Intro to Hospitality Exam 1 Questions
And Correct Answers
\.Franchising is a concept that allows hotels to: - ANSWERS✔-Expand rapidly by
using other people's money
\.The largest lodging enterprise in the world is - ANSWERS✔-Marriott
\.Franchising trends include all of the following except: - ANSWERS✔-declining
demand in the lodging industry
\.Franchisee benefits include all of the following except: - ANSWERS✔-Discount
franchise fees
\.The average franchise fees range from ________ percent of room revenue. -
ANSWERS✔-3-4
\.Marriott builds a hotel for $34 million and sells it to a banking firm for $52
million. Marriott charges the banking firm 2-4 % of gross revenues to operate the
hotel. This business transaction is known as - ANSWERS✔-management contract
, \.Two organizations that rate and classify hotels are Forbes Travel Guide and: -
ANSWERS✔-American Automobile Association (AAA)
\.Hotels classified by level of service would include: - ANSWERS✔-full service, mid-
scale, extended stay, limited service
\.Which hotel has received all of the hospitality industry and consumer
organization awards including the prestigious Malcolm Baldrige National Quality
Award? - ANSWERS✔-Ritz-Carlton
\.Franchising is a concept that allows a company to expand more rapidly by using
other people's money. - ANSWERS✔-True
\.Marriott builds a hotel and sells it to an investment firm for a generous profit.
Marriott then runs the hotel for a set number of years and receives a fee for this
service. This type of ownership is known as a management contract. -
ANSWERS✔-True
\.What type of hotels provide facilities to meet the needs of groups attending
large meetings? - ANSWERS✔-Convention and Full Service
\.What type of items might be included in a franchise contract? - ANSWERS✔-
terms, PIP, and % of fees
\.Mr.Joe purchases a hotel. He signs a franchise contract with Marriott to brand
his hotel as a Renaissance hotel. Mr. Joe decides to manage the hotel with his
And Correct Answers
\.Franchising is a concept that allows hotels to: - ANSWERS✔-Expand rapidly by
using other people's money
\.The largest lodging enterprise in the world is - ANSWERS✔-Marriott
\.Franchising trends include all of the following except: - ANSWERS✔-declining
demand in the lodging industry
\.Franchisee benefits include all of the following except: - ANSWERS✔-Discount
franchise fees
\.The average franchise fees range from ________ percent of room revenue. -
ANSWERS✔-3-4
\.Marriott builds a hotel for $34 million and sells it to a banking firm for $52
million. Marriott charges the banking firm 2-4 % of gross revenues to operate the
hotel. This business transaction is known as - ANSWERS✔-management contract
, \.Two organizations that rate and classify hotels are Forbes Travel Guide and: -
ANSWERS✔-American Automobile Association (AAA)
\.Hotels classified by level of service would include: - ANSWERS✔-full service, mid-
scale, extended stay, limited service
\.Which hotel has received all of the hospitality industry and consumer
organization awards including the prestigious Malcolm Baldrige National Quality
Award? - ANSWERS✔-Ritz-Carlton
\.Franchising is a concept that allows a company to expand more rapidly by using
other people's money. - ANSWERS✔-True
\.Marriott builds a hotel and sells it to an investment firm for a generous profit.
Marriott then runs the hotel for a set number of years and receives a fee for this
service. This type of ownership is known as a management contract. -
ANSWERS✔-True
\.What type of hotels provide facilities to meet the needs of groups attending
large meetings? - ANSWERS✔-Convention and Full Service
\.What type of items might be included in a franchise contract? - ANSWERS✔-
terms, PIP, and % of fees
\.Mr.Joe purchases a hotel. He signs a franchise contract with Marriott to brand
his hotel as a Renaissance hotel. Mr. Joe decides to manage the hotel with his
