HOSPITALITY TODAY

Course: 103
Exam Control Number: 103731

Final Examination Instructions

Carefully read the instructions on the final examination answer sheet.

Both sides of the final examination sheet must be completed.

The course name, course number and exam control number listed above must be provided in the proper places
on your final examination answer sheet in order for your examination to be graded.

MULTIPLE-CHOICE QUESTIONS

Please darken the letter on the answer sheet that corresponds to the single best answer.

1. Who is the best judge of service quality?

A) staff members
B) the person receiving the service
C) the owner of the service business
D) managers
2. Which of the following statements about service is TRUE?
A) If managers think they are providing good service, they can assume that their customers think so, too.
B) Fulfilling the expectations of employees, not customers, is most important in service encounters.
C) Price usually plays an important part in how service is evaluated.
D) Service employees can be looked upon as "magicians" who convince customers they're getting good
service even when it is below standards.

3. "When demand is low, production capacity is wasted because there is an oversupply of workers to serve the
customers; when demand is higher than production capacity, there are more guests than the workers or the
building can serve and business is lost." This describes a(n) __________ business.
A) limited-service
B) chased-demand
C) capacity-constrained
D) intangibles-oriented

4. Which of the following is an example of an activity or strategy designed to manage demand?

A) happy hours
B) early-bird specials
C) both of the above
D) none of the above

5. The most common method used to influence demand in the hotel industry is _________.
A) price
B) availability
C) advertising
D) marketing

6. Disney's four basic service priorities are:

A) fun, family, food, and fanfare.
B) respond, focus, gratify, and serve.
C) safety, courtesy, show, and efficiency.
D) enjoyment, security, vision, and repeat guests.

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 HOSPITALITY TODAY
Course: 103
Exam Control Number: 103731

7. A typical hotel or restaurant targets a limited number of market segments because:

A) it is impossible to appeal to everyone.
B) owners do not like to take the risks involved in going after all possible segments.
C) for accounting purposes, it is easier to only go after a few groups of customers.
D) management is usually not aggressive enough to go after all possible segments.

8. Which of the following is a trend that is affecting the travel and tourism industry?
A) the increase in the importance of seasonality in travel
B) the sharp decline in the world's population
C) the decrease in leisure time
D) the increase in technological advancements

9. Adding up all the expenditures of travelers in a given geographic area and multiplying that figure by a factor (x)
to arrive at the amount of additional income that is generated by these expenditures is a way of measuring the:
A) WTO factor.
B) psychographic influences within the travel and tourism industry.
C) multiplier effect.
D) interrelationships within the travel and tourism industry.

10. People who place a high value on service, look for first-class accommodations, and want to be pampered and
taken care of while on vacation belong to the __________ group of travelers.
A) quality
B) price and sights
C) great expectations
D) sun and surf

11. “Responsible travel to natural areas that conserves the environment and improves the well-being of local people”
is called:
A) ecotourism.
B) benign travel.
C) “green” tourism.
D) cultural travel.

12. Which of the following is an ADVANTAGE of working in the hospitality industry?

A) There are "perks" associated with many hospitality jobs.
B) The industry offers more career options than most other industries.
C) There are many opportunities to be creative.
D) All of the above.

13. In most hospitality businesses, the workweek is usually:

A) 20 hours.
B) variable, but seldom more than 40 hours.
C) more than 40 hours.
D) between 70 and 80 hours.

14. Which of the following is among the responsibilities of a hotel's controller?

A) planning and organizing meetings for guests
B) managing payroll and cashiering activities
C) maintaining the hotel's physical plant
D) managing the reservations system

04/23/15 I 7th ed.: Angelo/Vladimir 2 ©2015 AH&LA Educational Institute

 HOSPITALITY TODAY
Course: 103
Exam Control Number: 103731

15. Which of the following is an ADVANTAGE of working in a chain-affiliated hotel?

A) more opportunities for observing operational decision-making
B) more chances to be creative
C) better training
D) more control over career choices

16. The person responsible for recruiting and training the majority of a hotel's employees is the __________ manager.
A) food and beverage
B) sales
C) human resources
D) management information systems (MIS)

17. A resident manager is usually directly in charge of a hotel's __________ department.

A) rooms
B) catering and banquet
C) food and beverage
D) engineering

18. A contract food company is a company that:

A) is typically hired by U.S. businesses, hotels, and resorts overseas to provide "American" food to workers
and guests.
B) is typically hired by a large business to provide food for the business's workers.
C) provides processed food items such as frozen entrées to chain restaurants.
D) provides fresh food daily to luxury and other upscale restaurants on a contract basis.

19. Which of the following food service operations would probably require the LEAST start-up capital?
A) independent full-service restaurant
B) social catering business
C) casual restaurant franchise
D) quick-service restaurant franchise

20. What is the purpose of a résumé?

A) to persuade someone to hire you
B) to persuade someone to interview you
C) it takes the place of a list of personal references
D) it takes the place of a cover letter

21. Which of the following restaurant types generally has more kitchen and dining room employees per guest than the
others?
A) theme restaurants
B) steak houses
C) Chinese restaurants
D) luxury restaurants

22. Quick-service restaurants focus on:

A) atmosphere.
B) offering a unique menu.
C) decor.
D) convenience.

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 HOSPITALITY TODAY
Course: 103
Exam Control Number: 103731

23. Hospitals, nursing homes, and retirement communities are part of the __________ market.
A) eating and drinking places
B) retail
C) health care
D) lodging operations

24. A feasibility study for a restaurant should contain a proposed operating budget for the restaurant's first:
A) six months.
B) fiscal year.
C) three years.
D) seven years.

25. When you are developing a restaurant's concept, which should you determine FIRST?
A) the decor
B) the menu
C) the pricing structure
D) the type of service you will provide

26. The organization that is considered to have begun the “green” movement in the hospitality industry is the:
A) Walt Disney Company.
B) Sunday River Ski Resort, built in 1937.
C) Ritz-Carlton hotel chain.
D) Chez Panisse restaurant (opened 1971).

27. Which of the following is a good rule to follow when creating a menu?
A) Don't worry about nutrition.
B) Put guest preferences last.
C) Use standard recipes.
D) Don't worry about the food that will be left over from preparing menu items.

28. Hospitals and nursing homes typically use __________ menus.

A) specialty
B) fixed
C) perpetual
D) cyclical

29. Why do luxury restaurants typically charge high prices?

A) They have to cover their high food and operating costs.
B) It's a tradition for luxury restaurants to charge high prices.
C) They typically use computer-designed, standardized equipment and facilities to produce their food.
D) All of the above are correct.

30. The document that shows a restaurant's financial condition on a given day is called the:
A) statement of income.
B) statement of financial condition.
C) prospectus.
D) balance sheet.

04/23/15 I 7th ed.: Angelo/Vladimir 4 ©2015 AH&LA Educational Institute

 HOSPITALITY TODAY
Course: 103
Exam Control Number: 103731

31. The cost of food sold, payroll costs, and employee benefits are considered __________ costs.
A) prime
B) direct
C) food
D) cyclical

32. A food product's name, what it is used for, a general description of the product, and how it can be tested to make
sure it meets the restaurant's standards can all be found on a:
A) balance sheet.
B) requisition form.
C) standard recipe.
D) purchase specification.

33. The standard inventory system that is almost always adopted in restaurants is:
A) the par-level system.
B) first-in, first-out.
C) the cycle inventory system (CIS).
D) direct purchasing.

34. You are the manager of the Bluebird Cafe. Your cost of food sold for the month of June was $29,000. Your food
sales totaled $100,000. What was your food cost percentage?
A) 3.4 percent
B) 29 percent
C) 71 percent
D) You cannot calculate the food cost percentage, based on the figures given.

35. What is a bar's "par"?

A) It is the amount of garnishes for drinks that should be on hand at the bar at the start of each day.
B) It is the amount of money that should be in the bar's cash register at the start of a shift.
C) It is the optimum percentage of servers to bartenders that a bar should strive to maintain in order to
control labor costs.
D) It is the amount of each type of beverage that managers want to be available behind the bar.

36. The goal of any restaurant's cash control system is to ensure that:
A) cashiers have enough cash to make change quickly and efficiently.
B) the food produced by the kitchen is served to a guest, recorded as a sale, and paid for.
C) the operation has enough cash to meet its current expenses and payroll.
D) servers report their tips (in accordance with IRS regulations) and turn over all payments to a cashier.

37. Rooms for __________ are usually booked in blocks at rock-bottom prices.
A) regional getaway travelers
B) leisure travelers
C) long-term stay/relocation guests
D) airline-related guests

38. Hotels that are usually found in desirable vacation spots are called:
A) center-city hotels.
B) resorts.
C) highway hotels.
D) suburban hotels.

04/23/15 I 7th ed.: Angelo/Vladimir 5 ©2015 AH&LA Educational Institute

 HOSPITALITY TODAY
Course: 103
Exam Control Number: 103731

39. Which of the following statements about franchising is TRUE?

A) A "franchise" is a group of independent properties or small hotel chains that have grouped together for
common marketing purposes.
B) A "franchisee" contracts with hotel owners to operate their hotel.
C) A "franchisor" is the party granting the franchise.
D) None of the above statements are true.

40. Two-thirds of the guests at all-suite hotels typically are:

A) business travelers.
B) regional getaway guests.
C) leisure travelers.
D) extended-stay guests.

41. A hotel in which investors take title to specific hotel rooms is called a(n):
A) all-suite hotel
B) conference center.
C) condominium hotel.
D) timeshare property.

42. Conference centers almost always have more __________ on-site than other hotels do.
A) audiovisual equipment
B) security staff and monitoring devices
C) guestroom amenities
D) recreational facilities

43. What is a permanent financing loan?

A) financing designed to cover hard costs
B) a long-term mortgage loan
C) a loan to pay off short-term construction costs
D) financing that covers a hotel in case a catastrophic event (a fire, tornado, flood, etc.) occurs that
damages or destroys the hotel

44. Prospective hotel owners can use a feasibility study to:

A) gain financing.
B) help the management team develop marketing plans.
C) guide the hotel's architects.
D) all of the above.

45. How are hotels organized?

A) They are organized into various decentralized work teams, based on international workplace quality
standards from organizations such as ISO 9000.
B) They are organized into functional areas or departments, based on the services the hotel provides to
guests.
C) They are organized into work centers, based on the latest management theories.
D) They are organized into financial areas or modules, based on standard accounting principles accepted by
the hotel industry.

46. To whom does the chef usually report?

A) the general manager
B) the food and beverage manager
C) the dining room manager
D) the resident manager

04/23/15 I 7th ed.: Angelo/Vladimir 6 ©2015 AH&LA Educational Institute

 HOSPITALITY TODAY
Course: 103
Exam Control Number: 103731

47. A facility at the hotel that might well be operated by the hotel directly, such as a beauty salon or fitness club, but
instead is turned over to an independent operator is called a:
A) rental.
B) concession.
C) cost center.
D) commission.

48. Which of the following is one of the accounting division's responsibilities?

A) developing job breakdowns
B) establishing employee performance standards
C) preparing daily operating reports
D) maintaining computer systems

49. Maintaining the hotel's physical plant and controlling energy costs are the responsibilities of the __________
division.
A) rooms
B) engineering
C) human resources
D) security

50. Marketing and energy costs are examples of:

A) divisional expenses.
B) overhead expenses.
C) capital costs.
D) fixed charges.

51. The main purpose of a yacht club is to provide its members with:
A) catered events and holiday parties.
B) marinas and other boating facilities.
C) sports facilities such as golf courses and tennis courts.
D) dining facilities.

52. Most of a private club's revenue (whether it be a city club or a country club) comes from:
A) membership dues.
B) beverages.
C) food.
D) rental of guestrooms and meeting rooms.

53. Which of the following statements about corporate or developer clubs is TRUE?
A) Corporate or developer clubs do not have to pay income taxes.
B) Corporate or developer clubs are for-profit organizations.
C) Corporate or developer clubs are owned by their members.
D) All of the above statements are true.

54. National or international meetings or conventions are usually held:

A) twice a year.
B) once each year.
C) once every three years.
D) once every ten years.

04/23/15 I 7th ed.: Angelo/Vladimir 7 ©2015 AH&LA Educational Institute