Hotel Management - Qp2 - Quiz & Trivia

1. Franchising combines the advantages of small establishments with the advantages of large-scale production.

True

False

Franchising allows small establishments to benefit from the established brand and resources of a larger company, while also providing the advantages of large-scale production such as cost efficiencies and economies of scale. This allows franchisees to access the support and expertise of a larger organization, while still maintaining the independence and flexibility of a small business. Therefore, the statement that franchising combines the advantages of small establishments with the advantages of large-scale production is true.

Explanation

Franchising allows small establishments to benefit from the established brand and resources of a larger company, while also providing the advantages of large-scale production such as cost efficiencies and economies of scale. This allows franchisees to access the support and expertise of a larger organization, while still maintaining the independence and flexibility of a small business. Therefore, the statement that franchising combines the advantages of small establishments with the advantages of large-scale production is true.

2. Investment is the ______ of fixed assets.

Purchase

Sale

Investment refers to the act of acquiring or purchasing fixed assets. It involves the expenditure of funds to acquire long-term assets such as land, buildings, machinery, or equipment. The purchase of fixed assets is considered an investment because it is expected to generate future economic benefits for the business. On the other hand, the sale of fixed assets would result in a decrease in the company's investment in those assets. Therefore, the correct answer is "purchase" as it accurately describes the action of acquiring fixed assets.

Explanation

Investment refers to the act of acquiring or purchasing fixed assets. It involves the expenditure of funds to acquire long-term assets such as land, buildings, machinery, or equipment. The purchase of fixed assets is considered an investment because it is expected to generate future economic benefits for the business. On the other hand, the sale of fixed assets would result in a decrease in the company's investment in those assets. Therefore, the correct answer is "purchase" as it accurately describes the action of acquiring fixed assets.

3. Firms expand by moving into different markets and ______ different products.

Importing

Buying

Selling

Firms expand by moving into different markets and selling different products. This means that they enter new markets and offer a variety of products to customers. Selling different products allows firms to cater to different customer needs and preferences, increasing their market reach and potential revenue. By diversifying their product offerings, firms can also mitigate risks associated with relying on a single product or market. Overall, selling different products is an essential strategy for firms to grow and expand their business.

Explanation

Firms expand by moving into different markets and selling different products. This means that they enter new markets and offer a variety of products to customers. Selling different products allows firms to cater to different customer needs and preferences, increasing their market reach and potential revenue. By diversifying their product offerings, firms can also mitigate risks associated with relying on a single product or market. Overall, selling different products is an essential strategy for firms to grow and expand their business.

4. Most units, especially in the restaurant and hotel sections of industry are large.

True

False

The statement suggests that most units in the restaurant and hotel sections of the industry are large. However, this is not necessarily true as there are various sizes of units in these sectors. Some restaurants and hotels can be small, while others can be large. Therefore, the statement is false.

Explanation

The statement suggests that most units in the restaurant and hotel sections of the industry are large. However, this is not necessarily true as there are various sizes of units in these sectors. Some restaurants and hotels can be small, while others can be large. Therefore, the statement is false.

5. Match the following statements:

is a single unit, such as a single restaurant, a single fast-food outlet, or a single hotel, either operating as a business entity in its own right, or as part of a group.

is an establishment or a group of establishments under common ownership, which may operate in more than one sector of the industry, or in more than one industry.

is the collection of establishments and firms which offer for sale food, drink and accommodation, away from home.

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6. Several, conditions must be satisfied for perfect competition to exist which includes: (Select four)

There must be many buyers of the product, none of whose actions affect the price.

There must be many sellers of the product, none of whose actions affect the price.

All producers sell at the different prices.

There must be no barriers of entry into the industry.

The units of labour must be homogeneous.

Perfect competition exists when there are many buyers and sellers of a product, and none of their actions affect the price. This means that individual buyers and sellers have no control over the market price and must accept it as given. Additionally, there must be no barriers to entry into the industry, allowing new firms to easily enter and compete. Finally, the units of labor must be homogeneous, meaning that there is no differentiation among workers in terms of skills or productivity. These conditions ensure that the market is competitive and that no individual buyer or seller has the power to influence prices.

Explanation

Perfect competition exists when there are many buyers and sellers of a product, and none of their actions affect the price. This means that individual buyers and sellers have no control over the market price and must accept it as given. Additionally, there must be no barriers to entry into the industry, allowing new firms to easily enter and compete. Finally, the units of labor must be homogeneous, meaning that there is no differentiation among workers in terms of skills or productivity. These conditions ensure that the market is competitive and that no individual buyer or seller has the power to influence prices.

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7. The Demand for Hotel and Catering Services depends upon five main factors.

True

False

The demand for hotel and catering services does not depend on just five main factors. There could be several other factors that influence the demand for these services, such as economic conditions, customer preferences, competition, location, and marketing strategies. Therefore, the statement that the demand depends only on five main factors is incorrect.

Explanation

The demand for hotel and catering services does not depend on just five main factors. There could be several other factors that influence the demand for these services, such as economic conditions, customer preferences, competition, location, and marketing strategies. Therefore, the statement that the demand depends only on five main factors is incorrect.

8. Membership of the trade union movement is relatively ______ in the hotel and catering industry.

Standard

Low

High

The correct answer is "low". This means that the membership of the trade union movement in the hotel and catering industry is not very high. It suggests that a small percentage of workers in this industry are part of a trade union. This could be due to various factors such as the nature of the industry, the working conditions, or the lack of awareness or interest among workers in joining a trade union.

Explanation

The correct answer is "low". This means that the membership of the trade union movement in the hotel and catering industry is not very high. It suggests that a small percentage of workers in this industry are part of a trade union. This could be due to various factors such as the nature of the industry, the working conditions, or the lack of awareness or interest among workers in joining a trade union.