Question 1

Which of the following statements concerning business format franchises is true?
A. They are characterized by a business relationship that includes the product, service, and trademark only.
B. They involve a supplier-dealer arrangement.
C. They represent the majority of total franchise sales in the United States.
D. They involve an ongoing business relationship that involves the entire business concept.

Question 2

Good marketing plans are reviewed and sometimes revised on a(n) __________ basis.
A. weekly
B. quarterly
C. annual
D. bi-annual

Question 3

According to the systems school of management, an “internal system” is a:
A. process that provides feedback to employees.
B. department or area that has a definite structure and function within an organization.
C. means by which a service is delivered.
D. functional area within an organization.

Question 4

Which of the following statements about the early history of McDonald’s is true?
A. It was seven years after the McDonald’s chain was launched before the now-familiar golden arches became part of the architecture of franchise units.
B. The first McDonald’s restaurant was built in 1948
C. The man who created the McDonald’s concept of an efficient assembly-line operation turning out beverages, french fries, and hamburgers was Ray Kroc.
D. The first McDonald’s restaurant was located in New York City.

Question 5

Which of the following statements about publicity is true?
A. Publicity is free advertising.
B. Publicity is more credible with consumers than an ad.
C. Just as with advertising, publicity is controlled by the advertiser.
D. Public relations and publicity are the same thing.

Question 6

Which of the following statements about leaders is false?
A. Leaders have a vision about what their organizations should be like.
B. Leaders are effective communicators.
C. Leaders are not deterred by obstacles.
D. Leaders are afraid to make mistakes

Question 7

Which of the following statements about human resources (HR) managers and job candidates is true?
A. HR managers prefer to use in-person interviews initially to weed out unsuitable job candidates.
B. HR managers have the legal right to ask any question they desire when interviewing a job candidate.
C. HR managers should check a job candidate’s personal references only if they have specific questions regarding a candidate.
D. HR managers often are more interested in a job candidate’s intellect and attitude than in specific skills.

Question 8

Which of the following statements about employee training is false?
A. It is not necessary to constantly train and retrain employees on basic job tasks.
B. Training is expensive.
C. Training can be used to help employees develop positive attitudes about guest service.
D. Managers must define their company’s employee-training needs.

Question 9

Which of the following statements about discrimination in the hospitality industry is true?
A. In many cases, discrimination is neither malicious nor intentional.
B. Racial discrimination does not exist in the hospitality industry.
C. Employers in most European countries cannot force employees to retire when they reach the normal age of eligibility for pensions.
D. There are no laws against sex discrimination in the United States.

Question 10

Which of the following statements about employee training is false?
A. It is not necessary to constantly train and retrain employees on basic job tasks.
B. Training is expensive.
C. Training can be used to help employees develop positive attitudes about guest service.
D. Managers must define their company’s employee-training needs.

Question 11

Which of the following statements about discrimination in the hospitality industry is true?
A. In many cases, discrimination is neither malicious nor intentional.
B. Racial discrimination does not exist in the hospitality industry.
C. Employers in most European countries cannot force employees to retire when they reach the normal age of eligibility for pensions.
D. There are no laws against sex discrimination in the United States.

Question 12

Which of the following statements about employee training is false?
A. It is not necessary to constantly train and retrain employees on basic job tasks.
B. Training is expensive.
C. Training can be used to help employees develop positive attitudes about guest service.
D. Managers must define their company’s employee-training needs

Question 13

Which of the following statements about discrimination in the hospitality industry is true?
A. In many cases, discrimination is neither malicious nor intentional.
B. Racial discrimination does not exist in the hospitality industry.
C. Employers in most European countries cannot force employees to retire when they reach the normal age of eligibility for pensions.
D. There are no laws against sex discrimination in the United States.

Question 14

Which of the following laws addresses the employment of minors?
A. Illegal Immigration Reform and Immigrant Responsibility Act of 1996
B. Occupational Safety and Health Act
C. Family and Medical Leave Act of 1993
D. Fair Labor Standards Act

Question 15

Which of the following is usually considered an operator-reimbursable expense?
A. security lighting and locking systems
B. architectural design fees
C. franchise fees
D. national advertising

Question 16

Which of the following is not one of the six categories of promotional activities?
A. relationship marketing
B. personal selling
C. sales promotion
D. advertising

Question 17

Which of the following is not one of the advantages of owning a franchise?
A. guaranteed profits
B. construction expertise
C. promotional assistance
D. site-selection assistance

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