DECA Hospitality and Tourism Cluster Exam PDF 2021-2022

Competency-Based Competitive Events *Written Exam*...

Competency-Based Competitive Events *Written Exam* for State/Province Use Test Number 1253 Booklet Number _____ Hospitality and Tourism Cluster Exam HLM – Hotel and Lodging Management Series Event HTDM – Hospitality Services Team Decision Making Event HTPS – Hospitality and Tourism Professional Selling Event QSRM – Quick Serve Restaurant Management Series Event RFSM – Restaurant and Food Service Management Series Event TTDM – Travel and Tourism Team Decision Making Event INSTRUCTIONS: This is a timed, comprehensive exam for the occupational area identified above. Do not open this booklet until instructed to do so by the testing monitor. You will have _____ minutes to complete all questions. CAUTION: Posting these materials on a website is a copyright violation. This comprehensive exam was developed by MBA Research exclusively for DECA’s 2021-2022 Competitive Events Program. Items have been randomly selected from the MBA Research Test-Item Bank and represent a variety of instructional areas. Performance indicators for this exam are at the prerequisite, career-sustaining, and specialist levels. A descriptive test key, including question sources and answer rationale, has been provided to the DECA chartered association advisor. Copyright © 2022 by Marketing & Business Administration Research and Curriculum Center®, Columbus, Ohio (dba MBA Research). Each individual test item contained herein is the exclusive property of MBA Research. Items are licensed to DECA only for use as configured within this exam, in its entirety. Use of individual items for any purpose other than as specifically authorized is prohibited. Possession of this exam, without written authorization, under any other circumstances is a copyright violation. Posting to inter- or intranet sites is specifically forbidden unless written permission is obtained prior to posting. Report violations to DECA at 703.860.5000 and MBA Research at 800.448.0398. Permission for reprinting is granted to DECA chartered associations authorized by DECA Inc. DECA Inc. will impose sanctions on chapters and chartered associations for violations of this policy up to and including disqualification of competitors and chapters from further participation. Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM 1 1. A company that is being sued is given the opportunity to present evidence to defend itself. This is an aspect of A. legal procedure. C. personal rights. B. legislative history. D. business rules. 2. Ourway Airlines Inc. purchases many smaller airlines to grow its business. Which method is Ourway Airlines using? A. Expansion C. Consolidation B. Merger D. Hybrid structure 3. The Houghten Hotel was overbooked and had to turn away an individual with a phone confirmation. Since the Super Bowl was in town, the individual was forced to stay at the only available hotel, which was located in an unsafe part of town. The individual was attacked while sleeping and sued the Houghten Hotel. What is the likely outcome of a lawsuit against the property? A. The individual will not be entitled to damages, because they did not receive a written confirmation. B. The case will be dismissed because the individual was able to find a room elsewhere. C. The property will be required to pay damages to the individual for breaking a legal contract. D. The property will be forced to pay a fine for committing fraud by pretending to have a room available. 4. Which of the following is an effective strategy to use before beginning to read: A. Think about what you want to learn. C. Consult a glossary. B. Take notes. D. Summarize the information. 5. To defend your ideas in an objective and respectful way, you should A. present facts that support your point of view. B. advise the other person that their opinion is illogical. C. use dramatic gestures to reinforce your message. D. provide a rebuttal for everything the other person says. 6. Under hectic conditions, front desk clerks can provide good service by A. knowing how to organize others. C. knowing how to avoid problems. B. having good accounting skills. D. staying calm during interruptions. 7. Which of the following is a technique used in a persuasive letter to gain the readers' attention and encourage them to read the rest of the message: A. Placing the call to action in the last paragraph C. Asking a question in the introduction B. Including a link to the business's website D. Providing statistics in the body of the letter 8. 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. employee C. business B. consumer D. product 9. The importance of customer service in the hospitality and tourism industry has grown due to A. fewer consumer choices. C. less frequent travel. B. lower prices. D. technology. 10. A passenger is upset with Petra, a flight attendant, because the plane has not taken off and he is worried about being late for an important meeting. Before responding, Petra takes a deep breath, listens to his complaint, and apologizes. Petra is A. deferring to authority. C. diffusing the customer's anger. B. solving the problem. D. avoiding the conflict completely. Copyright © 2022 by MBA Research and Curriculum Center®, Columbus, Ohio Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM 2 11. Which of the following is a good strategy for resolving a customer service issue: A. Keep the conversation in a public space B. Agree with the customer's complaints C. Allow the customer to express their feelings D. Disagree with each negative statement 12. Southwest Airlines expects its employees to reinforce the company's brand promise—high-quality customer service—at all times. Which of the following is the most significant aspect of the brand promise for all Southwest employees to remember? A. Long-term planning C. Ongoing promotion B. Profit maximization D. Consistent follow-through 13. Reece works for a hotel, and many of his customers are business travelers. When he learns that a customer is traveling for work, he automatically shows them where the hotel's business center is. Reece is A. using secondary marketing data. C. anticipating unspoken customer needs. B. making unfair judgments. D. using an aggressive selling tactic. 14. A restaurant has been extremely busy, but it does not have room in the budget to hire more staff to keep up with demand. What is one strategy the restaurant could take to keep customers happy during peaks in demand? A. Only accept customers who have a reservation B. Add a consumer-participation option such as a salad bar C. Offer discounts for customers to come back another time D. Expand the restaurant to accommodate more tables 15. Servers at the Mountain Top Cafe often seat customers as well as wait on tables. Unfortunately, the servers are often so busy that they aren't very welcoming or friendly to diners wanting to be seated. Which of the following would help servers focus on their responsibilities as waitstaff while also maintaining high service standards: A. Display a menu outside so diners can be self-informed B. Allow guests to seat themselves where they prefer C. Hire a host/hostess to greet and seat the diners instead D. Ask servers to tell customers they don't have time to chat 16. Hailey runs the social media accounts for a restaurant. When she sees a post complaining about the restaurant's service, what should she do? A. Reply to the post promptly with an apology and a promise to improve B. Ignore the post so that it will not gain any more attention C. Post a reply denying the accuracy of the customer's complaint D. Flag the post as inappropriate so it will be taken down 17. Opening a restaurant in New York City is more expensive than doing so in a small town in Upstate New York. This is a result of limited A. capital goods. C. natural resources. B. human resources. D. consumer goods. 18. Which of the following is a benefit of using the functional organizational structure: A. It encourages creativity. C. It's more flexible than other structures. B. It reduces the duplication of certain activities. D. It creates narrow perspectives for managers. 19. One of the primary ways in which hospitality and tourism contribute to economic growth is through A. the use of global positioning systems. C. conference space. B. the use of sustainable resources. D. visitor exports. 20. The two main sources of revenue used to pay the costs of government regulation are A. taxpayers and nontaxpayers. C. business and labor. B. taxes and borrowing. D. government and industry. Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM 3 21. Consumer spending tends to decrease when A. an economic recession ends. C. business activities slow. B. interest rates decrease. D. the inflation rate declines. 22. The use of technology such as video conferencing, virtual events, and email allows a business to A. improve the richness of conversation. C. reduce privacy concerns. B. develop diverse teams. D. avoid all face-to-face interactions. 23. When assessing your personal strengths and weaknesses, it's very important to A. be as hard on yourself as possible. C. get input from other people. B. compare yourself to other people. D. try to hide your weaknesses. 24. Miranda, the manager of a large resort, was approached by Mr. Wilson, a guest who was upset about a leaky faucet in his room. After listening to Mr. Wilson's complaint, Miranda said, "Mr. Wilson, I don't blame you for being annoyed. A leaky faucet would bother me, too. We will have a member of our maintenance staff take a look at the problem right away." In this situation, Miranda was exhibiting A. personal vision. C. cultural sensitivity. B. passive listening. D. empathetic behavior. 25. Honesty is not just telling the truth. It also includes A. not leaving out any facts. C. trusting others. B. hiding unethical actions. D. showing loyalty. 26. Critical-thinking skills allow you to A. show respect for other people. B. remain committed to tasks even when it's difficult. C. restrain your emotions and actions appropriately. D. make reasonable judgments about people and situations. 27. Aiden communicates openly and honestly with his friends because he is A. generous. C. encouraging. B. consistent. D. transparent. 28. Which of the following is an example of two individuals working in a collaborative manner: A. Lily and Marie combine their skills to create a new window display. B. Shelly informs Dustin that she needs new software installed. C. Joe asks Amy to create some PowerPoint slides based on his notes. D. Cody tells Chelsea that she needs to complete her reports on time. 29. Adaptable people commit to their goals and never give up because they have A. persistence. C. positivity. B. attentiveness. D. a sense of humor. 30. Which of the following is an example of a long-term consequence: A. Failing a homework assignment C. Arguing with your sibling B. Losing your level of physical fitness D. Spilling a tray of food at work 31. Which of the following activities helps employees build positive political relationships within the workplace: A. Getting to know the organization's key managers B. Avoiding coworkers who are difficult to work with C. Expressing personal opinions whenever possible D. Making others feel that their work is unimportant 32. Mikael has a $20 bill. Although this money is just a piece of paper and not backed up by a reserve, Mikael is still able to buy groceries with it because everyone in his country treats it as currency. This $20 bill is known as __________ currency. A. commodity C. fiat B. electronic D. specie Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM 4 33. People who are saving for retirement are advised to save enough money to account for inflation because dollars used in the future will have A. lower exchange rates. C. less spending power. B. higher spending power. D. higher exchange rates. 34. Brandon is developing a financial plan, and one of his goals is to save enough money to buy a new car in two years. Has Brandon set a SMART goal? A. No, his goal is not attainable or results-oriented. B. No, his goal is not specific or measurable. C. Yes, his goal is time-bounded and measurable. D. Yes, his goal is attainable and specific. 35. Rosie is in the process of choosing a financial services provider, but she has so many options that she feels overwhelmed. What is the first step she should take? A. Ask the financial services provider how much they charge B. Ask the financial services provider for references C. Ask herself, “What kinds of financial services do I want?” D. Find out what licenses the financial services provider holds 36. Sheila decides to invest some of her money. She doesn't like to take big risks, and she wants to be able to access all of her money at all times. She also doesn't mind not earning much interest. Sheila should invest her money in a A. certificate of deposit (CD). C. savings account. B. stock. D. money market account (MMA). 37. Which of the following is an internal procedure that many businesses use to control cash: A. Track dividends paid to owners C. Give receipts to all customers B. Monitor intangible assets D. Evaluate projected budgets 38. A restaurant has $8,550.00 in credit card sales for 135 credit card transactions. The following fees are charged for each credit card transaction: $1.27 to the issuing bank, $0.10 to the card association, $0.22 to the acquiring bank, and $0.20 to payment gateway. What percentage of total credit card sales goes toward fees? A. 3% C. 1.5% B. 2% D. 3.5% 39. What can happen when employees do not respect one another's lifestyles? A. An uncomfortable work environment C. Generational misunderstandings B. Language barriers D. An increase in productivity 40. Communities of practice benefit businesses by A. reducing the need for knowledge in decision-making. B. adding value to an individual's professional life. C. decreasing the learning curve for new employees. D. increasing employee turnover rates. 41. Natalie searched for 45 minutes to locate an important file folder, which she found under a pile of papers in an unmarked box that was stored under her desk. What action did Natalie fail to take that would have increased her efficiency and saved the company money? A. Staying on task C. Using supplies wisely B. Staying organized D. Observing safety standards 42. What type of market segmentation would be appropriate to use when a hotel targets people who are traveling with their pets? A. Behavioral—benefits sought C. Demographic—gender B. Psychographic—social class D. Mass market Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM 5 43. Managing information for business continuity is important in case of A. high employee turnover. C. low sales volume. B. a disaster. D. a drop in stock price. 44. What technique can help businesses reduce risks associated with software piracy and unauthorized peer-to-peer file sharing via the internet? A. Rerouting C. Encryption B. Virtualization D. Multicasting 45. Which of these lodging services would most likely be automated using software: A. Sales forecasting C. Room setup B. Concierge D. Registration 46. A marketing researcher classifies elements of a database into several groups that possess similar variables. What method is the researcher using to analyze information? A. Cluster C. Semivariance B. Fragment D. Semi-structured 47. Which of the following is an example of a demographic trend: A. Rising interest rates C. The aging of the population B. Shifting political climates D. A concern for fitness and health 48. A primary reason for a business to interpret statistical findings is to A. increase production. C. aid decision-making. B. promote creativity. D. influence buyers. 49. An airline executive wants to know why sales are dropping. They are most likely to need to conduct primary research if A. the airline has little money for research. B. no one on their team has the information they need. C. they have already exhausted their secondary research options. D. they have not conducted secondary research yet. 50. Which of the following types of hospitality and tourism information is most likely to be found in an online database: A. Customer reviews for a specific hotel C. Competitors' sales data B. Industry market trends D. A restaurant's customer demographics 51. A resort recently added a state-of-the-art gym, healthy dining options, and an on-staff personal trainer. These actions are examples of A. dealing with economic impact. C. avoiding regulatory penalties. B. responding to guests' lifestyle trends. D. becoming a globalized business. 52. Which of the following pieces of data would be most helpful to a restaurant that wants to increase sales: A. Twenty percent of customers pay with cash instead of credit cards. B. Customers with reservations spend 25% more than other customers. C. Customers with reservations tip waitstaff 8% more than other customers do. D. Thirty percent of customers dining with small children order split plates. 53. Which of the following is an example of a way that a company can use descriptive statistics to make business decisions: A. A hotel owner analyzes customer reviews to determine which manager deserves a promotion. B. An airline determines the average number of empty seats to know whether to cancel a flight. C. A restauranteur studies environmental reports when choosing a city for their new restaurant. D. A travel website analyzes competitors' prices to determine its own pricing strategies. Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM 6 54. Stella works for a cruise line, and she is recommending that the owners add another Alaskan cruise to the yearly schedule. She wants to demonstrate how sales of Alaskan cruises have risen over the past several years. What kind of chart should Stella use to demonstrate this? A. Scatter C. Column B. Pie D. Histogram 55. Before building a media presentation, you should first plan the text and illustrations for the presentation by A. planning slide transitions. C. creating the needed slides. B. developing a schedule. D. creating a storyboard. 56. Trends indicate a rise in the number of people who like to bring their dogs with them on vacation. To accommodate this travel trend, there are an increasing number of A. boutique pet stores. C. all-inclusive resorts. B. residential dog parks. D. pet-friendly hotels. 57. A hotel guest gives the front desk clerk a credit card to guarantee payment for a room. The clerk uses a credit authorization service to A. make a reservation for the guest at the hotel restaurant. B. charge the cost of the entire stay with an additional $100 for room service. C. determine if the guest has enough available credit to pay for the room. D. create a voucher for the guest that includes the guest's information. 58. Every time a customer pays with a credit card, the employees at Windsor Bar and Grille ask to see identification to A. encourage cash payments. C. know whom to charge. B. prevent fraud. D. comply with the law. 59. Before his project begins, Walker decides that he needs to check in with his project team once a day to see what they have accomplished. Walker is A. making changes/corrections. C. deciding what to monitor. B. communicating with stakeholders. D. gathering data. 60. Keeping a project's scope in mind during the planning process helps project managers A. save time. C. avoid all risks. B. ensure a project's quality. D. earn more money. 61. Which of the following is a primary factor that helps a business determine when it should place another order for a regularly stocked item: A. Profit margin C. Buyer's preferences B. Reorder point D. Accounts receivable 62. Sunset Airlines experienced a rare mechanical malfunction with one of its plane's engines and needs to purchase a new part. What type of purchase order would Sunset Airlines likely use? A. Blanket purchase order C. Standard purchase order B. Planned purchase order D. Contract purchase order 63. Which of the following are maintenance supplies that a business is likely to keep on hand: A. Paper towels, pens, and sportswear C. Trash bags, sanitizer, and light bulbs B. Batteries, computers, and cleaning items D. Mops, furniture, and conveyer belts 64. Which of the following quality-management tools helps managers determine which problems need immediate attention: A. Pareto chart C. Statistical quality control B. House of quality matrix D. Cause-and-effect diagram Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM 7 65. Jackson works for a hotel as a quality-control specialist. In the past, he inspected every hotel room once a week to ensure that the rooms remained clean, attractive, and fully stocked. Lately, however, he has been skipping weekly inspections and only checking the hotel rooms that guests tell him need attention. What mistake is Jackson making? A. He is not trusting his housekeeping staff to perform their jobs well. B. He is failing to communicate effectively with the staff he oversees. C. He is not inspecting dirty or unorderly hotel rooms thoroughly enough. D. He is being reactive instead of proactive in his quality-control practices. 66. When Kara reviews an invoice from one of her suppliers, she notices an error in the discount amount for the order. Which of the following is the most appropriate action for Kara to take: A. File a complaint with the supply company's president B. Pay the invoice now and notify the supplier about the problem later C. Contact the supplier to resolve the discrepancy D. Generate a new invoice with the corrected information 67. Riley is working with a design firm on a promotional campaign. The designer gives her a USB drive with some possible layouts to review. To ensure she is protecting the customer data on her computer, Riley should A. delete customer information before opening it. B. refuse to open the files. C. scan the drive for viruses before opening it. D. fire the design firm. 68. To lower their risk of inhaling the harmful fumes of cleaning chemicals, hotel housekeeping employees might wear protective A. gloves. C. nets. B. masks. D. mouth guards. 69. What can a hotel do to prepare its employees to respond appropriately if the facility experiences a power failure or fire? A. Assemble first aid kits C. Develop an organizational chart B. Provide computer training D. Conduct emergency drills 70. To reduce the risks of air-travel terrorism attacks, airports require passengers to A. remain seated on airplanes at all times. B. follow security checkpoint procedures. C. fasten their seatbelts during takeoff and landing. D. board the airplane one at a time. 71. One of the personal benefits of making your behavior more orderly and systematic is A. improved business image. C. increased clutter. B. reduced stress. D. lower productivity. 72. Laurel works for an organization that promotes tourism and encourages businesses to hold meetings and trade shows in her hometown. Laurel works for a(n) A. travel agency. C. convention and visitors bureau. B. industry trade association. D. tour operator. 73. A group of businesspeople in the same industry who join together for the purpose of achieving profitable business operations is called a __________ association. A. legal C. trade B. marketing D. local 74. What should you ask yourself before you perform any activity at work? A. "How long can I postpone doing this activity?" B. “What will I get in return for doing this work?” C. “Would my parents approve of this behavior?” D. “Is what I'm about to do in line with protocol?” Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM 8 75. A business must ensure that it hires employees who possess the appropriate skills to A. help the business achieve its organizational goals. B. determine if the business needs to seek additional funding. C. analyze the business's profit margins. D. set the appropriate standards. 76. The development of cars and airplanes fueled the growth of the hospitality and tourism industry because these forms of transportation provided the general public with increased A. sensitivity. C. creativity. B. mobility. D. stability. 77. Zoos, museums, and amusement parks are examples of __________ in the __________ industry. A. accommodations; travel C. entertainment; lodging B. attractions; recreation D. events; tourism 78. Before introducing a new product, businesses must first decide if it will be A. profitable. C. franchised. B. guaranteed. D. intangible. 79. Product/Service management should be approached from the angle of the A. product's technological benefits. C. product itself. B. customer's point of view. D. competition's point of view. 80. Which of the following is a disadvantage associated with the addition of a higher-priced product or line to a company's product mix: A. Success is difficult to predict. C. It can damage customer goodwill. B. It increases market risk. D. Sales of established products may decline. 81. Carol would rather have one product but will purchase another one if her favorite item is not available. This is an example of brand A. insistence. C. preference. B. responsiveness. D. recognition. 82. Communicating the core values of products is an effective way to A. reinforce a business's image. C. analyze the sales operation. B. explain the price structure. D. create a distribution channel. 83. Which of the following is the core product of a hotel in the hospitality industry: A. Food service C. Retailing B. Entertainment D. Lodging 84. Many hotel companies offer a variety of hotel properties targeted at different types of customers (e.g., luxury, economy, extended-stay, etc.). What do these companies hope to gain by offering diverse lodging options, often with the same or similar brand names? A. Free advertising C. A broader market appeal B. Differentiation of specialty hotels D. Reduced competition 85. What technique should be used when evaluating multiple vendors' canned goods to ensure that the evaluators provide unbiased reviews? A. Blind testing C. Random access B. Can-cutting D. Sampling 86. The overall goal of promotion for most businesses is to A. be relevant. C. increase sales. B. be factual. D. inform salespeople. Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM 9 87. Which of the following is an example of a promotional activity that allows the customer to try a new good or service without making a purchase: A. Premiums C. Sales promotion B. Visual merchandising D. Product sampling 88. What type of promotional method is often effective when dealing with corporate travel departments and meeting planners? A. Personal selling C. Award programs B. Radio advertising D. Public relations 89. Which of the following is a system that focuses on preventing defective products from being created in the first place: A. Quality control C. Quality improvement B. Quality assurance D. Quality command 90. When a company's leaders use its overarching strategies and vision to plan for risk, the company is likely using A. managerial accounting. C. enterprise risk management. B. marketing-information management. D. quality management. 91. For a business to continue to exist, it must have something to A. invent. C. sell. B. manufacture. D. patent. 92. One way that a hotel targeting convention business could build a loyal clientele is by providing A. free samples. C. efficient services. B. quality training. D. promotional materials. 93. Sending a prospective customer a brochure describing the company's services before calling on the customer A. creates a poor image of the company. C. is usually a waste of postage. B. can make the salesperson's job easier. D. reduces the salesperson's productivity. 94. Which of the following is a factor that often motivates people to choose a certain travel destination: A. Level of maintenance C. Recommendations of friends B. Actions of competitors D. Methods of promotion 95. While Mrs. Atwell was checking into the hotel, the front desk clerk said, “If you are interested, there is an outdoor play called The Lost Colony nearby. It is performed every evening during the summer months. We sell tickets here if you would like to attend.” This is an example of a A. hotel employee providing guided tour information. B. guest inquiring about local festivals and tours. C. hotel employee recommending local attractions. D. guest collecting tour brochures from the lobby display rack. 96. Which of the following is the most important question to ask guests who call to make a hotel reservation: A. Do you require an accessible room? C. Do you have any dietary preferences? B. What is your reason for traveling? D. How will you be arriving to the hotel? 97. What do many hotel chains sell that provides the buyers or users with flexibility to make reservations at their convenience? A. Spa points C. Contest passes B. Gift cards D. Keyless cards Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM 10 98. Mr. and Mrs. Walsh ate dinner in the hotel restaurant. Based on the following charges, calculate the amount charged to Mrs. Walsh's credit card: 2 shrimp cocktails at $12.95 each, 1 prime-rib dinner at $36.75 each, 1 order of Chicken Alfredo at $22.50 each, 2 glasses of iced tea at $2.10 each, and 1 slice of chocolate cake at $6.95 each. The sales tax rate is 6.75%, and Mrs. Walsh included a tip for the server based on 20% of the entire bill, including tax. A. $138.26 C. $132.83 B. $128.33 D. $123.36 99. Which of the following describes a divisional organizational structure: A. Perkins Pottery has creative, production, operations, and sales departments. B. AJK Corporation has a CEO, followed by six vice presidents who manage the company's product lines. C. Tom’s company contracts him out to take on various projects. D. A photography business only has three employees: the photographer, assistant, and salesperson. 100. What is a manager doing when they provide an employee with positive feedback and encouragement? A. Coordinating C. Motivating B. Planning D. Compensating  KEY Test Number 1253 Hospitality and Tourism Cluster Exam HLM – Hotel and Lodging Management Series Event HTDM – Hospitality Services Team Decision Making Event HTPS – Hospitality and Tourism Professional Selling Event QSRM – Quick Serve Restaurant Management Series Event RFSM – Restaurant and Food Service Management Series Event TTDM – Travel and Tourism Team Decision Making Event CAUTION: Posting these materials on a website is a copyright violation. This comprehensive exam was developed by MBA Research exclusively for DECA’s 2021-2022 Competitive Events Program. Items have been randomly selected from the MBA Research Test-Item Bank and represent a variety of instructional areas. Performance indicators for this exam are at the prerequisite, career-sustaining, and specialist levels. A descriptive test key, including question sources and answer rationale, has been provided to the DECA chartered association advisor. Copyright © 2022 by Marketing & Business Administration Research and Curriculum Center®, Columbus, Ohio (dba MBA Research). Each individual test item contained herein is the exclusive property of MBA Research. Items are licensed to DECA only for use as configured within this exam, in its entirety. Use of individual items for any purpose other than as specifically authorized is prohibited. Possession of this exam, without written authorization, under any other circumstances is a copyright violation. Posting to inter- or intranet sites is specifically forbidden unless written permission is obtained prior to posting. Report violations to DECA at 703.860.5000 and MBA Research at 800.448.0398. Permission for reprinting is granted to DECA chartered associations authorized by DECA Inc. DECA Inc. will impose sanctions on chapters and chartered associations for violations of this policy up to and including disqualification of competitors and chapters from further participation. Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 11 1. A Legal procedure. Procedural law controls the workings of courts and the method by which rights are enforced. Legal procedure means that rights must be enforced in court, so the business is guaranteed an opportunity to present evidence to defend itself. This is not because of legislative history, personal rights, or business rules. SOURCE: BL:070 Describe the nature of legal procedure SOURCE: Weigend, T., Yeazell, S.C., Hazard, G., & Jescheck, H.H. (2017, January 20). Procedural law. Retrieved September 20, 2021, from https://www.britannica.com/topic/procedural-law 2. C Consolidation. Ourway Airlines is acquiring many smaller companies, which is known as consolidation. A merger occurs when two businesses combine to form one company. An expansion occurs when a company sells more shares of stock, reinvests profits into itself, or obtains a bank loan to expand its operations. A hybrid structure is a type of ownership that allows owners to enjoy the advantages of corporations and either sole proprietorships or partnerships. SOURCE: BL:003 Explain types of business ownership SOURCE: LAP-BL-003—Own It Your Way (Types of Business Ownership) 3. C The property will be required to pay damages to the individual for breaking a legal contract. A room reservation is a legal contract that entitles an injured party to compensation when the contract is violated, such as when a property does not follow through with its promise to provide a room. A room reservation does not have to be in writing for it to be considered a contract; therefore, the individual is entitled to receive damages. For a property to be considered fraudulent in the eyes of the court, it is necessary to prove that the property overbooks as a rule, rather than as an exception, when a special event is in town. The ability to find a room elsewhere is not grounds for dismissing a case in which an individual is physically harmed as a result of being turned away by the hotel. SOURCE: BL:065 Explain the nature of regulations affecting the hospitality and tourism industry SOURCE: Webster, D. (n.d.). Chapter 11. Risk management and legal liability. Retrieved September 20, 2021, from https://opentextbc.ca/introtourism/chapter/chapter-11-risk-management-and- legal-liability/ 4. A Think about what you want to learn. Before beginning to read, it is important to know what you are hoping to learn from reading the text and what you will hope to know after you complete your reading. This will help guide your reading and increase your comprehension. Taking notes is an active reading strategy that you should use while reading, rather than before. Consulting a glossary is a strategy that you can use while reading to increase your understanding of technical or challenging vocabulary. Finally, summarizing is a tactic that can help with comprehension and retention after you have finished reading. SOURCE: CO:055 Extract relevant information from written materials SOURCE: Princeton University. (2021). Active reading strategies: Remember and analyze what you read. Retrieved September 20, 2021, from https://mcgraw.princeton.edu/active-reading- strategies 5. A Present facts that support your point of view. Because others may have questions or concerns about your ideas, you should be prepared to defend those ideas by providing supporting information. By having facts to support your ideas, others are more likely to accept your ideas and put them into action. Telling another person that their opinion is illogical and refuting everything the other person says are not actions that help you objectively and respectfully defend your ideas. In fact, these actions may offend the other person. Using dramatic gestures may indicate your enthusiasm about your ideas but does not demonstrate why your ideas are good and should be implemented. SOURCE: CO:061 Defend ideas objectively SOURCE: Haddock, P. (2020). Defend your ideas without becoming defensive. Retrieved September 20, 2021, from https://gohighbrow.com/defend-your-ideas-without-becoming-defensive/ Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 12 6. D Staying calm during interruptions. Hotel guests often need your attention as they check in or out, ask questions, and request services. The key to giving good service while handling all this activity is to remain calm during interruptions. It is not possible, or always desirable, to avoid problems. Front desk clerks are not required to have accounting skills or to organize other employees. SOURCE: CO:114 Handle telephone calls in a businesslike manner SOURCE: Ward, D. (2017, December 22). How hospitality professionals keep their cool in high stress situations. Retrieved September 20, 2021, from https://www.hcareers.com/article/career- advice/how-hospitality-professionals-keep-their-cool-in-high-stress-situations 7. C Asking a question in the introduction. Before persuading the audience to take action, the writer must gain the readers' attention—this is often referred to as the hook. Posing a question in the introduction (first sentence) often stimulates the readers' curiosity and encourages them to find out more about the issue or offer. Another way to grab the readers' attention is by including interesting statistics or facts in the introduction or first paragraph of the message. After gaining the readers' attention, the writer addresses the call to action. Depending on the type of message, inclusion of the business's website may be an important component of the message; however, this typically will not gain the readers' attention. SOURCE: CO:031 Write persuasive messages SOURCE: Davis, S. (2019, May 8). 7 sensational essay hooks that grab reader's attention. Retrieved September 20, 2021, from https://www.academicwritingsuccess.com/7-sensational-essay- hooks/ 8. A Employee. Employees can contribute to customer dissatisfaction by being inaccurate and providing unsatisfactory service. 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 Handle customer/client complaints SOURCE: Diaz, M. (2019, September 24). 10 common mistakes waiters make. Retrieved September 20, 2021, from https://joinposter.com/en/post/10-common-mistakes-waiters-make 9. D Technology. Many apps and websites allow customers to leave reviews and ratings about their experiences. Therefore, customer service has become even more important in hospitality and tourism. Businesses must provide top-notch service to make sure reviews are positive, which keeps business incoming. Lower prices, less frequent travel, and fewer consumer choices have not increased the importance of customer service in the hospitality and tourism industry. SOURCE: CR:043 Describe customer-service challenges in the hospitality and tourism industry SOURCE: Astute. (2021). Key CX challenges facing the hospitality industry. Retrieved September 17, 2021, from https://www.astutesolutions.com/industry-insights/hospitality-industry 10. C Diffusing the customer's anger. In the hospitality and tourism industry, it is important to know how to resolve conflicts with customers who are unhappy with the service. One of the first steps is diffusing anger because it is difficult to resolve conflict when one or more parties is angry. Petra is diffusing anger by remaining calm, listening, and expressing sympathy. In this example, Petra is not solving the problem, deferring to authority, or avoiding the conflict completely. SOURCE: CR:044 Resolve hospitality and tourism related conflicts for customers SOURCE: Customer Traac. (2019). How to deal with angry customers and diffuse the situation. Retrieved September 17, 2021, from https://customertraac.com/diffuse-angry-customers/ Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 13 11. C Allow the customer to express their feelings. Sometimes, frustrated customers want to complain and release anger. Allowing them to express their feelings might help them calm down and make a resolution more likely. Agreeing with a customer's complaints is not a good idea, because it undermines the authority of the company. Keeping the conversation in a public space is not a good idea, because other employees or customers might hear the conversation, which could damage morale and reputation. Finally, disagreeing with each negative statement is likely to upset the customer rather than help resolve the conflict. SOURCE: CR:046 Determine strategies for resolving customer-service situations SOURCE: Geraghty, S. (2018, February 22). 12 conflict resolution tips for excellent customer service. Retrieved September 17, 2021, from https://www.talkdesk.com/blog/12-conflict-resolution- tips-for-excellent-customer-service-2/ 12. D Consistent follow-through. A brand promise is a company's agreement, spoken or unspoken, with customers that it will meet their expectations and deliver on its brand characteristics and values. A company must follow through by performing certain actions in consistent ways to fulfill that promise. Both long- and short-term planning can help the company develop strategies to carry out the brand promise; however, unless the strategies are carried out consistently, the planning efforts are useless. Ongoing promotion helps maintain brand awareness, but it does not fulfill the company's commitment to the customer through product quality, service, etc. The company's profits involve setting internal goals rather than carrying out promises made to customers. SOURCE: CR:001 Identify company's brand promise SOURCE: LAP-CR-001—Share the Promise (Identifying Brand Promise) 13. C Anticipating unspoken customer needs. A great way to provide excellent customer service is to anticipate what a customer needs before they even say so. Looking for patterns in customer buying habits can help employees anticipate customer needs. Reece knows that business travelers tend to need access to printing, scanning, and photocopying, so he can anticipate that need before the customer says anything. Reece is not making unfair judgments, using secondary marketing data, or using an aggressive selling tactic. SOURCE: CR:053 Anticipate unspoken customer needs SOURCE: Quiq. (2021). How to anticipate customer needs and improve customer service. Retrieved September 17, 2021, from https://quiq.com/blog/how-anticipating-customer-needs-can- improve-customer-service/ 14. B Add a consumer-participation option such as a salad bar. One way that restaurants can manage high demand without hiring staff is by including a consumer-participation option such as a salad bar. This eliminates time spent on preparing and serving salads, as well as keeping customers busy. Only accepting customers who have a reservation might not help, because the restaurant will still be busy without enough staff to handle demand. Offering discounts for customers to come back another time is a strategy to shift demand, not necessarily to manage customer experience during peaks in demand. Expanding the restaurant to accommodate more tables is a strategy to be able to handle more customers, but it does not solve the issue if the restaurant cannot hire more staff. SOURCE: CR:038 Identify strategies to manage customer experience during peaks in demand SOURCE: Hall, M. (2021, July 29). Is demand or supply more important to the economy? Retrieved September 17, 2021, from https://www.investopedia.com/ask/answers/040815/demand-or- supply-more-important-economy.asp Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 14 15. C Hire a host/hostess to greet and seat the diners instead. Rather than expecting the servers to do what are essentially two different jobs, waiting on tables as well as acting as hosts or hostesses, the restaurant should hire a host/hostess instead. The host or hostess could greet diners, interact with them, seat them, and share information about menu specials. Allowing guests to seat themselves does not meet high service standards and can cause confusion among waitstaff. Displaying a menu outside does not eliminate the need to interact with customers. Telling customers there's no time to chat creates a rude and unwelcoming atmosphere that does not achieve high service standards. SOURCE: CR:039 Maintain service standards during peaks in demand SOURCE: LaMarco, N. (2018, November 27). Restaurant service procedures. Retrieved September 17, 2021, from https://smallbusiness.chron.com/restaurant-service-procedures-58941.html 16. A Reply to the post promptly with an apology and a promise to improve. When customers complain about a brand on social media, it is important to address them, as ignoring them makes it appear that the company does not care about its customers. After a customer has posted about a less-than-satisfactory experience, Hailey should try to appease that customer to repair the relationship and show that the restaurant is improving upon its flaws. Ignoring the post, denying the customer's complaint, or flagging the post as inappropriate will not improve relationships with customers and will make the restaurant appear unsympathetic and/or dishonest. SOURCE: CR:028 Use digital media to enhance customer post-sales experience SOURCE: Horton, C. (2021, August 9). How to respond to negative reviews online. Retrieved September 17, 2021, from https://www.brightlocal.com/blog/how-to-respond-to-negative- reviews/ 17. C Natural resources. In a highly populated area like New York City, land is more limited than in a small town, so people are willing to pay more to use the land. In a small town, the land is less limited, so it is less expensive. Human resources, capital goods, and consumer goods are not necessarily more or less limited in either New York City or a small town. SOURCE: EC:003 Explain the concept of economic resources SOURCE: LAP-EC-903—Be Resourceful (Economic Resources) 18. B It reduces the duplication of certain activities. An advantage of using the functional organizational structure is that it reduces the duplication of certain activities. The organization has just one department creating advertising campaigns, one department balancing the company budget, one department fielding customer complaints, etc. The functional structure does not encourage creativity as the divisional structure does. It is less flexible than other structures. Its inflexibility and creation of narrow perspectives for managers are disadvantages of the functional structure, not benefits. SOURCE: EC:103 Explain the organizational design of businesses SOURCE: LAP-EC-103—Designed to Work (Organizational Design of Business) 19. D Visitor exports. When travelers journey to a foreign country, the money that they spend there is categorized as visitor exports. Visitor exports include purchases that foreign travelers make from hospitality and tourism businesses as well as those that they make from businesses outside the hospitality and tourism industry. Although hospitality and tourism businesses are encouraged to use sustainable resources, their use does not contribute to economic growth. Provision of conference space is a first step in getting groups to visit an area, but conference spaces do not in and of themselves create economic growth. Global positioning systems help determine how to get to and from locations. They do not impact economic growth. SOURCE: EC:136 Explain the relationship between the economy and hospitality and tourism SOURCE: Yehia, Y. (2019, March 26). The importance of tourism on economies and businesses. Retrieved September 17, 2021, from https://globaledge.msu.edu/blog/post/55748/the- importance-of-tourism-on-economies-a Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 15 20. B Taxes and borrowing. Government collects taxes from taxpayers to pay the costs of regulating business and providing services. The taxes collected are not sufficient to cover government expenses. This makes government borrowing necessary. Nontaxpayers don't provide money to government. Business, labor, and industry are types of taxpayers. SOURCE: EC:008 Determine the relationship between government and business SOURCE: LAP-EC-016—Regulate and Protect (Government and Business) 21. C Business activities slow. When business activities slow, businesses produce fewer goods and services. A decline in production often leads to facility closings and employee layoffs. When people are unemployed, they are not earning an income, so consumer spending tends to decrease. When business activities decline over several months, it typically indicates the beginning of an economic recession. Businesses are more likely to expand when interest rates decrease because it is less expensive to obtain loans. When the inflation rate stabilizes, the prices of goods and services are not increasing as quickly, which may boost consumer spending. SOURCE: EC:081 Discuss the measure of consumer spending as an economic indicator SOURCE: Amadeo, K. (2020, September 27). Consumer spending and its impact on the economy. Retrieved September 20, 2021, from https://www.thebalance.com/consumer-spending- definition-and-determinants-3305917 22. B Develop diverse teams. Electronic communication tools have increased businesses' ability to work with a wide range of people from across the globe. Diverse groups of people can come together to provide broader perspectives. Technology does not necessarily improve the richness of conversation, because face-to-face conversation is still the richest form of communication. Technology also increases privacy concerns, rather than reducing them, as people use electronic means to share information. Finally, the use of technology does not mean that businesses can avoid all face-to-face interactions, because they are still important to building business relationships. SOURCE: EC:111 Describe the impact of electronic communication tools (e.g., Internet, video- and computer-conferencing, webcasts, email) on global business activities SOURCE: Picincu, A. (2020, July 8). The importance of electronic communication in workplace collaboration. Retrieved September 20, 2021, from https://work.chron.com/importance- electronic-communication-workplace-collaboration-4081.html 23. C Get input from other people. While self-assessment implies working alone, it can actually be very helpful to get another opinion. Others can point out strengths and weaknesses you might not have known about. You don't want to compare yourself to others—self-examination isn't a competition. Everyone has different strengths and weaknesses. Try not to be too hard on yourself. While recognizing weaknesses is important, obsessing over them isn't helpful. You also shouldn't hide weaknesses—everyone has areas that need improvement. Your assessment will only be successful if you're completely honest about your strengths and weaknesses. SOURCE: EI:002 Assess personal strengths and weaknesses SOURCE: LAP-EI-902—Assess for Success (Assessing Personal Strengths and Weaknesses) 24. D Empathetic behavior. Successful hotel managers should be able to effectively communicate with guests, staff, and vendors. An important aspect of effective communication is exhibiting empathy, which is the ability to relate to the feelings, thoughts, and experiences of other people. In other words, empathy is the ability to put yourself in another person's place. In the example, Miranda put herself in Mr. Wilson's place by telling him that a leaky faucet would bother her, too. She expressed that she could relate to Mr. Wilson's feelings. Miranda was being empathetic. Because Miranda was able to respond to Mr. Wilson's problem, she was actively listening rather than passively listening. The situation does not provide enough information to determine if Miranda was exhibiting cultural sensitivity. Personal vision is the future that you desire to create for yourself. SOURCE: EI:090 Describe personal traits important to success in hospitality and tourism SOURCE: Wilding, M. (2019, January 7). 7 habits of highly empathetic people. Retrieved September 17, 2021, from https://www.inc.com/melody-wilding/7-habits-of-highly-empathetic-people.html Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 16 25. A Not leaving out any facts. Honesty includes telling the whole truth and not withholding any information. When being honest, you should not leave out any facts. Honesty does not include hiding unethical actions. While trusting others and showing loyalty are important traits, they are not part of honesty itself. SOURCE: EI:022 Demonstrate honesty and integrity SOURCE: LAP-EI-138—Sincerely Yours (Demonstrating Honesty and Integrity) 26. D Make reasonable judgments about people and situations. Critical-thinking skills are thought processes (e.g., analysis, assessment) that allow people to make sound judgments about people, ideas, situations, etc. Critical-thinking skills are important for taking responsibility for decisions and actions. Remaining committed to tasks even when it's difficult is self-discipline. Restraining emotions and actions appropriately is self-control. Critical-thinking skills don't necessarily allow someone to show respect for other people. SOURCE: EI:075 Take responsibility for decisions and actions SOURCE: LAP-EI-075—It's Up to You (Taking Responsibility for Decisions and Actions) 27. D Transparent. Transparency means being truthful when you communicate. It involves communicating openly and honestly with everyone, whether you're at work, at school, or at home. Transparency also involves speaking up about your feelings, even when it's difficult or not necessarily in your best interest. Aiden may be consistent, encouraging, and generous, but those traits are not illustrated in this example. SOURCE: EI:129 Foster open, honest communication SOURCE: LAP-EI-129—Can We Talk? (Fostering Open, Honest Communication) 28. A Lily and Marie combine their skills to create a new window display. Typically, two people working together to perform and accomplish a task are working collaboratively. People making requests or telling others what they need to accomplish are not examples of people working in a collaborative way. SOURCE: EI:130 Collaborate with others SOURCE: LAP-EI-130—Genius Is a Team Sport (Collaborating With Others) 29. A Persistence. Adaptable people never give up. They commit to their goals, and they're willing to achieve them in any way possible. Attentiveness, positivity, and a sense of humor are all characteristics of adaptable people, but they aren't demonstrated in this example. SOURCE: EI:006 Demonstrate adaptability SOURCE: LAP-EI-023—Go With the Flow (Demonstrating Adaptability) 30. B Losing your level of physical fitness. Losing your level of physical fitness is an example of a long-term consequence. It won't happen overnight, but it will happen if you eat unhealthy foods and neglect exercise. Failing a homework assignment, arguing with your sibling, and spilling a tray of food at work are all examples of consequences that are short term. SOURCE: EI:137 Assess long-term value and impact of actions on others SOURCE: LAP-EI-137—Choose for the Future (Assessing the Long-Term Value and Impact of Actions on Others) Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 17 31. A Getting to know the organization's key managers. If an employee has the ability to influence other workers' opinions or actions within the company, the employee is fostering political relationships. Building positive political relationships in the workplace begins by showing a sincere interest in the company, employees, and managers and by recognizing their importance to the organization. An honest, dependable employee who is willing to network and work with others—including difficult coworkers—can facilitate a positive working environment, which helps the employee gain a positive reputation. This, in turn, helps the employee use their reputation to influence organizational decision-making. A wise "political player" does not express personal opinions whenever possible. To do so may offend important people within the organization. SOURCE: EI:034 Explain the impact of political relationships within an organization SOURCE: Janin, A. (2021, March 11). How to build positive relationships at work. Retrieved September 22, 2021, from https://www.wsj.com/articles/how-to-build-meaningful-workplace- relationships-11605294163 32. C Fiat. Fiat currency is money that doesn't have intrinsic value and is not backed by reserves. Fiat currency is only valuable as long as people have faith that it will continue to be used in the future. Electronic currency is money that exists only in electronic format. Commodity money is currency that is has value other than its value as money (for example, gold or silver). Mikael's $20 bill is just made of paper, which is essentially worthless on its own, so it is not commodity money. Specie is a term used for coins, and Mikael is using paper money. SOURCE: FI:059 Identify types of currency (paper money, coins, banknotes, government bonds, treasury notes, etc.) SOURCE: Chen, J. (2021, September 9). Fiat money. Retrieved September 20, 2021, from https://www.investopedia.com/terms/f/fiatmoney.asp 33. C Less spending power. The time value of money is the concept that dollars received in the future will be worth less than a dollar received today because of the impact of inflation. Exchange rates rise and fall and refer to the transfer of one currency into another. SOURCE: FI:062 Explain the time value of money SOURCE: Fernando, J. (2021, September 3). Time value of money (TVM). Retrieved September 20, 2021, from https://www.investopedia.com/terms/t/timevalueofmoney.asp 34. B No, his goal is not specific or measurable. A financial goal is a short- or long-term objective that is measured in terms of money. Effective financial goals are SMART goals—specific, measurable, attainable, results-oriented, and time-bounded. The goal is time-bounded because Brandon wants to save money to buy a car two years from now. It is results-oriented because Brandon will have something to show for his effort in two years—a car. However, the goal is not specific or measurable, because Brandon has not indicated how much he wants to save for the car. Also, Brandon has not indicated how he plans to save for the car, such as placing 15% of his weekly paycheck in a special savings account. There is not enough information to determine if the goal is attainable, because it is not specific. SOURCE: FI:065 Set financial goals SOURCE: Eby, K. (2019, January 9). The essential guide to writing SMART goals. Retrieved September 20, 2021, from https://www.smartsheet.com/blog/essential-guide-writing-smart- goals 35. C Ask herself, "What kinds of financial services do I want?" The first thing Rosie should do when selecting a financial services provider is ask herself what kinds of financial services she wants. This will help her narrow down her focus. When she has an idea of what she wants out of a financial services provider, she can ask about references, charges, and licenses. SOURCE: FI:076 Discuss considerations in selecting a financial-services provider SOURCE: Coombes, A., & Benson, A. (2021, September 3). How to choose a financial advisor. Retrieved September 20, 2021, from https://www.nerdwallet.com/article/investing/how-to- choose-a-financial-advisor Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 18 36. C Savings account. If Sheila doesn't like to take risks, wants to access all of her money at all times, and doesn't mind earning very little interest, she should consider a savings account. You're always able to access your money, but you receive a low return. A stock is much riskier than a savings account—you actually own part of the company, so you have the rights and responsibilities that go along with ownership. This means you can make a big profit, but you can also lose a large amount of money if the stock decreases in value or if the company goes out of business. While a certificate of deposit (CD) doesn't have a high risk, you aren't able to access your money at all for a set period of time. A money market account (MMA) is low risk, but you are only able to access some of your money each month, and you usually have to keep a certain amount of money in your account. SOURCE: FI:077 Explain types of investments SOURCE: LAP-FI-077—Invest for Success (Types of Investments) 37. C Give receipts to all customers. Most businesses use a variety of procedures to control cash. One of these is to train employees how to use the cash register and require that they ring up each sale on the register and give receipts to all customers. When an employee rings up a sale, the register automatically records the sale and prints a customer receipt. This procedure helps control cash because it reduces the possibility of employees accepting payment from customers without recording the sale and issuing a receipt. Monitoring intangible assets, tracking dividends paid to owners, and evaluating projected budgets are not internal procedures that many businesses use to control cash. SOURCE: FI:113 Explain cash control procedures (e.g., signature cards, deposit slips, internal/external controls, cash clearing, etc.) SOURCE: Chron. (2021, April 8). Internal control procedures for the receipt of cash. Retrieved September 17, 2021, from https://work.chron.com/internal-control-procedures-receipt-cash- 6735.html 38. A 3%. Credit card processing is not free. Instead, businesses typically must pay a specific portion or percentage of its credit card revenue to several different organizations, including the issuing bank, card association, acquiring bank, and payment gateway. To determine what percentage of total credit card sales goes toward fees, first total the amount of fees charged for each transaction ($1.27 + 0.10 + 0.22 + 0.20 = $1.79). Then, calculate the total amount of credit card fees paid by multiplying the cost for each transaction by the number of credit card transactions ($1.79 X 135 = $241.65). Finally, calculate the percentage of total credit card sales that goes toward fees by dividing the total credit card fees by the total credit card sales ($241.65 / $8,550.00 = 0.03 = 3%). SOURCE: FI:790 Calculate credit-card processing costs SOURCE: Fiserv. (2021). How credit card processing works. Retrieved September 17, 2021, from https://merchants.fiserv.com/en-us/resources/credit-card-processing/ 39. A An uncomfortable work environment. Sometimes, employees do not respect each other's lifestyles and discriminate against each other because of them. When this occurs, employees might experience an uncomfortable work environment. This can damage productivity. Language barriers are a result of ethnic or cultural differences rather than differences in lifestyles. Generational misunderstandings are not a result of disrespecting lifestyle choices. SOURCE: HR:515 Discuss issues associated with workplace diversity (e.g., ethnic, generational, religious, gender) SOURCE: Renee, M. (2019, March 6). Top 10 diversity issues at work. Retrieved September 17, 2021, from https://smallbusiness.chron.com/top-10-diversity-issues-work-24939.html Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 19 40. C Decreasing the learning curve for new employees. A community of practice is a group of people who share interest in a subject and meet regularly to improve in that subject area. In the workplace, a community of practice can provide knowledge to new employees so that they can quickly become acclimated to a new position. Communities of practice also add value to professional lives, but this is an individual benefit rather than a benefit for businesses. Communities of practice encourage strategic decision-making that is informed by knowledge, rather than reducing it. Finally, communities of practice increase employee retention, decreasing turnover. SOURCE: KM:005 Identify techniques that can be used to capture and transfer knowledge in an organization SOURCE: Gonçalves, L. (2021, July 3). Communities of practice, a summary for leaders. Retrieved September 17, 2021, from https://luis-goncalves.com/communities-of-practice/ 41. B Staying organized. Employees can help their employers reach their objectives by working efficiently. To work efficiently, employees should be organized and have a system for keeping track of their work and supplies. Because Natalie's workspace was not organized, she spent a lot of time looking for a file instead of working on something more productive. There is not enough information provided to determine if Natalie has problems staying on task, using supplies wisely, or observing safety standards. SOURCE: MK:015 Discuss actions employees can take to achieve the company's desired results SOURCE: LAP-MK-015—Act Now! (Employee Actions and Company Goals) 42. A Behavioral—benefits sought. A market consists of buyers who differ in one or more ways. By identifying those differences, hospitality and tourism businesses can tailor their marketing efforts to appeal to specific groups. With behavioral segmentation, people are grouped together on the basis of their knowledge, attitude, and use for/response to a product. In this scenario, the group is travelers who have pets with them. This form of behavioral segmentation is based on the product benefits that the group wants—lodging that accepts pets. Psychographic segmentation based on social class divides people into different social classes. Demographic segmentation divides people into groups based on certain variables such as age, gender, race, religion, educational level, or income level. Use of a mass market approach would indicate that the hotel will not be differentiating among its guests and will be using the same marketing strategies with all guests. SOURCE: MP:035 Identify ways to segment hospitality and tourism markets SOURCE: Roth, L. (2020, September 30). How to use behavioral segmentation to improve marketing effectiveness. Retrieved September 17, 2021, from https://blog.alexa.com/behavioral- segmentation/ 43. B A disaster. Managing information for business continuity is important in case of a disaster. A disaster might be man-made, such as a building fire, or it might be an act of nature, such as a tornado or a flood. No matter what, though, companies must ensure that business can still run smoothly and that employees can still access the information they need. High employee turnover, low sales volume, and a drop in stock price are not occurrences that would disrupt information management. SOURCE: NF:110 Discuss the nature of information management SOURCE: LAP-NF-110—In the Know (Nature of Information Management) Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 20 44. C Encryption. Software piracy and unauthorized file sharing (e.g., of music) are costly to producers. To protect their ownership rights, these businesses often use encryption techniques to minimize these types of issues. Encryption is the process of transforming information into a secret code so that only the recipient can read it. If the recipient tries to pass along the information to others, the others will not be able to access the information. Virtualization involves running multiple operating systems on one machine. Multicasting transmits streaming media to multiple users simultaneously. Rerouting means to changing course or direction. SOURCE: NF:076 Explain legal issues associated with information management SOURCE: Federal Trade Commission. (n.d.). Financial institutions and customer information: Complying with the safeguards rule. Retrieved September 20, 2021, from https://www.ftc.gov/tips-advice/business-center/guidance/financial-institutions-customer- information-complying 45. D Registration. Software best handles routine tasks such as registration. Registration can be handled online, over the phone, or in person. All registrations go into a software program. This makes it easy to analyze sales and marketing data. Concierge and room setup services are performed by humans. Sales forecasting is not a lodging service. SOURCE: NF:106 Use software to automate services SOURCE: Capterra. (n.d.). Reservations software. Retrieved September 17, 2021, from https://www.capterra.com/reservations-software/ 46. A Cluster. The objective of cluster analysis is to classify or group data such as customers or products. Once grouped, the researcher can use the data about customers or products to gain insight regarding target markets. Fragment and semivariance are not terms used to describe marketing-information evaluation methods. Semi-structured is a term used to describe a type of question used in surveys. SOURCE: NF:185 Use database for information analysis SOURCE: Optimove. (2021). Customer segmentation via cluster analysis. Retrieved September 17, 2021, from https://www.optimove.com/resources/learning-center/customer-segmentation-via- cluster-analysis 47. C The aging of the population. The aging of the population is a demographic trend since it refers to demographic data (age). Shifting political climates is a governmental or political trend. Rising interest rates is an economic trend. A concern for fitness and health is a social/cultural attitude. SOURCE: NF:015 Conduct an environmental scan to obtain business information SOURCE: LAP-NF-015—Get the 4-1-1 (Conducting an Environmental Scan) 48. C Aid decision-making. Statistics are information presented in numerical form. For the statistics to be useful, businesses must analyze and interpret them. Businesses often base business decisions on statistical information. For example, a business may obtain statistical information that indicates a product is not selling well. Based on the statistical information, the business may decide to phase out or stop making the product. Or, if statistical information indicates that the demand for the product exceeds the available supply of the product, the business may decide to increase production. Businesses use promotional activities to influence people to buy their products. Although analyzing statistical information might spark an employee's creativity (e.g., for problem-solving purposes), promoting creativity is not a primary reason for interpreting statistical findings. SOURCE: NF:093 Interpret statistical findings SOURCE: Bianca, A. (2019, February 4). The advantage of statistics in business. Retrieved September 20, 2021, from https://smallbusiness.chron.com/advantages-statistics-business-18698.html Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 21 49. C They have already exhausted their secondary research options. Primary research is that which a person or company generates on their own for their exact needs and purposes. Primary research is generally done when the needed information does not exist yet. Therefore, the airline executive should first do an exhaustive search of secondary sources before deciding to conduct primary research. Even if no one on the executive's team has the information they need, the executive still might not need to conduct primary research because they might be able to use secondary research. If the airline has little money for research, the executive might be better off focusing on secondary research because it is cheaper than primary research. SOURCE: NF:282 Explain types of primary hospitality and tourism market information SOURCE: Alchemer. (2018, April 26). Research methods: How and when to use primary and secondary research. Retrieved September 17, 2021, from https://www.alchemer.com/resources/blog/research-methods-how-and-when-to-use-primary- and-secondary-research/ 50. B Industry market trends. Online databases are sources of scholarly research such as journal and news articles related to a particular topic—in this case, hospitality and tourism. In an online database, you might find information such as industry market trends. Customer reviews for a specific hotel, competitors' sales data, and a restaurant's customer demographics might be found online but would not necessarily be found in an online database. SOURCE: NF:286 Obtain hospitality and tourism information from online sources (e.g., search engines, online databases, blogs, forums, listservs, web analytics, social media, geolocation services) SOURCE: EBSCO. (2021). Hospitality & tourism index. Retrieved September 17, 2021, from https://www.ebsco.com/products/research-databases/hospitality-tourism-index 51. B Responding to guests' lifestyle trends. Lifestyle trends are changes in the way people live their lives. One example of a lifestyle trend is fitness and health. Hospitality businesses should track and respond to lifestyle trends, such as the resort adding a state-of-the-art gym, healthy dining, and a personal trainer. This example is not related to economic impact, regulatory penalties, or becoming a globalized business. SOURCE: NF:287 Track environmental changes that impact hospitality and tourism (e.g., technological changes, guest trends, economic changes, regulatory changes) SOURCE: Lumen Learning. (n.d.). Consumer lifestyle factors. Retrieved September 17, 2021, from https://courses.lumenlearning.com/wm-retailmanagement/chapter/consumer-lifestyle-factors/ 52. B Customers with reservations spend 25% more than other customers. Understanding the relationship between making reservations and spending can help a restaurant focus its sales and promotional efforts on dinner reservations in order to increase sales. Since the tipping of waitstaff, split plates, and payment methods do not increase sales, these data are less helpful. SOURCE: NF:288 Monitor hospitality and tourism sales data SOURCE: Andrews, R. (2021, July 14). How restaurants are using data and analytics to increase profits. Retrieved September 17, 2021, from https://restaurant.eatapp.co/blog/restaurant- data-and-analytics-increase-revenue 53. B An airline determines the average number of empty seats to know whether to cancel a flight. Descriptive statistics are used to describe basic features of data in a study. An example of a descriptive statistic is average, or mean. Mean can be used to make a business decision such as whether to cancel a flight. There is no indication that the customer reviews, environmental reports, or competitors' prices include descriptive statistics. SOURCE: NF:236 Explain the use of descriptive statistics in business decision making SOURCE: Hayes, A. (2021, August 3). Descriptive statistics. Retrieved September 17, 2021, from https://www.investopedia.com/terms/d/descriptive_statistics.asp Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 22 54. C Column. A column chart shows the differences in individual values vertically. It is useful to show the difference between values in different time periods, such as the rising sales of Alaskan cruises over time. Pie charts show the proportion of each segment to the whole. They are not useful for showing rising sales over time. A scatter chart is used when showing relationships and correlations between variables, rather than rising sales over time. A histogram is used to show frequency distribution, not rising sales over time. SOURCE: NF:289 Display hospitality and tourism data in charts/graphs or in tables SOURCE: Metwalli, S. (2020, September 7). Data visualization 101: How to choose a chart type. Retrieved September 17, 2021, from https://towardsdatascience.com/data-visualization-101- how-to-choose-a-chart-type-9b8830e558d6 55. D Creating a storyboard. Creating a storyboard helps you plan the text and illustrations for a presentation and plan the work that will need to be done to create the presentation. Developing a schedule can help with the planning of the work but does not help plan the actual content. Creating the needed slides and planning the slide transitions can only be done after a plan for the content is developed. SOURCE: NF:290 Prepare and use presentation software to aid in making oral reports SOURCE: Vyond. (2021, January 11). What is a storyboard and why do you need one? Retrieved September 17, 2021, from https://www.vyond.com/resources/what-is-a-storyboard-and-why- do-you-need-one/ 56. D Pet-friendly hotels. Because many people consider pets to be important members of their families, they often prefer to travel with them. Many hotel chains and destination rental properties are beginning to provide pet-friendly accommodations. Some boutique hotels even provide special services to pamper pets such as grooming, spa, and walking services. Many communities are opening dog parks, which tend to attract local residents who need a place for their pets to exercise rather than travelers. All-inclusive resorts are those in which food and beverages are included in the price of the guest's stay. All-inclusive resorts may or may not allow pets on the property. SOURCE: NF:048 Describe current issues and trends in the hospitality and tourism industry SOURCE: Social Tables. (n.d.). Why pet-friendly hotels are winning over new customers. Retrieved September 17, 2021, from https://www.socialtables.com/blog/hospitality/pet-friendly-hotels/ 57. C Determine if the guest has enough available credit to pay for the room. Upon check-in, if the guest is paying with a credit card, the clerk will use the information on the credit card to verify that the guest has enough available credit to pay for the room for the entire stay. Even if the guest would prefer to have their credit card charged in advance of their stay, the hotel would not charge the guest for any room service until that service has been ordered by the guest. The clerk would not need any credit card information to make a reservation at the hotel restaurant. Any voucher created at the front desk would not require the addition of any credit card information. SOURCE: NF:060 Explain ways that technology impacts the hospitality and tourism industry SOURCE: Warehouse Hotel. (2021, June 24). Everything you need to know about a hotel's credit card hold. Retrieved September 17, 2021, from https://www.warehousehotel.com/manheim/blog/everything-about-hotel-credit-card-holds 58. B Prevent fraud. It is important for businesses to prevent and avoid credit card fraud. One way to do so is to compare customers' credit cards to their identification. This ensures that the cards they are using belong to them. Asking to see identification does not encourage cash payments. The employees should know whom to charge without needing to see identification. There is no law that requires employees to see identification when customers pay with credit cards. SOURCE: OP:653 Identify credit card fraud prevention methods SOURCE: International Bancard. (2017, March 25). 6 easy ways your business can avoid credit card fraud. Retrieved September 17, 2021, from https://startupnation.com/manage-your- business/avoid-credit-card-fraud/ Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 23 59. C Deciding what to monitor. Walker is selecting the specific criteria he wants to monitor during the course of his project and when he will monitor them. This is the first step to monitoring projects and taking corrective actions. Walker is not making changes/corrections, gathering data, or communicating with stakeholders. SOURCE: OP:520 Monitor projects and take corrective actions SOURCE: LAP-OP-520—Check Your (Project) Pulse (Monitoring Projects and Taking Corrective Actions) 60. A Save time. A project's scope means what it includes—and what it doesn't include. Keeping this in mind during the planning process helps project managers save time by avoiding working on tasks that are outside the project's scope. Keeping project scope in mind will not necessarily help project managers ensure a project's quality, help project managers avoid all risks, or help project managers earn more money. SOURCE: OP:001 Develop project plan SOURCE: LAP-OP-001—Chart Your Course (Developing a Project Plan) 61. B Reorder point. The reorder point is the level of inventory at which the business needs to place a reorder with the vendor to replenish the inventory, which prevents stock-out situations. The business considers the normal demand for the product, its safety stock, and the vendor's lead time to determine the reorder point of a particular item. Profit margin, buyer's preferences, and accounts receivable are not primary factors that a business considers when it determines when to place a reorder for a regularly stocked item. SOURCE: OP:016 Place orders/reorders SOURCE: QuickBooks. (2021). Reorder point formula - Know when to reorder. Retrieved September 20, 2021, from https://www.tradegecko.com/learning-center/reorder-point-formula-calculation 62. C Standard purchase order. A standard purchase order is used as the need arises, generally for infrequent or one-time purchases. Sunset Airlines is replacing a broken part to deal with a rare mechanical malfunction, rather than ordering mechanical parts on a regular basis, so it is likely to use a standard purchase order. Planned purchase orders are determined in advance and on a regular basis, rather than as needed. Blanket purchase orders involve planning several orders at once, usually for a repetitive purchase. A contract purchase order creates an agreement and terms of supply between a purchaser and a business to form an ongoing relationship. A contract purchase order is not likely to be used for an infrequent purchase such as a new mechanical part for a rare malfunction. SOURCE: OP:250 Describe types of purchase orders SOURCE: Unleashed. (2019, December 16). 4 types of purchase orders every business needs to know. Retrieved September 18, 2021, from https://www.unleashedsoftware.com/blog/managing- procurement-purchase-orders 63. C Trash bags, sanitizer, and light bulbs. All types of businesses keep maintenance supplies on hand to ensure that the business is clean and that it runs smoothly. Trash bags, sanitizer, light bulbs, batteries, cleaning items, paper towels, and mops are maintenance items that businesses keep on hand. Pens may be classified as maintenance or office supplies. Computers, conveyer belts, and office furniture are capital goods or equipment that businesses use to operate smoothly. Sportswear items (e.g., shorts, T- shirts) are most likely resale inventory. SOURCE: OP:336 Discuss types of inventory SOURCE: Magloff, L. (2016, October 26). Types of inventory for an organization. Retrieved September 18, 2021, from https://smallbusiness.chron.com/types-inventory-organization-14109.html Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 24 64. A Pareto chart. A Pareto chart is a type of bar graph that helps managers determine which problems should be addressed first. A house of quality matrix is a tool that helps managers determine if a product meets customer needs. Statistical quality control is a group of tools used to evaluate quality and identify problems. A cause-and-effect diagram is a way to identify many potential causes of a problem and to sort them into useful categories. SOURCE: OP:163 Identify quality-control measures SOURCE: LAP-OP-163—Take Control (Quality-Control Measures) 65. D He is being reactive instead of proactive in his quality-control practices. Being proactive means anticipating and preventing problems before they arise, rather than waiting for problems to surface and handling them afterwards. As a quality-control specialist, it is Jackson's job to ensure that every room in his hotel is satisfactory and up to guest standards. He should inspect each hotel room periodically, rather than wait until he receives a complaint. The question does not provide enough information to conclude that Jackson is failing to communicate with his staff, to inspect dirty rooms thoroughly enough, or to trust his staff to perform their jobs well. SOURCE: OP:164 Utilize quality control methods at work SOURCE: Qualityze. (2021). Proactive vs reactive: Which approach is better to attain quality. Retrieved September 20, 2021, from https://www.qualityze.com/proactive-vs-reactive-approach-better- attain-quality/ 66. C Contact the supplier to resolve the discrepancy. Businesses monitor and track their suppliers' invoices to make sure they are billed correctly. If the business finds a discrepancy (e.g., incorrect discount amount) on the invoice, the business should contact the supplier to make necessary adjustments. In many situations, the supplier will send the business a revised invoice with the correct information. By paying an invoice that is higher than stated in the original purchase order, Kara would be tying up funds that the business could use for other things. If the supplier does not take steps to correct the invoicing error, it might be appropriate to send a complaint to the supply company's president; however, Kara should begin the process by contacting the appropriate supply-company employee (e.g., salesperson). The supplier needs to generate a corrected invoice, not the business itself. SOURCE: OP:184 Track invoices SOURCE: Weber, A. (2019, July 9). 5 common invoicing problems and how to solve them. Retrieved September 18, 2021, from https://www.supplyon.com/en/blog/how-to-solve-5-common- invoicing-problems/ 67. C Scan the drive for viruses before opening it. External devices can carry viruses that can allow customer data to be exposed to threats. Scanning the USB drive for viruses can detect any threats before the data are exposed, protecting private customer information. Refusing to open the files isn't necessarily a reasonable action, because Riley needs to view the files in one way or another. Deleting customer information is not practical, because the information is probably necessary to the company's success. Finally, firing the design firm is an unreasonable response because the firm did not necessarily do anything to warrant such action. SOURCE: OP:518 Comply with strategies to protect digital customer data (e.g., information about customers, customers' credit-card numbers, passwords, customer transactions) SOURCE: Locke, J.T. (n.d.). How to check a USB for a virus. Retrieved October 7, 2021, from https://www.techwalla.com/articles/how-to-check-a-usb-for-a-virus 68. B Masks. A ventilation mask, which is placed over the mouth and nose, hinders the risk of lung irritation or damage that might be caused by harmful cleaning chemicals. Gloves protect the hands. Nets and mouth guards do not protect a hotel's housekeeping employees from inhaling vapors. SOURCE: OP:134 Practice safe and sanitary handling/disposal of wastes/recyclables SOURCE: Midlab. (2019, June 18). Storing & handling cleaning chemicals: What you need to know. Retrieved September 18, 2021, from https://www.midlab.com/06/storing-handling-cleaning- chemicals/ Test 1253 HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 25 69. D Conduct emergency drills. Employees who practice evacuations and take part in eme