1. Which of the statements below best describes the purpose of a hotel business?

a. To maximize income from the sale of stays in hotel accommodation and the use of related facilities such as bars and restaurants.

b. To provide adequate levels of comfort and service to guests.

c. To deliver the desired financial return on the investment made by owners of the property in which the hotel business is operated.

d. To generate net cash income that is enough to repay owner equity contributions after covering the cost of third party debt repayments.

2. What are the two missing areas of management of an ongoing hotel business in the following list? Strategy, Finance, Forecasting, Risk.

a. Tactics

b. Budgets

c. Cash flow

d. Reporting

3. Select the group of words missing from the statement below:

Planning is the combination of ______, _______ and _______, all working together under the control of _________ in an environment that contains many elements that are ________ and therefore ___________.

a. Processes, Outputs, Resources, Management, Unknowable, Uncontrollable

b. Inputs, Outputs, Cash, Budgets, Unknowable, Unthinkable

c. Budgets, Cash, Operations, Clients, Unknowable, Uncontrollable

d. Budgets, Outputs, Resources, Clients, Unpredictable, Uncontrollable

4. Select the group of words missing from the following statement about the role of management in the planning process?

Under the control of management, _______ is assessed, _________ are controlled, _______ are allocated and the ________ of output is ________ and monitored to achieve the purpose of the business and, in most cases, constant __________.

a. Workload, staff levels, resources, cash flow, measured, budgets

b. Workload, staff levels, resources, quality, measured, improvement

c. Quality, staff levels, budgets, workload, measured, improvement

d. Quality, resources, staff levels, profitability, measured, improvement

5. Which of the following would most likely be classified as uncontrollable?

a. Comments on Social Media

b. Inflation

c. Interest rates

d. Hotel demand seasonality

6. Which of the following statements best describes the purpose of a business plan:

a. To predict the financial performance of a business for the next 12 to 60 months.

b. To set the financial budget for the coming 12 months and explain how improvements will be made to existing financial performance.

c. To describe how management will manage the risks of the business in order to achieve the desired output from that business for its owners and other stakeholders.

d. To estimate the future results, financial position, and cash flows that management wants the business to achieve during a certain period of time.

e. To analyze short-term operational considerations, such as adjustments to staffing, inventory levels, and the production plan.

f. None of the above

7. Which of the statements below is (are) wrong?

a. A Business Plan defines and quantifies the long-term vision of ownership and management.

b. A Business Plan is not needed in order to identify the investment return requirements of shareholders.

c. A Business Plan only needs to be updated annually at the time of preparing the budget

d. A Business Plan is communicated to shareholders for approval of strategy.

e. A Business Plan is used by debt providers as guidance on the future development of the company.

f. A Business Plan provides useful data on which to base credit and investment decisions.