1.
An offer must be made by one party and accepted by the other party in order for a contract to be
Correct Answer
B. Legally binding
Explanation
Legally binding. In order for a contract to be legally binding, an offer must be made by one party and
accepted by the other party. In effect, the two parties are agreeing to the terms stated in the contract.
Then, both parties must live up to those terms. All contracts do not need to be notarized, put in written
form, or interpreted correctly
2.
When an agent legally acts in the best interests of his/her client, the agent is establishing a(n) _______ relationship.
Correct Answer
C. Fiduciary
Explanation
Fiduciary. An agent is someone who acts on the behalf of another party. The agent often negotiates contracts and handles legal issues for another person with that person's consent. The agent who shows that s/he is loyal, trustworthy, and acting in the best interest of his/her client (principal) is fostering a fiduciary relationship. Authoritative relationships are based on a particular level of control. Principal is a legal term that describes the client. Legislative processes involve the procedures in which people or governments establish laws.
3.
Which of the following is one of the rights of customers in the travel and tourism industry:
Correct Answer
C. To be informed about a destination's social conditions
Explanation
To be informed about a destination's social conditions. Travel agents and tour operators have an
obligation to inform clients about the social and political conditions in a destination that they are
considering visiting. Clients have a right to know if there is political unrest, a threat of terrorism, or other
dangerous situations that might affect their travel plans or their safety. They should be made aware of
possible problems in order to make an informed decision as to whether to visit certain destinations.
Travel agents and tour operators usually do not discuss a competitor's refund policy. They often ask
customers if they want to buy trip insurance, but that is not considered a customer right. Travel to most
foreign countries is not dangerous. However, if travel to some areas is dangerous, customers have a
right to know.
4.
One way that a manufacturer can foster positive relationships with its channel members is by
Correct Answer
B. Providing training programs.
Explanation
Providing training programs. Positive channel relationships require collaboration among channel
members. Collaboration involves sharing relevant information, setting mutually-beneficial goals, and
developing a team-oriented attitude. Channel leaders have the most power or leverage in the channel,
and can implement tactics to foster positive relationships. Providing channel members with product
training programs helps channel members be successful in selling the products. Encouraging a
competitive culture among channel members, using aggressive tactics, and selling directly to end users
are more likely to create conflict and have a negative impact on channel relationships.
5.
What should employees be willing to accept when defending their ideas objectively?
Correct Answer
A. Critical feedback
Explanation
Critical feedback. When employees present their ideas to management or coworkers, they should be
prepared to defend those ideas and provide supporting information. They also should be willing to accept
critical feedback because others might not agree with the ideas or have different opinions. Being
prepared will help employees remain objective and be able to offer logical evidence to back up their
ideas. Critical feedback is often useful because it allows employees to view their ideas from a different
perspective. Defending ideas usually does not involve accepting additional responsibility or nonverbal
support. It is not acceptable to attack employees on a personal level because of their ideas.
6.
Why do businesses often make it possible for employees to meet during work time and participate in group discussions?
Correct Answer
C. To share many different opinions
Explanation
To share many different opinions. Many businesses encourage employees to participate in group
discussions to analyze problems and find solutions. The advantage is that when employees share many
different opinions, there is an increase in the chance of developing useful recommendations. However,
for the group discussions to be useful, all members must feel comfortable and be willing to express their
opinions. Businesses do not make it possible for employees to participate in group discussions to discuss
personal issues, to plan extracurricular activities, or to have casual conversations.
7.
An accounts-receivable employee monitors delinquent accounts by placing them into three folders—30 days past due, 60 days past due, and 90 days past due. How has the employee organized the information?
Correct Answer
D. Time
Explanation
Time. The system used or the way information is organized often depends on the type of information or
task at hand. In the example, the employee must track delinquent accounts. Because some accounts are
more overdue than other accounts the employee may use time as a method of organizing the
information. Each interval may require the employee to take a different action, such as mailing a late
notice to accounts that are 30 days past due, calling accounts that are 60 days past due, and turning
accounts over to collection agencies that are 90 days past due. Each action is based on a certain time
frame. The example does not indicate if the invoice numbers, locations, or names are organized in a
specific
8.
Which of the following is a guideline for writing clear instructions for your coworkers:
Correct Answer
B. Understand the process you are explaining.
Explanation
Understand the process you are explaining. In order to write accurate instructions, you must be
knowledgeable about the sequence and content of steps required for completion of the task. Instructions
should consist of simple, brief statements that are written from the employee's perspective. Although
instructions should be as brief as possible, the type and complexity of the process or activity will dictate
the length of the instructions.
9.
A transmittal letter is a business letter whose purpose is to
Correct Answer
B. Accompany other written material.
Explanation
Accompany other written material. A transmittal letter is sent along with other documents or reports as an
introduction and explanation. The purpose of a transmittal letter is to identify what is being sent so that
the recipient will know what should be included and if any action needs to be taken. The other
alternatives would require letters that apply to the specific situation. A letter of congratulations would
extend good wishes, a letter of apology would make amends with a customer, and a sales letter would try
to sell specific
10.
When writing informational messages, business employees should explain the situation and include sufficient data for the recipient to be able to
Correct Answer
D. Make a decision.
Explanation
Make a decision. Informational messages are intended to inform and provide data to the recipients. In
many cases, the purpose of an informational message is to help the recipient make a decision. For this to
happen, the business employee should explain the situation and include sufficient data. If recipients
clearly understand the who, what, where, when, why, and how of the situation, they usually have
sufficient information to make a decision. Clear and concise writing enables a recipient to read the
message. The letterhead usually includes the business's name, address, and phone number so
recipients are able to contact the business. Explaining the situation and including sufficient data does not
guarantee that the recipient will agree with the content.
11.
What type of simple report might a buyer for a business prepare in order to periodically inform other departments about the status of scheduled deliveries?
Correct Answer
C. Progress
Explanation
Progress. A progress report is a type of simple report that businesses often use to keep the various
departments informed of each other's activities. Progress reports briefly provide updated information
about long-term activities. They are short and usually include only summaries of necessary information.
Analytical, research, and statistical are examples of complex written reports that are lengthy and contain
detailed
12.
It is appropriate for a participant to ask questions during a staff meeting when
Correct Answer
B. S/he needs a point clarified
Explanation
S/He needs a point clarified. When employees do not understand what the speaker has said, it is
appropriate to raise their hand to ask for clarification; however, it is rude to interrupt another person while
s/he is speaking. In many meetings, the leader will ask the participants if they have questions, and it
would be appropriate to ask for clarification at that time. Asking questions due to differing opinions or
when the agenda is being distributed may not be appropriate
13.
You have a customer-service mindset if you believe that your customers are your
Correct Answer
D. Employers
Explanation
Employers. A customer-service mindset is the belief that giving customers good service should be a top
priority of a business. Without customers, there would be no need for employees. The business would
have to close, and you would be out of a job. You should, therefore, keep in mind that customers pay
your salary and are, in effect, your employers. Having a customer-service mindset does not involve
believing that your friends, associates, and relatives are your customers, although they may be at times.
14.
In order to interpret business policies to customers, salespeople must
Correct Answer
B. Understand the business's policies.
Explanation
Understand the business's policies. Salespeople must have a clear understanding of the business's
policies in order to explain them to customers and to answer questions. Management is responsible for
setting policies. Salespeople are expected to interpret and to implement policies, and they do not need
permission to do so. The salesperson must follow the business's policy even if s/he disagrees with it.
15.
. A business exhibits ethical behavior in customer relationship management by implementing policies that
Correct Answer
D. Protect its customers' privacy.
Explanation
Protect its customers' privacy. An ethical business implements strategies to protect its customers'
privacy. This is an important consideration to build long-term relationships with its customers, which
requires earning the customers' trust. One way for a business to earn its customers' trust is by
developing, implementing, communicating, and adhering to a customer privacy policy. Although privacy
policies vary by business, they might include limiting the access that employees have to customer
information and refusing to sell customer lists to third parties. If customers feel that the business respects
their privacy, they are more likely to trust the business and become loyal customers. Loyal customers
provide the business with repeat sales. A business can ask, but cannot require, its customers to provide
feedback. Offering exclusive benefits is a strategy that a business might use in customer relationship
management; however, this practice does not indicate or prove that the business is behaving in an
ethical manner.
16.
An individual books a hotel reservation on an Internet web site. This is an example of
Correct Answer
A. Place
Explanation
Place. Place refers to the ability to make sure that products are available where they are needed or
wanted by customers. In the hospitality industry, place can be a physical location (e.g., restaurant, hotel)
or a site where a want or need (e.g., reservation) is fulfilled. An Internet web site fulfills a customer's
desire to make a hotel reservation. Promotion is the marketing element referring to the various types of
communications that marketers use to inform, persuade, or remind customers of their products. Product
is defined as goods and services that businesses offer their customers. Possession refers to the goods
that people own.
17.
Which of the following situations involves finding another source of a limited natural resource:
Correct Answer
B. Searching for oil on the ocean floor
Explanation
Searching for oil on the ocean floor. The ocean is another place we can look for oil besides land. Natural
gas is an alternative resource. Conserving oil to prevent waste and paying a higher price for it are not
ways of finding more oil.
18.
What economic activity examines how money payments are divided between resource owners and producers?
Correct Answer
A. Distribution
Explanation
. A
Distribution. This economic activity examines how the money payments received by resource owners and
producers are divided or distributed. Resource owners must feel that the incomes they receive are large
enough so that they will continue to be willing to supply resources. Producers must receive enough
income so that they are able to continue making or providing goods and services. Consumption is the
process or activity of using goods and services. Production is the making of goods and services.
Exchange involves the exchange of money payments between producers and the owners of resources.
19.
Which of the following describes the services offered by trade industries:
Correct Answer
B. They may be limited or full line.
Explanation
They may be limited or full line. Each trade industry must decide how broad the range of services it offers
to customers will be. They are not always limited or always full line, but they are not changed on a daily
basis as this would be confusing to customers and cause problems for the business.
20.
You pay Burger King for the right to set up a location in Barcelona under the corporate headquarters' guidance and regulation. This is an example of
Correct Answer
A. Franchising
Explanation
Franchising. A franchise is a contractual agreement between a parent company and a franchisee to
distribute goods or services. Franchising is very common in the restaurant business. A joint venture is an
arrangement that involves two or more businesses entering into a relationship by combining
complementary resources, such as technology, skills, capital, or distribution channels, for the benefit of
all parties. A wholly owned subsidiary is a firm that is completely owned and controlled by the parent
company. Exporting is selling domestic goods in a foreign nation.
21.
Government can prevent unqualified persons from operating a business by
Correct Answer
A. Refusing to grant them a license.
Explanation
Refusing to grant them a license. In some types of businesses, owners/operators must meet certain
standards to obtain a license to operate the business. The government can refuse to grant a license to
unqualified applicants. The government cannot use unfair practices such as helping
22.
One of the benefits of competition to consumers is that competition encourages
Correct Answer
B. Businesses to develop new products.
Explanation
Businesses to develop new products. Competition encourages the development of products that satisfy
consumers' needs. Government does not finance business activity. Price fixing is an illegal activity that
would not benefit consumers, and is prohibited by law. When businesses limit their product lines, they
often create dissatisfaction among customers.
23.
Generating revenue to pay for services that are provided to the public is the reason for
Correct Answer
D. Taxes
Explanation
Taxes. Taxes are monies that individuals and businesses must pay to the government. The purpose of
many taxes is to generate sufficient revenue for governments to pay for providing necessary services to
the public. Certain services, such as highway construction and maintenance, are beyond the capability of
individuals. Therefore, government takes responsibility for providing the services but needs the revenue
to do that which is the function of taxes. Generating sufficient revenue to pay for providing necessary
services to the public is not the reason for sales, prices, or quotas.
24.
What action expands economic activities?
Correct Answer
A. Increasing inventory levels
Explanation
Increasing inventory levels. When producers are optimistic about business activity, they increase their
inventory levels in order to be prepared for the increase in demand. This action expands economic
activities. Increasing the unemployment rate, decreasing the purchase of durable goods, and decreasing
investments in capital goods would contract economic activities.
25.
To find a career that's best suited for your strengths, it's important to be __________ about your strengths and weaknesses.
Correct Answer
A. Realistic
Explanation
Realistic. To find a career that's best suited for your strengths, it's important to be realistic about your
strengths and weaknesses. You must be honest about your aptitudes and limitations if you want to
succeed. You should be specific in your self-assessment, rather than general. It's OK to be hopeful, but
you must be realistic as well. Self-assessment involves only you—it's not a competition.
26.
Accepting blame for failure and credit for success is an indication of a person's
Correct Answer
A. Responsibility
Explanation
Responsibility. Responsible individuals are accountable for things that are within their control. Initiative is
the ability and willingness to think or act without being told. Interpersonal skills are how a person gets
along with others. Consideration means showing kindness or thoughtfulness to others.
27.
Mary often frowns and shakes her finger when she is communicating with customers. Mary should try to develop self-control by controlling her
Correct Answer
A. Body language
Explanation
Body language. Body language is gestures, facial expression, posture, or any other form of
communicating without words. People who exhibit self-control make sure that their forms of nonverbal
communication do not send a negative message. Customers probably would interpret frowning and finger
shaking as negative gestures. Patience is the ability to endure life's aggravations and difficulties calmly.
A service attitude is the salesperson's commitment to the client's needs as expressed through
professional behavior. Salespeople try to improve their listening skills in order to better assist customers
28.
One of the reasons you should listen to criticism carefully is that it shows that you
Correct Answer
D. Take the criticism seriously.
Explanation
Take the criticism seriously. You should listen carefully to criticism, even though you may not like what
you are hearing. The speaker thinks the criticism is valid and expects you to take it seriously. Listening
carefully does not indicate that you know you have made a mistake, that you don't have any questions, or
that you believe the criticism is valid.
29.
Why is it important to be patient when learning to exhibit cultural sensitivity?
Correct Answer
C. It's a lifelong process.
Explanation
It's a lifelong process. It's important to be patient when learning to exhibit cultural sensitivity because it's
a lifelong process, not a one-time goal. You'll make mistakes along the way, and you may offend
someone, but you can apologize and learn from your mistakes
30.
A person can determine the reason for a conflict by
Correct Answer
D. Asking why the disagreement is occurring.
Explanation
Asking why the disagreement is occurring. To determine why a conflict is occurring, a person should ask
why the disagreement is occurring. Ignoring the situation does not help an individual determine why a
conflict is occurring. Evaluating the other person's behavior and attitudes helps to determine the best way
to approach or confront the conflict. When confronting the conflict, it is important for a person to take
responsibility for her/his own actions.
31.
One of the disadvantages of using consensus building as a decision-making tool is that it often encourages group members to
Correct Answer
B. Compromise
Explanation
Compromise. A compromise involves giving in to another's wishes so that an agreement may be
reached. This is one of the disadvantages of using consensus building as a decision-making tool. Group
members are encouraged to compromise, even when they really shouldn't, in order to settle differences.
Advantages of using consensus building is that it encourages group members to communicate their ideas
and collaborate, or work together, to reach an agreement. Consensus building is a cooperative effort
because it requires the effort of all members of the group.
32.
Why is accepting responsibility for your own actions important to effective human relations skills?
Correct Answer
D. People will be able to depend on you.
Explanation
People will be able to depend on you. Taking full responsibility for your own actions and never blaming
others for your mistakes means you are reliable. People will know they can depend on you to do what
you say you will do. This does not help you to be objective or enthusiastic, and it will not keep people
from trying to take advantage of you.
33.
A business that buys services and goods in order to operate now and pay for them later is using
Correct Answer
D. Credit
Explanation
Credit. Credit is the ability to obtain products now and pay later. Credit permits businesses to continue
operating without having to pay cash for all purchases. Currency is paper money. Collateral is the assets
pledged to a lender as security for a loan. Money and other assets owned by a company are called
capital.
34.
You are more likely to achieve your goals if they are
Correct Answer
C. Written down
Explanation
Written down. People who have written goals accomplish 50 to 100 times more than people who do not.
You are not more likely to achieve goals that are based on needs only or that are long- or short-term.
35.
When Jane received her first paycheck from her part-time job, she was surprised to see the amount was much less than her $8.00 per hour pay rate multiplied by the number of hours she worked. Jane had not planned on __________ tax being taken out of her paycheck.
Correct Answer
A. Income
Explanation
Income. Income tax is a tax rate on all income a person earns. A percentage of Jane's pay is taken out to
pay for this tax. Property tax is tax on property, such as a home. Consumers pay a sales tax when they
purchase many types of goods. Since Jane is receiving her pay, not buying a good, sales tax does not
apply. Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline.
Excise taxes are often included in the price of the product.
36.
Why is it important for individuals to periodically validate their credit histories?
Correct Answer
B. To avoid being denied credit
Explanation
To avoid being denied credit. Individuals should periodically validate their credit histories to make sure
that the information is correct. In some cases, inaccurate or false information may appear in a credit
history, which will result in an individual being denied credit. To make sure this doesn't happen,
individuals should review the information and contact the credit bureau to change or remove inaccurate
information. Individuals do not validate their credit histories to understand credit laws, find out about
different types of credit, or protect themselves from bankruptcy.
37.
To protect a business from natural risks, the business should purchase __________ insurance.
Correct Answer
C. Property
Explanation
Property. Insurance is a contractual agreement in which one company (insurer) will pay for specified
losses incurred by the other company (insured) in return for installment payments (premium). Businesses
purchase property insurance to protect against losses from natural circumstances, such as hurricanes,
hail, floods, and tornados. Life insurance pays a designated person (beneficiary) upon the carrier's death.
To obtain coverage for losses that result from theft, arson, and embezzlement, businesses purchase
crime insurance. Health insurance covers a certain percentage of a person's medical bills.
38.
Teresa is a new employee who received training in handling sales and returns for the business. Her supervisor referred to both types of activities as
Correct Answer
C. Transactions
Explanation
Transactions. A transaction is a business activity such as a sale, a purchase, or a return. These
transactions must be recorded accurately as part of the accounting information. Credit is the arrangement
by which businesses or individuals can purchase now and pay later. An exchange is the trading of one
thing for another. A function is a group of activities that are similar in purpose.
39.
To keep communication flowing with other departments, the finance function depends on
Correct Answer
A. Information systems.
Explanation
Information systems. To keep communication flowing with other departments, the finance function
depends on information systems. Information systems refers to any tools of communication within a
business. Accounts receivable refers to money owed to the business by others. Marketing and production
are not responsible for keeping communication flowing within the business.
40.
One of the most important ways that businesses use budgets is for
Correct Answer
B. Evaluation
Explanation
Evaluation. Budgets are critical for evaluation of a business. When businesses want to know if they are
accomplishing their goals, budgets show where they are on target and where they are not. By comparing
original budget figures to actual figures, businesses can see specifically what costs more than expected
or less than expected and make accommodations to meet their goals. One of the business's goals might
be renovation. Businesses do not use budgets for research or for promotion, although they often allocate
a certain amount of money in the budget for these items.
41.
Which of the following activities typically occurs during new employee orientation:
Correct Answer
A. A tour of the business
Explanation
A tour of the business. New employee orientation usually includes activities that will provide new
employees with information about the business. Orientation also helps to put new employees at ease and
helps to eliminate many of their anxieties about their new surroundings. Reviewing the employee's
résumé and contacting the employee's references is usually done before the business hires the
employee. A performance appraisal is a tool that evaluates how well the employee performs his/her job
duties. Employees receive performance appraisals after they have worked for a certain amount of time.
42.
Alonzo, the marketing director at the local convention and visitors bureau, conducted a series of focus groups with people in different age groups to determine what entertainment they are interested in. He then compared his findings to determine similarities across groups. This is an example of
Correct Answer
A. Primary data
Explanation
A tour of the business. New employee orientation usually includes activities that will provide new
employees with information about the business. Orientation also helps to put new employees at ease and
helps to eliminate many of their anxieties about their new surroundings. Reviewing the employee's
résumé and contacting the employee's references is usually done before the business hires the
employee. A performance appraisal is a tool that evaluates how well the employee performs his/her job
duties. Employees receive performance appraisals after they have worked for a certain amount of time.
43.
To track environmental changes impacting hospitality and tourism marketing, a destination marketer should use
Correct Answer
B. Push technology
Explanation
Push technology. Marketers can keep up with environmental changes by scanning information that is
automatically delivered to their computer by push technology. This helps marketers identify trends in their
early stages of development. LexisNexis is an example of a company that scans information, finds
relevant information, and forwards it to subscribers so that they can review and interpret the information
at their convenience. Model building involves identifying relationships between variables. Customer
discovery is a data-mining application that enables researchers to determine who will make a valuable
customer. Market-basket analysis is another data-mining technique used to identify relationships
between product purchases and retail shopping information.
44.
Which of the following can be learned from monitoring the sales data of any hospitality and tourism business:
Correct Answer
A. Average amount of sales per customer
Explanation
Average amount of sales per customer. By totaling the amount of all sales and dividing by the number of
customers, hospitality and tourism businesses can determine the average amount of sales per customer.
Hospitality and tourism employees can use this information as a target amount to work toward attaining
and exceeding with their sales efforts. The age of customers, the size of their families, and their preferred
color cannot be obtained from all hospitality and tourism sales data.
45.
When examining two data sets, the hotel manager found that one set had a correlation of +1 and the other had a correlation of -1. What should the hotel manager understand about the strength of the relationship of the two data sets?
Correct Answer
A. The strength of the relationship of the two data sets is the same.
Explanation
The strength of the relationship of the two data sets is the same. The +1 correlation has a direct
relationship with the X and Y coordinates, while the -1 correlation has an inverse relationship with them.
However, the strength of that relationship is the same.
46.
The audience for the research report is young professionals. What should you incorporate into a visual presentation that will appeal specifically to that audience?
Correct Answer
D. Animated backgrounds
Explanation
Animated backgrounds. The use of animated backgrounds appeals to young professionals, whereas
older professionals would prefer having clear, concise information. Pictures and concise information
appeal to all audiences. Using different backgrounds on each slide makes the presentation appear
"busy."
47.
Which major marketing function determines how various products will be shipped?
Correct Answer
C. Distribution
Explanation
Distribution. Distribution is the process of moving, storing, locating, and/or transferring ownership of
goods or services. Shipping is one aspect of distribution. Important considerations in selecting the
method of shipment are the weight of the product, its size, and whether it is perishable and/or fragile.
Warehousing, a component of distribution, involves the storage, recording, and care of goods for future
sale to customers. Servicing is the maintenance, repair, or replacement of defective parts of a product
after it has been sold. Transportation is the act of moving anything from one place to another or the
method by which it is moved, and is an aspect of distribution.
48.
A major pharmaceutical company is considering replacing meetings with teleconferences and substituting regional meetings for national meetings. This consideration is in response to which factor affecting marketing in the travel environment?
Correct Answer
B. Economic
Explanation
Economic. In a time of economic uncertainty, companies look for substitute goods and services such as
teleconferencing instead of holding a meeting or having one national meeting instead of several regional
meetings. The competition factor in the travel environment refers to competition within the travel industry
itself. Regulations in the travel industry do not affect the drug industry. Technology has made
teleconferencing possible but does not affect the substitution of regional meetings for national meetings
49.
A reason that hotels keep guest-history records that tell them the geographic locations of the majority of their guests is in order to
Correct Answer
B. Advertise in specific areas.
Explanation
Advertise in specific areas. Knowing the part of the country that most of their guests are from helps hotels
to choose appropriate areas in which to advertise. They are able to target the majority of their advertising
to the areas that provide the most guests. Knowing the home towns of guests would not influence a
hotel's selection of newspapers, menu items, or travel brochures.
50.
You have been asked to provide information to management about the impact a highway bypass will have on your business, identifying a recommended course of action. What would be the best way to organize the information?
Correct Answer
C. By cause/effect
Explanation
By cause/effect. Identifying the causes and/or the effects of the highway bypass will be helpful in
persuading management to make a decision about its course of action. Cause tells management why the
bypass happened, while effect presents the results of the bypass. Chronological order would provide
management with information according to the sequence in which the bypass occurred. An alternating
organization pattern would stress the points you want to make about a comparison you are making.
Emphatic order would present your ideas in their order of importance, either the strongest point being
given first or last.