Podcast
Questions and Answers
What is a primary consideration when selecting a business ownership structure for a tourism venture?
What is a primary consideration when selecting a business ownership structure for a tourism venture?
- The business owner's financial status and the specific operational context. (correct)
- The latest trends in the tourism industry.
- The owner's personal preference for a specific structure.
- The number of employees the business intends to hire.
Which of the following factors is LEAST likely to influence the choice of business ownership in a tourism or hospitality setting?
Which of the following factors is LEAST likely to influence the choice of business ownership in a tourism or hospitality setting?
- Capital requirements for starting and running the business.
- Tax implications associated with different ownership types.
- Personal opinions of business advisors. (correct)
- Liability concerns related to the business.
Why might a tourism business consider transferring to another location or area of operation?
Why might a tourism business consider transferring to another location or area of operation?
- To take advantage of tax incentives or lower tax rates. (correct)
- To reduce competition from similar businesses.
- To access better weather conditions for tourism activities.
- To be closer to major tourist attractions.
In the context of tourism and hospitality, what is the significance of developing infrastructure within a country?
In the context of tourism and hospitality, what is the significance of developing infrastructure within a country?
How does tourism directly contribute to the revenue of local economies?
How does tourism directly contribute to the revenue of local economies?
Besides direct spending on hotels and restaurants, how else does tourism indirectly bolster local economies?
Besides direct spending on hotels and restaurants, how else does tourism indirectly bolster local economies?
What characterizes the tourism industry's position in the global economy, despite challenges such as the COVID-19 pandemic?
What characterizes the tourism industry's position in the global economy, despite challenges such as the COVID-19 pandemic?
Which business structure provides complete control to a single individual, potentially aligning perfectly with their entrepreneurial vision?
Which business structure provides complete control to a single individual, potentially aligning perfectly with their entrepreneurial vision?
Which of the following best describes how well the form of ownership affects matching the entrepreneur's business idea?
Which of the following best describes how well the form of ownership affects matching the entrepreneur's business idea?
What considerations are primarily involved when tourism and hospitality businesses evaluate different types of business structures?
What considerations are primarily involved when tourism and hospitality businesses evaluate different types of business structures?
Flashcards
Sole Proprietorship
Sole Proprietorship
A business owned and run by one person, where there is no legal distinction between the owner and the business.
Partnership
Partnership
A business owned and controlled by two or more people who have entered into an agreement.
Corporation
Corporation
A legal entity separate from its owners, offering limited liability.
Franchising
Franchising
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Tourism Industry Components
Tourism Industry Components
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Benefits of Tourism
Benefits of Tourism
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Factors in Choosing Business Ownership
Factors in Choosing Business Ownership
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Study Notes
- At the end of the chapter, it is expected that you will be able to:
- Understand the characteristic of each form of ownership and how well they match an entrepreneur's business idea
- Describe the features of tourism and hospitality business forms like sole proprietorship, partnership, corporation, and franchising
- Know the advantages and disadvantages of these business forms especially in the hospitality industry
- Differentiate the types of business structure, its advantages and disadvantages
- Acquire a relevant familiarity with the Philippine Corporation Code
Introduction
- Tourism is among the world's fastest-growing industries
- Tourism includes accommodations, transportation, entertainment, recreation, and food and beverage services
- Tourism contributes to the success of numerous economies worldwide
- Benefits of tourism include boosting economic revenue, job creation for locals, infrastructure development, cultural exchanges, and improved relationships between nations
- Despite the setback caused by the COVID-19 pandemic, the tourism industry is expected to recover stronger
- Tourism generates revenue for local economies through tourist spending on hotels, restaurants, and entertainment
- It indirectly supports economies through tourist purchases of foods, clothing, locally manufactured souvenirs, and hired services
- Tourism and hospitality businesses operate under one of four legal structures: sole proprietorship, partnership, corporation, and franchising
- There's no single "best" form of ownership; it depends on the business's situation and the owner's financial status
- Factors to consider in choosing a form of ownership include tax considerations, liability, capital requirements, control, managerial ability, business goals, and management succession plans
- Businesses may relocate due to tax incentives or lower tax rates
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