TEST BANK FOR PRINCIPLES OF HOSPITALITY- ALL QUESTIONS
WITH SOLUTIONS #16
D - correct answer The wrongful interference with the right of a business to operate is
the basis of business
A. Compliance.
B. Liability.
C. Fraud.
D. Tort law.
1040 BL:069
B - correct answer Jake wanted to run his own business but was unsure that he had
adequate business skills to be successful. Which type of business would give Jake the
help he needs?
A. Sole proprietorship
B. Business-format franchise
C. Private corporation
D. Product trade-name franchise
1040 BL:033
D - correct answer Great Adventures Travel Agency is preparing a new brochure for its
clients which will include the following information: what is included in the package,
reservation procedures, deposit and payment schedule, cancellation and refund policy,
and the tour operator's limited responsibility and liability. This information is required by
the two trade associations serving the tour segment of the travel industry and is known
as
A. Federal regulation.
B. Performance bond.
C. Code of ethics.
D. Statement of conditions.
1040 BL:065
D - correct answer Which of the following would not be considered an intermediary in a
channel of distribution:
A. Wholesaler
B. Retailer
C. Agent
D. Producer
,1040 CM:003
D - correct answer Businesses that buy products from suppliers that are not the
authorized distributors for the products' manufacturers are involved in the
A. Discount trade.
B. Outlet industry.
C. Export business.
D. Gray market.
1040 CM:006
D - correct answer As the reporter from WRTZ interviews the fire chief, she takes
careful notes of the conversation. When he explains the details of injuries, she says,
"that's two people in critical condition and three in fair condition." This is an example of
A. Defensive behavior.
B. Ongoing feedback.
C. Passive listening.
D. Active listening.
1040 CO:017
B - correct answer The front desk can be a hectic work area at times. Front desk clerks
can still give good service under these conditions if they
A. Have good accounting skills.
B. Stay calm during interruptions.
C. Know how to avoid problems.
D. Are able to organize others.
1040 CO:114
C - correct answer In oral presentations, a closing method used specifically for getting
the audience to do something is
A. Using humor.
B. Using a quotation.
C. Making an appeal for action.
D. Making a comparison.
1040 CO:025
C - correct answer Which of the following is a characteristic of a persuasive sales
message:
,A. Discredits the competition
B. Reminds customer of the product
C. Makes the product appealing
D. Contains loaded language
1040 CO:031
B - correct answer Which of the following is a type of simple written report that usually is
distributed to employees within a business:
A. Proposal
B. Memorandum
C. Handbook
D. Newsletter
1040 CO:094
A - correct answer What is a type of informal communication that coworkers often use to
communicate with each other?
A. Grapevine
B. Feedback
C. Network
D. Structured
1040 CO:014
D - correct answer When a business strives to make every customer experience a
positive one, it is remembering its
A. History.
B. Internal customers.
C. Competition.
D. Touch points.
1040 CR:003
B - correct answer When customers ask questions or have complaints about a
business's procedures, employees need to be able to
A. Give the customers a booklet to read.
B. Explain the business's policies.
C. Call a supervisor for help.
D. Refer the customers to management.
1040 CR:007
, C - correct answer An individual books a hotel reservation on an Internet web site. This
is an example of
A. Product.
B. Promotion.
C. Place.
D. Possession.
1040 DS:075
D - correct answer The social science concerned with the basic problem of scarcity is
called
A. Manufacturing.
B. Purchasing.
C. Marketing.
D. Economics.
1040 EC:001
C - correct answer A business that begins selling winter holiday decorations in late
autumn is creating __________ utility.
A. Form
B. Place
C. Time
D. Possession
1040 EC:004
A - correct answer In a market economy, which of the following factors has an influence
on what goods are produced:
A. Profit
B. Need
C. Quotas
D. Opinion
1040 EC:007
A - correct answer Fracton Enterprises and Garland Manufacturing are identical
businesses that are supplied by Alta Wholesale. Fracton provides a holiday party for its
suppliers, while Garland does not. Because of the holiday party, Alta Wholesale
charges Fracton less for its merchandise than it charges Garland for purchasing the
WITH SOLUTIONS #16
D - correct answer The wrongful interference with the right of a business to operate is
the basis of business
A. Compliance.
B. Liability.
C. Fraud.
D. Tort law.
1040 BL:069
B - correct answer Jake wanted to run his own business but was unsure that he had
adequate business skills to be successful. Which type of business would give Jake the
help he needs?
A. Sole proprietorship
B. Business-format franchise
C. Private corporation
D. Product trade-name franchise
1040 BL:033
D - correct answer Great Adventures Travel Agency is preparing a new brochure for its
clients which will include the following information: what is included in the package,
reservation procedures, deposit and payment schedule, cancellation and refund policy,
and the tour operator's limited responsibility and liability. This information is required by
the two trade associations serving the tour segment of the travel industry and is known
as
A. Federal regulation.
B. Performance bond.
C. Code of ethics.
D. Statement of conditions.
1040 BL:065
D - correct answer Which of the following would not be considered an intermediary in a
channel of distribution:
A. Wholesaler
B. Retailer
C. Agent
D. Producer
,1040 CM:003
D - correct answer Businesses that buy products from suppliers that are not the
authorized distributors for the products' manufacturers are involved in the
A. Discount trade.
B. Outlet industry.
C. Export business.
D. Gray market.
1040 CM:006
D - correct answer As the reporter from WRTZ interviews the fire chief, she takes
careful notes of the conversation. When he explains the details of injuries, she says,
"that's two people in critical condition and three in fair condition." This is an example of
A. Defensive behavior.
B. Ongoing feedback.
C. Passive listening.
D. Active listening.
1040 CO:017
B - correct answer The front desk can be a hectic work area at times. Front desk clerks
can still give good service under these conditions if they
A. Have good accounting skills.
B. Stay calm during interruptions.
C. Know how to avoid problems.
D. Are able to organize others.
1040 CO:114
C - correct answer In oral presentations, a closing method used specifically for getting
the audience to do something is
A. Using humor.
B. Using a quotation.
C. Making an appeal for action.
D. Making a comparison.
1040 CO:025
C - correct answer Which of the following is a characteristic of a persuasive sales
message:
,A. Discredits the competition
B. Reminds customer of the product
C. Makes the product appealing
D. Contains loaded language
1040 CO:031
B - correct answer Which of the following is a type of simple written report that usually is
distributed to employees within a business:
A. Proposal
B. Memorandum
C. Handbook
D. Newsletter
1040 CO:094
A - correct answer What is a type of informal communication that coworkers often use to
communicate with each other?
A. Grapevine
B. Feedback
C. Network
D. Structured
1040 CO:014
D - correct answer When a business strives to make every customer experience a
positive one, it is remembering its
A. History.
B. Internal customers.
C. Competition.
D. Touch points.
1040 CR:003
B - correct answer When customers ask questions or have complaints about a
business's procedures, employees need to be able to
A. Give the customers a booklet to read.
B. Explain the business's policies.
C. Call a supervisor for help.
D. Refer the customers to management.
1040 CR:007
, C - correct answer An individual books a hotel reservation on an Internet web site. This
is an example of
A. Product.
B. Promotion.
C. Place.
D. Possession.
1040 DS:075
D - correct answer The social science concerned with the basic problem of scarcity is
called
A. Manufacturing.
B. Purchasing.
C. Marketing.
D. Economics.
1040 EC:001
C - correct answer A business that begins selling winter holiday decorations in late
autumn is creating __________ utility.
A. Form
B. Place
C. Time
D. Possession
1040 EC:004
A - correct answer In a market economy, which of the following factors has an influence
on what goods are produced:
A. Profit
B. Need
C. Quotas
D. Opinion
1040 EC:007
A - correct answer Fracton Enterprises and Garland Manufacturing are identical
businesses that are supplied by Alta Wholesale. Fracton provides a holiday party for its
suppliers, while Garland does not. Because of the holiday party, Alta Wholesale
charges Fracton less for its merchandise than it charges Garland for purchasing the
