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Competency-Based

Competitive Events
*Written Exam*

Test: ST-HOTR-10A
Booklet Number _____

Hospitality and Tourism


Cluster Exam

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ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM 1

1. Which of the following is an important factor that affects the legal procedure:
A. Misdemeanor C. Jurisdiction
B. Freedom D. Larceny

2. What type of corporation sells millions of shares and must furnish complete information about its
earnings, assets, and debts?
A. Open C. "S"
B. Close D. Limited

3. Which of the following is true regarding passenger rights in the air travel industry:
A. It is legal for an airline to overbook a flight.
B. If baggage is lost, airlines pay a flat fee to reimburse the passenger.
C. There is an international "Bill of Rights" to protect air travel consumers.
D. Airlines must provide monetary compensation if a flight is delayed due to bad weather.

4. Which of the following services would be distributed by a producer to agent to consumer channel:
A. Legal defense of airlines C. Lodging at a bed and breakfast
B. Food-service at a local restaurant D. Travel planning

5. In which of the following situations might vertical conflict occur in a channel of distribution:
A. Two similar businesses compete for the same target market.
B. A manufacturer decides to sell its products on its web site.
C. Distributors for a product agree to charge the same price.
D. An organization sells additional franchises in the same city.

6. Which of the following is a guideline that employees should follow to be effective listeners:
A. Read directions C. Interrupt often
B. Ignore body language D. Ask questions

7. Which of the following is not a barrier to effective verbal communication:


A. Asking for clarification C. Interrupting the speaker
B. Thinking of what to say next D. Judging the speaker's appearance

8. Which of the following is a technique you can use to demonstrate a positive attitude over the telephone:
A. Use a wide vocabulary in conversations. C. Be informed about your business's rules.
B. Smile when you answer the telephone. D. Shut out all distractions while talking.

9. Once you know your group's purpose, what should you do next in a discussion?
A. Contribute in a useful way.
B. Find out what people know about the subject.
C. Volunteer a new idea.
D. Agree on ground rules.

10. What does an enclosure notation at the bottom of a business letter signify?
A. The sender prepared the letter. C. The sender wishes a reply.
B. Copies of the letter were sent to others. D. Something is being sent with the letter.

11. When developing persuasive business letters, it is most important for the writers to think about the
readers'
A. nonverbal cues. C. decision-making styles.
B. personal images. D. possible objections.

12. Which of the following types of material are often included as attachments to the appendix of short
reports:
A. Supporting documents C. Title page
B. Table of contents D. Conclusions and recommendations

Copyright © 2010 by MBA Research and Curriculum Center®, Columbus, Ohio


ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM 2

13. Three types of communication usually found in a business with a formal communication network are
A. upward, horizontal, and diagonal. C. downward, upward, and lateral.
B. grapevine, informal, and standard. D. informational, official, and conversational.

14. When Brian got a new job, he made sure he knew how to use the cash register, became familiar with all
the products and prices, and kept his work station very organized. In which way did Brian demonstrate
the customer-service mindset?
A. Being accurate C. Following-up
B. Following-through D. Being efficient

15. Slow/Methodical customers take a lot of time to make buying decisions because they are either
indecisive or shy. The shy customers are also referred to as __________ customers.
A. leave-me-alone C. irritable
B. impatient D. silent

16. A food server who has mixed up an order and brought the wrong menu items is an example of the
__________ contributing to customer complaints.
A. consumer C. business
B. employee D. product

17. Which of the following is an example of distribution in the travel and tourism industry:
A. A travel agency advertising a fly/drive package
B. An airline flying passengers to their destination
C. A tour operator developing a charter bus trip
D. An attraction offering a reduced rate on admission

18. Lois is a high school senior who wants to go on her senior trip and have a new outfit for graduation.
Unfortunately, Lois is unable to afford both. Which of the following categories of wants is displayed by
Lois:
A. Unlimited C. Competing
B. Unique D. Noneconomic

19. Products that are available when they are needed have __________ utility.
A. possession C. place
B. form D. time

20. When customers buy the exact amount of goods that producers are selling at a specific price, the
__________ price exists.
A. production C. unit
B. market D. equilibrium

21. One of the responsibilities of the business activity of human resources management is to
A. buy resources. C. promote goods.
B. obtain funds. D. hire employees.

22. When a business keeps a risk because management is unaware of it, the business is __________ the
risk.
A. avoiding C. retaining
B. preventing or controlling D. transferring

23. Indirect competition occurs only between businesses that


A. offer similar products. C. offer dissimilar products.
B. are in different cities or towns. D. are in the same city or town.

24. Which of the following is an advantage of specialization of labor:


A. Labor regulations C. Increased production
B. Income negotiations D. Higher worker morale
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM 3

25. What is a business calculating when it determines how much it earns from the sale of one additional
item?
A. Net worth C. Marginal revenue
B. Gross profit D. Disposable income

26. An import ant personality trait in hospitality and tourism is leadership, which is demonstrated by
individuals when they
A. analyze employee productivity. C. plan and organize their work.
B. feel what others are feeling. D. guide the actions of others.

27. Which of the following is a way to show interest and enthusiasm:


A. Exhibiting indifference C. Meeting deadlines
B. Asking irrelevant questions D. Avoiding direct eye contact

28. Your supervisor has given you a job to do which must be completed before you leave for the day.
Another employee has finished her assignment and offers to help you. This person is demonstrating
A. assertiveness. C. empathy.
B. honesty. D. initiative.

29. When Mary filled out her expense account, she included the cost of a breakfast that was actually free
with her hotel room. Mary's action is a form of
A. compliance. C. accuracy.
B. cheating. D. borrowing.

30. Feedback that you receive from self-evaluation is called __________ feedback.
A. external C. internal
B. indirect D. eternal

31. One of the barriers to assertiveness for some people is that they
A. are able to confront others in difficult situations.
B. believe their ideas are as important as anyone's.
C. know how to refuse others when necessary.
D. believe they have no control over their behavior.

32. How does a group reach a decision by consensus?


A. The majority of the group members reach agreement.
B. Group members vote to determine the best option.
C. Each member agrees to the same course of action.
D. The group leader solicits suggestions and makes the final decision.

33. A change leader might find it difficult to get support from others in a group because the others may
A. dislike the status quo. C. have a lot of good ideas.
B. fear the unknown. D. trust the change leader.

34. To develop effective political relationships within an organization, it is important for an individual to
A. go around the boss. C. be a team player.
B. participate in the grapevine. D. ignore conflict.

35. What do companies try to accomplish when extending credit to customers?


A. Increase sales C. Reduce assets
B. Reduce expenses D. Increase liabilities

36. In what primary way does a T account benefit an accountant in maintaining financial records?
A. Increases the accuracy of calculations
B. Reveals the motives behind a purchase
C. Shows the parts of a business transaction
D. Heightens the awareness of spending problems
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM 4

37. Managers who make a return on the business investment are


A. receiving a bonus. C. charging a fee.
B. making a profit. D. earning a salary.

38. Business accounting information often is summarized in which of the following types of financial
statements:
A. Trade report C. Balance sheet
B. Sales forecast D. Fiscal policy

39. What do businesses often need to do to continue operating when they experience negative cash flow?
A. Hire employees C. Borrow funds
B. Increase prices D. Stop discounts

40. Income from sales, cost of goods sold, gross profit on sales, operating expenses, and net profit or loss
are all part of a(n)
A. marketing plan. C. sales budget.
B. balance sheet. D. income statement.

41. Finance is the business function that involves managing


A. money. C. marketing.
B. information. D. production.

42. Which of the following is an advantage of a rolling budget?


A. It allows you to have a year-long budget in place at all times.
B. It requires less effort than an annual budget.
C. It sets an annual budget that does not change.
D. It has to be consulted less frequently by managers.

43. Which of the following is an example of helpful, printed information that businesses often give new
employees during orientation:
A. Application form C. Company handbook
B. Annual report D. Promotional brochure

44. Which of the following pieces of marketing information would be most useful to hotel staff wanting to
personalize a repeat guest's stay at the hotel:
A. The hotel restaurant chef's specialties and nightly specials
B. Room accommodations that the guest has selected in the past
C. Weddings, conventions, and other special events at the hotel
D. The total number of rooms that the hotel has booked for the night

45. Which of the following statements regarding using the Internet to administer questionnaires is true:
A. Data-entry and administrative costs are higher for online questionnaires.
B. Online questionnaires require more time for data entry and collection.
C. Interviewers are more likely to influence respondents' answers online.
D. Respondents are more likely to misunderstand online questionnaires.

46. Research data displayed in charts, tables, and maps are an example of
A. graphic presentation. C. visual association.
B. simple tabulation. D. functional distribution.

47. Why do business managers often prepare and use presentation software to support reports?
A. To record minutes of meetings C. To simplify complex information
B. To analyze financial data D. To design marketing materials
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM 5

48. What do business managers often prepare for other managers in the company to provide research
information that will help with the decision-making process?
A. Formal letters C. Written reports
B. Inter-office memos D. Short e-mails

49. The development of goods and services that best satisfy consumer needs and wants is a major goal of
A. product/service management. C. financing.
B. purchasing. D. marketing-information management.

50. Which of the following is a characteristic of travel and tourism marketing:


A. Standard C. Precise
B. Controllable D. Variable

51. One reason that hotels create guest history records is to provide information for use by the hotel's
__________ staff.
A. accounting C. housekeeping
B. personnel D. marketing

52. Internet Explorer is an example of __________ software.


A. computer server C. web browser
B. bookmark D. cookie.

53. A hotel wants to purchase computer software that would store, manage, and retrieve customer
information in order to better serve customer needs and increase sales. What type of software should the
hotel buy?
A. Spreadsheet C. Word processing
B. Database D. Computer-aided design

54. Hospitality and tourism businesses maintain accurate records of their income and expenses in order to
comply with the government's
A. ethics codes. C. policies.
B. tax laws. D. objectives.

55. Maintaining comprehensive records about its customers' purchasing habits helps a company to
A. negotiate with competitors. C. obtain favorable credit ratings.
B. plan future business activities. D. increase brand loyalty.

56. One reason why it is important for hospitality and tourism businesses to identify and respond to current
business trends is to
A. control performance. C. encourage feedback.
B. remain competitive. D. improve motivation.

57. Companies obtain internal information about their various business activities to operate effectively by
monitoring
A. internal records. C. industry trends.
B. trade publications. D. government statistics.

58. While conducting an environmental scan, a convention bureau obtained information revealing that
consumer confidence was gaining strength in the nation. This is an example of a(n) __________ factor.
A. economic C. technological
B. demographic D. political

59. Which of the following is a growing trend that is having a significant impact on the hospitality and tourism
industry:
A. Reduced population movements C. Decreased diversity
B. Flexible work schedules D. Limited technology
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM 6

60. Which of the following is a true statement about accident prevention:


A. Employees can reduce their risk for accidents by practicing good health habits.
B. Motor vehicles are rarely a factor in work-related accidents.
C. Heavy loads should be lifted by using muscles in the upper arms and back.
D. It is easier to prevent unsafe acts than unsafe conditions.

61. To prevent point-of-sale fraud, businesses usually use


A. surveillance equipment to maintain terminals. C. guidelines for unlocking display cases.
B. procedures for making bank deposits. D. specific credit-card procedures.

62. What do managers often do after a project has been successfully completed?
A. Give up power C. Prepare a report
B. Close the front office D. Provide feedback to vendors

63. Obtaining goods that will satisfy the needs and wants of a business's customers is a function of
A. advertising. C. marketing.
B. selling. D. purchasing.

64. While an adventure tour guide is leading a white-water rafting group, a group member falls and breaks an
ankle. What are the primary provisions the guide needs to help the injured group member?
A. Toolbox and flashlight C. Map and compass
B. Medical kit and cellular phone D. Prescription pain medication

65. Which of the following is a reason why hospitality and tourism businesses try to decrease their operating
expenses:
A. To improve service C. To expand sales
B. To promote efficiency D. To increase profit

66. Which of the following would not be part of the responsibilities of a hotel's maintenance department:
A. Changing a business's layout C. Selling goods
B. Inspecting mechanical equipment D. Routine repairs

67. Access control systems, video systems, and cash-control devices are all
A. new inventory trends. C. antirobbery systems.
B. customer interactive systems. D. types of electronic games.

68. Businesses that ask several vendors to submit prices before making a purchasing decision are managing
the
A. bid process. C. inventory plan.
B. operating system. D. stock method.

69. A hotel's employees are usually expected to dress in a manner which reflects
A. the business's image. C. their self-concept.
B. the latest fashions. D. their personal taste.

70. It is usually most effective for goals to be phrased in __________ terms.


A. specific C. general
B. complex D. simple

71. Eric earns extra money by giving riding lessons to elementary-school students at a summer camp.
Today, one of his young students nearly falls off the horse and starts crying. Eric isn't sure how to calm
the student's nerves. This is an example of a __________ problem.
A. work C. peer
B. personal D. school
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM 7

72. One of the most effective methods of locating job leads is asking for tips from
A. friends. C. minors.
B. retirees. D. nonworkers.

73. Matt just received a letter telling him that someone else had been hired for a job for which Matt had been
interviewed. Since Matt didn't get the job, does he need to write an interview follow-up letter to the
company?
A. No, it's too late to send a follow-up letter.
B. Yes, he should already have sent a follow-up letter.
C. Yes, the company will be expecting to hear from him.
D. No, since Matt wasn't hired, he doesn't need to write.

74. Publications that provide specific information about particular fields and new products and styles are
known as
A. consumer panels. C. market papers.
B. trade journals. D. consumer surveys.

75. Lisa is opening a new bed and breakfast and might benefit from joining a hospitality trade association
because she can
A. discuss personal business with her colleagues.
B. earn a college degree and become a certified hotelier.
C. obtain credit to purchase equipment for the business.
D. network with others who have expertise in the industry.

76. Which of the following is a hospitality and tourism business that focuses its efforts on providing shelter for
travelers:
A. Airline C. Tour wholesaler
B. Motel D. Restaurant

77. Which of the following is a factor that may have an effect on the prices of hospitality and tourism
products:
A. Hidden costs C. Unique values
B. Personal preferences D. Past experiences

78. A representative from a local distributor shows you calendars featuring photos of the most scenic
locations within the community, a board game developed by the local chamber of commerce, a Fourth of
July banner, and a holiday ornament designed by senior citizens. If your Welcome Center specializes in
selling community-based products that can be promoted throughout the year, which would you buy?
A. Banner C. Board game
B. Calendar D. Holiday ornament

79. What is the core product that cruise lines provide passengers?
A. Food service C. Transportation
B. Entertainment D. Luggage handling

80. A large company that owns a chain of economy hotels recently developed plans to start a chain of
upscale hotels. This is an example of
A. multicorporate franchising. C. product extensions.
B. market potential. D. property management systems.

81. Which of the following is a consideration when a restaurant is selecting suppliers:


A. The dependability of the supplier C. Operating expenses
B. The supplier's market share D. Tying agreements

82. An e-mail consisting of words on a screen that one hotel employee sends to a coworker is an example of
A. nonstatic communication. C. a personalized message.
B. noninterative content. D. a software program.
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM 8

83. Which of the following is a purpose of using color in advertising:


A. To increase circulation C. To de-emphasize the product
B. To reduce the cost of the ad D. To affect a mood

84. An important aspect of typography in advertising involves the effective use of


A. art. C. copy.
B. type. D. media.

85. Which of the following often is an important part of creating effective advertising layouts:
A. Developing a message C. Writing a signature
B. Selecting a slogan D. Using a large visual

86. Certain types of drawing media make it possible to


A. modify existing photographs. C. design meeting announcements.
B. produce multimedia presentations. D. create interactive communications.

87. Which of the following has a significant impact on the composition of a print ad:
A. Dialogue C. Production costs
B. Storyboard D. Color harmonies

88. The statement, "For a brochure that tells the whole story of Ebony Resorts, call your local travel agent or
1-800-555-5555," at the end of an advertisement is an example of a
A. slogan. C. seal.
B. brand. D. close.

89. Before returning an advertising proof to the newspaper, the advertiser should
A. check for and mark all errors in the ad. C. make sure enough stock is on hand.
B. check the prices at competing stores. D. make only the major corrections.

90. Participating in community outreach activities might be considered a form of


A. customer service. C. target marketing.
B. promotion. D. publicity.

91. A travel agent who prepares a factual announcement and asks the media to present it free of charge to
the public is
A. using a public relations agency. C. using a news release.
B. advertising the business. D. setting up an advertising campaign.

92. Asking customers to sign a guest book during a restaurant's grand opening provides an opportunity to
A. obtain publicity. C. work out problems with service.
B. create a mailing list. D. count how many people attended the event.

93. Which of the following is an example of the pyramid type of display arrangement in a restaurant display:
A. A large basket that contains menu items
B. Three rows of menu item pictures placed alongside a wall
C. Shelving that holds an assortment of menu items
D. Many levels of menu items that rise to a narrow point

94. Presenting fresh merchandise and keeping displays spotless are two important activities in __________
displays.
A. maintaining C. storing
B. moving D. tearing down
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM 9

95. Which of the following examples best illustrates the concept of promotion in the hospitality and tourism
industry:
A. American Hawaii Cruise Lines provides an itinerary that includes stops on several islands.
B. Marriott provides a home page on the Web and offers online booking for locations worldwide.
C. Choice Hotels International offers a range of products from economy to luxury accommodations.
D. Amazon.com offers its online customers guaranteed Christmas delivery on all in-stock products.

96. A hotel purchases theater tickets for upcoming plays, arranges discounts at local restaurants, and
advertises that, for one price, a guest can stay at the hotel, receive two tickets to a play, and a discount
on meals. This special promotion is known as a(n) __________ plan.
A. budget C. package
B. group D. advertising

97. Servers who can easily sell patrons additional food or beverage items they had not originally planned to
buy are using __________ selling.
A. substitute C. suggestion
B. inappropriate D. high pressure

98. Which of the following steps in the selling process would salespersons take first:
A. Demonstration C. Close
B. Follow-up D. Approach

99. What hospitality service is a hotel employee most likely to recommend to a guest with young children?
A. Interpreting C. Courier
B. Dining D. Baby-sitting

100. What is the most efficient way to follow procedures for processing complimentary offers, coupons, and
discounts at an amusement park?
A. Follow the instructions on the computer terminal screen
B. Keep written instructions in files
C. Ask the supervisor to demonstrate the process
D. Look in the operations manual while the customer is waiting
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 10

1. C
Jurisdiction. Jurisdiction involves whether a specific court has the authority to hear a case. Not all courts
are able to hear all types of cases. For example, depending on the business dispute, a legal procedure
might take place in a state court or a federal court. Also, a court in one state might, or might not, have
jurisdiction over a business that is incorporated in another state. Freedom is not a factor that affects the
legal procedure. Misdemeanor and larceny are types of crimes.
SOURCE: BL:070
SOURCE: Miller, R.L., & Jentz, G.A. (2005). Fundamentals of business law (6th ed.) [pp. 33-36].
Mason, OH: Thomson/South-Western.

2. A
Open. The open, or public, corporation usually sells millions of shares of stock to many stockholders. The
public corporation must furnish information to the public and to prospective investors about its earnings,
assets, and debts. A close corporation may be owned by just a few people and does not offer its shares
for sale to the general public. The "S" corporation is a private, state-chartered corporation that was
developed to help small businesses by taxing them as individuals in a partnership. It is limited to 75 or
fewer shareholders. Limited is a type of partnership.
SOURCE: BL:003
SOURCE: BA LAP 7—Own It Your Way

3. A
It is legal for an airline to overbook a flight. Since there are no laws to protect the travel consumer from
overbooking, bumping passengers from flights is common when traveling by air. The U.S. Department of
Transportation does, however, require that airlines first ask for volunteers to give up their seats in
exchange for compensation. This may be in the form of cash or a voucher. The amount a passenger is
compensated for lost luggage is subject to negotiation. Most airlines have a ceiling on the amount paid
($2,500/passenger); international travelers are paid $9.07/lb. Currently, there is no international "Bill of
Rights." The United States Congress has developed several options for an airline passenger "Bill of
Rights," but there is nothing on the law books as of yet (August, 2009). Airlines are not required to pay
any compensation for flight delays due to bad weather.
SOURCE: BL:135
SOURCE: Travel Images. (n.d.). United States: The rights of air passengers. Retrieved August 13,
2009, from http://www.travel-images.com/passenger-rights-us.html#overbooking

4. D
Travel planning. Travel planning is provided by travel agents who sell transportation, lodging, tours, etc.,
to consumers for the companies that provide each of these services. Other services, such as legal
defense, lodging, and food service, use a direct producer to consumer channel because the services
must be delivered directly to the user.
SOURCE: CM:003
SOURCE: CM LAP 1—Channel It (Channels of Distribution)

5. B
A manufacturer decides to sell its products on its web site. Vertical conflict in a channel of distribution
occurs when there is disagreement between different levels of members in the same channel. An
example of a vertical channel is a manufacturer selling to wholesalers who then sell to retailers. Conflict
may occur if the manufacturer decides to sell its products on its web site as well as sell them to
wholesalers. Both the wholesalers and the retailers may feel that they will lose sales because the
products are available directly to the ultimate consumer. Horizontal conflict may occur if an organization
sells additional franchises in the same city or if two similar businesses compete for the same target
market. Distributors for a product agreeing to charge the same price is price fixing.
SOURCE: CM:008
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 371-372]. Mason, OH: South-Western.
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 11

6. D
Ask questions. Effective listeners concentrate on what is being said and ask questions when they don't
understand or want clarification. Managers often assume that employees know more than they do and
give incomplete or vague instructions. Employees should pay close attention to what is being said and
ask questions to make sure they understand. Employees should not interrupt often, only when it is
necessary to clarify a point they don't understand. Employees should observe a speaker's body language
because nonverbal clues also send a message. Reading directions will not help employees be effective
listeners.
SOURCE: CO:017
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 206-208].
Mason, OH: South-Western.

7. A
Asking for clarification. Effective listeners give full attention to what is being said and ask questions to
make sure that they understand the message. Listeners who interrupt are focusing on themselves rather
than the speaker. Judging the speaker's appearance distracts the listener from what is being said.
Thinking of what to say next instead of listening to what is being said is a common barrier to effective
communication.
SOURCE: CO:147
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 180-182). New
York: Glencoe/McGraw-Hill.

8. B
Smile when you answer the telephone. Your attitude is projected over the telephone. A smile or a frown
can actually be "heard" in your voice by the person on the other end of the line. A smile indicates a
positive attitude, and a frown indicates a negative attitude. Using a wide vocabulary, being informed
about the business's rules, and shutting out distractions while you are talking to a caller are all helpful in
providing service, but they are not ways to demonstrate a positive attitude.
SOURCE: CO:114
SOURCE: Mancuso, J. (2007). The everything guide to being an event planner (p. 73). Cincinnati:
Adams Media.

9. D
Agree on ground rules. Once you know your group's purpose, you can (as a group) lay some simple
ground rules for appropriate behavior during the discussion. Finding out what people know about the
subject and contributing in a useful way occur later in the process. Volunteering a new idea is a
discussion tool for contributing in an open-minded way.
SOURCE: CO:053
SOURCE: QS LAP 29—Put In Your Two Cents

10. D
Something is being sent with the letter. The word "Enclosure" at the bottom of the page indicates that
other material accompanies the letter. This lets the recipient know s/he should look for additional material
and lets the sender know if the material was not enclosed. Reference initials indicate who prepared a
letter. The copy notation (cc) preceding a name (or names) signifies that copies of the letter were sent to
persons other than the addressee. A request for a reply is usually included within the body of the letter.
SOURCE: CO:133
SOURCE: Brizee, A. (2009, April 17). Writing the basic business letter. Retrieved August 11, 2009, from
http://owl.english.purdue.edu/owl/resource/653/01/
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 12

11. D
Possible objections. The purpose of a persuasive letter is to convey information that encourages the
reader to take a specific course of action. For example, the purpose of a sales letter is to motivate a
person to buy a particular product. An objection is a reason for not taking a specific course of action.
When developing persuasive messages, it is important for the writers to think about the readers' possible
objections and acknowledge them. By acknowledging the objections and providing a rationale that
removes the objections, the writers better position themselves in persuading the readers to take specific
actions. Because each reader has different personal images and decision-making styles, it is not feasible
for the writer to consider these factors if the letter is going to a lot of people. The readers' nonverbal cues
cannot be seen when writing persuasive messages.
SOURCE: CO:031
SOURCE: Hayden, K. (2008, December 19). Persuasive letter writing lesson. Retrieved August 11,
2009, from http://www.brightbulb.com/education/k-12/articles/16333.aspx

12. A
Supporting documents. The purpose of the short report is to present information in a concise and simple
manner. Therefore, documents that support the information presented in the appendix of a short report
often are included as attachments rather than as parts of the main body. Readers of the report have the
option to review the supporting documents or to rely solely on the information in the short report. Table of
contents, title page, and conclusions and recommendations are main parts of the short report.
SOURCE: CO:094
SOURCE: Smith, S.E. (2009). In a book, what is an appendix? Retrieved August 11, 2009, from
http://www.ask.com/bar?q=what+is+an+appendix&page=1&qsrc=121&ab=5&u=http%3A%2
F%2Fwww.wisegeek.com%2Fin-a-book-what-is-an-appendix.htm

13. C
Downward, upward, and lateral. Communication in a business with a formal staff communication system
usually moves in three directions—up, down, and sideways. Upward communication is from employees
to management, downward communication is from management to employees, and lateral is
communication between staff members on the same level. Grapevine communication is unofficial
information passed from one person to another in writing or through conversation. An informal
communication system usually has an active grapevine. The other alternatives are not types of
communication.
SOURCE: CO:014
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 250-251]. Cincinnati: South-Western.

14. D
Being efficient. Being efficient demonstrates the customer-service mindset. Specifically, this means
knowing how to operate equipment and software, becoming familiar with all the products the business
offers, and keeping work spaces organized for action. Being accurate is demonstrated through double-
checking work for accuracy. Following-through means always doing what you say you're going to do.
Following-up with customers suggests to customers that you care about their continued satisfaction.
SOURCE: CR:004
SOURCE: HR LAP 32—Customer-Service Mindset

15. D
Silent. Silent customers are too sensitive to talk very much even when they need help. They are not hard
to help, but they do require a lot of the sales agent's time. Impatient customers feel they must be helped
immediately, regardless of the circumstances. Irritable or moody clients may be pleasant one day and
touchy or unpredictable the next. Leave-me-alone customers prefer, or pretend to prefer, to be left alone
to find what they want.
SOURCE: CR:009
SOURCE: EI LAP 1—Making Mad Glad
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 13

16. B
Employee. Employees can contribute to customer dissatisfaction by being inaccurate and providing
unsatisfactory servi ce. Serving the wrong menu items is one way that restaurant employees can cause
customers to complain. The product was not at fault even though it was the wrong item. The business
was not at fault because the correct menu items were available. The customer was not at fault because
the desired item was ordered.
SOURCE: CR:010
SOURCE: Ramsey, R.D. (2005, October). Handling Customer Complaints in American Salesman v. 50,
Issue 10, pp. 15-20.

17. B
An airline flying passengers to their destination. The concept of distribution (place) in the travel and
tourism industry involves delivering the travel and tourism product to the customer. In this example, the
product is transportation that the airline provides by flying passengers to their destination. For distribution
to occur, the customer must participate in the experience such as fly on the airplane, go on the bus trip,
or visit the attraction. The bus trip is the product. Advertising is a promotional consideration. Offering a
reduced rate is a price factor.
SOURCE: DS:075
SOURCE: Morrison, A. (2002). Hospitality and travel marketing (3rd ed.) [pp. 339-340]. Albany, NY:
Delmar/Thomson.

18. C
Competing. Competing wants exist when we want more than one thing at the same time. A unique want
causes consumers to exert special effort to obtain items. Unlimited wants prove that as soon as one want
is satisfied there is at least one other waiting to take its place. Noneconomic wants are those that can be
obtained without spending money.
SOURCE: EC:002
SOURCE: EC LAP 10—Get the Goods on Goods and Services

19. D
Time. If a customer needs a product tonight and it is available, that product has time utility. Form utility
occurs when the shape of a product is altered, place utility involves having the product where it is
needed, and possession utility is created when ownership of a product is transferred from the seller to the
person or the business that will use it.
SOURCE: EC:004
SOURCE: EC LAP 13—Use It

20. D
Equilibrium. Equilibrium price is also called market-clearing price because that is often the result of
reaching the equilibrium point. Market price is the actual price that prevails in the marketplace at any
particular moment. Unit price indicates the price of products by the ounce, pound, or other measurement
to enable customers to compare product values. Production price is the total amount of money spent on
materials, labor, taxes, etc., to produce economic goods and services.
SOURCE: EC:006
SOURCE: AmosWEB (n.d.). Equilibrium price. Retrieved August 11, 2009, from
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=gls&c=dsp&k=equilibrium+price

21. D
Hire employees. Human resources management is the process of planning, staffing, leading, and
organizing employees. One of the responsibilities of human resources management is to hire employees,
which are the human resources needed to operate the business. Finance is the business activity that
obtains funds. Marketing is the business activity that promotes goods. Purchasing is the business activity
that buys resources.
SOURCE: EC:071
SOURCE: EC LAP 19—Strictly Business
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 14

22. C
Retaining. Sometimes, management is unaware of a risk and keeps the risk—doing nothing about it.
Since management in unaware of the risk, it is not avoiding, preventing/controlling, or transferring the
risk. Avoiding risk means not being exposed to the risk at all. Preventing/controlling risk means taking
measures to reduce the risk. Transferring risk means passing the risk to someone else.
SOURCE: EC:011
SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)

23. C
Offer dissimilar products. Indirect competition is rivalry between or among businesses that offer dissimilar
goods or services. It is the opposite of direct competition—which is rivalry between or among businesses
offering similar goods or services. The location of the businesses is not a factor in determining whether
competition is direct or indirect.
SOURCE: EC:012
SOURCE: EC LAP 8—Ready, Set, Compete!

24. C
Increased production. Workers who specialize in one job or kind of job can produce at a faster rate as
their familiarity with the job increases. This means increased worker production and increased production
for the company. A disadvantage is that the workers' morale may be lowered because they do the same
task over and over. Labor regulations are legal guidelines. Income negotiations deal with salary structure.
SOURCE: EC:014
SOURCE: AmosWEB (n.d.). Specialization. Retrieved August 11, 2009, from
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=gls&c=dsp&k=specialization

25. C
Marginal revenue. Marginal revenue is the change in revenue generated by the sale of one additional
item. For example, a business sells one item, and the marginal revenue is $2.00. The business sells
another item, and the marginal revenue is $2.00. Every time the business sells another item, the marginal
revenue is $2.00. Businesses compare the marginal revenue with the marginal cost to determine at
which level the business earns the most profit. Gross profit is the money left after cost of goods expense
is subtracted from total income. Net worth is the total value of the business. Disposable income is the
amount of money people have to spend, or dispose of, after they have paid their taxes.
SOURCE: EC:023
SOURCE: Gottheil, F.M. (2002). Principles of economics (3rd ed.) [pp. 203-205]. Mason, OH: South-
Western.

26. D
Guide the actions of others. Individuals who are leaders not only have the ability to decide what needs to
be done, but they can guide the actions of others to do the work. Good leaders generally plan and
organize their work, but that is not what makes them good leaders. Analyzing employee productivity is
often a responsibility of leaders rather than a personality trait. Displaying empathy by feeling what others
are feeling is a desirable personality trait but does not indicate leadership.
SOURCE: EI:018
SOURCE: EI LAP 9—You've Got Personality (Personality Traits in Business)

27. C
Meeting deadlines. Interest and enthusiasm are qualities that people observe and perceive. We show
interest and enthusiasm with our actions, questions, and facial expressions. Meeting deadlines shows
employers that you are interested in meeting their needs—an action. Direct eye contact helps to reinforce
this communication. Asking irrelevant questions and exhibiting indifference are ways of showing a lack of
interest or concern.
SOURCE: EI:020
SOURCE: The Professional Personal Development Center at Penn State University (2003). Module 10:
List ways you can show interest and enthusiasm on the job. Retrieved August 11, 2009, from
http://voc.ed.psu.edu/projects/caps/10CAPS.html
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 15

28. D
Initiative. Initiative is defined as the willingness to act without having to be told to do so, or the willingness
to accept or seek additional or unpleasant duties. The employee who offers to help another is showing
initiative by seeking additional duties. Empathy means the ability to put yourself in another person's
place. Assertiveness is behavior that is characterized by respect for personal rights as well as for the
rights of others. Honesty is truthfulness.
SOURCE: EI:024
SOURCE: EI LAP 2—Hustle! (Taking Initiative at Work)

29. B
Cheating. Cheating is dishonest behavior that involves tricking or misleading others. Mary is misleading
her company by asking it to reimburse her for more meals than she paid for. She is not borrowing money,
which is obtaining funds through a loan that will be repaid. She is not in compliance with the company's
rules but breaking them. Her expense account is actually inaccurate.
SOURCE: EI:022
SOURCE: Wells, J.T. (2003). The padding that hurts: Auditors cannot ignore expense account cheating
by management in Journal of Accountancy vol 195, Issue 2, pp. 67-69.

30. C
Internal. This is information you obtain by constantly monitoring your own actions. External feedback
comes from others, directly or indirectly. Although people often obtain ongoing feedback, eternal
feedback does not exist.
SOURCE: EI:003
SOURCE: EI LAP 15—Grin and Bear It (Using Feedback for Personal Growth)

31. D
Believe they have no control over their behavior. Some people have the mistaken idea that their behavior
is controlled by their circumstances. They behave in a certain way in response to their situation. Being
able to confront others, to refuse others, and to believe your ideas are as important as others' ideas are
characteristics of assertiveness.
SOURCE: EI:008
SOURCE: EI LAP 18—Assert Yourself (Assertiveness)

32. C
Each member agrees to the same course of action. A consensus is a decision-making outcome that
requires the substantial agreement of each group member—every member must agree to a decision or
outcome. In consensus building, every group member has an equal level of power, so there are no
leaders. Voting is a decision-making method in which votes are counted for or against an alternative, and
whichever alternative has the greatest number of votes, wins. With consensus, no member wins because
each member must agree with the decision. Majority rule is not a consensus because most, not all, of the
members make the decision.
SOURCE: EI:011
SOURCE: QS LAP 17—All Aboard!

33. B
Fear the unknown. A change leader is someone who has the ability to guide or direct others with the
intention to transform or alter something. Change leaders often run into problems when people resist
change. People resist change because they are afraid they won't be able to adapt to the change. People
also resist change when they are content with the way things are, distrust the change leader, and like the
status quo. When people are content with the way things are, they often do not share their ideas because
by doing so, change may occur.
SOURCE: EI:005
SOURCE: QS LAP 23—20/20 Foresight
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 16

34. C
Be a team player. Being a team player is a good way to earn the respect and trust of others. Being
respected and trusted is an important part of developing effective political relationships within an
organization. Others usually are willing to develop relationships with those who do what they say they will
do, help the team, and put the goals of the organization before their personal goals. The grapevine often
spreads rumors and false information. It should be avoided. It is not effective to go around the boss or
ignore conflict. It is helpful to keep the boss informed and deal with conflict in order to correct problems.
SOURCE: EI:034
SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development
(2nd ed.) [pp. 279-280]. Mason, OH: South-Western.

35. A
Increase sales. Credit encourages customers to buy more freely, which helps the business extending
credit to increase its sales. Companies also offer credit as a way of gaining new business and ultimately
increasing profits. Offering credit will increase expenses, but additional sales from credit transactions
may be worth this additional cost. Liabilities and assets are not usually affected by the extension of credit.
SOURCE: FI:002
SOURCE: College of Business and Economics at Western Washington University (n.d.). Credit and
collections. Retrieved August 12, 2009, from http://www.cbe.wwu.edu/SBDC/article.asp?i=15

36. C
Shows the parts of a business transaction. As a way to apply the double-entry accounting system when
maintaining financial records, a T account shows the parts of a business transaction. It does not reveal
motives, increase accuracy, or heighten awareness—though analysis of the parts of a business
transaction may result in any of the three.
SOURCE: FI:069
SOURCE: Guerrieri, D.J., Haber, F.B., Hoyt, W.B., & Turner, R.E. (2004). Accounting: Real-world
applications & connections (pp. 73-74). New York: Glencoe/McGraw-Hill.

37. B
Making a profit. Managers are responsible for making a profit, or return, on the business investment. This
means that the business needs to take in enough money to pay its operating expenses, loans, and taxes
and have money left over for the owner. Making a return does not involve earning a salary, receiving a
bonus, or charging a fee. However, managers usually earn a salary and may receive a bonus if they help
the business to make a significant profit.
SOURCE: FI:084
SOURCE: BA LAP 2—Risk Management

38. C
Balance sheet. A balance sheet is a financial statement that captures the financial condition of the
business at that particular moment. A balance sheet lists a business's assets, liabilities, and net worth at
a specific point in time. Business accounting information often is summarized in a balance sheet to
present the data in a form that businesses can use to make decisions. Fiscal policy is the government
policy that sets levels of government spending and taxation. A sales forecast is a prediction of future
sales over a specific period of time. A trade report provides information about exports and imports.
SOURCE: FI:085
SOURCE: FI LAP 5—Show Me the Money

39. C
Borrow funds. A negative cash flow indicates that a business will need to borrow funds or withdraw cash
from a bank account in order to continue operations. A negative cash flow means that the business is
spending more money than it is taking in each month. A short-term solution to a negative cash flow
problem is to borrow funds to cover expenses. Increasing prices might cause customers to buy
elsewhere if they do not want to pay more for goods and services. Businesses experiencing periods of
negative cash flow often lay off employees rather than hire new ones. Stopping discounts will not
eliminate a negative cash flow situation because it might cause customers to buy elsewhere.
SOURCE: FI:091
SOURCE: FI LAP 6—Count the Cash (Cash Flow)
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 17

40. D
Income statement. An income statement is a financial summary that shows how much money the
business has made or lost. It is also called a profit-and-loss statement. A balance sheet shows a firm's
assets, liabilities, and owner's equity. A marketing plan is a set of procedures or strategies for attracting
the target customer to the business. A sales budget is an estimate of expenditures related to sales.
SOURCE: FI:094
SOURCE: FI LAP 4—Watch Your Bottom Line (Income Statements)

41. A
Money. Finance is the business function that involves managing money. It also encompasses all the tools
and analysis that financial managers use to make the decisions involved in money management. The
finance function does not manage information, marketing, or production—those are separate business
functions.
SOURCE: FI:354
SOURCE: FI LAP 7—Money Matters (Role of Finance)

42. A
It allows you to have a year-long budget in place at all times. One advantage to rolling budgets is that
there is always a year-long budget in place. As each month goes by, another one is added. A rolling
budget does not require less effort than an annual budget, but the effort is divided up throughout the
year. Rolling budgets do not set an unchangeable annual budget. Indeed, they are often more flexible
than a typical annual budget because they are assessed more frequently. Managers consult rolling
budgets more frequently, not less.
SOURCE: FI:106
SOURCE: FI LAP 3—Money Tracks

43. C
Company handbook. Many businesses develop company handbooks that they give to new employees
during the orientation process. The handbooks usually contain information about company policies and
procedures and employee benefits and responsibilities. The information in the handbook answers many
of the questions that new employees often have about the company. Annual reports and promotional
brochures do not contain the type of business information that is useful to new employees. Application
forms are completed before employees are hired and begin the orientation process.
SOURCE: HR:360
SOURCE: Small Business Notes (n.d.). Employee handbook . Retrieved August 12, 2009, from
http://www.smallbusinessnotes.com/operating/hr/employeehandbook.html

44. B
Room accommodations that the guest has selected in the past. Although knowing the chef's specials and
specialties, special events at the hotel, and the total number of booked rooms might be nice, that
information would not be as useful in this situation as the guest's past room accommodations. Hotel staff
could more successfully personalize the guest's stay if they knew such details as whether the guest
prefers a smoking or non-smoking room, a handicap-accessible room, a king bed, a suite, etc.
SOURCE: IM:420
SOURCE: Kaser, K., & Freeman, J.T. (2002). Hospitality marketing (pp. 174-175). Mason, OH: South-
Western.
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 18

45. D
Respondents are more likely to misunderstand online questionnaires. Self-administered questionnaires
posted online have several advantages over other typical survey methods. For example, it takes much
less time to enter and collect data via a questionnaire online versus other survey methods. As a result,
data-entry and administrative costs are quite low. Also, because the interviewer is not personally reading
survey questions to respondents, there is less chance of the interviewer influencing the questionnaire
responses. However, because respondents are not interacting with live people while completing the
questionnaire, the respondents have no one to explain the questions to them if they do not understand
the questions. And, if they do not understand the online questions, there is a greater chance that
respondents will not answer questions accurately, which can skew research results.
SOURCE: IM:297
th
SOURCE: Zikmund, W.G., & Babin, B. (2010). Essentials of marketing research (4 ed.) [p. 179].
Mason, OH: South-Western Cengage Learning.

46. A
Graphic presentation. Businesses often include research data in reports in order to communicate the
information to others. To make the data more interesting and easier to understand, businesses often
present the data in a graphic format such as in charts, tables, and maps. The graphic presentation of
research data supports and reinforces the information that is presented in a written format. Research
data displayed in charts, tables, and maps are not an example of simple tabulation, visual association, or
functional distribution.
SOURCE: IM:347
SOURCE: Churchill, G., & Iacobucci, D. (2002). Marketing research: Methodological foundations
(8th ed.) [pp. 948-949]. Orlando, FL: Harcourt.

47. C
To simplify complex information. Presentation software is used to produce multimedia presentations that
often include slides, video, graphics, sound, color, etc. The use of this type of software often helps
business managers to present complex information in a simplified manner by displaying it in a visual
format. For example, statistics can be presented in the form of a colorful pie chart, or a complicated
production process can be shown on film. Used in conjunction with a report, the visual presentation helps
readers to understand the information because they are able to see it. Spreadsheet software is used to
analyze financial data. Word processing software is used to record minutes of meetings. Graphics and
design software are used to design marketing materials.
SOURCE: IM:386
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 201-202). New
York: Glencoe/McGraw-Hill.

48. C
Written reports. In most cases, business managers prepare written reports for other managers in the
company to provide research information that will help with the decision-making process. Written reports
usually are preferred because research information is often lengthy, technical, and complex. By
presenting the research information in a written report, other managers have an opportunity to read, re-
read, and analyze the information at their convenience. Once they fully understand the information, they
can use it to make decisions. Inter-office memos and e-mails often are short and do not contain a lot of
detailed research information. Formal letters usually are sent to other businesses or customers rather
than to other managers in the company.
SOURCE: IM:390
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 190). New
York: Glencoe/McGraw-Hill.
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 19

49. A
Product/service management. This marketing function involves obtaining, developing, maintaining, and
improving a product or service mix in response to market opportunities. Financing is not a marketing
function but a business function that involves understanding the financial concepts used in making
business decisions. Purchasing is a business activity rather than a marketing function. Marketing-
information management involves gathering, accessing, synthesizing, evaluating, and disseminating
information for use in making business decisions.
SOURCE: MK:002
SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

50. D
Variable. Travel and tourism marketing involves the marketing of services to customers who participate in
producing and experiencing the services. As a result, the service varies for each customer. For example,
one person's experience with an escorted tour might be completely different from another person's
experience. Furthermore, the way the service is marketed varies depending on the target market. For
example, a travel agency might market a luxury cruise to senior citizens and a Disney cruise to families
with young children. Consequently, the marketing varies, and the outcome is often unpredictable. It is not
a precise, controllable, or standard process because of the many variables.
SOURCE: MK:013
SOURCE: Morrison, A. (2002). Hospitality and travel marketing (3rd ed.) [pp. 33-34]. Albany, NY:
Delmar/Thomson.

51. D
Marketing. A guest history record is created from the information that the guest provides on the hotel's
registration card. It is used in such marketing efforts as compiling mailing lists or developing advertising
strategies for the hotel. Another use might be to provide future services to that guest. The housekeeping,
accounting, and personnel departments would not be likely to make use of this record in their work.
SOURCE: MP:034
SOURCE: UrVenue (n.d.). Guest history. Retrieved August 12, 2009, from
http://urvenue.com/www_features/GuestHistory.html
Pizam, A. and Holcomb, J. (2008). International dictionary of hospitality management
(p. 127). St. Louis, MO: Elsevier Science & Technology Books.

52. C
Browser. A browser is software that allows a computer to access information on the Internet. It has the
capability of searching for and locating information on the Web and displaying that information, which
then can be printed or saved. Microsoft's Internet Explorer is an example of a web browser. Mozilla
Firefox is another browser. A cookie is a bit of information that a web site collects about each viewer. A
bookmark is Internet Explorer's term for marking a web site for later reference. A server is a computer
that provides services to another computer.
SOURCE: NF:006
SOURCE: Wikipedia.com (2009, August 10). Internet explorer. Retrieved August 12, 2009, from
http://en.wikipedia.org/wiki/Internet_Explorer

53. B
Database. A database program allows the organized collection of information with pieces of information
related to one another. This information can be used to maintain, analyze, and combine customer
information. Spreadsheets, word-processing software, and computer-aided design do not perform the
functions required by the hotel.
SOURCE: NF:009
SOURCE: Chapple, M. (n.d.). What is a database? Retrieved August 12, 2009, from
http://databases.about.com/od/specificproducts/a/whatisadatabase.htm
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 20

54. B
Tax laws. Hospitality and tourism businesses keep records about their income, expenses, and equipment
depreciation because they are required by law to file tax returns. They must pay taxes on their income
and assets; therefore, they maintain accurate financial records to avoid paying more taxes than
necessary. Ethics codes are rules that govern behavior. Policies are general rules to be followed by
company personnel. Objectives are goals.
SOURCE: NF:001
SOURCE: NF LAP 1—Record It (Business Records)

55. B
Plan future business activities. Customer records (e.g., invoices) help businesses determine what
customers are buying, when they are buying, and how much they are buying. Analyzing past sales
records (e.g., invoices) helps a business forecast future sales, which aids in planning other activities such
as promotion. Businesses do not keep customer records so that they can negotiate with competitors. To
obtain a favorable credit rating, a business must pay its bills when they are due. Maintaining records
provides information about customers' purchasing habits, but the records themselves do not increase
brand loyalty.
SOURCE: NF:002
SOURCE: Burrow, J.L. (2006). Marketing (2nd ed.) [pp.120-121]. Mason, OH: South-Western.

56. B
Remain competitive. Current business trends, such as computerization and mass marketing, are
constantly changing the way that companies do business. Businesses continually monitor these trends to
develop new and better ways of producing products and serving customers. Businesses that fail to
identify and respond to current trends may be unable to remain competitive because they are doing
business the old-fashioned way when customers expect innovative techniques. Businesses do not
identify and respond to current trends to control performance, encourage feedback, or improve
motivation.
SOURCE: NF:013
SOURCE: Ivancevich, J. M., & Duening, T. N. (2007). Business principles, guidelines, and practices
(2nd ed.) [pp. 5-6]. Mason, OH: Thomson.

57. A
Internal records. Companies keep many types of internal records about their various business activities.
These records might contain information about sales, agreements with vendors, financial status, etc.
Management and employees use the records to make decisions about day-to-day and future actions. For
example, records that indicate that sales are increasing and the company is profitable might encourage
the business to decide to expand. Businesses monitor their activities on an internal basis. Trade
publications, industry trends, and government statistics are examples of external data.
SOURCE: NF:014
SOURCE: Burrow, J.L. (2006). Marketing (2nd ed.) [pp. 120-121]. Mason, OH: South-Western.

58. A
Economic. An environmental scan is an analysis of external forces that influence a business's success.
By examining political, economic, socio-cultural, and technological factors that affect it, the business can
take steps to ward off threats and to take advantage of opportunities based on the information that the
scan provides. Economic factors provide information about the way a country earns and spends its
money. Information that reveals information about consumer spending habits is an economic factor.
Political factors that a business might examine include changes in regulations and the laws that govern
how the business operates. Information about demographics or lifestyles falls into the socio-cultural
category. Technological factors often include information about advancements in technology, such as
computers and satellites.
SOURCE: NF:015
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 30-32, 84-86).
New York: Glencoe/McGraw-Hill.
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 21

59. B
Flexible work schedules. The work schedules of employees throughout the world are becoming more
flexible as businesses allow them to work from home, work compressed work weeks, and work part-time.
As a result, employees have more time to plan leisure and travel activities. For example, there is a trend
towards weekend getaways and short trips planned on the spur of the moment. This trend impacts the
hospitality and tourism industry by increasing demand for facilities that people can reach quickly. It also
increases demand for services to identify and book travel options. The movement of the population is
growing, diversity is increasing, and technology is expanding.
SOURCE: NF:048
SOURCE: Goeldner, C.R., & Ritchie, J.R. (2003). Tourism: Principles, practices, philosophies (9th ed.)
[pp. 569-570]. New York: John Wiley & Sons.

60. A
Employees can reduce their risk for accidents by practicing good health habits. People who eat a
balanced diet, get plenty of sleep, and exercise regularly, are more rested, alert, and able to concentrate
on their work. It is easier to create a safe work environment than to prevent humans from making
mistakes. Many work-related deaths are caused by accidents involving motor vehicles. In many of those
cases, substance abuse was involved. Leg muscles should be used to lift heavy loads in order to reduce
back strain.
SOURCE: OP:009
SOURCE: The Institute of Medicine (2003). The future of the public's health in the 21st century
(pp. 275-292). Washington, D.C.: National Academies Press.

61. D
Specific credit-card procedures. To prevent point-of-sale fraud, businesses establish detailed steps or
procedures to follow when accepting credit cards. These include checking the card's expiration date, the
status of the card, and comparing the signature on the card with the customer's signature. Use of
procedures for making bank deposits helps to prevent robberies. Development of guidelines for unlocking
display cases and techniques for monitoring hard-t o-see areas of a business help to prevent shoplifting.
SOURCE: OP:013
SOURCE: University of Lethbridge (2007). Fraud P&D tip - Theft of cash at point-of-sale. Retrieved
August 12, 2009, from
http://www.uleth.ca/audit/Fraud%20Prevention%20and%20Detection/fraudpd2.htm

62. C
Prepare a report. When a project has been successfully completed, it's a good idea to have a final
meeting. Group members often will have suggestions for improvement that the manager can include in a
report. Managers usually prepare some type of brief report that explains the project, what worked, and
what didn't work. This is particularly helpful if the project is one that will be completed again. The
information in the report will make next year's project much easier to plan and manage. In many cases,
there is no front office to close. Managers do not actually give up power or authority. The project they
were in charge of is simply over. After the project has been completed, managers often obtain feedback
from the group to include in a report.
SOURCE: OP:002
SOURCE: QS LAP 18—Make It Happen

63. D
Purchasing. Purchasing is a business function which involves the planning and procedures necessary to
obtain goods and services for use in the business or for resale. Personal selling is planned, personalized
communication designed to influence purchase behavior and to ensure satisfaction. Advertising is any
paid form of nonpersonal presentation of goods, services, or ideas. Marketing is an organizational
function and a set of processes for creating, communicating, and delivering value to customers and for
managing customer relations in ways that benefit the organization and its stakeholders.
SOURCE: OP:015
SOURCE: OP LAP 2—Buy Right (Purchasing)
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 22

64. B
Medical kit and cellular phone. Medical kits should contain items needed to initiate emergency care (e.g.,
a splint). Depending on the location of the accident and the extent of the injury, a cellular phone would be
useful to call for additional help and transportation of the injured party. A toolbox, flashlight, map, and
compass may be helpful but are not the primary items needed for the described situation. Most first-aid or
medical kits include nonprescription pain relievers, such as Ibuprofen, rather than medication prescribed
by medical doctors.
SOURCE: OP:119
SOURCE: Brouhard, R. (2006, October 1). First aid kits: Building and storing your first aid kit. Retrieved
August 12, 2009, from http://firstaid.about.com/od/emergencypreparation/qt/1staidkit.htm

65. D
To increase profit. Decreasing expenses is perhaps the best way that businesses can help to increase
profit. A business's profit is significantly affected by its expenses. The more a business's expenses
decrease, the greater the profit. Businesses try to decrease expenses without affecting their level of
service. Promoting efficiency often helps businesses to decrease expenses. Expanding sales while
decreasing expenses usually leads to increased profit.
SOURCE: OP:024
SOURCE: Manning, S. (2009, July 29). Meltdown 101: What companies do to cut costs. Retrieved
August 12, 2009, from http://www.wtop.com/?nid=111&sid=1728610

66. C
Selling goods. Selling goods involves planned, personalized communication intended to influence
purchase decisions and enhance future business opportunities. It is not a maintenance function. The
maintenance department makes periodic inspections and repairs of various machines, elevators, air
conditioners, and heating systems to keep them in good working order. The maintenance department
also makes seasonal or permanent changes to the hotel's physical layout, as the business requires.
SOURCE: OP:032
SOURCE: Bardi, J.A. (2007). Hotel front office management (4th ed.) [p. 81]. Hoboken, NJ: John Wiley
& Sons.

67. C
Antirobbery systems. Since robbery is a violent crime involving the use of force, retailers train employees
in coping with robbers and also install antirobbery defense systems intended to discourage and
apprehend robbers. Panic buttons are hidden alarms that can silently alert security or police, while video
systems are visible, closed-circuit TV monitors that are focused on the cash drawer. Cash-control
devices, such as safes, make it more difficult, if not impossible, for a robber to get access to cash.
Customer interactive systems may be a kiosk, which allows the customer to browse merchandise by
touching prompts on the screen. A trend is the general direction in which people or events are moving.
PlayStation and Xbox are types of electronic games and do not include panic buttons, video systems,
and cash-control devices.
SOURCE: OP:113
SOURCE: PBS (2004). Annual report (p. 37). Retrieved August 12, 2009, from
www.pbs.si/FileBroker.aspx?Id=904

68. A
Bid process. Businesses often ask several vendors to submit prices before making a purchasing decision
in order to obtain the best price. This is an example of managing the bid process because vendors
submit their prices and qualifications for providing the requested items. The vendors' goal is to win the
bid, and the business's goal is obtain the best price. Businesses that ask several vendors to submit
prices before making a purchasing decision are not managing the operating system, inventory plan, or
stock method.
SOURCE: OP:160
SOURCE: Van Weele, A.J. (2002). Purchasing and supply chain management: Analysis, planning and
practice (3rd ed.) [pp. 52-55]. London: Thomson Learning.
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 23

69. A
The business's image. Most businesses have a particular image and expect their employees to conform
to that image, whether it tends to be formal or casual. Dressing according to personal taste, self-concept,
or in the latest fashion would not always be appropriate business attire.
SOURCE: PD:002
SOURCE: PD LAP 5—Brand ME! (Personal Appearance)

70. A
Specific. Goals should be as specific as possible, not stated in general terms. A time limit should be set
for achieving the goals. These guidelines apply to both simple and complex goals.
SOURCE: PD:018
SOURCE: PD LAP 16—Go for the Goal (Goal Setting)

71. A
Work. Eric's uncertainty over how to handle his riding student is a work problem, since it occurs at his
place of employment. Problems at work can be diverse. They can involve people, processes, and
technology. Eric's problem isn't personal because it doesn't affect him or anyone close to him directly. It
isn't peer-related because it involves a young student instead of a friend or classmate. And, it isn't related
to school, either.
SOURCE: PD:077
SOURCE: IS LAP 2—No Problem

72. A
Friends. Letting friends and acquaintances know that you are looking for a job is one of the most effective
methods of locating job leads. These people often will be willing to pass on information about new
openings, resignations, and retirements they learn about. Retirees, nonworkers, and minors usually are
out of the mainstream of the employment scene and would not have information concerning job leads.
SOURCE: PD:026
SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 112-113). New
York: Glencoe/McGraw-Hill.

73. B
Yes, he should already have sent a follow-up letter. A follow-up letter should be sent as soon as possible
after a job interview. Since the company has had time to make a hiring decision and notify Matt of its
choice, we can assume that he did not write immediately following the interview. However, it is never too
late to send a follow-up letter. Businesses do not generally expect to hear from job applicants after an
interview, but they receive a positive impression of those who do write.
SOURCE: PD:029
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 71-72].
Mason, OH: South-Western.

74. B
Trade journals. These publications, also known as trade papers, enable businesses to keep abreast of
current trends in the field. Consumer panels are composed of individuals who provide the business with
information about consumers' opinions and reactions to products. Consumer surveys are usually in the
form of questionnaires or interviews conducted by businesses to obtain feedback from consumers. Trade
journals contain market information, but they are not called market papers.
SOURCE: PD:036
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 240). Tinley Park, IL:
Goodheart-Willcox.
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 24

75. D
Network with others who have expertise in the industry. A trade association is a group of persons in the
same industry or geographic area who form a society to solve their common problems. Because Lisa is a
business owner, she might join a hospitality and tourism trade association to network with others who
work in the hospitality and tourism industry. By networking with others who have expertise in that
industry, Lisa has an opportunity to get ideas that will help her business grow. She may also get advice
about how to solve problems and deal with difficult issues that occur in the industry. Although some trade
associations provide certification, they are not a means to earn a college degree. A trade association
might help Lisa locate financial sources, but it would not extend credit to her so she can purchase
equipment. As a business owner, the primary reason Lisa should join a trade association is to discuss
professional business with colleagues rather than personal issues.
SOURCE: PD:061
SOURCE: Kaser, K., & Freeman, J.T. (2002). Hospitality marketing (pp. 294-295). Mason, OH: South-
Western.

76. B
Motel. Hospitality and tourism involves activities such as welcoming special guests and providing
sleeping accommodations for people who are away from home. A motel provides this service. An airline
provides a service that transports travelers to their desired destinations. A tour wholesaler plans and
prepares packages for travelers; the packages include a combination of accommodations, transportation,
entertainment, and meals. A restaurant sells food and beverages to travelers.
SOURCE: PD:111
SOURCE: Silva, K.E., & Howard, D.M. (2006). Hospitality and tourism (pp. 5-9). Woodland Hills, CA:
Glencoe/McGraw-Hill.

77. A
Hidden costs. In many cases, there are hidden costs associated with hospitality and tourism products
that have an effect on the total price. For example, a resort package might include meals and some
activities but charge for beverages and certain specialties. The price of renting a car might not include the
cost of gasoline or excess mileage. These additional costs need to be considered because they have an
effect on the final price and may even make the final price extremely expensive. Personal preferences,
unique values, and past experiences are not factors that have an effect on the prices of hospitality and
tourism products; however, they can affect a customer's total costs.
SOURCE: PI:039
SOURCE: Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional
(3rd ed.) [pp. 188-189]. Albany, NY: Delmar/Thomson Learning.

78. C
Board game. If your Welcome Center specializes in selling community-based products that can be
promoted throughout the year, you should buy the board game. The board game is a community-based
product because it was developed by the local chamber of commerce. Also, it can be promoted
throughout the year because it is not related to a specific holiday or time period. The other products are
community-based, but they have time limitations, and customers would only want to purchase them
during certain seasons of the year.
SOURCE: PM:260
SOURCE: Cash, R. P., Thomas, C., Wingate, J. W., & Friedlander, J. S. (2006). Management of retail
buying (pp. 168-173). Hoboken, NJ: John Wiley & Sons.
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 25

79. C
Transportation. In the hospitality and tourism industry, the core product is the primary service that is
provided. In the case of cruise lines, the core product is transportation because that is what the cruise
lines are selling. Cruise lines are offering the service of transporting passengers from one location to
another. In conjunction with transportation, some cruise lines offer food service. Some cruise lines offer
movies and music to entertain passengers, but entertainment is not the core product. Luggage handling
is available to passengers who check their luggage. However, luggage handling is not the core product.
Customers pay for transportation, not for food service, entertainment, or luggage handling.
SOURCE: PM:081
SOURCE: Morrison, A. (2002). Hospitality and travel marketing (3rd ed.) [p. 250]. Albany, NY:
Delmar/Thomson.

80. C
Product extensions. A product extension is a good or service added to an existing product line or product
category. An example is a hotel chain adding a new line of hotels. Valet service and full-service dining
can be found in many upscale hotels but not at an economy facility. A company that owns more than one
type of hotel and offers different levels of service or amenities have extensions from the main product
(hospitality services). Market potential refers to estimated revenues or income that can be generated
from a specific market segment. Franchising is a method of distributing goods and services through a
licensing arrangement between a parent company and another individual or company outside the parent
company. Multicorporate franchising is not a term used in the hospitality and tourism industry. Property
management systems are the central computer or technological systems that a hotel uses.
SOURCE: PM:099
SOURCE: Burrow, J.L. (2002). Marketing (pp. 268-269). Mason, OH: South-Western.

81. A
The dependability of the supplier. The supplier's reputation for delivering the goods that were ordered at
the time promised is a very important factor. The restaurant will suffer if the supplier is not dependable.
The supplier's market share, or portion of the industry market, would not be a consideration for the
restaurant. The restaurant's operating expenses are the costs of running the business and do not include
cost of goods. Tying agreements that require the purchase of certain goods in order to get others are
illegal.
SOURCE: PM:263
SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003). Small business management: An
entrepreneurial emphasis (12th ed.) [pp. 512-513]. Cincinnati: Thomson/South-Western.

82. A
Noninteractive content. Noninteractive content is basically static. There are no audio files to listen to or
videos to watch. Plain text e-mail used in correspondence between friends, family members, and
coworkers is a good example of noninteractive content. This type of e-mail is static rather than nonstatic
because it contains only fixed text rather than graphics, sound, or video. Marketers send personalized e-
mails in an attempt to make customers feel special. Specific types of software programs are needed to
operate e-mail.
SOURCE: PR:165
SOURCE: PR LAP 13—E -Mail as a Marketing Tool

83. D
To affect a mood. The use of color in advertising can affect people's moods or feelings. The colors you
choose to use in advertisements influence the people seeing the ads. The use of color increases the cost
of an ad, but advertisers often feel the expense is offset by the increased reader response. Color is used
to emphasize products and attract attention to them. Using color in ads does not increase media
circulation.
SOURCE: PR:123
SOURCE: GardenGates (n.d.). How to use color in advertising. Retrieved August 12, 2009, from
http://www.ehow.com/how_4785186_use-color-advertising.html
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 26

84. B
Type. The lettering used in an advertisement is type. The effective use of type is an important aspect of
typography. However, typography involves more than the type or lettering. It involves the style and size of
type as well as the space between letters or words. Typography has a significant effect on the look of an
ad and helps to convey a message and express a certain feeling. Typography does not involve the use of
art, copy, or the media.
SOURCE: PR:295
SOURCE: Lane, W.R., King, K.W., & Russell, J.T. (2005). Kleppner's advertising procedure (16th ed.)
[p. 547]. Upper Saddle River, NJ: Pearson/Prentice Hall.

85. D
Using a large visual. The purpose of creating effective advertising layouts is to design an ad that attracts
attention. An important part of creating effective advertising layouts often involves using a large visual
because large visuals attract attention. A large visual might be a photograph, an illustration, or another
type of image that is appropriate for the product and the target market. Selecting a slogan, writing a
signature, and developing a message are activities that take place before the advertising layout is
created.
SOURCE: PR:275
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 429-430). New
York: Glencoe/McGraw-Hill.

86. A
Modify existing photographs. There are many types of drawing media available that have different
capabilities. Certain types of drawing media make it possible to modify existing photographs. With the
use of these programs, it is possible to remove or add people, eliminate red-eye, change the background,
combine photographs, etc. Graphic designers have the ability to create exactly the photograph they want
to use in an advertisement. Presentation software is used to produce multimedia presentations. Word
processing programs are used to design meeting announcements. Communications programs are used
to create interactive communications.
SOURCE: PR:334
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 200-201). New
York: Glencoe/McGraw-Hill.

87. D
Color harmonies. The various colors in an ad need to go together, or be in harmony, for the ad to be
visually appealing. Color is an important element of an ad bec ause color attracts attention and helps to
create a mood. Therefore, it is important to use colors that go together well and create the desired look.
Storyboard is the outline of a television commercial. Production costs do not impact the composition of a
print ad because composition involves the design of the ad. Dialogue is important in television
commercials and radio spots.
SOURCE: PR:314
SOURCE: Lane, W.R., King, K.W., & Russell, J.T. (2005). Kleppner's advertising procedure (16th ed.)
[pp. 521-524]. Upper Saddle River, NJ: Pearson/Prentice Hall.

88. D
Close. The close is the action step in a print advertisement. A good close will ask a reader to respond in
some way. A brand is a name, term, symbol, or design that identifies a product and distinguishes it from
competitors' products. A slogan begins as a successful headline and through continuous use becomes a
standard statement, such as AT&T's "Reach out and touch someone." A seal, such as that awarded by
the Good Housekeeping Institute, is awarded only when a product meets established standards.
SOURCE: PR:126
SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [p. 422]. Boston: McGraw-Hill Irwin.
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 27

89. A
Check for and mark all errors in the ad. The proof should be precisely as the advertiser planned. If it is
not, all errors should be marked for correction. However, proofing is not an opportunity to make changes
to the advertisement—only corrections. Product availability and competitor pricing should have been
considered prior to development of the ad.
SOURCE: PR:130
SOURCE: Port Stephens Tourism Limited (n.d.). Port Stephens visitors guide. Retrieved August 12,
2009, from http://www.portstephensvisitorguide.org.au/?act=showdoc&id=1&fv=freeview

90. B
Promotion. Promotion refers to the various types of communications that businesses use to inform,
persuade, or remind customers of their products. Participating in community outreach activities might be
considered a form of promotion because the activities often receive publicity which benefits the
businesses that participate. Businesses are often recognized by the media for their participation, so
people in the community become aware of the businesses and their community involvement. This
reminds people of the businesses and often encourages them to become customers because the
businesses are supportive of the community. Participating in community outreach activities is not
considered a form of customer service or target marketing. Businesses might receive publicity as a result
of participating in community outreach activities.
SOURCE: PR:341
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 135-137). New
York: Glencoe/McGraw-Hill.

91. C
Using a news release. A news release is a factual announcement sent to the media to be used as a news
item. Businesses use news releases so that they can inform the public about their operations without
having to pay a fee. A business that uses a public relations agency pays the agency to prepare the news
release. Advertising is any paid form of nonpersonal presentation of ideas, images, goods, or services.
SOURCE: PR:057
SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [p. 348]. Boston: McGraw-Hill Irwin.

92. B
Create a mailing list. A restaurant can purchase or create a guest book that has a place for customers to
sign their names, provide their addresses, and indicate if they want to be put on the mailing list. This
information provides an easy way to send out promotional materials to customers who have already
expressed an interest in the restaurant. Publicity is obtained through press coverage and word-of-mouth
advertising. A "soft opening" allows a restaurant to work out problems with service before its "grand
opening." Because not every customer will sign the guest book, a more accurate count of attendees can
be obtained by physically counting the number of people who walk through the doors.
SOURCE: PR:068
SOURCE: Rainsford, P., & Bangs, D.H. Jr. (2001). The restaurant start-up guide (2nd ed.)
[pp. 125-126]. Dearborn Trade.

93. D
Many levels of menu items that rise to a narrow point. A pyramid display arrangement involves a base
and many levels that taper towards the top. The display actually looks like a triangle. It is an effective
method of displaying all types of merchandise, such as menu items. The pyramid shape attracts attention
and makes the items appear more interesting. Three rows of menu item pictures might be a step display,
which is similar to the pyramid display arrangement. A large basket of menu items and shelving that
holds an assortment of menu items are not examples of the pyramid type of display arrangement.
SOURCE: PR:026
SOURCE: Griner, C. (2004). Floriculture (pp. 414-417). Albany, NY: Delmar Thomson.
Elements of design (n.d.). Retrieved August 12, 2009, from
http://classjump.com/nicole_rogers_harrison/documents/Elements%20of%20Design%20Work
sheet.doc
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 28

94. A
Maintaining. Since in-store displays are an important factor in motivating customers to buy, retailers
cannot let their displays become stagnant. They must constantly find new ways to display, updating them
with new ideas and fresh merchandise to keep customers' interest. In some cases, simply moving a
display to a new place may freshen it up. Moving, storing, and tearing down displays do not involve
presenting fresh merchandise and keeping displays spotless. These are definitely maintenance activities.
However, even when moving or storing displays, for instance, you should keep them as clean as possible
and in good condition.
SOURCE: PR:052
SOURCE: Bond, R. (2001). Retail in detail (2nd ed.) [pp. 73-80]. Grants Pass, OR: OasisPress.

95. B
Marriott provides a home page on the Web and offers online booking for locations worldwide. The
Internet provides companies the opportunity to promote directly to customers all over the world. Choice
Hotels' various product offerings in this example illustrate the marketing element of price. The marketing
element of place is illustrated in the American Hawaii Cruise Lines example. While Amazon.com
illustrates promotion, it is not an example of promotion in the hospitality and tourism industry.
SOURCE: PR:121
SOURCE: Burke, J., & Resnick, B. (2000). Marketing & selling the travel product (2nd ed.) [pp. 92-93].
Albany, NY: Delmar/Thomson

96. C
Package. These arrangements can consist of anything from sports packages, to theater, to getaway
weekends. A group plan is when a hotel gives discounts for large groups of people staying at the hotel. A
budget plan covers the costs of operating the hotel. An advertising plan is a plan to promote the hotel.
SOURCE: PR:082
SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in, check -out (6th ed.) [pp. 47-50]. Upper Saddle
River, NJ: Prentice Hall.

97. C
Suggestion. Suggestion selling is a sales technique in which the salesperson attempts to increase the
customer's purchase by suggesting additional products after the original decision to buy has been made.
An example of suggestion selling in a restaurant would be to suggest a basket of onion rings or an order
of mushrooms to accompany a steak. Substitute selling involves suggesting something other than the
original request when the business does not have the item requested. There is no pressure implied in this
situation, and suggestion is a legitimate and appropriate sales technique.
SOURCE: SE:875
SOURCE: Farese, L.S.; Kimbrell, G.; & Woloszyk (2006). Marketing essentials (pp. 321-323). Woodland
Hills, CA: Glencoe.

98. D
Approach. The approach is the beginning of a sale when the customer and the salesperson first
communicate. The salesperson cannot demonstrate a product until s/he knows what kind of product the
customer needs. The close is the point in the selling process at which the customer makes a favorable
buying decision. Follow-up is all the sales activities which occur after a sales presentation or a sale has
been made to ensure customer or user satisfaction.
SOURCE: SE:046
SOURCE: Futrell, C.M. (2006). Fundamentals of selling (9th ed.) [pp. 308-309]. Boston: McGraw-Hill
Irwin.
ST-HOTR-10A HOSPITALITY AND TOURISM CLUSTER EXAM – KEY 29

99. D
Baby-sitting. If child care is offered by a hotel, employees might advise guests with young children about
the service. By providing baby-sitting services, the hotel provides the parents with options allowing them
to attend adult functions (e.g., theater productions, meetings, formal dinners). A courier provides delivery
service. Dining information is usually available to all guests, not just to guests with young children. An
interpreter is a person who translates different languages.
SOURCE: SE:221
SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in, check -out (6th ed.) [pp. 78-79]. Upper Saddle
River, NJ: Prentice Hall.

100. A
Follow the instructions on the computer terminal screen. Today, with so many procedures to follow,
amusement park cashiers are fortunate to be able to use electronic terminals. For special transactions,
terminals provide step-by-step "prompts," or instructions, for cashiers to follow. This makes the process
quick and accurate and allows cashiers to concentrate their energies on interacting with and helping
customers, not trying to learn various special procedures. There should be no need to ask a supervisor to
demonstrate the process since the terminal will do it. However, if the cashier needs help, it is a good idea
for the cashier to consult the supervisor. Keeping written notes in company files will slow down the
assistance given customers. Following prompts on the computer screen also should make it unnecessary
to look through operations manuals. This should only be done if the cashier has a problem and only after
s/he has helped the customer and sent the person on his/her way.
SOURCE: SE:149
SOURCE: Automators Technical Services (2007). Advantages of Automators POS system. Retrieved
August 13, 2009, from http://automators.us/pos -advantage.html

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