pizza restaurants frequently offer special pricing and discounts to attract customers on nights
that are not busy. To calculate the total of the bill with discounts, first calculate the discounted amount for
the large pizzas by adding the cost of the three pizzas and subtracting $1 for each or a total of $3 ($10.95
X 3 = $32.85 - $3.00 = $29.85). Next, calculate the discounted price for the wings by multiplying the
original price by the discount percentage rate and subtracting that amount from the original price ($6.95 X
20% or .20 = $1.39; $6.95 - $1.39 = $5.56). Next, multiply the price of soft drinks by the number of drinks
ordered ($1.25 X 7 = $8.75). Add the totals to calculate the amount of the bill ($29.85 + $5.56 + $8.75 =
$44.16).
SOURCE: SE:149
SOURCE: Burrow, J.L., & Fowler, A.R. (2016). Marketing (4th ed.) [Lesson 7.3.1]. Boston, MA:
Cengage Learning, Inc.
99. A
Strategy development. The central goal of managerial planning is establishing future goals and
developing strategies to realize those goals. While capital fundraising and staff recruitment may be parts
of this strategy, they are not the overall focus of managerial planning. Task performance may be an
important aspect of management, but is not necessarily related to planning.
SOURCE: SM:063
SOURCE: Gartenstein, D. (2019, February 4). The basic steps in the management planning process.
Retrieved August 15, 2019, from https://smallbusiness.chron.com/basic-steps-management-
planning-process-17646.html
100. A
Reduced sales. The location of a sports or entertainment facility often has an effect on sales. If
consumers feel that a facility is located in an unsafe area, they may be reluctant to purchase tickets to
events. This would result in reduced sales. Event promoters should be aware of consumers' concerns for
safety and schedule events in appropriate facilities. The location of a facility does not necessarily limit
access or decrease parking. The length of an event would not be shortened because of the facility's
location.
SOURCE: SM:076
SOURCE: Superevent. (2019). 13 important things to consider when choosing your event venue.
Retrieved August 15, 2019, from https://superevent.com/blog/13-important-things-to-
consider-when-choosing-your-event-venue/

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THE HOSPITALITY AND TOURISM CAREER CLUSTER

HOSPITALITY SERVICES TEAM DECISION MAKING HTDM

HOTEL AND LODGING MANAGEMENT SERIES HLM

QUICK SERVE RESTAURANT MANAGEMENT SERIES QSRM

RESTAURANT AND FOOD SERVICE MANAGEMENT SERIES RFSM

TRAVEL AND TOURISM TEAM DECISION MAKING TTDM

Posted online March 2020 by DECA Inc.

3. Which of the following is a controversial legal issue pertaining to airport security:

6. Which of the following is an example of formal communication in the workplace:

Copyright © 2020 by MBA Research and Curriculum Center®, Columbus, Ohio

30. Practicing effective listening skills is courteous, and it benefits you by

32. Which of the following situations most likely requires confidentiality:

33. When confronting a conflict, it's important to

41. Certificates of deposit and municipal bonds are types of

46. A primary reason for developing an employee orientation program is to

66. Businesses rely on projects because the business environment is

67. What is the end result of identifying project resources?

77. We need creativity in communication because

81. Which of the following is an example of a businessperson obtaining professional development:

93. Which of the following is a barrier to effective internal risk control:

99. What is the overall focus of managerial planning?

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