Travel and Tourism

Test 845 TRAVEL AND TOURISM 1
1. The connection between the social responsibility of a travel agency and the community in which the
agency operates is that the agency's social responsibility __________ the community.
A. depends upon C. has an effect on
B. targets only D. targets the area outside
2. Bob owns Infinity Yachts, a yacht charter business in the Florida Keys. Bob recently decided to increase
his advertising, specifically the advertising on local radio and television. Which of the following marketing
functions relates to Bob's decision:
A. Distribution C. Selling
B. Promotion D. Financing
3. An important step in the buying process involves

A. negotiating price. C. accepting delivery.
B. controlling inventory. D. calculating profit.
4. Which of the following vendor factors is very important to buyers for cruise lines who are evaluating a vendor:
A. Terms of sale C. Degree of participation in trade shows
B. Number of employees D. Level in the channel of distribution
5. Production is the process that involves __________ travel goods or services.

A. selling C. creating
B. pricing D. distributing
6. Which Airlines Reporting Corporation document can be used to transmit payment for a variety of
purchases including hotels, car rentals, and land packages?
A. Four-flight passenger ticket C. Tour order
B. Prepaid ticket advice D. Miscellaneous charges order
7. Why does a charter-bus company need a flow of money into the business?
A. To invest C. To sell
B. To borrow D. To exist
8. When preparing a balance sheet, which of the following should match if the tour operator is using a
double-entry system of accounting:
A. Assets must match liabilities and owner's equity.
B. Owner's equity must match liability and assets.
C. Liabilities must match assets and owner's equity.
D. Assets must match retained earnings and accounts payable.
9. Brian spends most of his work time on strategic planning for the company. Which of the following is most
likely to be Brian's position in the company:
A. Vice president C. Sales clerk
B. First-line supervisor D. Production assistant
10. Which of the following is often a benefit to an airline of developing a quality culture:
A. More corrections C. Less productivity
B. Increased overtime D. Lower costs
11. What types of travel and tourism businesses do stockholders own?

A. General partnerships C. Close corporations
B. Open corporations D. Sole proprietorships
12. What do travel agents need to have to be able to operate central reservation terminal equipment?
A. Dedicated phone line C. Fax machine
B. Internet access D. Computer training
Copyright © 2006 by Marketing Education Resource Center®, Columbus, Ohio

13. What type of software program do travel agents use to create text documents?
A. Communications C. Word processing
B. Web-page editor D. Presentation
14. What amount might a travel business lose as a result of taking a speculative risk if it invests $15,000 in a
savings account, buys a $25,000 piece of equipment, invests $20,000 in a new venture, and buys
$10,000 worth of office supplies?
A. $15,000 C. $10,000
B. $20,000 D. $25,000
15. A charter-bus company carries $300,000 worth of insurance on a building that is valued at $125,000. How
much can the company expect to receive in a settlement if the building is completely destroyed in a fire?
A. $125,000 C. $175,000
B. $100,000 D. $300,000
16. Which of the following instructions should the manager stress during security training as the car-rental
agency's main objective during a robbery:
A. Safeguarding customers and employees C. Asking the robber to repeat his/her request
B. Looking the robber directly in the eyes D. Preventing the robber from getting the cash
17. One way that many airport gift shops reduce or prevent internal theft is through the use of
A. automatic safety alarms. C. armed security guards.
B. increased exterior lighting. D. computerized cash registers.
18. Which of the following is an example of a travel agency employee reinforcing a service orientation
through communication:
A. Offering to find information for customers C. Agreeing that customers are always right
B. Telling customers they are misinformed D. Selecting certain customers to help
19. When making a telephone call to another travel and tourism business, it is courteous to
A. ask who is answering the phone. C. identify yourself and your company.
B. state the purpose of the call. D. call at your convenience.
20. What type of communications technology is inexpensive and allows travel and tourism marketers to
exchange messages at any time?
A. Database C. Internet
B. CD-ROM D. E-mail
21. Which of the following is a type of interdepartmental communication:

A. Informational memo C. Technical report
B. Job application D. Business letter
22. Which of the following is an advantage of holding products in yard and ground storage facilities:
A. Unprotected C. Inappropriate
B. Inexpensive D. Uninsured
23. A large hotel chain needing to break down large bulk orders of products and move them to several of
their gift shops quickly and efficiently would best be served by a
A. distribution center. C. public warehouse.
B. private warehouse. D. bonded warehouse.
24. What is one factor that a luggage shop might use as a basis for evaluating channel members?
A. Legal cooperation C. Promotional support
B. General knowledge D. Research assistance
25. Each day, an airport restaurant sends its soiled linens to a laundry to be cleaned and pressed. In
economic terms, the laundry service would be classified as a(n) __________ service.
A. tangible C. industrial
B. ultimate D. consumer
26. Increasing the price of a travel product will increase sales revenue only if demand for the product is
A. predictable. C. flexible.
B. elastic. D. inelastic.
27. When government sets safety standards for the workplace, it is attempting to
A. minimize risks to employees. C. prohibit excess standards.
B. control business. D. modernize working environments.
28. A travel agency purchases insurance to protect against the risk of burglary. This is an example of
__________ the risk.
A. transferring C. retaining
B. preventing D. bonding
29. Jim is a chef for a cruise line. This is an example of specialization by

A. task. C. trade or profession.
B. stage of production. D. depth.
30. Gross domestic product is calculated at the end of the year by totaling the value of all __________ the
economy produced.
A. goods and services C. raw materials
B. imports and exports D. capital goods
31. One way for the federal government to begin to solve the problem of the national debt is to eliminate
A. aid to education. C. state funding.
B. transfer payments. D. deficit spending.
32. Which of the following would not be a source of financing for a tour operator:
A. Trade credit C. Vendors
B. Trade association D. Banks
33. One of the benefits to a travel agency of developing a good relationship with a commercial bank is that
the bank
A. provides debt collection. C. offers a variety of services.
B. pays quarterly dividends. D. handles transactions with a stock exchange.
34. New travel business owners who have been operating for only a short time may need to provide banks
with information about their __________ when applying for loans.
A. employees C. net worth
B. tax status D. equipment
35. When developing a marketing-information management system, researchers must determine procedures
to use to collect, analyze, and ___________ raw data.
A. intercept C. sample
B. enhance D. interpret
36. Car-rental agencies that deliberately interpret marketing information inaccurately and present those
findings to consumers may be guilty of using that information in an unethical way to
A. analyze opinions. C. solve problems.
B. promote products. D. develop surveys.
37. Which of the following are good sources of secondary marketing information that tour operators can
access online:
A. Internet service providers C. Search engines
B. Governmental agencies D. Customers' web pages
38. One reason why cruise lines design databases for the retrieval of marketing information is to
A. enter sales statistics. C. contact new vendors.
B. develop questionnaires. D. print mailing labels.
39. What might result if researchers fail to effectively present report findings and recommendations to airlines?
A. Airlines will destroy the research. C. Airlines will make poor decisions.
B. Airlines will hire new researchers. D. Airlines will use competitors' information.
40. What type of information do charter-bus companies include in their marketing plans?
A. Billing methods C. Payroll systems
B. Pricing strategies D. Accounting procedures
41. What is a potential strength a car-rental agency might identify in a SWOT analysis?
A. Market leadership C. Large inventories
B. New foreign markets D. Market saturation
42. As the new owner of a local travel supply and luggage store, you need some help in forecasting sales. A
good source of information to help you would be
A. last year's gross domestic product. C. your competitors' total sales volume.
B. the number of families in the area. D. your major manufacturers' representatives.
43. International businesses that want to be successful in a global market should exhibit
A. reverse psychology. C. deceptive behavior.
B. economic nationalism. D. cultural sensitivity.
44. Most travel and tourism businesses stress to their sales force that the most important person is the
A. wholesaler. C. buyer.
B. customer. D. supervisor.
45. When conducting a predeparture briefing, a travel counselor should inform travelers of
A. what to expect in the destination, including unfamiliar customs and weather.
B. their rights to purchase trip insurance in case they have any problems.
C. the counselor's home phone number if they need to call with questions.
D. confirmation numbers for reserved flights and accommodations.
46. What should a travel agent advise a client to do when applying for a first passport?
A. Obtain two duplicate photos in the specified size C. Advise that the agency can issue the passport
B. Allow less than 48 hours to process the passport D. Provide a driver's license for proof of citizenship
47. Management's role in developing good customer relations includes providing bus company employees with
A. a positive attitude. C. coping skills.
B. a grievance committee. D. ongoing training.
48. Who is responsible for developing a cruise line's policies?

A. Managers C. Suppliers
B. Customers D. Salespeople
49. One reason why individuals might resist change is because they
A. want to impress members of management.
B. have deep respect for the change agent.
C. are concerned over possible personal losses.
D. want to increase their chances of getting a promotion.
50. In which of the following situations should a travel and tourism business plan to allocate more than the
estimated time for employees to complete a project:
A. Many of the employees are nearing retirement.
B. Several projects are being done at the same time.
C. The project requires guidance from management.
D. Employees usually work at their own pace.
51. One of the major purposes of a job description is to

A. schedule employee evaluations. C. outline specific job tasks.
B. divide up the work fairly. D. list the required job experience.
52. When establishing pay policies for an organization, many travel agencies often take into consideration
the pay policies of
A. search firms. C. area competitors.
B. governmental agencies. D. labor unions.
53. Calculate the weekly compensation for a seasonal tour guide who is paid $7.50 an hour and works the
following schedule: Monday through Thursday from 8:00 a.m. to 5:00 p.m. with a one-hour lunch break
and Friday from 8:00 a.m. to 1:00 p.m.
A. $250.00 C. $300.00
B. $277.50 D. $337.50
54. Which of the following is usually responsible for conducting exit interviews with airline employees:
A. Departmental manager C. Chief executive officer
B. Human resources department D. Immediate supervisor
55. A railroad's human resources manager is concerned as to the length of time it is necessary to keep
personnel records such as payroll, employment applications, time cards, pay and benefit plans, and
termination records. What guidelines should the manager follow to determine how long these records
must be kept?
A. Industry standards C. Federal and state laws
B. Human resource systems D. Manual record systems
56. Which of the following is a characteristic of on-the-job training:

A. Outside instructors teach group skills. C. Correspondence courses are offered.
B. Free workshops and seminars are scheduled. D. Correct ways to perform jobs are demonstrated.
57. Which of the following is a true statement about training methods:

A. There is no one best method of training and development.
B. Assessment centers are used frequently by small organizations.
C. The conference method helps trainees understand their feelings.
D. Behavior modeling can be psychologically dangerous for some people.
58. The most basic of human needs are __________ needs.

A. social C. physical
B. safety D. self-esteem
59. Travel and tourism employees are able to prevent loss and waste in a business by
A. using a lot of expensive supplies.
B. paying full price when purchasing goods.
C. following established policies and procedures.
D. replacing furniture and fixtures that are a few years old.
60. Airport gift shops should order only the amount of operating supplies that they have room to
A. store. C. sell.
B. display. D. market.
61. Which of the following should a sightseeing business consider when negotiating a service or
maintenance contract on a piece of equipment:
A. Is training and technical assistance available?
B. Does the cost of the contract exceed the cost of possible repairs?
C. How much profit does the seller make on the contract?
D. Does the equipment require installation?
62. Which of the following is a function of an operating budget:

A. To regulate inflation C. To monitor accounting
B. To record financial data D. To control expenditures
63. What do many airport restaurants consider when deciding if it is cost effective to stay open until late in
the evening?
A. Number of beverages per customer C. Average price of each type of menu item
B. Weekend sales compared to weekday sales D. Dinner sales as a percentage of daily sales
64. One way that travel and tourism businesses can control operating expenses is to
A. organize inventory space. C. obtain credit.
B. buy in small quantities. D. lease equipment.
65. The travel agency owner met with the top managers and decided that the company would try to increase
its sales by 10% over the next year. This is an example of which management function?
A. Staffing company operations C. Developing company objectives
B. Controlling company performance D. Directing company operations
66. In which of the following situations would it be important for a successful, existing car-rental business to
develop a new business plan:
A. Wanting to renovate its facilities C. Deciding to buy from new suppliers
B. Intending to open additional locations D. Arranging to hire replacement workers
67. Which of the following steps in the decision-making process involves identifying the consequences of
taking different actions:
A. Evaluating information C. Reviewing outcomes
B. Choosing alternatives D. Analyzing situation
68. Which of the following often is a good source of career information in the local community:
A. Library publications C. Regional magazines
B. National corporations D. Trade associations
69. Employees who work in certain professions are required to pass an examination and obtain a
A. charter. C. license.
B. sponsor. D. patent.
70. What is the preferred color of paper to use for letters of application?
A. Yellow C. Blue
B. White D. Orange
71. A travel and tourism company is most likely to lower product pricing when the overall economy is
experiencing a period of
A. recession. C. recovery.
B. prosperity. D. deflation.
72. A cruise ship gift shop buys a product for $52 and has expenses of $21 per product. If the gift shop wants
to earn a profit of 24% on each product, the final price to the customer should be
A. $90.52. C. $85.48.
B. $87.91. D. $92.24.
73. A dealer buys a fleet of cars with a list price of $9,800 each, a quantity discount of 5%, and terms 2/10
net 30. If the invoice is dated September 28, and the dealer pays for the cars October 9, what is the cost
of each car?
A. $9,800.00 C. $9,114.80
B. $9,123.80 D. $9,310.00
74. Any decision to make price changes should take into account nonprice competitive factors such as
A. the costs of production. C. supply and demand.
B. product quality and business image. D. government regulation.
75. Determine whether the following statement is true or false: A travel product is considered new only if it is
totally new to the market.
A. True, any travel product developed by concept testing is new.
B. True, only newly created travel products are considered new.
C. False, a newly modified travel product can be considered new.
D. False, any travel product not recently available is new.
76. An unwritten warranty that is understood by the consumer and the seller that the travel product will
perform as expected is a(n) __________ warranty.
A. implied C. limited
B. full D. express
77. A local group of drama students wants to arrange a trip to New York City to attend several Broadway
plays and a performance at Radio City Music Hall. The group should ask its travel agent to plan a(n)
__________ tour.
A. incentive C. special needs
B. special-interest group D. familiarization
78. Charter-bus companies put comment boxes in prominent locations throughout their buildings to
A. discover what customers expect from the company.
B. make the building appear more attractive.
C. pass along customer-service costs to customers.
D. match competitors' services.
79. An online travel planning company that sells intangible products often tries to develop an atmosphere based on
A. physical design and layout. C. sight and sound.
B. reliability and service. D. advertising and displays.
80. Consumers may be hesitant to believe information in ads for a travel and tourism good or service
because advertising
A. is directed toward a mass audience. C. raises the price of the product.
B. is intended to be misleading. D. is necessarily biased.
81. When writing advertising copy, the copywriter should always try to
A. appeal to all readers. C. go into complete detail.
B. emphasize customer benefits. D. be entertaining.
82. What is an advantage to a travel agency of using direct-mail advertising?

A. It requires less work than other advertising.
B. Agency can pinpoint the target audience.
C. The receiver cannot ignore the advertising message.
D. It is less expensive than other forms of advertising.
83. So Internet users can move easily through an airline's web site and know where they are at all times
within the web site, the web designer must carefully plan the
A. domain name. C. interaction rate.
B. website reach. D. navigation system.
84. Which of the following media would be the most cost-effective for a local luggage shop to use to promote
a weekend sale:
A. Newspaper C. Classified
B. Magazine D. Television
85. After a display in an airport gift shop has been dismantled, the display area should always be
A. cleaned. C. stained.
B. painted. D. redecorated.
86. What information should be included when designing a brochure to promote a cruise line's winter season?
A. Memorabilia C. Calendar
B. Port charges D. Recruitment
87. A guideline to follow when preparing promotional budgets is to keep them flexible because they are
A. objectives. C. concepts.
B. forecasts. D. techniques.
88. What do airport gift shops often negotiate with manufacturers in exchange for using their point -of-
purchase displays?
A. Additional finance charges C. Free classified advertising
B. Low insurance premiums D. Discounts on products
89. Which of the following statements about an airline advertising campaign is true:
A. Only major advertising agencies run campaigns.
B. One advertisement is repeated over a period of time.
C. It lasts three to six months.
D. It usually has one central theme.
90. One of the ways that salespeople can use selling to create desire for travel products is by
A. using product demonstrations. C. making a good impression.
B. emphasizing product utility. D. monitoring the competition.
91. A selling activity that helps salespeople to make sales to cruise lines is
A. quality repair. C. referrals.
B. fact-finding. D. available credit.
92. Technological advancements have made it possible for travel agents to learn and practice selling
techniques at their own pace by using
A. customized training specialists. C. database software programs.
B. videoconferencing applications. D. interactive training software.
93. What have many airlines developed in order to offer more services and to make it easier for passengers
to arrange travel to distant locations?
A. First-class lounges C. Electronic tickets
B. Frequent-flyer programs D. Strategic alliances
94. Nodding and smiling are ways of showing interest in customers, known as
A. appropriate questions. C. verbal statements.
B. nonverbal statements. D. assumptive questions.
95. Vacationers planning a trip to Vail, Colorado in order to ski are attracted to this type of destination because of
A. recreation. C. health.
B. nature. D. relatives.
96. A product feature is a characteristic of a travel good or service that

A. helps to close the sale. C. helps to describe the product.
B. is advantageous to the customer. D. is common to all products.
97. Which of the following statements is true regarding group sales presentations:
A. A presentation for a small group should reflect a more informal and personal format.
B. Product benefits should be emphasized more in small group presentations.
C. When addressing a large group, the presentation format should be more structured.
D. A large group presentation should always include many visual aids to support the content.
98. Which of the following is the best way for an airline reservations clerk to ask for a booking and close the
sale after providing a customer with information about fares, flight times, and seat availability:
A. "May I send you a brochure that lists all domestic flights?"
B. "Would you like to put a nonrefundable deposit on a seat?"
C. "Do you want to wait until there's a lower ticket price?"
D. "Would you like to book a window seat on the 10:00 flight?"
99. A client wants to rent a car after arriving in a foreign country. Which of the following statements is true
regarding international driver permits (IDP):
A. It is not necessary to carry a valid driver's license if the renter has an IDP.
B. An IDP is required in all foreign countries when renting a vehicle.
C. The renter must take a written driving test before the vehicle can be rented.
D. Applications for an IDP are available at the American Automobile Association.
100. An airport coffee-shop cashier processes a food and beverage check for a guest who presents a half-off
coupon for one entree. Which key on an electronic cash register calculates the discount?
A. Conversion C. Refund
B. No Sale D. Percent
Test 845 TRAVEL AND TOURISM — KEY 10
1. C
Has an effect on. The social responsibility of the travel agency affects many aspects of community life by
affecting the level of employment, supporting cultural activities and educational programs, and making
donations to other worthy community causes. The local community is not the only target for the agency's
social responsibility, but it is an important one. An agency's social responsibility depends upon the
agency, not the community.
SOURCE: BA:001
SOURCE: MB LAP 6—Business and Society
2. B
Promotion. Promotion is a marketing function that communicates information about goods, services,
images, and/or ideas to achieve a desired outcome. Selling is a marketing function that involves
determining client needs and wants and responding through planned, personalized communication that
influences purchase decisions and enhances future business opportunities. Distribution is a marketing
function that involves moving, storing, locating, and/or transferring ownership of goods or services.
Financing is a marketing function that involves understanding the financial concepts used in making
business decisions.
SOURCE: BA:004
SOURCE: MB LAP 2—Marketing Functions
3. A
Negotiating price. One of the most important steps in the buying process involves negotiating the price,
which includes discounts and transportation charges. Businesses that buy goods and services for their
own use or for resale generally negotiate discounts with vendors for those items. They also negotiate
who will pay the transportation charges. Businesses save a significant amount of money in the overall
price by obtaining discounts and having the vendor pay to ship the goods. Controlling inventory and
calculating profit are not steps in the buying process. Accepting delivery of products is part of the
receiving process.
SOURCE: BA:007
SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [pp. 427-433]. Upper Saddle River, NJ: Prentice Hall.
4. A
Terms of sale. These include the types of discounts offered by the vendor and the length of the credit
period, which can vary widely among vendors. These factors can greatly affect what the cruise line buyer
pays for the merchandise. The number of employees, degree of participation in trade shows, and
whether the vendor is a manufacturer or wholesaler are of lesser importance than terms of sale.
SOURCE: BA:010
SOURCE: Dunne, P., Lusch, R., & Griffith, D. (2002). Retailing (4th ed.) [pp. 337-338]. Mason, OH:
South-Western.
5. C
Creating. Production is the creation of goods and services from economic resources. The travel product
must be created, or produced, before it can be priced, sold, or distributed. Pricing involves determining
and adjusting prices to maximize return and meet customers' perceptions of value. Distributing is moving,
storing, locating, and/or transferring ownership of goods and services. Selling involves determining client
needs and wants and responding through planned, personalized communications intended to influence
purchase decisions and enhance future business opportunities.
SOURCE: BA:013
SOURCE: BA LAP 1—Nature of Production
6. D
Miscellaneous charges order. Travel agencies can use an MCO to pay for a number of supplier products,
from land packages to cruises. Tour orders are only used for deposits and final payments on land tour
packages and air/sea packages. A prepaid ticket advice is an ARC document allowing an airline ticket to
be issued at a location other than the one at which it is paid for. A four-flight passenger ticket is an ARC
document used for both airline transportation and rail travel on Amtrak, valid for up to four flight or rail
segments.
SOURCE: BA:151
SOURCE: Semer-Purzycki, J. (2001). A practical guide to fares and ticketing (3rd ed.) [pp. 158-160].
Albany, NY: Delmar.
7. D
To exist. Money must flow into a charter-bus company before it can ever exist. Entrepreneurs usually
borrow money from a bank or obtain financing from investors in order to go into business. This initial flow
of money is used to purchase the goods and services needed to start the business. Businesses receive
money from the sale of goods and services. Entrepreneurs often obtain start-up money by borrowing it
from investors.
SOURCE: BA:016
SOURCE: MN LAP 60—Cash Flow
8. A
Assets must match liabilities and owner's equity. The accounting equation used in a double-entry system
of accounting is Assets = Liabilities + Owner's Equity. Assets must match the sum of liabilities and
owner's equity for the balance sheet to be correct. Owner's equity must match liability and assets,
liabilities must match assets and owner's equity, and assets must match retained earnings and accounts
payable are not elements that must match in a double-entry system of accounting.
SOURCE: BA:019
SOURCE: Schultheis, R., Kaliski, B., & Passalacqua, D. (2001). Keeping financial records for business
(9th ed.) [p. 561]. Cincinnati: South-Western.
9. A
Vice president. Strategic planning is one of the major responsibilities for top-level managers, which
includes company presidents and vice presidents. Vice presidents often spend most of their work time
developing long-range plans and setting objectives for the company. A first-line supervisor would spend
the most time working directly with employees. Production assistants and sales clerks have limited
responsibility for planning.
SOURCE: BA:022
SOURCE: BA LAP 6—Manage This!
10. D
Lower costs. A benefit to airlines of developing a quality culture is that it often results in lower costs.
When employees are concerned with quality, they usually work more effectively and make fewer
mistakes. This reduces costs because it is not necessary to do the same job twice. Also, employees
usually are more productive, which means that they accomplish more. Increased production also saves
money. Furthermore, quality goods and services sell better, which means there usually are more
customers. Increased overtime would be a disadvantage because it would increase costs.
SOURCE: BA:025
SOURCE: Kimbrell, G., & Vineyard, B.S. (1998). Succeeding in the world of work: Teacher's
wraparound edition (6th ed.) [pp. 282-283]. New York: Glencoe/McGraw-Hill.
11. B
Open corporations. Individuals who invest their money in an open, or public, corporation are known as
stockholders, or shareholders, because what they actually purchase are shares of stock in the
corporation. This gives the investors the opportunity to share in the growth and possible profits of the
corporation. General partnerships are owned by two or more partners. A close corporation is owned by a
few people and does not offer its shares for sale to the general public. A sole proprietorship is owned by
one person.
SOURCE: BA:028
SOURCE: BA LAP 7—Own It Your Way
12. B
Internet access. Travel agents need central reservation terminal equipment to be able to check airline
schedules, hotel rates, etc., and make reservations for customers. To be able to operate this equipment,
travel agents must have access to the Internet. It is not enough to have the computer equipment and
software; the agent also needs to be able to get online through an Internet service provider. Internet
access makes it possible for travel agents to research and book travel by accessing reservation systems
such as Sabre. Operating the equipment is fairly simple and does not necessarily require computer
training. Travel agents do not need a dedicated phone line or a fax machine to operate central
reservation terminal equipment. A phone line is only one way to obtain access to the Internet.
SOURCE: BA:172
SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 116-117]. Upper
Saddle River, NJ: Prentice Hall.
13. C
Word processing. Most word-processing software programs are designed to be used to create text
documents, although some have limited graphic capabilities. Travel agents use word-processing software
programs to write letters, memos, reports, business plans, and sales contracts. There are many different
word-processing software programs available that enable travel agents to create, edit, and store
important text documents. Presentation software programs are used to develop visual presentations.
Web-page editors are software applications that travel agents use to create web pages. Communications
software programs allow computers to communicate with other computers.
SOURCE: BA:031
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 162-
167]. Woodland Hills, CA: Glencoe/McGraw-Hill.
14. B
$20,000. Speculative risks are chances of loss that may result in loss, no change, or gain. When a travel
business takes a speculative risk, there is always the possibility of failure. Investing $20,000 in a new
venture represents a speculative risk because there is the possibility that the new venture will fail and the
business will lose its entire investment. Businesses take the risk of investing in new ventures because
they hope to earn a profit. Investing in a savings account is not a speculative risk because the investment
is insured and guaranteed to earn interest. Buying equipment and office supplies are not examples of
speculative risks but of routine operating expenses.
SOURCE: BA:037
SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management:
Teacher's manual (2nd ed.) [pp. 377-378]. New York: Glencoe/McGraw-Hill.
15. A
$125,000. A charter-bus company may insure a building for any amount, but an insurance settlement will
only reimburse the company for the amount of the actual loss. If the building is valued at $125,000, that is
what the company will receive in an insurance settlement in the event the building is completely
destroyed by fire. The purpose of insurance is to cover loss, not to generate profit for the company.
Therefore, it is pointless for a company to insure a building for more than it is worth.
SOURCE: BA:040
SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003). Small business management: An
entrepreneurial emphasis (12th ed.) [pp. 621-622]. Cincinnati: Thomson/South-Western.
16. A
Safeguarding customers and employees. Lives are always more important than money. The well-being of
the customers and employees comes first. Car-rental agency employees should be instructed to do what
the robber asks—give the robber cash if s/he asks for cash. They should avoid looking the robber directly
in the eyes as this may be threatening to a robber. However, employees should pay attention to details
such as voice, the weapon, or the robber's appearance. Employees should listen carefully so that they do
not have to ask the robber to repeat what s/he said as robbers are usually on edge and may react
violently to a simple request.
SOURCE: BA:085
Teacher's manual (2nd ed.) [p. 381]. New York: Glencoe/McGraw-Hill.
17. D
Computerized cash registers. In most cases, internal theft is theft by employees and frequently occurs at
the cash register. One way for airport gift shops to reduce or prevent internal theft is to use computerized
cash registers that automatically keep track of all transactions. It is difficult for employees to remove cash
or overcharge a customer and keep the difference if the computerized cash register keeps an accurate
running account. Automatic safety alarms, increased exterior lighting, and armed security guards are
ways of deterring or preventing robbery and shoplifting rather than internal theft.
SOURCE: BA:043
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 630].
Woodland Hills, CA: Glencoe/McGraw-Hill.
18. A
Offering to find information for customers. Travel agency employees often need to communicate
information to customers in order to provide service. On occasion, employees may not know the answer
to a customer's question, but instead of saying they do not know, they should offer to find out. Obtaining
information for customers is an effective way of reinforcing a service orientation through communication.
Employees should help all customers rather than be selective about who they serve. Employees should
never tell customers that they are misinformed. Employees should be tactful when dealing with
complaints because customers are not always right.
SOURCE: CO:018
SOURCE: Wallace, H.R., & Masters, L.A. (1996). Personality development for work (7th ed.) [pp. 107-
108]. Cincinnati: South-Western Educational.
19. C
Identify yourself and your company. Frequently, the person answering the telephone is not the person
with whom you wish to speak. When you identify yourself to the other person, you provide the person
with an immediate point of reference. It may be inappropriate to state the purpose of the call to the
person answering the phone. Asking that person's name would only be appropriate under certain
circumstances. Business calls should be made at an appropriate time whenever possible, not simply at
any time that is convenient.
SOURCE: CO:114
SOURCE: Miculka, J.H. (1999). Speaking for success (pp. 108-110). Cincinnati: South-Western
Educational.
20. D
E-mail. E-mail is a communications system that links computers and allows users to instantly send and
receive written messages. An advantage of e-mail is that it is inexpensive (the price of an Internet
connection) and allows travel and tourism marketers to exchange messages at any time of the day or
night. E-mail eliminates the problem of not being able to reach people by telephone and also allows the
receiver to store the message and read it when time permits. A CD-ROM is a compact disc containing
information in a read-only mode. E-mail operates via the Internet, which is a worldwide interconnection of
computer networks. A database is a method of storing information.
SOURCE: CO:041
SOURCE: Lesikar, R.V., Pettit, J.D., Jr., & Flatley, M.E. (1999). Lesikar's basic business communication
(8th ed.) [pp. 212-213]. Boston: Irwin/McGraw-Hill.
21. A
Informational memo. Informational memos usually are short and discuss only one subject. Businesses
often use informational memos as a means of communicating between the various departments or
divisions. For example, a human resources manager might send an informational memo about new
health benefits to all employees in the company. Business letters are sent from one business to another.
Job applications are submitted to companies by indivi duals seeking employment. Technical reports are
complex written reports usually prepared for management.
SOURCE: CO:011
SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 162-164].
Boston: Irwin/McGraw-Hill.
22. B
Inexpensive. Yard and ground storage facilities are inexpensive to use because they provide only
protection from theft rather than special storage conditions. These facilities often are large, open areas
enclosed by security fencing. Yard and ground storage facilities are appropriate for the types of products
they hold. Yard and ground storage facilities are insured.
SOURCE: DS:013
SOURCE: DS LAP 7—Storage Considerations
23. A
Distribution center. Distribution centers are designed to cut costs by moving goods rather than storing
them. Products arrive from a manufacturer in bulk and are repackaged and redistributed to the
appropriate outlets (e.g., hotel gift shops). Private, public, and bonded warehouses are concerned with
the storage of merchandise, not the movement of merchandise.
SOURCE: DS:032
24. C
Promotional support. Many channel members provide a variety of services to luggage shops that often
includes promotional support. A luggage shop might evaluate channel members based on the type and
quality of promotional support that they offer, such as promotional displays and cooperative advertising
programs. A shop might decide to use a certain channel member if that channel member offered the
promotional support that a shop needed. A shop would not evaluate a channel member on the basis of
its general knowledge. Channel members usually do not provide research assistance or legal
cooperation.
SOURCE: DS:051
SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 425-426]. Upper Saddle River,
NJ: Prentice Hall.
25. C
Industrial. Industrial goods and services are purchased by producers for resale, to make other goods and
services, and/or to use in business operations. The laundry service is an industrial service because it is
purchased by the restaurant as a necessary part of its daily operations. Consumer services refer to
economic services used by ultimate consumers to satisfy wants and needs. Services are intangible, not
tangible.
SOURCE: EC:002
SOURCE: EC LAP 10—Goods and Services
26. D
Inelastic. Inelastic demand is a form of demand in which changes in price do not affect demand.
Increasing the price of a travel product with inelastic demand means that sales revenues will increase
because consumers will continue to buy the product even though it costs more. Elastic demand is a form
of demand in which changes in price correspond to changes in demand. This form of demand is,
therefore, flexible, and as prices go up, demand goes down, and sales revenues decrease. Whether
demand is or is not predictable, or can be forecast, does not change the relationship between price and
demand.
SOURCE: EC:005
SOURCE: EC LAP 11—Supply and Demand
27. A
Minimize risks to employees. Government's primary concern is the safety of the worker in the workplace.
It would be next to impossible to set a safety rule to cover all possible events, but minimizing risks for the
worker is a possibility. It is not government's intent to control businesses or business practices. Setting
safety standards does not imply that the government prohibits excess standards. There is no maximum
number of standards that could be set. In setting safety standards, the government does not address
updating or modernizing working environments. The goal is to make the workplace safe, not more
pleasing or attractive.
SOURCE: EC:008
SOURCE: EC LAP 16—Government and Business
28. A
Transferring. A risk is reduced or eliminated by transferring, or shifting, the risk factor to some other
person or business. When an employee is bonded, his/her employer has purchased an insurance policy
to cover possible theft or loss involving that employee. Hiring security guards is an example of preventing
the risk. If the travel agency takes no precautions, then it is retaining, or keeping, the risk.
SOURCE: EC:011
SOURCE: EC LAP 3—Business Risk
29. C
Trade or profession. Specialization by trade or profession identifies the type of work that individuals perform
in order to earn a living. Specialization by stage of production occurs when more than one stage is required
to change a raw material into a finished product; different people are usually involved at the different stages
of production. Task specialization involves becoming highly skilled in one, very small portion of a job. Depth
is the amount of control an employee has in a job rather than a type of specialization.
SOURCE: EC:014
SOURCE: EC LAP 7—Specialization of Labor
30. A
Goods and services. GDP is calculated in order to evaluate the state of the economy. GDP is the final
market value of the total output of all goods and services produced within a country's geographic
boundaries during a year's time. Imports are products brought into the country. Exports are products sold
to other countries. Capital goods are manufactured or constructed items that are used to produce goods
and services. Raw materials are items in their natural state or condition.
SOURCE: EC:017
SOURCE: EC LAP 1—Gross Domestic Product
31. D
Deficit spending. Deficit spending occurs when the federal government spends more than it takes in. For
many years, the government has engaged in deficit spending to fund its activities, which has resulted in
an enormous national debt. One way for the federal government to begin to reduce the national debt is to
eliminate deficit spending. By spending less than it takes in, the government will be able to begin to pay
off the debt. Transfer payments are monies paid by the government in which no goods or services are
received in exchange, such as Social Security payments and veterans' benefits. The federal government
uses some of the money it takes in to support education and provide funding to states. The federal
government would not be able to eliminate these services.
SOURCE: EC:038
SOURCE: Brown, B.J., & Clow, J.E. (1997). Introduction to business: Our business and economic world:
Teacher's wraparound edition (4th ed.) [pp. 299-301]. New York: Glencoe/McGraw-Hill.
32. B
Trade association. This is a group of people in the same industry or geographic area who join together to
pool their knowledge and search for solutions to common problems. Banks, vendors, and trade credit are
all sources of financing for a tour operator.
SOURCE: FI:001
SOURCE: Kuratko, D.F., & Hodgetts, R.M. (2001). Entrepreneurship: A contemporary approach
(5th ed.) [pp. 428-440]. Mason, OH: South-Western.
33. C
Offers a variety of services. Commercial banks are also known as full-service banks because of the many
services they provide. By establishing a good relationship with a commercial bank, a travel agency would
be able to have one institution handle most, if not all, of its financial matters. For example, a travel
agency could have a checking account, savings account, and loans with one bank. It might also receive
financial, legal, and tax advice from the bank. The bank might provide payroll services and bill paying for
the agency. If a travel agency has a savings account with a bank, the account earns interest rather than a
dividend, which is a sum of money paid to investors or stockholders as earnings on an investment.
Commercial banks usually do not provide debt collection or handle transactions with a stock exchange.
SOURCE: FI:039
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 456-457]. Cincinnati: South-Western.
34. C
Net worth. New travel business owners who do not have a long history of successful operation may need to
provide banks with personal financial statements that indicate their net worth. A personal financial statement lists
an individual's assets, such as a savings account or a house, and liabilities, such as debts. The person's net
worth is the value of all assets minus all liabilities. If an individual has enough net worth, a bank will be more likely
to loan money for a business that has been operating for only a short time because the owner is able to repay
the loan. Banks usually are not interested in information about a business's employees, tax status, or equipment.
SOURCE: FI:033
entrepreneurial emphasis (12th ed.) [pp. 334-335]. Cincinnati: Thomson/South-Western.
35. D
Interpret. For information to be useful to marketers, the data must be managed effectively. Marketers
must be able to take data and have it make sense to specific applications. Therefore, procedures are
needed to interpret the information. Marketers must have the ability to manipulate data to retrieve desired
information. However, enhancement can mean altering data for a favorable or specific outcome.
Enhancing data is often considered unethical behavior; results are not credible or valid. A sample is a
representative or a portion of a whole entity. Intercept means to thwart or stop a particular action.
SOURCE: IM:163
SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach
for the new millennium (p. 31). Boston: Irwin/McGraw-Hill.
36. B
Promote products. Some car-rental agencies misuse the marketing information they obtain through
research to develop advertising and promote products. Agencies sometimes obtain information
specifically to support their point of view and use this information, which is not exactly accurate, to
promote products. An example is a car-rental agency that conducts a very limited survey for the purpose
of advertising that the majority of respondents prefer its product to the product of a competitor. Legitimate
research that provides accurate, unbiased marketing information is often used in advertising. Surveys are
often developed to collect marketing information, which is then analyzed and used to solve problems.
SOURCE: IM:025
SOURCE: Kotler, P., & Armstrong, G. (1997). Marketing: An introduction (4th ed.) [pp. 132-133]. Upper
Saddle River, NJ: Prentice Hall.
37. B
Governmental agencies. Secondary data is information that has been collected for purposes other than
the project at hand. Online databases contain enormous amounts of secondary data. Governmental
agencies are a good source of secondary data because most of the information is open to the public and
available online. The information was compiled by the agencies for their own use, but it is often helpful to
tour operators as a basis for beginning their own research. An Internet service provider is a company that
provides access to the Internet. A search engine is a software program that automatically crawls the Web
looking for information pertaining to specified search terms and displays a list of results. A customer's
personal web page is not a good source of secondary marketing information.
SOURCE: IM:185
SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 105-106]. Upper Saddle River, NJ:
Prentice Hall.
38. D
Print mailing labels. Databases contain vast amounts of marketing information that are useful to
businesses only if the business is able to retrieve the information. Many cruise lines design databases in
order to be able to retrieve customers' names and addresses and print mailing labels. Cruise lines can
design the databases to retrieve and print a mailing label each time a customer books a cruise. Or, the
cruise line can design the database to retrieve the names and addresses of customers in certain
locations and print mailing labels to be used for a regional promotion. Cruise lines develop questionnaires
in order to obtain marketing information, such as sales statistics, that will be entered in a database.
Cruise lines might enter information about new vendors in a database.
SOURCE: IM:189
SOURCE: Lozono, F. (n.d.). Introduction to relational database design. Retrieved May 20, 2005, from
http://www.edm2.com/0612/msql7.html
39. C
Airlines will make poor decisions. Researchers must effectively present report findings and
recommendations to airlines in order for them to be useful. Airlines rely on information in reports when
making decisions that affect the airlines and its employees. If airlines do not understand the information
or misinterpret the information, they may be unable to make good decisions. As a result, they may take
actions that harm the airlines. Airlines probably would not hire new researchers but might ask the current
researchers to prepare another presentation. Airlines would not destroy the research they paid to have
prepared. Airlines would not be able to use competitors' information because that information is probably
confidential.
SOURCE: IM:193
SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach
for the new millennium (pp. 624-625). Boston: Irwin/McGraw-Hill.
40. B
Pricing strategies. A marketing plan is a set of procedures or strategies for attracting the target customer
to a charter-bus company. An important part of a marketing plan is the pricing strategies that a company
will use to attract those customers. Bus companies want their prices to be low enough to appeal to
customers but high enough to cover costs and earn a profit. Companies analyze a variety of information
about expenses, prices charged by competitors, and customers' wants in order to decide how to price
their products. Companies do not include information about billing methods, payroll systems, or
accounting procedures in their marketing plans.
SOURCE: IM:197
41. A
Market leadership. Market leadership is a potential strength that a car-rental agency might identify as a
result of conducting a SWOT (strengths, weaknesses, opportunities, threats) analysis. New foreign
markets is an example of a potential opportunity. Large inventories is an example of a potential
weakness. Market saturation is an example of a potential threat.
SOURCE: IM:141
entrepreneurial emphasis (12th ed.) [p. 42]. Cincinnati: Thomson/South-Western.
42. D
Your major manufacturers' representatives. If you have a good working relationship with sales
representatives, they can often provide good indications of sales. Their information is based on industry
forecasts as well as knowledge of conditions in the local area. The sales volume of competitors will only
indicate general sales levels. The number of local families would not predict sales of travel supplies and
luggage. Last year's GDP does not predict this year's GDP, which would affect sales.
SOURCE: IM:009
SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 218-222]. Upper Saddle River,
NJ: Prentice Hall.
43. D
Cultural sensitivity. Cultural sensitivity involves being aware of, and accommodating to, the differences in
the customs, habits, and traditions of a particular group of people. International businesses deal with
people throughout the world and need to be sensitive to their differences in order to be successful. For
example, businesspeople in some countries greet each other with a bow rather a handshake, while
others may hug when they meet. Being sensitive to such differences enables businesspeople to succeed
in a global market. Economic nationalism is a type of protectionism that discourages imports.
International businesses should not use deceptive behavior or reverse psychology in order to be
successful in a global market.
SOURCE: IS:002
SOURCE: Dlabay, L.R., & Scott, J.C. (1996). Business in a global economy (pp. 64-65). Cincinnati:
South-Western Educational.
44. B
Customer. Positive relations with customers/clients are important to the success of the travel and tourism
business. Customers provide the dollars that pay salaries and other operating expenses of a business.
Buyers handle a business's purchasing. Supervisors may be needed in any department. A wholesaler is
a business that buys goods from producers or agents and sells them to retailers.
SOURCE: IS:005
SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 11-12). Mason, OH: South-Western.
45. A
What to expect in the destination, including unfamiliar customs and weather. Travelers need to be made
aware of things they may not be expecting, such as special protocol to observe when visiting a foreign
country. Confirmation numbers for flights and accommodations should have been included in a follow-up
letter or phone call once the sale was made and deposit processed. Travel counselors should offer trip
insurance during the sale of the travel product, not just before departure. Travel counselors need not
provide their home phone numbers to provide good customer service. Doing so is not a usual part of
preparing clients for departure.
SOURCE: IS:051
SOURCE: Burke, J., & Resnick, B. (2000). Marketing & selling the travel product (2nd ed.) [p. 251].
Albany, NY: Delmar/Thomson Learning.
46. A
Obtain two duplicate photos in the specified size. When applying for a first passport, a traveler must
provide two duplicate photos in the specified size. The photos must be current, taken within six months of
applying. Depending on the country, passport applications typically take 1-12 weeks to process although
there are allowances for extreme emergencies (e.g., death and illness). Passports are issued and
processed by government agencies; in the United States, you can get an application from the travel
agency. It must be processed through the passport office. A driver's license may not be used as proof of
citizenship.
SOURCE: IS:040
SOURCE: Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional
(3rd ed.) [pp. 285-287]. Albany, NY: Delmar/Thomson Learning.
47. D
Ongoing training. The best way to be sure that employees have up-t o-date information about the bus
company's products and understand what constitutes good customer relations is to provide continuous
training. Well-trained employees are better able to do their jobs and serve customers. A positive attitude
and coping skills would be helpful in promoting good customer relations, but employees must develop
such attitudes and skills themselves. A grievance committee handles employee problems and is not part
of customer relations.
SOURCE: IS:008
SOURCE: Stull, W.A., & Crow, D.E. (1996). Superior customer service (pp. 100-101). Cincinnati: South-
Western Educational.
48. A
Managers. Cruise line managers set policies in order to guide the operation of the cruise line so both
employees and customers know the rules. Customers, salespeople, and suppliers do not set policies for
cruise lines. However, their comments and suggestions may be used by management in developing
policies.
SOURCE: IS:014
SOURCE: HR LAP 25—Interpreting Business Policies
49. C
Are concerned over possible personal losses. Individuals might fear that they will personally experience a
loss if organizational change occurs. This loss could come in the form of status, money, authority,
friendships, or other benefits they value. Impressing management, respecting the change agent, and
getting a promotion are reasons why individuals accept change.
SOURCE: IS:017
SOURCE: Coulter, M, & Robbins, S. (1996). Management (5th ed.) [p. 426]. Upper Saddle River, NJ:
Prentice Hall.
50. B
Several projects are being done at the same time. Estimating the time involved to complete a project is
an important part of project planning. When allocating time, travel and tourism businesses need to
consider many factors, such as whether employees are involved in working on several projects at the
same time. If the planned project will take 40 hours to complete but employees are doing other tasks, the
project may take 80 hours to complete. Businesses need to make realistic time projections in order to
prevent future problems. Most businesses allocate a certain amount of time to complete projects rather
than allow employees to work at their own pace. Businesses do not need to allocate more time to
complete a project because it requires guidance from management or many employees are nearing
retirement.
SOURCE: MN:153
SOURCE: Launi, J. (1999). Creating a project plan. Software Development Magazine. Retrieved July
15, 2005, from http://www.sdmagazine.com/documents/s=758/sdm9905d/9905d.htm
51. C
Outline specific job tasks. A job description is a written record of the duties and responsibilities
associated with a particular job. Its purposes are to describe what needs to be done, as well as telling
why and how the work should be done. Dividing up the work fairly and scheduling employee evaluations
are separate supervisory responsibilities. The job experience necessary to perform a particular job is
described in a job specification.
SOURCE: MN:043
52. C
Area competitors. Pay policies are a type of personnel policy that travel agencies establish in order to be
fair and consistent with employees. When establishing pay policies, travel agencies often consider the pay
policies of area competitors because they want to offer comparable pay rates and benefits. For example, an
agency might establish a policy of offering a hiring bonus or of giving an automatic pay raise after three
months if those policies are being used successfully by competitors. These tactics will help the agency to
attract and keep productive employees. An agency would consider the pay policies of a labor union only if it
was a union shop and negotiated pay benefits with the union. Travel agencies do not consider the pay
policies of governmental agencies or search firms when establishing their own pay policies.
SOURCE: MN:039
SOURCE: Jackson, S., & Schuler, R. (2003). Managing human resources through strategic
partnerships (8th ed.) [pp. 436-437]. Cincinnati: Thomson/South-Western.
53. B
$277.50. Many seasonal tour guides are paid on an hourly basis for the time worked, which may vary
from week to week. In this example, first determine the total number of hours the tour guide worked in a
week. A guide who is scheduled from 8:00 a.m. to 5:00 p.m. Monday through Thursday with a one-hour
lunch break is working eight hours a day for four days for a total of 32 hours (8 x 4 = 32). The guide is
working an additional five hours from 8:00 a.m. to 1:00 p.m. on Friday for a total of 37 hours. Multiply the
number of hours by the hourly rate to determine weekly compensation ($7.50 x 37 = $277.50).
SOURCE: MN:123
SOURCE: Mathis, R.L., & Jackson, J.H. (2003). Human resource management (10th ed.) [p. 385].
Cincinnati: Thomson/South-Western.
54. B
Human resources department. An airline's human resources department usually is responsible for handling most
employee-related matters including conducting exit interviews. A member of the human resources staff meets
with the employee who is leaving to obtain information that might be useful to the airline. The purpose is to find
out if there are problems within the airline that could be corrected to prevent other employees from leaving.
Immediate supervisors and departmental managers do not conduct exit interviews because they may be the
reason why the employees are leaving, and employees would not be truthful with them. A chief executive officer
is concerned with the overall operation of the airline and is not involved in the actions of individual employees.
SOURCE: MN:133
SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [p. 383]. Upper Saddle River,
NJ: Prentice Hall.
55. C
Federal and state laws. Federal and state laws, including the Americans with Disabilities Act, Equal Pay
Act, Fair Labor Standards Act, Civil Rights Act, and others, specify the length of time personnel records
must be kept. If more than one law applies, the law with the longest record-keeping requirement is
followed. Industry standards cannot supersede federal and state laws. Human resource systems refer to
computerized record-keeping systems. Manual record systems refer to manual record-keeping systems.
SOURCE: MN:033
SOURCE: Auxillium West. (n.d.). Recordkeeping requirements. Retrieved August 19, 2005, from
http://www.auxillium.com/records.shtml
56. D
Correct ways to perform jobs are demonstrated. The most common type of employee training is on-the-
job training. The employee is placed in the new job, job tasks are demonstrated, and the employee learns
under close supervision until s/he is able to do the job with a normal amount of supervision. Taking
correspondence courses, attending workshops or seminars, and receiving instruction from outside
trainers are not characteristics of on-the-job training but are forms of external training.
SOURCE: MN:019
SOURCE: MN LAP 42—Training and Human Resource Development
57. A
There is no one best method of training and development. The needs of the organization determine
which training method is most suitable or appropriate. Assessment centers are used frequently by large
organizations such as IBM and Ford. The conference method involves the use of a highly qualified group
leader to help a group identify a problem and to guide the group in discussion and consensus-reaching.
Behavior modeling is not considered psychologically dangerous. It involves giving trainees a specific
model of behavior, telling them the consequences of failing to perform in that manner, providing
opportunities to practice the behavior, and evaluating their use of the behavior.
SOURCE: MN:024
SOURCE: MN LAP 50—Manager/Supervisor Training
58. C
Physical. According to Maslow's hierarchy, physical needs must be met before any other needs. They
include the need for food, water, and shelter. Safety needs are associated with personal security and
protection from harm. Social needs include the need to belong to a group, to develop relationships with
other people, to feel accepted, and to receive affection. Self-esteem needs are needs for approval,
recognition, respect from others, and self-respect.
SOURCE: MN:029
SOURCE: MN LAP 47—Staff Motivation
59. C
Following established policies and procedures. Most travel and tourism businesses have specific policies
that provide guidelines for the ways in which employees are expected to carry out their tasks. They also
have specific procedures, or steps, that employees are to follow. Following policies and procedures will not
only make employees' work go more smoothly, but will in many cases save the business money. Paying full
price when purchasing goods, using a lot of expensive supplies, and replacing furniture and fixtures that are
a few years old are not ways that employees are able to prevent loss and waste in a business.
SOURCE: MN:016
SOURCE: MN LAP 56—Employee Role in Expense Control
60. A
Store. Supplies that airport gift shops need in order to operate, such as bags and boxes, often take up a
lot of storage space. Gift shops should order only the amount of supplies that they have room to store
without using space that should be allotted for selling. Airport gift shops order operating supplies to use
rather than to sell, display, or market.
SOURCE: MN:156
SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)
[pp. 560-564]. Upper Saddle River, NJ: Prentice Hall.
61. B
Does the cost of the contract exceed the cost of possible repairs? The sightseeing business should
estimate the costs of the most expensive possible repairs and calculate if these expenses would be more
or less than the cost of the service or maintenance contract. If the cost of the repair would be less than
the cost of the contract, it may be wise to forgo the contract. The business would consider the need for
installation and the availability of training and technical assistance when purchasing equipment. A
business does not consider how much profit the seller will make on the contract.
SOURCE: MN:159
SOURCE: Foreman, G. (n.d.). Service contracts and warranties. Retrieved August 19, 2005, from
http://www.stretcher.com/stories/960923b.cfm
62. D
To control expenditures. A budget is an estimate of what income and expenses will be for a specific
period of time. One of the main functions of an operating budget is to control expenditures so that
businesses do not spend more money than they have available. Recording financial data is an
accounting function. Operating budgets do not monitor accounting or regulate inflation.
SOURCE: MN:083
SOURCE: Kuratko, D.F., & Hodgetts, R.M. (2001). Entrepreneurship: A contemporary approach
(5th ed.) [pp. 257-261]. Mason, OH: South-Western.
63. D
Dinner sales as a percentage of daily sales. Many airport restaurants decide to stay open until late in the
evening because they experience a high level of sales during those hours. When making this decision,
they usually consider dinner sales as a percentage of daily sales. The dinner hours usually run from late
afternoon until the restaurant closes. Staying open late is cost effective if the percentage of sales is high
compared to the percentage of sales during earlier time periods. When deciding if it is cost effective to
stay open until late in the evening, restaurants do not consider the number of beverages per customer,
weekend sales compared to weekday sales, or average price of each type of menu item. This information
is useful for other purposes.
SOURCE: MN:057
SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees (pp. 52-
53). Upper Saddle River, NJ: Prentice Hall.
64. D
Lease equipment. There are many ways that travel and tourism businesses can control their operating
expenses. One of these is to lease equipment rather than buy it. Businesses often are able to lease
equipment and pay for it on a monthly basis over a period of time, which saves paying the purchase price
in one lump sum. Also, leased equipment can be returned at the end of the lease agreement and
replaced with new equipment, which often saves the business repair expense. Sometimes, businesses
need specialized equipment for a certain project, and it is more economical to lease it for a short time
than to buy equipment that will not be needed again. Buying in small quantities is often more costly than
buying in large quantities. Obtaining credit does not control expenses because a business must repay the
loan with interest. Organizing inventory space does not necessarily help to control operating expenses.
SOURCE: MN:059
Teacher's manual (2nd ed.) [pp. 345-346]. New York: Glencoe/McGraw-Hill.
65. C
Developing company objectives. The process of setting goals involves determining what a company
hopes to accomplish over a certain amount of time. Managers are responsible for developing company
objectives and planning how to achieve them. Controlling company performance involves measuring its
objectives against what it actually accomplishes and making necessary adjustments. Staffing company
operations involves hiring employees and assigning them to the appropriate tasks. Directing company
operations involves guiding and motivating personnel to accomplish the objectives.
SOURCE: MN:074
SOURCE: DuBrin, A.J. (2003). Essentials of management (6th ed.) [pp. 130-131]. Mason, OH: South-
Western.
66. B
Intending to open additional locations. A business plan is a document that outlines what the car-rental
business is and how it will operate. New businesses develop business plans, but it is also important for
existing businesses to develop new business plans under certain circumstances such as when they plan
to expand and open additional locations. When a car-rental business intends to expand, it needs to do
the same type of planning that it did as a start-up, such as identifying potential customers and expected
costs. Existing businesses develop new business plans in order to make sure that investing in additional
locations will be profitable. Existing businesses do not develop new business plans in order to renovate
facilities, buy from new suppliers, or hire replacement workers.
SOURCE: MN:102
entrepreneurial emphasis (11th ed.) [pp. 121-123]. Cincinnati: South-Western College.
67. A
Evaluating information. Individuals should evaluate the information they have gathered and identify the
pros and cons of taking different actions. They should look at the consequences of all possible decisions
and review what might happen based on the information they have obtained. Choosing alternatives is
deciding what to do. Analyzing the situation is identifying that a decision needs to be made. Reviewing
outcomes is evaluating the result of the decision.
SOURCE: PD:017
SOURCE: HR LAP 34—Make Decisions
68. D
Trade associations. A trade association is a group of persons in the same industry or geographic area
who form a society to solve their common problems. Local trade associations often are an excellent
source of career information because they know what types of jobs are available in their industry in the
community. For example, the local builders' association knows which construction companies are hiring
and for which jobs. Regional magazines usually do not contain career information. National corporations
are a source of local career information only if they have locations in the community. Library publications
usually do not focus on career information.
SOURCE: PD:022
SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations
(2nd ed) [pp. 38-40]. Cincinnati: South-Western Educational.
69. C
License. Employees in certain professions must be licensed, which means that they must pass an
examination to prove that they are qualified. The license verifies that the individual has completed the
necessary training and met specific state, local, or professional requirements. Some careers that require
licensing include nursing, medicine, teaching, engineering, cosmetology, and child care. A sponsor is a
business, individual, or organization that pays the costs of promotion. A charter, or certificate of
incorporation, is a permit issued to operate as a corporation. A patent is legal protection of an invention
or a process granted by government to its owners for a certain number of years.
SOURCE: PD:025
SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations
(2nd ed) [pp. 42-43]. Cincinnati: South-Western Educational.
70. B
White. Formal letters, such as letters of application or business letters, look best when typed on white
paper. Often, letters of application are duplicated for distribution to several people within a large
company. Letters on white paper reproduce most effectively and maintain a professional appearance.
Brightly colored paper may be used for informal letters but is not appropriate for business
correspondence.
SOURCE: PD:030
SOURCE: Ricketts, C. (1997). Leadership: Personal development and career success (pp. 442-443).
Albany, NY: Delmar.
71. A
Recession. A recession is a contraction of the GDP (gross domestic product) that lasts at least six
months. During this phase of the business cycle, business activity slows down. As a result,
unemployment occurs and consumers tend to buy less because they have less disposable income, which
lowers demand. In response to lower demand, travel and tourism businesses often reduce their prices in
order to survive until demand increases. Recovery and prosperity are phases of the business cycle that
experience an increase in demand and spending. It is during these phases that demand can exceed
supply. As a result, businesses are more likely to increase their prices. Deflation is not a common term
used to describe a phase in the business cycle.
SOURCE: PI:002
SOURCE: PI LAP 3—Factors Affecting Selling Price
72. A
$90.52. Basing the final price of a product on all the costs and expenses associated with obtaining and
selling the product is an example of the cost-based method for setting prices. Once the cruise ship gift
shop totals the costs, it then calculates the percent of profit it wants to earn on the sale of each product.
The total is the final price to the customer. In this example, add the cost of buying the product and the
expenses involved ($52 + $21 = $73). Then, multiply that figure by the percent of profit desired ($73 x
24% or .24 = $17.52). Add the amount of desired profit to the previous total to determine the final price
($73.00 + $17.52 = $90.52).
SOURCE: PI:018
73. D
$9,310.00. The dealer did not pay for the cars within 10 days and thus does not qualify for the 2%
discount but will receive the 5% quantity discount. The list price is multiplied by the percent of discount,
and the resulting dollar amount is subtracted from the list price ($9,800 x 5% or .05 = $490; $9,800 -
$490 = $9,310).
SOURCE: PI:022
SOURCE: PU LAP 3—Merchandising-Related Discounts
74. B
Product quality and business image. Businesses adjust prices in response to competitors' prices (price
competition) or in response to factors other than price (nonprice competition). Product quality and
business image are nonprice methods of competing. The cost of production is a price competitive factor
because if production costs rise, prices will be changed in order to cover the costs and maintain profit
levels. Supply and demand are economic factors that affect prices. Government regulations control
certain aspects of pricing in order to protect competition.
SOURCE: PI:008
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 420-421). Tinley Park,
IL: Goodheart-Willcox.
75. C
False, a newly modified travel product can be considered new. A travel product does not have to be
newly created or entirely new to the market to be considered new. It may also be a modification of an
existing product, or a product that is presented or distributed in a different manner. Concept testing is
exploring the concept, or idea, for a product in order to obtain feedback.
SOURCE: PM:001
SOURCE: PP LAP 5—Product/Service Planning
76. A
Implied. An implied warranty is simply understood by both the marketer and the consumer that the travel
product will perform as expected. It is neither written nor spoken. An express warranty is one that is
written or expressed verbally. A full warranty is one that covers the entire product. A limited warranty is
one that covers only specific parts or certain repairs.
SOURCE: PM:020
SOURCE: PP LAP 4—Warranties and Guarantees
77. B
Special-interest group. A special-interest group tour is one arranged for groups or organizations whose
members share a common interest. A company, as a reward, offers an incentive tour to its employees for
performance. A special needs tour is designed for physically challenged travelers. A familiarization tour is
intended to acquaint travel agents and travel writers with specific areas and their attractions.
SOURCE: PM:101
SOURCE: Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional
(3rd ed.) [pp. 212-213]. Albany, NY: Delmar/Thomson Learning.
78. A
Discover what customers expect from the company. When customers put their suggestions and
complaints into a comment box, the charter-bus company can get to know who they are and what they
expect. Ways to make a building appear more attractive include keeping it clean, applying a fresh coat of
paint, and installing flattering lighting. A company can pass along customer-service costs to customers in
the form of luggage-handling fees and finance charges, not through comment boxes. To match
competitors' services, the company would need to study the competition to determine what types of
similar services to offer.
SOURCE: PM:013
SOURCE: PM LAP 1—Customer Service Supersized!
79. B
Reliability and service. An online travel planning company that sells intangible products is selling
products that customers cannot detect through the senses. Travel planning companies that sell
intangibles often have difficulty developing an atmosphere because customers cannot relate to a
nonphysical good. Therefore, these types of businesses often develop an atmosphere based on
customers' perceptions of reliability and service. By projecting an image of prompt, courteous service that
is reliable, a company is developing an atmosphere that will appeal to customers. Because these
companies often do not have locations that customers visit, they cannot develop an atmosphere based
on physical design and layout, sight and sound, or displays. Advertising is effective in reinforcing the
atmosphere only if the company actually is reliable and service oriented.
SOURCE: PM:032
SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)
[p. 646]. Upper Saddle River, NJ: Prentice Hall.
80. D
Is necessarily biased. Consumers know that the advertiser must present the travel and tourism product in
the best possible light, while product weaknesses are not mentioned. Advertising does not necessarily
raise the price of a product. Most advertising is not meant to be misleading since misleading ads are
illegal. Directing advertising toward a mass audience would not cause customers to doubt the information
presented.
SOURCE: PR:001
SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [pp. 62-64]. Boston: Irwin/McGraw
Hill.
81. B
Emphasize customer benefits. Advertising copy should appeal to a specific audience by emphasizing the
product's benefits to that audience. Copywriters should analyze consumers' buying motives in order to
know how to appeal to the business's market. Many ads are entertaining, but that is not necessary or
appropriate in some cases. Few ads would appeal to all readers. Ad copy doesn't go into detail about
products because that would take up too much space.
SOURCE: PR:016
SOURCE: PR LAP 9—Preparing Print Ad Copy
82. B
Agency can pinpoint the target audience. The advantage of using direct mail is that a travel agency can
send promotional information to only those customers who are likely to buy. On a per piece basis, direct
mail is often expensive; but because the agency has control over who receives the message, cost per
customer contact is often low. Any message can be ignored. Direct mail is often labor intensive and
requires more work than other advertising.
SOURCE: PR:089
SOURCE: U.S. Postal Service. (n.d.). Benefits of direct mail. Retrieved August 22, 2005, from
http://www.usps.com/directmail/benefits.htm
83. D
Navigation system. The navigation system refers to the method in which an Internet user moves through
an airline web site's pages to get from one location to another. The web-site designer should make it
easy for users to know where they are at all times and be able to move to another page or site quickly
and efficiently to lower the risk of frustration. The domain name is the business's web address. Although
it is an important consideration in the overall web site development process, it does not necessarily affect
how well the users maneuver through the web site. The web-site reach refers to the percentage of the
web users who visit a site during a set time period compared to all web users. Although management can
estimate its reach, the web designers cannot control how many users visit a web site at any given time.
Interaction refers to the flow of information between two sources. Interaction rate is not a term that is
widely used in the e-commerce industry in relation to promotional efforts.
SOURCE: PR:102
SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.)
[pp. 390-391]. Upper Saddle River, NJ: Prentice Hall.
84. A
Newspaper. Cost-efficiency measures the cost of reaching potential prospects. Newspaper advertising
has low production costs, and it is very effective in reaching the local markets, is timely, and flexible to
schedule. Magazine advertising is primarily used to reach a regional or national market. Classified
advertising is generally used by individuals to sell personal goods and/or services. Television is very
expensive to produce for limited time periods and would not saturate the market as well as newspaper
advertising.
SOURCE: PR:009
SOURCE: PR LAP 6—Calculating Media Costs
85. A
Cleaned. A clean display area is important in maintaining a good image of the airport gift shop. Painting,
staining, and redecorating are not always necessary in preparing for the next display.
SOURCE: PR:054
86. C
Calendar. The purpose of brochures is to promote sales and encourage customers to book trips.
Therefore, brochures for a cruise line's winter season should include a calendar that lists the dates of
departure. In many cases, passengers decide which cruises to book based on dates that are convenient
for them. If brochures do not contain that information, customers may have difficulty making decisions
about booking cruises, or may decide not to book cruises because they don't know the schedule. Port
charges usually are included in the price of the cruise. A brochure promoting an upcoming season would
focus on information that customers need to book cruises rather than on memorabilia that is sold on the
ships, or recruitment techniques.
SOURCE: PR:141
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 177-179].
Champaign, IL: Human Kinetics.
87. B
Forecasts. A forecast is a prediction. When businesses prepare promotional budgets, they are predicting
or estimating how much money they will spend over a period of time, usually a year, on advertising and
communication activities. The budget amount should be flexible because it will need to be revised several
times during the year based on the effectiveness of the promotions. If certain promotional activities are
working well, a business might want to increase spending in that area. Remembering to keep the budgets
flexible because they are forecasts will help a business to spend its promotional dollars on the most
effective activities. Objectives are goals to be reached. Concepts are ideas. Techniques are methods
used to attain goals or objectives.
SOURCE: PR:098
SOURCE: Rossiter, J.R., & Percy, L. (1997). Advertising communications & promotion management
(2nd ed.) [pp. 32-33]. Boston: Irwin/McGraw-Hill.
88. D
Discounts on products. Most airport gift shops do not have the space for all of the point-of-purchase
displays that are available from manufacturers. Gift shops often negotiate with manufacturers for
discounts on their products in exchange for using the displays. Shops receive a better price for the
products, and manufacturers obtain space for their displays. Shops do not negotiate with manufacturers
for free classified advertising, additional finance charges, or low insurance premiums.
SOURCE: PR:071
SOURCE: Lane, W.R., King, K.W., & Russell, J.T. (2005). Kleppner's advertising procedure (16th ed.)
[pp 419-422]. Upper Saddle River, NJ: Pearson/Prentice Hall.
89. D
It usually has one central theme. An advertising campaign is a series of advertisements planned around
a central theme. The campaign may run for a period of weeks, months, or years. Any airline can run an
advertising campaign, using services of small or large agencies or its own advertising staff.
SOURCE: PR:079
SOURCE: Lane, W.R., King, K.W., & Russell, J.T. (2005). Kleppner's advertising procedure (16th ed.)
[pp. 652-657]. Upper Saddle River, NJ: Pearson/Prentice Hall.
90. A
Using product demonstrations. Salespeople who determine customer buying motives can then
demonstrate to customers the features and benefits of a travel product that would appeal to them. This
creates desire for products by showing customers how they will benefit from owning the products.
Emphasizing product utility, or usefulness, would only be appropriate for certain kinds of products.
Making a good impression on the customer should create a good selling atmosphere but does not create
desire. Monitoring the competition should be an ongoing effort that helps the business to remain
competitive.
SOURCE: SE:017
SOURCE: SE LAP 117—Selling
91. B
Fact-finding. Gathering information about potential clients, such as cruise lines, is important in
understanding the client's needs and problems. Fact-finding is also used to consider how business
products can meet the needs of clients. Referrals are individuals or businesses to whom salespeople are
recommended. Offering quality repair service and credit are ways businesses can build a clientele, not
selling activities.
SOURCE: SE:828
SOURCE: SE LAP 115—Building Clientele
92. D
Interactive training software. Interactive software allows computer users to learn information and practice
a skill or activity. Since the user is in control of the function, the software can be used on an individual
basis at anytime. Videoconferencing refers to the ability to exchange information via satellite from various
locations. Although videoconferencing is interactive, it is generally a scheduled event; therefore, a
computer user cannot proceed at her/his own pace. Database software programs are computer-based
programs that store various information and data. They are not necessarily interactive. Customized
training specialists are individuals or companies that develop and provide training materials for others.
Training specialists are not necessarily computer-based or interactive in nature.
SOURCE: SE:107
SOURCE: Stanton, W.J., & Spiro, R. (1999). Management of a sales force (10th ed.) [p. 239]. Boston:
Irwin/McGraw-Hill.
93. D
Strategic alliances. Many airlines have established partnerships with other airlines that allow them to
market each other's services. These strategic alliances provide additional services and make it easier for
passengers to arrange travel to all parts of the world. For example, a domestic airline might form an
alliance with one or more international airlines. Then, passengers wishing to travel from their hometowns
to a city in Europe or Asia simply call one airline that will arrange both the domestic travel as well as the
international travel. Travelers receive the benefits offered by all the airlines in the alliance such as use of
their airport lounges, participating in the frequent-flyer programs, and use of electronic ticketing when
available.
SOURCE: SE:203
SOURCE: Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [pp. 219-220, 268]. Albany,
NY: Delmar/Thomson Learning.
94. B
Nonverbal statements. Nonverbal statements of interest include such things as a nod, a smile, or simply
leaning forward. Another way for salespeople to make customers aware of their concern is by making
verbal statements of interest. Verbal statements of interest could include comments such as "great" or
"how nice." These statements reassure customers that salespeople care. Nodding and smiling are not
examples of appropriate or assumptive questions.
SOURCE: SE:111
SOURCE: SE LAP 114—Questioning
95. A
Recreation. Vacationers go to Vail for the skiing that has made it famous. Nature destinations attract
visitors because of their natural wonders or the desire to "get back to nature." Destinations related to
health promote physical fitness and other ways to improve health. There is no mention of relatives living
in Vail.
SOURCE: SE:230
SOURCE: Goeldner, C.R., & Ritchie, J.R. (2003). Tourism: Principles, practices, philosophies (9th ed.)
[pp. 270-273]. New York: John Wiley & Sons.
96. C
Helps to describe the product. Product features are characteristics that are not common to all travel
products but differentiate one good or service from another. They help salespeople in suggesting travel
products to fit a customer's specific need. Not all selling features would provide benefits that would be
advantageous to every customer or help to close the sale.
SOURCE: SE:115
SOURCE: SE LAP 113—Feature-Benefit Selling
97. C
When addressing a large group, the presentation format should be more structured. When making a
sales presentation to a large group, there is more opportunity for interruptions and confusion if too many
group members speak at the same time. As a result, the sales presentation risks losing impact.
Therefore, it is in the best interest of the salesperson to structure large group presentations so that there
are intervals of question-and-answer sessions to reduce confusion and interruption. Since a small group
consists of fewer members, there can be more flexibility in the presentation. The use of visual aids, the
benefit content, and format formality are usually determined by the nature of the product and the type of
audience.
SOURCE: SE:073
SOURCE: Futrell, C.M. (2000). ABC's of relationship selling (6th ed.) [p. 234]. Boston: Irwin/McGraw-
Hill.
98. D
"Would you like to book a window seat on the 10:00 flight?" This close attempt allows the reservations
clerk to specify arrangements that seem to be good for the traveler. If the traveler says no, the clerk can
make other suggestions and probe for more information. Offering to send a brochure or suggesting that
the customer wait for a lower price will delay closing the sale. A reservations clerk would not ask for a
deposit.
SOURCE: SE:223
SOURCE: Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [pp. 473-474]. Albany, NY:
Delmar/Thomson Learning.
99. D
Applications for an IDP are available at the American Automobile Association. AAA, however, is only one
of the institutions that issues international driver permits. Most countries do not require that a foreign
traveler have an IDP. An IDP translates the legal driver's license and is a form of security and courtesy if
an accident should occur in the foreign country. A written driving test is not required if the client has a
valid driver's license. The IDP does not replace or substitute for a valid driver's license; the client needs
to have a valid driver's license when driving in a foreign land.
SOURCE: SE:237
SOURCE: GroupSource Travel. (n.d.). International driver's license. Retrieved August 22, 2005, from
http://www.groupsource.com/idlp.htm
100. D
Percent. An electronic cash register can calculate discounts for employees. The employee enters 50 and
then touches the percent (%) key after the sale amount of the check. The register automatically
calculates or subtracts 50% from the item on the check. The No Sale key is used to open the cash
drawer when a sales transaction is not in process. The purpose of the Refund key is to record cash
refunds. The Conversion key is used to convert payment to a different currency.
SOURCE: SE:149
SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 124-128).
Cincinnati: South-Western Educational.

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Test 845 TRAVEL AND TOURISM 1

3. An important step in the buying process involves

5. Production is the process that involves __________ travel goods or services.

11. What types of travel and tourism businesses do stockholders own?

Copyright © 2006 by Marketing Education Resource Center®, Columbus, Ohio

21. Which of the following is a type of interdepartmental communication:

29. Jim is a chef for a cruise line. This is an example of specialization by

48. Who is responsible for developing a cruise line's policies?

51. One of the major purposes of a job description is to

56. Which of the following is a characteristic of on-the-job training:

57. Which of the following is a true statement about training methods:

58. The most basic of human needs are __________ needs.

62. Which of the following is a function of an operating budget:

82. What is an advantage to a travel agency of using direct-mail advertising?

96. A product feature is a characteristic of a travel good or service that

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