Question 1

In this type of "ownership" investors do not pay corporate income tax, however they distribute the majority of net income to shareholders, and are publicly traded.

Accepted Answer

A)   Franchises 
B)   Independent ownership 
C)   Partnerships 
D)   Real estate investment trusts

Question 2

City center, resort, airport and freeway are all examples of hotels being classified by

Accepted Answer

A)   location 
B)   price 
C)   service 
D)   amenities

Question 3

Mixed-use hotel development indicates that

Accepted Answer

A)   a hotel can be used for meetings and lodging 
B)   a hotel may also have residences 
C)   a hotel serves food 
D)   a hotel is near transportation

Question 4

Hotels may be classified by

Accepted Answer

A)   size 
B)   Location, price and service 
C)   type of recreational facilities 
D)   country B

Question 5

The fastest growing segment of the travel industry is

Accepted Answer

A)   resort hotels 
B)   city center hotels 
C)   cruise ships 
D)   vacation ownership

Question 6

Purchasing the right to use a company's trademark and copyrighted materials is known as

Accepted Answer

A)   a partnership 
B)   leasing 
C)   franchising 
D)   syndication

Question 7

Corporations that operate a hotel without capital outlay in exchange for a percentage of gross sales are known as

Accepted Answer

A)   leasing companies 
B)   vacation brokers 
C)   management companies 
D)   franchisees

Question 8

Examples of hotel location include

Accepted Answer

A)   city, resort, airport, freeway 
B)   luxury, all suites, economy, budget 
C)   full service, mid-scale, extended stay, limited service 
D)   spa, convention, casino, bed and breakfast

Question 9

Franchising is

Accepted Answer

A)   not widely used in the hospitality industry 
B)   used in the hospitality industry to rapidly expand business 
C)   a concept that allows a company to use other peoples money for growth rather than financing 
D)   B and C

Question 10

List five factors involved in the growth of franchising.

Accepted Answer

• Fresh look -- curb appeal Location -- ...

Question 11

Franchising hotels was begun in 1907 by

Accepted Answer

A)   Howard Johnson company 
B)   Marriott 
C)   The Ritz Company D Holiday Inn

Question 12

The Greenbrier, the Halekulani and the Ritz Carlton Kapalua are all examples of

Accepted Answer

A)   boutique hotels 
B)   full-service hotels 
C)   convention hotels 
D)   resorts D

Question 13

Examples of hotel level of service classification include

Accepted Answer

A)   city, resort, airport, freeway 
B)   luxury, all suites, economy, budget 
C)   full service, mid-scale, extended stay, limited service 
D)   spa, convention, casino, bed and breakfast

Question 14

Marriott builds a hotel for $34 million and sells it to a banking firm for $52 million. Marriott charges the banking firm 2-4 % of gross revenues to operate the hotel. This business transaction is known as

Accepted Answer

A)   franchising 
B)   management contract 
C)   REIT D Investment Partnership

Question 15

In franchising the franchisee is granted rights to

Accepted Answer

A)   full ownership of the building 
B)   full ownership of the land 
C)   change the name of the business 
D)   use trademarks, operating procedures and other business procedures D

Question 16

An organization that rates and classifies hotels and awards them Diamonds is the

Accepted Answer

A)   United States Automobile Club 
B)   Exxon Excellence Association 
C)   American Hotel & Motel Association 
D)   American Automobile Association

Question 17

List the six main types of hotels by price segment and give two examples of each. Outline a general profile of the typical customer for each segment.

Accepted Answer

• In this question, the student needs to...

Question 18

List and describe/provide examples of the five ways in which hotels are classified.

Accepted Answer

• By location -- city center, resort, ai...

Question 19

All of the following are benefits of a city center hotel EXCEPT:

Accepted Answer

A)   public transportation is available 
B)   variety of services and accommodations 
C)   typically have a signature restaurant 
D)   room prices are usually in the luxury segment

Question 20

Examples of hotel price classification include

Accepted Answer

A)   city, resort, airport, freeway 
B)   luxury, all suites, economy, budget 
C)   full service, mid-scale, extended stay, limited service 
D)   spa, convention, casino, bed and breakfast

Exam 2: The Hotel Business

In this type of "ownership" investors do not pay corporate income tax, however they distribute the majority of net income to shareholders, and are publicly traded.

Correct AnswerverifiedShow Answer

City center, resort, airport and freeway are all examples of hotels being classified by

Correct AnswerverifiedShow Answer

Mixed-use hotel development indicates that

Correct AnswerverifiedShow Answer

Hotels may be classified by

Correct AnswerverifiedB

The fastest growing segment of the travel industry is

Correct AnswerverifiedShow Answer

Purchasing the right to use a company's trademark and copyrighted materials is known as

Correct AnswerverifiedShow Answer

Corporations that operate a hotel without capital outlay in exchange for a percentage of gross sales are known as

Correct AnswerverifiedShow Answer

Examples of hotel location include

Correct AnswerverifiedShow Answer

Franchising is

Correct AnswerverifiedShow Answer

List five factors involved in the growth of franchising.

Correct Answerverified• Fresh look -- curb appeal Location -- ...View AnswerShow Answer

Franchising hotels was begun in 1907 by

Correct AnswerverifiedShow Answer

The Greenbrier, the Halekulani and the Ritz Carlton Kapalua are all examples of

Correct AnswerverifiedD

Examples of hotel level of service classification include

Correct AnswerverifiedShow Answer

Marriott builds a hotel for $34 million and sells it to a banking firm for $52 million. Marriott charges the banking firm 2-4 % of gross revenues to operate the hotel. This business transaction is known as

Correct AnswerverifiedShow Answer

In franchising the franchisee is granted rights to

Correct AnswerverifiedD

An organization that rates and classifies hotels and awards them Diamonds is the

Correct AnswerverifiedShow Answer

List the six main types of hotels by price segment and give two examples of each. Outline a general profile of the typical customer for each segment.

Correct Answerverified• In this question, the student needs to...View AnswerShow Answer

List and describe/provide examples of the five ways in which hotels are classified.

Correct Answerverified• By location -- city center, resort, ai...View AnswerShow Answer

All of the following are benefits of a city center hotel EXCEPT:

Correct AnswerverifiedShow Answer

Examples of hotel price classification include

Correct AnswerverifiedShow Answer

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B

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• Fresh look -- curb appeal Location -- ...
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D

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D

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• In this question, the student needs to...
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• By location -- city center, resort, ai...
View Answer

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