DECA

A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for

1. D Negligence. A business might be sued for negligence if it does not take reasonable precautions to protect workers from risks or health hazards on the job. The basis of negligence is that the problems could have been easily avoided if the business had made some minor adjustments. Consequently, businesses usually try to make the workplace as safe as possible in order to avoid being sued for negligence. Misrepresentation involves making unrealistic claims about products. Libel is making false statements that harm an individual's reputation. Incompetence involves not having the skills or abilities necessary to perform satisfactorily.

During a manager's meeting, Jon says, "In relation to Marilee's previous remark, our department has a similar problem. Perhaps we should form an internal committee to address these issues." In this situation, Jon is contributing to a group discussion by

10. A Building on someone else's comment. Jon is building on Marilee's comment by stating that his department has a similar problem. He adds to Marilee's statement by suggesting that the company form an internal committee to look into the problems. Jon is not summarizing what has been said, nor is he pointing out missing information. Ground rules are established before the meeting gets underway.

Susan has a middle management position in her company. Her primary job responsibility is likely to be

100. A Being responsible for other managers or supervisors. Mid-level, or middle, managers report to top-level management and have supervisors who report to them. Plans and goals for the company are developed by top management. Susan is likely to be involved in some aspect(s) of more than one management function at any one time. Training employees to perform routine tasks is a task of supervisory, or firstlevel, managers who work directly with the employees who carry out the business's work.

1. When Vendela takes notes in her business class, she draws a line down her paper about 2 ½ inches from the left side. On the right side of the line, she records her notes from the class lecture. After class, Vendela reviews her notes and writes down key words and phrases in the left column. Vendela uses the __________ note-taking system.

11. B Cornell. The Cornell note-taking system uses two columns; on the right-hand side, students take notes during class (or while reading class materials). Afterwards, students review their notes and write significant words or phrases in the left-hand column. These key words help students to study. Mapping and charting are methods of note-taking, but they are not illustrated in Vendela's example. Key-word review note-taking is not a term used to describe a method of note-taking.

The Putnam Company requires its employees to use the Modern Language Association (MLA) stylebook when writing business documents because it provides.

12. A Consistency. Many businesses and industries develop documents using a specific style, which entails following certain writing standards. By using a specific style, all of a business's or an industry's documents are consistent throughout the company or field. Writing styles provide guidance to the writers in regard to the correct usage of mechanical elements (e.g., punctuation) but do not provide creativity or flexibility. Stylebooks cannot verify the accuracy of the document's contents.

An effective technique to use when writing persuasive messages to customers is to

13. B Appeal to their needs. The purpose of writing persuasive messages is to convince customers to do something, such as buy a product. To encourage them to take the correct action, it is important to appeal to their needs and show them why it is a benefit to do what you want them to do. For example, if you want customers to buy a new product, explain how that product will benefit them, such as by saving money or speeding up production. Customers are more likely to respond favorably when they understand how their needs will be satisfied. It is not effective to use aggressive words or demand a customer's attention as these techniques often offend customers. Making a prediction is not as effective as stating a fact or providing logical evidence to support your message.

Which of the following is often the best way for a salesperson to handle the slow/methodical type of difficult customer:

14. A Summarize benefits. Slow/Methodical customers need to have the salesperson draw out the needed information, to be treated patiently, and to have the benefits of the good/service summarized in order to guide them to a close. The other three approaches are aimed at the domineering/superior type, who need to do most of the talking, be complimented and praised, and allowed to sell themselves on the good/service.

Which of the following is a true statement about brand promise:

15. A It is not usually stated in words. Brand promise is communicated through many different touch points (not just advertising) and is not usually stated in words. It is not the same thing as brand logo—a logo is an identifying mark that represents the brand. Brand promise should increase, not decrease, brand awareness.

Our economy has shifted from a service economy to a(n) __________ economy.

16. C Experience. Our economy has shifted from a service economy to an experience economy. In other words, customers want to have a good experience every time they deal with a business. Although some businesses use entertaining marketing communications, it is not an entertainment economy. Manufacturing and agricultural are two words that describe past phases of our economy.

An amusement park offers a special Labor Day package that can be purchased only through the park. This is an example of __________ distribution.

17. B Direct. The package is offered only by the amusement park. Indirect distribution refers to goods/services offered through an intermediary, such as a tour wholesaler. The wholesaler puts together a package and sells/distributes to other channels, such as travel agencies. Intensive distribution is a strategy that involves using as many outlets as possible to sell products.

Credit is often used as a selling tool because it helps to create __________ utility.

18. A Possession. Possession utility is usefulness created when ownership of a product is transferred from the seller to the user. Credit creates possession utility by allowing the consumer to take possession of the product before payment is complete. Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer. Place utility is the usefulness that results from offering products at a place that is convenient for the customer. Exchange is a form of transfer, not a type of utility.

A manufacturer is a type of business that

19. B Turns raw goods into useful products. The manufacturer changes the shapes or forms of raw goods so that they will be useful to consumers. Manufacturers buy raw goods from their producers and sell finished products.

Requiring businesses to control pollution and to dispose of hazardous waste properly are some of the main functions of __________ regulations.

2. B Environmental. Environmental regulations are intended to conserve natural resources by requiring businesses to control pollution and dispose of hazardous waste properly. These regulations set pollution standards that businesses must meet, establish rules for disposing of waste, encourage recycling, and monitor illegal dumping. Workplace regulations are intended to make the work environment safe for employees. Personnel regulations are intended to promote equal opportunity in the workplace. Geological is not a type of regulation.

An economic system which allows its citizens to go into business for themselves, produce goods and services of their own choosing, and market their products as they desire is called

20. D Private enterprise. This is an economic system in which individuals and groups, rather than government, own or control the means of production. Socialism is characterized by government ownership of major industries, private ownership of some smaller businesses, limited competition, and an emphasis on citizen welfare, rather than on profit-making. Communism is characterized by government ownership and control of all businesses and economic activities, with no freedom of choice for individuals. Sole proprietorship, in which one person owns and manages the business, is a type of business ownership found in a private enterprise economy.

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

21. B Efficiency. When employees are working faster or better, they are increasing their efficiency. They may increase their value to the firm in the process—and perhaps their wages and benefits, too. But their efficiency is directly tied to how fast and how well they do their work.

Government regulation is financed by taxes and

22. A Borrowing. The government sells bonds to other countries and to the private sector to raise the money not provided by taxation. Donations are not a source of income of the federal government. Price supports are a type of government regulation where the price of a good is artificially raised to ensure profits for producers. Subsidies are another type of government regulation where the government grants money to producers or gives them a tax break.

Members of the air-traffic controllers' union stopped working to support the pilots' union that recently went on strike. This is an example of a

23. D Sympathetic strike. A sympathetic strike is a union pressure strategy in which employees of one local union walk off the job to support another union that is on strike. A wildcat strike occurs when local union employees refuse to work but do not have the consent of the national union. A lockout occurs when a company closes the business temporarily, and the employees are not allowed to work. A boycott is a union pressure strategy in which union members refuse to buy a company's products and encourage others to do the same.

Which of the following accompanies a strong, growing economy:

24. C Inflation. Inflation is a rise in the overall price level of products over an extended period of time. It results from a strong, growing economy. Deflation is the lowering of prices and is a worse economic indicator than inflation. Also, in a strong economy, wages rise at the same rate as prices. In a strong, growing economy, supply and demand both increase.

The exchange rate of a nation's currency is most likely to decrease when the nation

25. C Experiences political instability. Currency exchange rates are constantly fluctuating, and are affected by many factors. When a nation experiences political instability, the value of its currency tends to decrease because the nation's future is uncertain. A nation's currency value tends to increase when its exports exceed its imports, when it carries a low level of debt, and when it limits the amount of money it prints and circulates.

What do individuals often identify when assessing their personal strengths and weaknesses?

26. B Interests. Interests are the things that a person is curious about, concerned for, or involved with. When assessing their personal strengths and weaknesses, people often identify their interests because interests are strong points that might lead to appropriate occupations. For example, an individual works on the school newspaper, likes to create posters for upcoming events, and belongs to the English club. These interests are this person's strengths. After assessing personal strengths and weaknesses, individuals might select suitable careers. Assessing personal strengths and weaknesses does not involve identifying benefits or risks.

One way to show your coworkers that you are interested in what they are saying is by

27. D Making eye contact. Eye contact is looking others directly in the eye. It establishes a connection with others and indicates that you are listening to and interested in what they are saying. Crossing your arms is a form of nonverbal communication that often indicates that you are feeling defensive or bored. Irrelevant questions are questions that are not related to the topic at hand. When you ask relevant questions, you are indicating that you are listening to the speaker and are interested in what s/he is saying. Changing the subject would indicate that you are uncomfortable with or not interested in what the speaker is saying.

Which of the following might indicate a job applicant's initiative when applying for an entry-level position:

28. B Sending a letter of application. Initiative is the willingness to act without being told to do so. Since applicants for entry-level positions do not often write letters of application, sending one requires the applicant to display initiative. Completing application blanks, attending interviews, and having physical examinations do not require initiative since they are often arranged by employers.

Susan came to work late Monday morning and said, "It's been a terrible morning so far and will probably be a terrible day." This is an example of a(n) __________ attitude.

29. D Negative. Someone with a negative attitude has a pessimistic view of every aspect of life. A positive attitude is indicated by an optimistic outlook on life. An indifferent person is neither negative nor positive but rather unconcerned. A realistic person attempts to view situations as they actually are rather than assuming the worst.

Jane is the owner of a pizza shop associated with a national chain of pizza restaurants. She established her business in a regional supermarket. The pizza shop is referred to as a

3. D Piggyback franchise. Piggyback franchising is a form of ownership in which a retail franchise operates within the facilities of another store. The host is the retailer that allows the franchise to operate within its facilities. The host does not necessarily have to be a franchised retailer. A strategic alliance, sometimes called a joint venture, is an arrangement that involves two or more businesses entering into a relationship by combining complementary resources such as technology, skills, capital, or distribution channels, for the benefit of all parties. The relationship is usually short-term or for a single project or transaction. Master licensee refers to a person or firm who helps franchisors find franchisees in a particular region or territory.

Why do empathetic people sometimes experience stress, burn out, and codependent relationships?

30. D They fail to draw a line between being empathetic and losing their own identities. Empathetic people experience stress, burn out, and codependent relationships when they allow someone else's negative moods and feelings to affect them too much. Empathetic people do not allow stereotypes, prejudices, and assumptions to take over. While not paying bills or neglecting to fulfill responsibilities may cause stress, they do not necessarily result in burn out or codependent relationships.

A manager who has a reputation of being knowledgeable and experienced usually has the ability to __________ employees.

31. A Persuade. A manager who has the reputation of being knowledgeable and experienced usually has credibility with employees. Credibility is believability. Managers who are believable usually have the ability to persuade others because others trust them. Also, employees are more likely to believe a manager who has the appropriate background and ability. On the other hand, managers who have a reputation of being unethical or poorly informed often have difficulty persuading employees because the managers lack credibility. Effective managers try to work with employees rather than dominate them. Most managers, regardless of experience, usually have the authority to terminate employees for legitimate reasons. Being knowledgeable and experienced does not necessarily mean that a manager has the ability to analyze employees.

Rob has a job interview this afternoon. In the morning, he goes over his other job offers to figure out which job he will accept (and what the salary and benefits are) if this employer doesn't offer him a position. Rob is developing his

32. C BATNA. Rob is developing his Best Alternative to a Negotiated Agreement, also known as his BATNA. If this job interview doesn't result in an offer, Rob is prepared with another option. Rob's BATNA also gives him leverage if he needs to negotiate salary or benefits. He won't feel pressured to take whatever the employer offers him because he knows he has another alternative. Rob is not developing his role— knowing your role is primarily useful in group negotiations, where different group members may take on different roles (such as "good cop" or "bad cop"). The walk-away point is the point at which it is no longer feasible or profitable to do business with the other party. This is also useful for Rob to determine before his interview, but it's not what he's doing in this example. Style refers to the way a person negotiates. Although everyone has a negotiating style, this is not what Rob is determining.

Nate has a knack for getting others to see things his way. He wants to lead a change at work, so he starts by putting together a presentation for his boss, showing why the change is necessary. Which characteristic of an effective change leader is Nate demonstrating in this situation?

33. B Persuasive. By attempting to talk his boss into the change he wants to make, Nate is being persuasive. Change leaders are independent and love to learn new things, but these are not the characteristics Nate is displaying in this situation. Change leaders don't necessarily avoid conflict.

Which of the following is a true statement:

34. A Getting acquainted with coworkers helps you to treat them fairly. To know what would be fair to coworkers, you first need to become acquainted with them. This doesn't mean that you should ask them personal questions but general questions that will provide a basis for understanding. It is not necessary to establish personal friendships with coworkers, but you should speak to them every day.

Which of the following is an example of entrepreneurship:

35. B Elissa starts a company when she develops a new app. Elissa is an entrepreneur because she identifies an opportunity to create new value, develops and offers a unique product, assumes the risks of starting and building a business, focuses on the improvement and growth of that business, and receives personal and financial rewards for her efforts. Working for someone else's accounting firm, investing money, and asking for a raise are not examples of entrepreneurship.

Jorge is considering whether to invest $100 at his bank, but first, he wants to know what his $100 will be worth in a year. To figure this out, Jorge needs to know the

36. C Interest rate. To figure out what his $100 will be worth in a year, Jorge needs to know the bank's interest rate. This will tell him the future value of his money if he invests with the bank. Jorge already knows the present value—it's the $100 that he currently has. The time value of money is a principle that states that a dollar today is worth more than a dollar tomorrow. The investment rate is not a term commonly used when determining future value.

Consumers can borrow against future income to make current purchases by making use of

37. C Credit. Credit is the arrangement by which businesses or individuals can purchase now and pay later. Money orders are purchased at banks, post offices, or stores to be used as checks. Certificates of deposit are savings certificates. Interest is the fee lenders charge borrowers for the use of credit.

Which of the following are examples of expenses that should be considered when developing a personal budget:

38. A Rent, entertainment, and insurance. Individuals develop personal budgets to help them manage their money. A budget is an estimation of income and expenses. Expenses are money that a person spends and may include rent, entertainment, insurance, food, and utilities. Salaries (wages) and dividends are sources of income.

Which of the following records that contains information about their investments should individuals keep:

39. D Purchase. When individuals make investments, they receive purchase documents that include information about the cost of the investment and any commissions or fees that were paid. Individuals should keep these documents in their records to verify ownership and to be able to determine if it was a good investment over a period of time. For example, the purchase record would indicate the cost (perhaps it was $25 a share), the total amount purchased (100 shares for a total of $2,500), and a fee of $30. By comparing the purchase records to actual value in five years, an individual will be able to decide if the investment was worthwhile. Perhaps the cost per share is $40 a share in five years. An individual might consider this to be a good return on the investment. Deposit and credit records usually do not contain information about investments. Logistics refer to managing the flow of goods and services from production to consumption.

Consumers of hospitality products have the right to expect businesses to provide goods and services that

4. D Are safe and clean. Hospitality products differ a great deal and include such items as a meal in a restaurant or a sleeping room at a lodging facility. The guests have a right to expect that the facility provides clean linens and disinfected bathrooms. Guests expect that the locks on the doors are adequate to keep them safe from intruders or that measures have been taken to keep guests from tripping over loose carpet. Guests have the right to expect that the food that they purchase is safe and free from bacteria. Since each individual has different standards, it is not realistic to expect hospitality businesses to meet everyone's standards. For example, a hotel restaurant cannot create every menu entree to make each guest happy. The restaurant must consider several factors including the target market and costs associated with the food. Amenities are the "extras" that a hospitality business provides—the extras that guests do not usually expect. If guests do not expect certain amenities, they do not have rights to amenities. Each country and/or local government has different regulations that hospitality businesses must follow.

Sheila decides to invest some of her money. She doesn't like to take big risks, and she wants to be able to access all of her money at all times. She also doesn't mind not earning much interest. Sheila should invest her money in a

40. D Savings account. If Sheila doesn't like to take risks, wants to access all of her money at all times, and doesn't mind earning very little interest, she should consider a savings account. You're always able to access your money, but you receive a low return. A stock is much riskier than a savings account—you actually own part of the company, so you have the rights and responsibilities that go along with ownership. This means you can make a big profit, but you can also lose a large amount of money if the stock decreases in value or if the company goes out of business. While a certificate of deposit (CD) doesn't have a high risk, you aren't able to access your money at all for a set period of time. A money market account (MMA) is low risk, but you are only able to access some of your money each month, and you usually have to keep a certain amount of money in your account.

Why is it important for businesses to understand the legal considerations for finance?

41. B To avoid penalties. There are laws and regulations governing the finance process that businesses should understand in order to operate legally. These laws and regulations involve credit, reporting and paying taxes, issuing stock, etc. By understanding the legal considerations, businesses can avoid violating the law, which also enables them to avoid incurring penalties. Some penalties are significant and can include large fines, restrictions on future operations, or even force the company out of business. Businesses do not need to understand the legal considerations for finance to manage budgets, reduce expenses, or compensate employees.

What can businesses do during an orientation session to help new employees feel comfortable in the workplace?

42. D Introduce them to other employees. By giving new employees a tour of the facility and introducing them to the people with whom they will work, the business is helping new hires become familiar with their workplace and feel more comfortable in their new environment. New employees have not performed work, so businesses wouldn't provide them with copies of their performance reviews. Although it is important to communicate company rules and expectations to new employees, emphasizing disciplinary actions may be too harsh on the first day of work. Businesses usually give complex projects to employees after they have had sufficient training and experience.

. Over time, research indicated that a growing number of young adults were interested in taking bus tours. It also revealed that young adults do not take bus tours because they feel that most tours are for senior citizens. As a result, a tour wholesaler developed tour packages that appeal to people between 18 and 30 years old. In this situation, the marketing research helped the tour wholesaler

43. A Identify an emerging trend. Research often provides marketers with information about the direction in which the people are moving, or trends. Because more young adults expressed an interest in bus tours over time, the tour operator identified an emerging trend. The trend provided a market opportunity for the tour operator—tour packages that appeal to younger adults. By acting on the market opportunity, the tour operator may increase market share by offering tour products to a new market. The research did not help the tour operator resolve a conflict of interest or forecast long-term sales.

A restaurant wants to predict how their customers will react to a new menu. What type of relationship should the restaurant mine from blogs?

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

Which of the following is a reliable source of information that a resort can use to determine its peak season:

45. C Sales history. By reviewing previous years' sales reports, a resort can detect patterns in the sales, which are tied to the resort's occupancy rates. If a pattern emerges, such as an increase in sales between May and July over several years, the resort can determine its busiest time of the year—its peak season. Determining the peak season helps the resort plan (e.g., staffing) the upcoming year. The current occupancy rate will not help the resort determine its peak season unless it is compared to previous sales in the same time frame. Staff reviews are employee performance evaluations. Standards are specifications or statements that are used as a basis for comparing or judging goods or services. Staff reviews and standards are not reliable sources of information that resorts use to determine the resort's peak season.

Which of the following research techniques should you select if you need an accurate picture of a hotel restaurant customers' buying or usage patterns/habits:

46. D Observation. When you observe customers in action while they're in the hotel restaurant, you can obtain a more accurate picture of their buying or usage patterns/habits. For example, you could watch to see what foods remain uneaten on plates. Researchers have discovered that responses customers give in focus groups, personal interviews, and surveys don't always match their buying or usage habits/patterns.

Why do business managers often prepare and use presentation software to support reports?

47. A To simplify complex information. Presentation software is used to produce multimedia presentations that often include slides, video, graphics, sound, color, etc. The use of this type of software often helps business managers to present complex information in a simplified manner by displaying it in a visual format. For example, statistics can be presented in the form of a colorful pie chart, or a complicated production process can be shown on film. Used in conjunction with a report, the visual presentation helps readers to understand the information because they are able to see it. Spreadsheet software is used to analyze financial data. Word processing software is used to record minutes of meetings. Graphics and design software are used to design marketing materials.

A person who promotes Walt Disney theme parks is marketing a(n)

48. C Service. Walt Disney theme parks provide a product that is intangible and involves performing acts that satisfy customers' needs or wants. The park provides fun, amusement, and entertainment, which are not concrete or physical in nature. Service marketing has a high degree of perishability since it cannot be stored or warehoused for future use. The person is not promoting or marketing a cause, a lifestyle, or an intermediary.

Businesses cannot create a(n) __________ where none exists.

49. D Need. Businesses cannot create a need or want where none exists. This is why it's so crucial to research a target market thoroughly before starting a business. Businesses can create goods, services, and buildings.

Kathy's once-booming traditional brick-and-mortar travel agency is financially struggling. For many years, the majority of Kathy's revenue came from commissions on airline ticket sales. Now, though, most of Kathy's clients purchase their tickets online instead of from her travel agency. These clients can purchase tickets directly from the airlines or through online travel agencies like Priceline or Expedia. Oftentimes, the tickets that they purchase online are less expensive than the tickets that Kathy offers. This is an example of

5. C Disintermediation. Traditionally, disintermediation has involved the elimination of intermediaries or middlemen like Kathy. This results in the transfer of products directly from producers (in this case, airlines) to the ultimate consumer. More broadly, though, disintermediation can include the displacement of traditional intermediaries with new, radically different types of intermediaries such as online travel agencies. The online travel agencies are successful because they can bring more value to consumers than many traditional brick-and-mortar travel agencies. A discrepancy of assortment is a difference between the product lines that a firm offers and the assortment of products that the consumer wants. Bulk-breaking involves dividing large quantities of products into smaller quantities as products move from the producer to middlemen to consumers. There is no indication that bulk-breaking is occurring. Exclusive distribution involves selling products through only one intermediary in a certain geographic area. Since more than one firm is selling airline tickets in the geographic area, exclusive distribution is not taking place.

The information about people who have patronized a hotel/motel is usually kept in a __________ file.

50. B Guest history. A guest-history record is a file of guest information used as a marketing information base. It may include such data as name, address, room preference, date of stay(s), and method of payment. A registration record is a collection of guest information obtained at the time of preregistration or check-in. A room-status record tells the condition of each room, i.e., occupied, reserved, to be cleaned, etc. A vendor file would contain information about vendors.

Which of the following sources is most likely to contain timely information:

51. A A technical-trends report that was written on February 5, 2015. An important factor to consider when evaluating information is its timeliness. If an article or report was published a long time ago, the information may not be relevant or accurate anymore, particularly if the topic involves technology. Because the technical-trends report was written recently, the information is likely to be up to date. Due to technology, the world is constantly experiencing medical breakthroughs and changes; therefore, a journal article that was published a decade (10 years) ago is less likely to contain up-to-date information. Stock values change rapidly, so a stock table that appeared in a newspaper on January 14, 2010 would not contain the most current information about stock values. Because the world's history has dramatically changed since 2000, the history textbook is outdated.

What is an advantage to a company that effectively manages its business information?

52. D Saves time and money. For a business to run efficiently, information must be organized so it can be found quickly whenever it is needed. When information is found quickly, employees are not only saving time, but the employees are saving money (payroll expenses) because they can move onto their next tasks more efficiently. Information overload occurs when information comes too fast to process at one time. Effectively managing information helps reduce information overload. Effective information management practices can help the company's employees to better serve the company's customers, which may increase customer satisfaction levels; however, effective information management cannot always eliminate customer dissatisfaction. Compliance with the law is necessary, regardless of how well the company manages its business information.

Phil works from his home office on Tuesdays and Thursdays. This is known as

53. A Telecommuting. When Phil works from home or any remote location, he is telecommuting. Technology makes this possible. Information gathering refers to finding data for decision making or communication. Networking refers to connecting a group of computers to one main server. Collaborating means working together in cooperation with others.

Ingrid is able to access information from her desktop publishing software, word-processing software, and spreadsheet software at the same time on her personal computer. This is an example of an operating system with __________ capabilities.

54. C Multitasking. The computer's operating system consists of the components needed to run all of the computer applications and programs. When the operating system allows the user to open and use more than one software program at a time, it has multitasking abilities. An operating system that allows more than one user to access a particular program at one time has multi-user capabilities. An operating system that allows several central processing units (computers) to access a single program has multiprocessing capabilities. Multithreading capabilities allow different components of one computer program to run at the same time.

An upscale department store tracks customer purchases made with store credit cards and then tailors promotional messages and merchandise offers to specific clients based on their purchases. What software allows the retailer to manage this strategy?

55. B Database. Database software allows companies to collect, store, and organize customer information. This information can be used to maintain, analyze, and combine customer information in order to send certain messages to specific customers. Spreadsheet and word-processing software do not perform the functions required by the retailer. Systems tools are used to maintain the computer.

When creating and posting information to a website, one of the most important considerations is the

56. D Home page. The design and content of the home page is extremely important because many visitors do not go beyond that page. Therefore, it is important to create a home page that provides an overview of the website and links to other pages on the site. If the goal is to have visitors follow links to access additional information or make a purchase, the home page must generate interest and encourage visitors to continue. A search engine is a software program that automatically crawls the Web looking for information pertaining to specified search terms and displays a list of results. A domain name is a business's web address. A shopping cart is a computer program designed to act as an online catalog and order-processing center.

What software are hotels, resorts, and various transportation entities using to expedite the reservation process for customers?

57. B Online booking. Many hospitality and tourism businesses offer websites that enable customers to conveniently book their reservations online. This gives customers 24-hour access to reservation systems when it's convenient for them to quickly make a reservation. Customer reservation systems are used by travel agents. Customer relationship management software is databases of customer information. Websites by themselves would not expedite the reservation process for customers.

What type of business records would provide a company with information about the movement of its products?

58. D Inventory. All the stock that a business has on hand is called inventory. Businesses keep records of their inventory to determine which items are moving quickly, which items are moving slowly, and when it is time to order additional items. Credit, accounts payable, and sales expense reports do not provide a company with information about the movement of its products.

Which of the following is the most appropriate response for an employee to make when s/he discovers a safety hazard:

59. C Report or correct the hazard. If the hazard is something the employee can fix at no danger to him/herself or others, the employee should do so. Such hazards might include water on the floor that can easily be wiped up, a wrinkle in a floor mat that can be straightened, or a rough edge on a counter that can temporarily be covered with tape. If the hazard is something that requires expert repair, such as malfunctioning equipment or electrical fixtures, the employee should report the hazard to a supervisor. Avoiding the hazard or making a note of it is not helpful. Determining the cause of the hazard is not necessary and not usually the employee's responsibility

Two Sleep-n-Go Motel franchisees that are located five miles apart compete for the same customers. What type of channel conflict does this exemplify?

6. A Horizontal. Horizontal conflict occurs between businesses at the same level in the distribution channel. When two franchisees are competing for the same market, horizontal conflict occurs over territory. Vertical conflict occurs between different levels of the same channel, such as between a franchisee and its franchisor. Differential and functional are not types of channel conflict.

Determining project costs involves taking the information gained from assessing needed resources and

60. A Translating it into a realistic budget. Determining project costs involves taking the information gained from assessing needed resources and translating it into a realistic budget, with the client's input. It shouldn't be necessary to ask the client to double the project's funding at this point in the planning process. Cost information shouldn't be necessary for creating a project schedule. The project purpose shouldn't be dependent on costs; rather, costs and budget should fit with project purpose.

What type of buying structure distributes the buying responsibility among geographical districts?

61. D Decentralized. Decentralized purchasing structure is a way of organizing purchasing in which responsibility and authority are distributed among many individuals and geographical districts. Decentralization breaks down buying responsibilities and delegates buying authority to district managers who are more familiar with local stores. Centralized purchasing structure is a way of organizing purchasing in which responsibility and authority are held in one department and/or by a few individuals. Departmentalized purchasing structure is a way of organizing purchasing which combines elements of centralized and decentralized purchasing structures. Concentrated buying is a tactic of purchasing from only a few suppliers in order to gain more favorable prices.

Why is production important to a business?

61. D Decentralized. Decentralized purchasing structure is a way of organizing purchasing in which responsibility and authority are distributed among many individuals and geographical districts. Decentralization breaks down buying responsibilities and delegates buying authority to district managers who are more familiar with local stores. Centralized purchasing structure is a way of organizing purchasing in which responsibility and authority are held in one department and/or by a few individuals. Departmentalized purchasing structure is a way of organizing purchasing which combines elements of centralized and decentralized purchasing structures. Concentrated buying is a tactic of purchasing from only a few suppliers in order to gain more favorable prices.

A fishbone diagram is a quality-control tool used to

63. B Identify cause and effect. A fishbone diagram, also called a cause-and-effect diagram or an Ishikawa diagram, is a quality-control tool used to identify cause and effect. This can help managers to recognize and solve problems related to quality. A fishbone diagram is not used to design products, evaluate business processes, or determine a product's quality.

Why do businesses feel it is important to maintain accurate accounting records?

64. A To monitor financial status. Businesses maintain accurate accounting records in order to keep track of how they are doing financially. The accounting records provide businesses with such important information as the amount of operating expenses, what their sales revenues are, and whether the businesses are earning profits. Businesses do not maintain accounting records in order to prepare purchase orders, review employee performance, or develop inventory control.

The primary reason for a business to carefully track of all its vendors' invoices is to

65. D Monitor and control expenses. An invoice (bill) documents how much a customer or client owes for the goods or services a business provides. To operate, a business orders office supplies, outsources services (e.g., legal advice), leases equipment, etc. Its vendors send the business bills (invoices) that state how much the business owes. The business monitors and tracks the invoices to make sure it is billed correctly. If the business finds a discrepancy (e.g., incorrect tax amount) on a bill, the business will likely contact the vendor to make necessary adjustments. Tracking invoices is one way the business controls its expenses. Accounts receivable are the monies coming into the business. Businesses do not track invoices to evaluate the vendors' performance levels.

Keeping the business operation running smoothly is one of the primary functions of business

66. A Maintenance. The main purpose of business maintenance is to keep the business operation running smoothly and efficiently in order for the business to achieve its objectives and earn a profit. Maintenance involves keeping all aspects of the business in good operating condition and making any needed repairs in a timely manner. Insurance is a contractual agreement in which one company will pay for specified losses incurred by the other company in return for installment payments. Development is the process of building and expanding the business. Promotion is a marketing function which communicates information about goods, services, images, or ideas to consumers or clients.

Which of the following security measures is often found in lodging establishments:

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

The supervisor's response to an employee's orderly and systematic behavior on the job should be

68. D Praise. When you work in an efficient, effective manner, you are more likely to receive rewards such as praise, raises, and promotions. A response to orderly behavior that is critical or indifferent may damage employee morale. Favoritism should be avoided since it gives an employee an unfair advantage over other employees.

What effect do demands on your time have on the supply of time available to you?

69. B Supply stays the same. No matter what we do, we cannot expand the day beyond 24 hours. Since the supply of time is fixed, we have to use it efficiently.

Before you can perform new tasks, you should first read the instruction manual so you can

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

Which of the following would be a job responsibility of warehouse employees:

70. B Determining where to store goods between production and consumption. Warehouse employees ensure that goods are effectively stored until they are purchased. They determine where the goods should be stored, how to process orders, and how to fulfill customer-service needs. Retailers develop merchandise displays, public relations professionals communicate with the media to create a positive company image, and salespeople and customer-service representatives assist customers with setting up accounts.

Governments can encourage entrepreneurial development by

71. B Deregulating and reducing taxes. One way governments can support start-up businesses is to make it easier to conduct business by having fewer rules that restrict trade with other companies or countries. Another way governments can support entrepreneurship is by reducing tax obligations for small-business start-ups. Entrepreneurs can use the tax savings to build the business. Ethical standards refer to the unwritten rules that govern each individual's behavior. Exhibiting ethical behavior might enhance one's chances for success in business but does not necessarily encourage entrepreneurial development. Increased interest rates on loans indicate that the business owner is paying more money to start the company. Some entrepreneurs might not feel that they can afford the loan amount and decide not to start the business. Therefore, the higher interest rates do not encourage entrepreneurial growth. Governments that pass laws with strict trade guidelines reduce the ability for free trade, thereby discouraging entrepreneurship.

The purpose of the first paragraph of the letter of application is to

72. D Identify the purpose of the letter and the job for which you are applying. The introductory paragraph should provide the background information that the reader needs to understand why the letter has been written. It should set the stage for the paragraphs that follow. The second and succeeding paragraphs should call attention to your qualifications and refer to information provided in your résumé. The last paragraph should express enthusiasm for the job and the company. Your references are cited in the résumé.

Being a volunteer for a nonprofit organization is one way that an individual can participate in activities that are similar to

73. D Having paid work experience. Many people gain valuable work-related experience by being volunteers for nonprofit organizations, such as hospitals, nursing homes, schools, and community-service organizations. Volunteering is one way that individuals can participate in activities that are similar to having paid work experience because many people entering the labor market for the first time do not have a lot of paid work experience. Businesses often consider any volunteer work that the applicants may have done as an equivalent to paid work experience. Being a volunteer is not a way for an individual to participate in activities that are similar to joining a trade association, monitoring a training program, or attending an employment seminar.

Which of the following actions is best for advancing in a hospitality and tourism career:

74. D Serving on committees outside your job description. By volunteering to serve on committees not directly related to your job description, you have the opportunity to keep your name in the minds of company leaders. That will help them to think of you when opportunities arise. You should thank people for compliments that you receive on your work rather than acting as if the work were no big deal. Etiquette is important for business lunches. You should not discuss business until after people at the table have placed their orders. Bragging to coworkers about your accomplishments can make them resent you. Instead, send regular memos to your bosses to apprise them of the work you've accomplished.

Which of the following is a hospitality and tourism business that focuses its efforts on providing shelter for travelers:

75. B Motel. Hospitality and tourism involves activities such as welcoming special guests and providing sleeping accommodations for people who are away from home. A motel provides this service. An airline provides a service that transports travelers to their desired destinations. A tour wholesaler plans and prepares packages for travelers; the packages include a combination of accommodations, transportation, entertainment, and meals. A restaurant sells food and beverages to travelers.

An example of price in the hospitality industry is the amount a guest pays for

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

Which of the following is an important factor that hotel restaurants consider when deciding when to buy food items:

77. A Perishability. Many food items are perishable and must be ordered in smaller quantities and on a more frequent basis. For example, fresh produce and bakery goods spoil more quickly than other types of food items, such as canned and frozen goods. Restaurants consider the perishability of food items when deciding when to buy. As a result, restaurants usually buy perishable items several times a week to make sure the quality is acceptable. Dependability is a factor that restaurants consider when selecting a vendor. Restaurants do not consider nutrition and sanitation when deciding when to buy food items.

Claire booked a room at an inn in Charleston, SC. When she arrived, she parked her car in the on property parking garage. After checking in, she used the inn's check-cashing service and got restaurant recommendations from the concierge. In the evening, Claire enjoyed the cookies and milk provided by the inn. What is the supporting product in this scenario?

78. C Cookies and milk. Supporting products are the extra goods and services that accompany the core product, the room at the inn, to add value to that core product. In this case, the evening snack of cookies and milk added value to the core purchase. Check-cashing services, on-property parking garages, and restaurant recommendations are examples of facilitating products. They aid with the use of the core product.

A travel agent schedules a business trip for a client and also sells the client tickets to three Broadway Shows. This is an example of

79. D Product extension. Product extension happens whenever you add to the value of the original package. For example, a traveler who attends a conference may stay for a tour of the city. It isn't a problem for the travel agency; it's part of the job and shouldn't require additional hours. Leisure travelers are as likely to buy product extensions as are business clients.

One way for an audience to show that it supports a speaker's opinion is by __________ the speaker.

8. B Applauding. When the audience applauds or claps, it is showing that it supports what the speaker is saying. Applause encourages the speaker to continue expressing his/her thoughts. Heckling or making fun of someone is an action that indicates disapproval. When people ignore the speaker, they are not actively listening to the speaker and not indicating their support. If a person tolerates another individual's opinion, s/he does not necessarily agree with an opinion, but supports the individual's right to express that opinion.

What technique should be used when evaluating multiple vendors' canned goods to ensure that the evaluators provide unbiased reviews?

80. D Blind testing. To evaluate multiple vendors' canned goods, restaurants can obtain input from crossfunctional teams of employees as well as guests. To avoid receiving biased input, use of blind testing is recommended. With this technique, the food items are removed from their cans so that evaluators do not know for which brand they are providing feedback. Can-cutting is an evaluation procedure in which canned goods are opened and their contents compared. This does not ensure unbiased feedback, however. Random access and sampling are research terms and do not apply to product evaluation.

Which of the following is an example of a direct marketing tactic used in tourism:

81. A A tour wholesaler sends an e-newsletter to clients every month to let them know about new tour products and industry trends. Direct mail is a promotional medium that comes to consumers' homes and businesses in the form of sales letters, catalogs, postcards, faxes, folders, and emails. A tour wholesale company that sends a newsletter via email is engaging in direct-marketing activities. Arranging tours, changing tour offerings, updating marketing plans, and placing billboards on a well-traveled highway are not direct-marketing tactics.

Which of the following is an example of how businesses are using advergaming:

82. D Featuring products on billboards in online games. Advergaming occurs when an online video game promotes a product, brand, or company by incorporating it into the game. There are a variety of ways in which businesses are using advergaming. One such way is by featuring products on billboards that show up during the game. Another popular advergaming technique is to feature a company's mascot or symbol in a game. Showing a product being used in a movie scene is an example of product placement. Running advertisements during a national sports game is an expensive use of advertising. Competitors would not grant permission to use pop-up ads on their websites.

What is the most important benefit of email versus direct mail?

83. B Real dialogue with individual customers. This is the most important benefit as marketers have a method of interaction and can further develop customer relationships. There are no postage charges involved with email. Email enables a business to individualize and personalize all messages. Finally, it is very often difficult to find appropriate email lists.

When Kevin walked into Millie's Diner, he received a 15% off coupon for the diner's daily breakfast special on his smartphone. What mobile marketing application did Millie's Diner use to communicate with its customer?

84. B Geolocation. This type of software enables a business to track its opt-in customers' physical location via their computers or networking devices (e.g., smartphone). As illustrated in the question stem, a business can use the geolocation software to send targeted promotional content to their customers in real time. Just-in-time is an inventory control method that involves ordering goods just in time for them to be used or sold. Webcast technology involves broadcasting video content via the Internet. Locospace is a fictitious term.

A health spa develops a print advertisement that contains two photos—one of a stressed-out woman before she goes to the spa and one of her looking very relaxed after her stay at the spa. In this situation, the illustrations are communicating product

85. D Benefits. Advertisers often use before and after photos to illustrate the benefits (advantages) of using a product or obtaining a service. In the situation presented, the ad suggests that a stay at the spa can help you relax and feel rested. Features are a product's characteristics (e.g., size, weight, color, etc.). Spa services are intangible. Quality is the product's level of excellence, which may be subjective in the eyes of the consumer.

Maeve is in the midst of developing a new advertisement for her event-planning business. Although she is pleased with the font and font size that she is using, she dislikes the amount of space between the individual letters and words in the ad. Maeve should adjust the __________ of the text in the advertisement.

86. B Kerning and tracking. Kerning is the space between individual letters, and tracking is the space between words or groups of letters. To make her advertisement more visually appealing, Maeve may adjust the kerning and tracking of the text. Leading is the space between lines of text, while measure is the length of lines of text. Adjusting the leading and/or measure of the text can change its appearance as well, but only kerning and tracking can adjust the space between individual letters and words.

Following a stay at a beach resort, a guest wrote a positive review of it on the Orbitz website. This is an example of a(n)

87. D Word-of-mouth (WOM) strategy. WOM strategies generate and spread genuine ideas, opinions, recommendations, and referrals between people. WOM strategies can be delivered online, offline, or a combination of the two. Other examples of WOM strategies are podcasts, social media comments, viral marketing, buzz marketing, etc. These comments are viewed as credible because they did not come from company representatives. Out-of-home advertising includes billboards, transit ads, street furniture, etc. Community involvement is publicity showing that a company is interested in supporting its community. A press release is a news story about a product, person, or business that is submitted to the press.

Which of the following is the proofreading symbol used to designate a word or a letter that should be capitalized:

88. A Three lines under the word or letter. A circle around a word or letter with sp circled in the margin indicates that an abbreviation should not be used. A bracket beside a word or letter indicates that it should be moved left or right. A slash through a capitalized letter indicates that the letter should be lower case.

Hospitality organizations often make financial donations to local charities, support community interests, and participate in chamber of commerce activities in an effort to

89. B Increase their public presence. Hospitality organizations typically participate in a number of community activities such as making donations to local charities, supporting community interests, and participating in chamber of commerce activities. By doing so, they raise the community's awareness of them. By increasing their public presence, these hospitality organizations hope to enhance their image and generate more business. Participating in community activities does not necessarily increase a hospitality organization's tax abatements, decrease expenses, or decrease employee discounts

When an employee realizes that a caller needs to speak to some other employee or department, the person should

9. D Give the caller the correct number, and transfer the call. When you need to transfer calls, it is good practice to explain the reason for the transfer to callers, give them the number to which they are being transferred, and then make the transfer. If the line is busy, or the transfer is not completed for some reason, callers will have the correct extension number when they want to call back. Asking callers to make another call or forwarding them to automated phone directories are not providing good customer service. Also, the caller does not always know the name of the person with whom s/he needs to speak, so forwarding the caller to an automated phone directory is not always possible if the company does have this telephone option. Taking notes is unnecessary since the caller's business will be handled by someone else.

To ensure the consistency of key elements on all of the website's pages, it is helpful to develop a(n)

90. C Template. A template is a blank form or place in which key elements (e.g., menu, masthead, logo, signature) are prepositioned on the page. By using a template, the key elements appear in the same position on each of the website's pages to provide a consistent, uniform appearance. Keeping the key elements in a consistent position makes it easier for computer users to locate the information they want to view. Text boxes, bookmarking applications, and sticky content sections do not ensure that all key elements of the website will appear in the same location on each of the website's pages.

Kimberly, who lives in Cleveland, Ohio, is planning to take a short trip to Cincinnati next month. Last weekend, she spent several hours surfing the Web to locate information about tourist activities and hotels in and around Cincinnati. The following Wednesday, when she went online to do some research for her history report, she discovered an advertisement for CincinnatiUSA.com on a website about the French Revolution. This is an example of __________ advertising.

91. A Behavioral. Many businesses and organizations use online advertisements to attract Internet users to their websites. Behavioral advertising is based on an Internet user's past activities on the web, including websites that s/he visited and search terms that s/he used to reach these websites. Even though Kimberly was not researching Cincinnati tourist activities and hotels on Wednesday, the behavioral advertising system recognized that she spent a good deal of time checking out Cincinnati websites just a few days before. As a result, a CincinnatiUSA.com ad appeared on a website that had nothing to do with Cincinnati, tourist activities, or hotels—just in case she was still interested in Cincinnati-related information. Contextual advertising is advertising that is displayed based on the website being viewed at the time. So, contextual advertising on a website about the French Revolution is much more likely to promote History.com than CincinnatiUSA.com. Word-of-mouth advertising is promotion and publicity for a business provided by customers who tell others of their satisfaction with the business. Sponsorship advertising involves marketers who pay to have their name associated with a special event or program.

An enclosed display that limits customers' access to merchandise is a(n) __________ display.

92. B Shadow box. Shadow box displays are often built into a wall, and they are usually used to display expensive items. Island, point-of-purchase, and counter displays allow customers to touch the merchandise.

Part of display maintenance is deciding when a display should be changed. How frequently should this occur?

93. D Depends on circumstances. The type of merchandise, the season of the year, and the location of the display are all factors. For example, interior displays are changed as merchandise sells. The frequency with which window displays are changed may vary from twice weekly to every other week. Supermarkets frequently change displays weekly to tie in with advertised specials. Some department stores change major displays about every two weeks. Displays should be maintained and changed at appropriate intervals, not just as time permits.

To track how customers respond to advertisements, many marketers use __________ measures.

94. C Processing. A number of different measurements can be used to track promotional activities such as advertising. For example, processing measures can be used to track how customers respond to the advertising. Exposure measures are used to track how many potential customers have been exposed to advertisements. Market-share measures help marketers determine if they have achieved the sales that they wanted. Communication effects measures can be used to track if customers are reacting to advertising in the way that advertisers had hoped.

Promotion in the hospitality industry often consists of

95. C Direct marketing and personal selling. Promotion refers to the various types of communications that marketers use to inform, persuade, or remind customers of their products. Direct marketing is a promotional vehicle that comes to consumers' businesses and homes. Personal selling is a form of promotion that determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Employee newsletters and contest drawings are considered a form of promotion. Buffet service and complimentary breakfasts are products. Public relations is a part of promotion. However, cost-plus pricing is a method of pricing products.

Why should salespeople create favorable impressions during the initial contact with customers?

96. C First impressions are difficult to change. When customers receive a negative first impression from the salesperson, it may become permanent. This often results in lost sales. Therefore, the salesperson must attempt to make a positive first impression with customers and establish good rapport, or understanding. This should include offering the customer whatever assistance might be needed since customers do not usually like to ask for help.

Which of the following is a way that using product substitution can benefit a hospitality and tourism business:

97. C Improved reputation. The use of product substitution can benefit a hospitality and tourism business by improving its reputation. When customers are provided the most satisfactory products, they have good feelings about that business and tell others about the service. By using product substitution, a business serves its customers well and enhances its reputation. Increased satisfaction and additional savings are ways that product substitution can benefit customers. Advanced ordering is not a benefit of product substitution.

When a customer raises an objection about an item being shown, the salesperson should consider the objection as an

98. C Opportunity to remove a barrier to the completion of the sale. Valid objections signal a desire to purchase. If the objection is handled properly, buying may occur as a natural part of the sales transaction. The salesperson should not feel personally insulted that a customer raises an objection. Not every customer complaint can be dismissed as being an excuse not to buy.

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?

99. D 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.