Hospitality and Tourism Test 1070
An offer must be made by one party and accepted by the other party in order for a contract to be A. notarized B. legally binding C. put in written form D. interpreted correctly
B Legally binding. In order for a contract to be legally binding, an offer must be made by one party and accepted by the other party. In effect, the two parties are agreeing to the terms stated in the contract. Then, both parties must live up to those terms. All contracts do not need to be notarized, put in written form, or interpreted correctly.
You have a customer-service mindset if you believe that your customers are your A. relatives. B. associates. C. friends. D. employers.
D Employers. A customer-service mindset is the belief that giving customers good service should be a top priority of a business. Without customers, there would be no need for employees. The business would have to close, and you would be out of a job. You should, therefore, keep in mind that customers pay your salary and are, in effect, your employers. Having a customer-service mindset does not involve believing that your friends, associates, and relatives are your customers, although they may be at times.
What should employees be willing to accept when defending their ideas objectively? A. Critical feedback B. Additional responsibility C. Nonverbal support D. Personal attack
A Critical feedback. When employees present their ideas to management or coworkers, they should be prepared to defend those ideas and provide supporting information. They also should be willing to accept critical feedback because others might not agree with the ideas or have different opinions. Being prepared will help employees remain objective and be able to offer logical evidence to back up their ideas. Critical feedback is often useful because it allows employees to view their ideas from a different perspective. Defending ideas usually does not involve accepting additional responsibility or nonverbal support. It is not acceptable to attack employees on a personal level because of their ideas.
One way that a manufacturer can foster positive relationships with its channel members is by A. encouraging a competitive culture. B. providing training programs. C. selling directly to end users. D. using aggressive tactics.
B Providing training programs. Positive channel relationships require collaboration among channel members. Collaboration involves sharing relevant information, setting mutually-beneficial goals, and developing a team-oriented attitude. Channel leaders have the most power or leverage in the channel, and can implement tactics to foster positive relationships. Providing channel members with product training programs helps channel members be successful in selling the products. Encouraging a competitive culture among channel members, using aggressive tactics, and selling directly to end users are more likely to create conflict and have a negative impact on channel relationships.
It is appropriate for a participant to ask questions during a staff meeting when A. another participant is speaking. B. s/he needs a point clarified. C. the agenda is being distributed. D. s/he does not agree with the speaker.
B S/He needs a point clarified. When employees do not understand what the speaker has said, it is appropriate to raise their hand to ask for clarification; however, it is rude to interrupt another person while s/he is speaking. In many meetings, the leader will ask the participants if they have questions, and it would be appropriate to ask for clarification at that time. Asking questions due to differing opinions or when the agenda is being distributed may not be appropriate.
Which of the following situations involves finding another source of a limited natural resource: A. Conserving the oil that we use B. Searching for oil on the ocean floor C. Paying a higher price for oil D. Replacing oil with natural gas
B Searching for oil on the ocean floor. The ocean is another place we can look for oil besides land. Natural gas is an alternative resource. Conserving oil to prevent waste and paying a higher price for it are not ways of finding more oil.
Which of the following describes the services offered by trade industries: A. They are always limited. B. They may be limited or full line. C. They vary from day to day. D. They are always full line.
B They may be limited or full line. Each trade industry must decide how broad the range of services it offers to customers will be. They are not always limited or always full line, but they are not changed on a daily basis as this would be confusing to customers and cause problems for the business.
In order to interpret business policies to customers, salespeople must A. get permission from management. B. understand the business's policies. C. feel good about the policies. D. help to set the business's policies.
B Understand the business's policies. Salespeople must have a clear understanding of the business's policies in order to explain them to customers and to answer questions. Management is responsible for setting policies. Salespeople are expected to interpret and to implement policies, and they do not need permission to do so. The salesperson must follow the business's policy even if s/he disagrees with it.
Which of the following is a guideline for writing clear instructions for your coworkers: A. Write from your supervisor's perspective. B. Understand the process you are explaining. C. Write complex, lengthy statements. D. Confine the instructions to one page.
B Understand the process you are explaining. In order to write accurate instructions, you must be knowledgeable about the sequence and content of steps required for completion of the task. Instructions should consist of simple, brief statements that are written from the employee's perspective. Although instructions should be as brief as possible, the type and complexity of the process or activity will dictate the length of the instructions.
When an agent legally acts in the best interests of his/her client, the agent is establishing a(n) _______ relationship. A. principal B. authoritative C. fiduciary D. legislative
C Fiduciary. An agent is someone who acts on the behalf of another party. The agent often negotiates contracts and handles legal issues for another person with that person's consent. The agent who shows that s/he is loyal, trustworthy, and acting in the best interest of his/her client (principal) is fostering a fiduciary relationship. Authoritative relationships are based on a particular level of control. Principal is a legal term that describes the client. Legislative processes involve the procedures in which people or governments establish laws.
What type of simple report might a buyer for a business prepare in order to periodically inform other departments about the status of scheduled deliveries? A. research B. analytical C. progress D. statistical
C Progress. A progress report is a type of simple report that businesses often use to keep the various departments informed of each other's activities. Progress reports briefly provide updated information about long-term activities. They are short and usually include only summaries of necessary information. Analytical, research, and statistical are examples of complex written reports that are lengthy and contain detailed information.
Which of the following is one of the rights of customers in the travel and tourism industry: A. To be reminded that foreign travel is often dangerous B. To be asked if they want to buy trip insurance C. To be informed about a destination's social conditions D. To be told about a competitor's refund policy
C To be informed about a destination's social conditions. Travel agents and tour operators have an obligation to inform clients about the social and political conditions in a destination that they are considering visiting. Clients have a right to know if there is political unrest, a threat of terrorism, or other dangerous situations that might affect their travel plans or their safety. They should be made aware of possible problems in order to make an informed decision as to whether to visit certain destinations. Travel agents and tour operators usually do not discuss a competitor's refund policy. They often ask customers if they want to buy trip insurance, but that is not considered a customer right. Travel to most foreign countries is not dangerous. However, if travel to some areas is dangerous, customers have a right to know.
Why do businesses often make it possible for employees to meet during work time and participate in group discussions? A. To plan extracurricular activities B. To discuss personal issues C. To share many different opinions D. To have casual conversations
C To share many different opinions. Many businesses encourage employees to participate in group discussions to analyze problems and find solutions. The advantage is that when employees share many different opinions, there is an increase in the chance of developing useful recommendations. However, for the group discussions to be useful, all members must feel comfortable and be willing to express their opinions. Businesses do not make it possible for employees to participate in group discussions to discuss personal issues, to plan extracurricular activities, or to have casual conversations.
When writing informational messages, business employees should explain the situation and include sufficient data for the recipient to be able to A. agree with the content. B. read the message. C. contact the business. D. make a decision.
D Make a decision. Informational messages are intended to inform and provide data to the recipients. In many cases, the purpose of an informational message is to help the recipient make a decision. For this to happen, the business employee should explain the situation and include sufficient data. If recipients clearly understand the who, what, where, when, why, and how of the situation, they usually have sufficient information to make a decision. Clear and concise writing enables a recipient to read the message. The letterhead usually includes the business's name, address, and phone number so recipients are able to contact the business. Explaining the situation and including sufficient data does not guarantee that the recipient will agree with the content.
A business exhibits ethical behavior in customer relationship management by implementing policies that A. encourage repeat sales. B. require customer feedback. C. offer exclusive benefits. D. protect its customers' privacy.
D Protect its customers' privacy. An ethical business implements strategies to protect its customers' privacy. This is an important consideration to build long-term relationships with its customers, which requires earning the customers' trust. One way for a business to earn its customers' trust is by developing, implementing, communicating, and adhering to a customer privacy policy. Although privacy policies vary by business, they might include limiting the access that employees have to customer information and refusing to sell customer lists to third parties. If customers feel that the business respects their privacy, they are more likely to trust the business and become loyal customers. Loyal customers provide the business with repeat sales. A business can ask, but cannot require, its customers to provide feedback. Offering exclusive benefits is a strategy that a business might use in customer relationship management; however, this practice does not indicate or prove that the business is behaving in an ethical manner.
Generating revenue to pay for services that are provided to the public is the reason for A. quotas. C. prices. B. sales. D. taxes.
D Taxes. Taxes are monies that individuals and businesses must pay to the government. The purpose of many taxes is to generate sufficient revenue for governments to pay for providing necessary services to the public. Certain services, such as highway construction and maintenance, are beyond the capability of individuals. Therefore, government takes responsibility for providing the services but needs the revenue to do that which is the function of taxes. Generating sufficient revenue to pay for providing necessary services to the public is not the reason for sales, prices, or quotas.
An accounts-receivable employee monitors delinquent accounts by placing them into three folders—30 days past due, 60 days past due, and 90 days past due. How has the employee organized the information? A. Name B. Invoice number C. Location D. Time
D Time. The system used or the way information is organized often depends on the type of information or task at hand. In the example, the employee must track delinquent accounts. Because some accounts are more overdue than other accounts the employee may use time as a method of organizing the information. Each interval may require the employee to take a different action, such as mailing a late notice to accounts that are 30 days past due, calling accounts that are 60 days past due, and turning accounts over to collection agencies that are 90 days past due. Each action is based on a certain time frame. The example does not indicate if the invoice numbers, locations, or names are organized in a specific manner.
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 A. disintermediation B. discrepancy of assortment C. bulk-breaking D. exclusive distribution
A 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.
What economic activity examines how money payments are divided between resource owners and producers? A. Distribution B. Consumption C. Exchange D. Production
A Distribution. This economic activity examines how the money payments received by resource owners and producers are divided or distributed. Resource owners must feel that the incomes they receive are large enough so that they will continue to be willing to supply resources. Producers must receive enough income so that they are able to continue making or providing goods and services. Consumption is the process or activity of using goods and services. Production is the making of goods and services. Exchange involves the exchange of money payments between producers and the owners of resources.
You pay Burger King for the right to set up a location in Barcelona under the corporate headquarters' guidance and regulation. This is an example of A. franchising. B. a joint venture. C. a wholly owned subsidiary. D. exporting.
A Franchising. A franchise is a contractual agreement between a parent company and a franchisee to distribute goods or services. Franchising is very common in the restaurant business. A joint venture is an arrangement that involves two or more businesses entering into a relationship by combining complementary resources, such as technology, skills, capital, or distribution channels, for the benefit of all parties. A wholly owned subsidiary is a firm that is completely owned and controlled by the parent company. Exporting is selling domestic goods in a foreign nation.
Whatactionexpandseconomicactivities? A. Increasing inventory levels B. Decreasing the purchase of durable goods C. Increasing the unemployment rate D. Decreasing investments in capital goods
A Increasing inventory levels. When producers are optimistic about business activity, they increase their inventory levels in order to be prepared for the increase in demand. This action expands economic activities. Increasing the unemployment rate, decreasing the purchase of durable goods, and decreasing investments in capital goods would contract economic activities.
An individual books a hotel reservation on an Internet web site. This is an example of A. place. C. product. B. promotion. D. possession.
A Place. Place refers to the ability to make sure that products are available where they are needed or wanted by customers. In the hospitality industry, place can be a physical location (e.g., restaurant, hotel) or a site where a want or need (e.g., reservation) is fulfilled. An Internet web site fulfills a customer's desire to make a hotel reservation. Promotion is the marketing element referring to the various types of communications that marketers use to inform, persuade, or remind customers of their products. Product is defined as goods and services that businesses offer their customers. Possession refers to the goods that people own.
To find a career that's best suited for your strengths, it's important to be __________ about your strengths and weaknesses. A. realistic C. hopeful B. general D. competitive
A Realistic. To find a career that's best suited for your strengths, it's important to be realistic about your strengths and weaknesses. You must be honest about your aptitudes and limitations if you want to succeed. You should be specific in your self-assessment, rather than general. It's OK to be hopeful, but you must be realistic as well. Self-assessment involves only you—it's not a competition.
Government can prevent unqualified persons from operating a business by A. refusing to grant them a license. B. closing their bank accounts. C. raising their taxes. D. helping their competitors.
A Refusing to grant them a license. In some types of businesses, owners/operators must meet certain standards to obtain a license to operate the business. The government can refuse to grant a license to unqualified applicants. The government cannot use unfair practices such as helping competitors or raising individual taxes. The holder of a bank account has control of the account.
A transmittal letter is a business letter whose purpose is to A. apologize to a customer. B. accompany other written material. C. extend good wishes. D. sell specific products.
B Accompany other written material. A transmittal letter is sent along with other documents or reports as an introduction and explanation. The purpose of a transmittal letter is to identify what is being sent so that the recipient will know what should be included and if any action needs to be taken. The other alternatives would require letters that apply to the specific situation. A letter of congratulations would extend good wishes, a letter of apology would make amends with a customer, and a sales letter would try to sell specific products.
One of the benefits of competition to consumers is that competition encourages A. businesses to limit their product lines. B. businesses to develop new products. C. government to fix prices. D. government to finance business activity.
B Businesses to develop new products. Competition encourages the development of products that satisfy consumers' needs. Government does not finance business activity. Price fixing is an illegal activity that would not benefit consumers, and is prohibited by law. When businesses limit their product lines, they often create dissatisfaction among customers.
