CERTIFIED MEETING PROFESSIONAL CMP COMPREHENSIVE
EXAM SHEET QUESTIONS AND ANSWERS MARKED A+
✔✔Audiovisual - ✔✔A/V. Equipment, materials, and teaching aids used in sound and
visual presentations, such as television monitors, video, sound equipment, etc.
✔✔Balance sheet - ✔✔A statement that indicates overall financial status by subtracting
expenses from income.
✔✔Billing instructions - ✔✔Notice as to how charges for an event should be handled
and to whom invoices should be addressed.
✔✔Budget - ✔✔A statement of estimated revenues and expenditures for a specified
period of time; divided into subject categories and arranged by principal areas of
revenue and expense. See BUDGET CHART. See Also CASH FLOW CHART,
PHASED BUDGET.
✔✔Cash accounting - ✔✔A system in which revenue and expenses are counted as
they are actually received.
✔✔Chart of accounts - ✔✔A detailed list of the individual line items that make up the
revenue and expense categories in a budget. A numbering system used to identify
every line item in a budget, so income and expenses are posted to the correct accounts.
✔✔Chief Financial Officer (CFO) - ✔✔CFO. Executive responsible for financial affairs of
an organization.
✔✔Cost center - ✔✔An account (usually a number) to which expenses for a function or
activity are charged.
✔✔Direct billing - ✔✔Accounts receivable made available to individuals or firms with
established credit.
✔✔Income statement - ✔✔A statement of revenues and expenses. Also known as a
profit & loss statement.
✔✔Master account - ✔✔A record of transactions during an event where the resulting
balance is paid directly by the group. May include room, tax, incidentals, food and
beverage, audiovisual equipment, decor, etc. Also Called MASTER BILL.
✔✔Net worth - ✔✔Assets minus liabilities.
✔✔Paid-out - ✔✔In-house facility form authorizing cash withdrawal to be charged to
master account or individual guest.
,✔✔Acceptance - ✔✔A requirement for entering into a binding contract. If a contract
proposal (offer) is made, it is accepted if the offeree signs the offer as submitted. If the
offeree makes any changes to the offer before signing, it is a counter offer, not
acceptance.
✔✔Act of God - ✔✔An extraordinary natural event such as extreme weather, flood,
hurricanes, tornadoes, earthquake or similar natural disaster that cannot be reasonably
foreseen or prevented over which a contracting party has no reasonable control, making
performance of the contract illegal, impracticable or impossible, thus the parties have no
legal responsibility to continue performance of the contract. See FORCE MAJEURE.
✔✔Alternative dispute resolution (ADR) - ✔✔An alternative procedure that can be
specified in contracts instead of going through the process of filing a complaint and
pursuing the claim in court.
✔✔Americans with Disabilities Act (ADA) - ✔✔Americans with Disabilities Act. U.S.
legislation passed in 1992 requiring public buildings (offices, hotels, restaurants, etc.) to
make adjustments meeting minimum standards to make their facilities accessible to
individuals with physical disabilities.
✔✔Arbitration - ✔✔Private dispute resolution process, often referred to as alternate
dispute resolution, in which the parties agree to submit their dispute to an impartial third
party for a decision. Depending on the type of arbitration, the arbitrator's decision may
or may not be binding. Several organizations, including the American Arbitration
Association and JAMS-Endispute, handle arbitration claims. Courts may require some
disputes be submitted to arbitration instead of or prior to the formal trial process.
✔✔Attrition clause - ✔✔Contract wording that outlines potential damages or fees that a
party may be required to pay in the event that it does not fulfill minimum commitments in
the contract.
✔✔Authorized signatory - ✔✔A person who is authorized to legally bind an individual or
organization to a contract, to sign checks on behalf of an organization, or charge to an
organization's master account.
✔✔Cancellation clause - ✔✔Provision in a contract which outlines damages to be paid
to the non-canceling party if cancellation occurs, due the canceling party's breach of the
contract.
✔✔Certificate of insurance - ✔✔A document provided by an insurance company as
proof that a policy has been issued and coverage is in effect.
✔✔Clause - ✔✔A detailed section of a contract pertaining to a specific issue.
,✔✔Concession - ✔✔1) Merchandise or refreshments sold on site, to individuals, in
conjunction with an event. 2) Contractual agreement where one party provides
something of value to the other party in exchange for something else, pending certain
conditions.
✔✔Consideration - ✔✔The inducement to a contract. The cause, motive, price, or
impelling influence which induces a contracting party to enter a contract.
✔✔Contract - ✔✔An agreement between two or more parties that creates in each party
a duty to do or not do something and a right to performance of the other's duty or a
remedy for the breach of the other's duty. See COMMITMENT. See Also LETTER OF
AGREEMENT. See Also Commitment Letter of Agreement
✔✔Cut-off date - ✔✔Designated date when the facility will release a block of sleeping
rooms to the general public. The date is typically three to four weeks before the event.
See RESERVATION REVIEW DATE. See Also Reservation Review Date
✔✔Exclusive - ✔✔Any agreement which limits who may provide specific products or
services under certain conditions to only one party. A general service contractor, for
instance, may have an "exclusive" in a particular facility, meaning that no other
contractor is allowed to provide the same services or products in that facility.
✔✔Force majeure - ✔✔An event (e.g. war, labor strike, extreme weather, or other
disruptive circumstances) or effect that cannot be reasonably anticipated or controlled: a
"fortuitous event." See ACT OF GOD. See Also Act of God
✔✔General liability insurance - ✔✔An insurance policy that provides protection against
claims involving bodily injury and property damage to third parties.
✔✔Good faith - ✔✔A true and honest effort to uphold the law. (as in Good Faith Effort)
✔✔Hold harmless - ✔✔A type of indemnity clause that requires one party to fully protect
the other from a claim asserted. This would include the payment of costs or attorney
fees.
✔✔Indemnification clause - ✔✔A contract clause in which one party agrees to pay
damages or claims that the other party may be required to pay to another. For example,
if a hotel is sued by an attendee that is injured at an event due to the fault of the group,
an indemnification clause might require the group to pay back the hotel. Some times the
law requires one party to indemnify another even without a specific clause. Generally,
the terms of the clause will be followed over the state law. See HOLD HARMLESS. See
Also Hold Harmless
, ✔✔Jurisdiction - ✔✔1) The jobs that may be performed by a specific labor union. 2) The
locality where a contractual dispute is decided. 3) In law, the ability of a court to hear
and decide a matter brought before it.
✔✔Liability - ✔✔Legal responsibility. An obligation to pay an amount in damages. In a
non-legal context, something that is a negative factor.
✔✔Liquidated damage clause - ✔✔Part of a cancellation clause that outlines the
amount of damages to be paid to the noncelling party in the event of a cancellation.
✔✔Mediation - ✔✔Dispute resolution process in which the parties use a third party to
assist them in reaching a compromise. The mediator may work with both sides together,
or may act as "go between" in an attempt to move the sides toward agreement. The
mediator may act informally, or be appointed by a judge or by agreement of the parties
through an alternative dispute resolution organization like American Arbitration
Association (AAA) or Judicial Arbitration and Mediation Service (JAMS). Unlike
arbitration, a mediator is not empowered to impose a decision on the parties.
✔✔Non-performance - ✔✔To neglect to carry out an agreement.
✔✔Offer - ✔✔A promise, proposal or other expression of willingness to make and carry
out a contract under proposed terms with another party which has the ability to accept it
upon receiving it. Space and rent proposal from a facility. It may be in the form of a
contract or license agreement.
✔✔Provision - ✔✔Detailed section of a contract.
✔✔Union - ✔✔A labor organization, typically made up of workers from the same trade
formed for the purpose of advancing its members' interests such as dealing collectively
with their employer on issues of wages, hours, working conditions and other matters
pertaining to their employment.
✔✔Waiver of subrogation - ✔✔A release of rights to substitute one party for another
party. The release of an insurance company right to succeed to the insured's rights to
sue for damages against the tortfeasor, after the insurance company pays an insured's
claim of loss due to another's tort.
✔✔Walk - ✔✔Guest holding confirmed sleeping room reservation is denied
accommodations at the hotel where to reservation is held upon their arrival and is
relocated to another hotel.
✔✔APEX Post Event Report (PER) - ✔✔PER. The industry preferred term for a report
of the details and activities of an event. A collection of post event reports over time will
provide the complete History for an event. The industry accepted practice is to use the
EXAM SHEET QUESTIONS AND ANSWERS MARKED A+
✔✔Audiovisual - ✔✔A/V. Equipment, materials, and teaching aids used in sound and
visual presentations, such as television monitors, video, sound equipment, etc.
✔✔Balance sheet - ✔✔A statement that indicates overall financial status by subtracting
expenses from income.
✔✔Billing instructions - ✔✔Notice as to how charges for an event should be handled
and to whom invoices should be addressed.
✔✔Budget - ✔✔A statement of estimated revenues and expenditures for a specified
period of time; divided into subject categories and arranged by principal areas of
revenue and expense. See BUDGET CHART. See Also CASH FLOW CHART,
PHASED BUDGET.
✔✔Cash accounting - ✔✔A system in which revenue and expenses are counted as
they are actually received.
✔✔Chart of accounts - ✔✔A detailed list of the individual line items that make up the
revenue and expense categories in a budget. A numbering system used to identify
every line item in a budget, so income and expenses are posted to the correct accounts.
✔✔Chief Financial Officer (CFO) - ✔✔CFO. Executive responsible for financial affairs of
an organization.
✔✔Cost center - ✔✔An account (usually a number) to which expenses for a function or
activity are charged.
✔✔Direct billing - ✔✔Accounts receivable made available to individuals or firms with
established credit.
✔✔Income statement - ✔✔A statement of revenues and expenses. Also known as a
profit & loss statement.
✔✔Master account - ✔✔A record of transactions during an event where the resulting
balance is paid directly by the group. May include room, tax, incidentals, food and
beverage, audiovisual equipment, decor, etc. Also Called MASTER BILL.
✔✔Net worth - ✔✔Assets minus liabilities.
✔✔Paid-out - ✔✔In-house facility form authorizing cash withdrawal to be charged to
master account or individual guest.
,✔✔Acceptance - ✔✔A requirement for entering into a binding contract. If a contract
proposal (offer) is made, it is accepted if the offeree signs the offer as submitted. If the
offeree makes any changes to the offer before signing, it is a counter offer, not
acceptance.
✔✔Act of God - ✔✔An extraordinary natural event such as extreme weather, flood,
hurricanes, tornadoes, earthquake or similar natural disaster that cannot be reasonably
foreseen or prevented over which a contracting party has no reasonable control, making
performance of the contract illegal, impracticable or impossible, thus the parties have no
legal responsibility to continue performance of the contract. See FORCE MAJEURE.
✔✔Alternative dispute resolution (ADR) - ✔✔An alternative procedure that can be
specified in contracts instead of going through the process of filing a complaint and
pursuing the claim in court.
✔✔Americans with Disabilities Act (ADA) - ✔✔Americans with Disabilities Act. U.S.
legislation passed in 1992 requiring public buildings (offices, hotels, restaurants, etc.) to
make adjustments meeting minimum standards to make their facilities accessible to
individuals with physical disabilities.
✔✔Arbitration - ✔✔Private dispute resolution process, often referred to as alternate
dispute resolution, in which the parties agree to submit their dispute to an impartial third
party for a decision. Depending on the type of arbitration, the arbitrator's decision may
or may not be binding. Several organizations, including the American Arbitration
Association and JAMS-Endispute, handle arbitration claims. Courts may require some
disputes be submitted to arbitration instead of or prior to the formal trial process.
✔✔Attrition clause - ✔✔Contract wording that outlines potential damages or fees that a
party may be required to pay in the event that it does not fulfill minimum commitments in
the contract.
✔✔Authorized signatory - ✔✔A person who is authorized to legally bind an individual or
organization to a contract, to sign checks on behalf of an organization, or charge to an
organization's master account.
✔✔Cancellation clause - ✔✔Provision in a contract which outlines damages to be paid
to the non-canceling party if cancellation occurs, due the canceling party's breach of the
contract.
✔✔Certificate of insurance - ✔✔A document provided by an insurance company as
proof that a policy has been issued and coverage is in effect.
✔✔Clause - ✔✔A detailed section of a contract pertaining to a specific issue.
,✔✔Concession - ✔✔1) Merchandise or refreshments sold on site, to individuals, in
conjunction with an event. 2) Contractual agreement where one party provides
something of value to the other party in exchange for something else, pending certain
conditions.
✔✔Consideration - ✔✔The inducement to a contract. The cause, motive, price, or
impelling influence which induces a contracting party to enter a contract.
✔✔Contract - ✔✔An agreement between two or more parties that creates in each party
a duty to do or not do something and a right to performance of the other's duty or a
remedy for the breach of the other's duty. See COMMITMENT. See Also LETTER OF
AGREEMENT. See Also Commitment Letter of Agreement
✔✔Cut-off date - ✔✔Designated date when the facility will release a block of sleeping
rooms to the general public. The date is typically three to four weeks before the event.
See RESERVATION REVIEW DATE. See Also Reservation Review Date
✔✔Exclusive - ✔✔Any agreement which limits who may provide specific products or
services under certain conditions to only one party. A general service contractor, for
instance, may have an "exclusive" in a particular facility, meaning that no other
contractor is allowed to provide the same services or products in that facility.
✔✔Force majeure - ✔✔An event (e.g. war, labor strike, extreme weather, or other
disruptive circumstances) or effect that cannot be reasonably anticipated or controlled: a
"fortuitous event." See ACT OF GOD. See Also Act of God
✔✔General liability insurance - ✔✔An insurance policy that provides protection against
claims involving bodily injury and property damage to third parties.
✔✔Good faith - ✔✔A true and honest effort to uphold the law. (as in Good Faith Effort)
✔✔Hold harmless - ✔✔A type of indemnity clause that requires one party to fully protect
the other from a claim asserted. This would include the payment of costs or attorney
fees.
✔✔Indemnification clause - ✔✔A contract clause in which one party agrees to pay
damages or claims that the other party may be required to pay to another. For example,
if a hotel is sued by an attendee that is injured at an event due to the fault of the group,
an indemnification clause might require the group to pay back the hotel. Some times the
law requires one party to indemnify another even without a specific clause. Generally,
the terms of the clause will be followed over the state law. See HOLD HARMLESS. See
Also Hold Harmless
, ✔✔Jurisdiction - ✔✔1) The jobs that may be performed by a specific labor union. 2) The
locality where a contractual dispute is decided. 3) In law, the ability of a court to hear
and decide a matter brought before it.
✔✔Liability - ✔✔Legal responsibility. An obligation to pay an amount in damages. In a
non-legal context, something that is a negative factor.
✔✔Liquidated damage clause - ✔✔Part of a cancellation clause that outlines the
amount of damages to be paid to the noncelling party in the event of a cancellation.
✔✔Mediation - ✔✔Dispute resolution process in which the parties use a third party to
assist them in reaching a compromise. The mediator may work with both sides together,
or may act as "go between" in an attempt to move the sides toward agreement. The
mediator may act informally, or be appointed by a judge or by agreement of the parties
through an alternative dispute resolution organization like American Arbitration
Association (AAA) or Judicial Arbitration and Mediation Service (JAMS). Unlike
arbitration, a mediator is not empowered to impose a decision on the parties.
✔✔Non-performance - ✔✔To neglect to carry out an agreement.
✔✔Offer - ✔✔A promise, proposal or other expression of willingness to make and carry
out a contract under proposed terms with another party which has the ability to accept it
upon receiving it. Space and rent proposal from a facility. It may be in the form of a
contract or license agreement.
✔✔Provision - ✔✔Detailed section of a contract.
✔✔Union - ✔✔A labor organization, typically made up of workers from the same trade
formed for the purpose of advancing its members' interests such as dealing collectively
with their employer on issues of wages, hours, working conditions and other matters
pertaining to their employment.
✔✔Waiver of subrogation - ✔✔A release of rights to substitute one party for another
party. The release of an insurance company right to succeed to the insured's rights to
sue for damages against the tortfeasor, after the insurance company pays an insured's
claim of loss due to another's tort.
✔✔Walk - ✔✔Guest holding confirmed sleeping room reservation is denied
accommodations at the hotel where to reservation is held upon their arrival and is
relocated to another hotel.
✔✔APEX Post Event Report (PER) - ✔✔PER. The industry preferred term for a report
of the details and activities of an event. A collection of post event reports over time will
provide the complete History for an event. The industry accepted practice is to use the
