Lodging Quiz 2 – Flashcards
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An investor makes an investment of $1,000,000 and achieves a $200,000 profit on that investment. In this example, what was the investor's ROI? a. 2% b. 5% c. 20% d. 50%
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c 20%
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What is the name for the franchise disclosure document prepared by a franchisor and registered and filed with the state governmental agency responsible for administering franchise relationships? a. FOC b. FDR c. FTC d. AFP
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a. FOC Franchise Offering Circular
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What is true about first-tier management companies? a. they own all of the properties they manage b. they invest in all the properties they manage c. they operate hotels for owners using the management company's trade name as the hotel's brand name d. they operate hotels for owners but do not use the management company's name as part of the hotel's name
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c. they operate hotels for owners using the management company's trade name as the hotel's brand name
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Which term refers to the fact that the decline in value of a hotel asset is generally tax deductible? a. depreciation b. appreciation c. acceleration d. mollification
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a. depreciation
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What is the term used to identify those who purchase the rights to use a hotel's brand name? a. general manager b. franchisee c. brand manager d. franchisor
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b. franchisee
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What is the agency that enforces federal antitrust and consumer protection laws related to franchisors? a. FTC b. ADR c. FBI d. ACP
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a. FTC federal trade commission
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What is the name of a lodging industry trade association that has been at the forefront of promoting fairness in hotel franchising? a. NRA b. CMAA c. CHRIE d. AAHOA
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d. AAHOA asian american hotel owners association
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What is the primary factor that determines the total fees that franchisors can charge franchisees who want to affiliate with the franchisor's brand? a. the strength of the brand name and the revenue the name will bring to the hotel b. the location of the hotel c. the location of the franchisor's headquarters d. the number of hotels affiliated with the franchisor
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a. the strength of the brand name and the revenue the name will bring to the hotel
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What is a common job title for the individual who has regular on-site interaction with a franchised hotel? a. franchise sales manager b. brand manager c. franchise service director d. franchisor investment advisor
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c. franchise service director
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What is the term used to identify those who sell the rights to use a hotel's brand name? a. general manager b. franchisee c. brand manager d. franchisor
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d. franchisor
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What is true about hotel management companies? a. they do not hire managers b. they generally manage hotels for a fee c. they must be owned by a franchisor d. they must be owned by a franchisee
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b. they generally manage hotels for a fee
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What is the lodging industry term for a hotel that is not part of a franchise group? a. flagged b. free c. independent d. single
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c. independent
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What is a REIT? a. a stock-issuing company that can own and operate its own hotels b. a popular franchisor c. a rooms executive trained in information technology management d. a type of franchise agreement
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a. a stock-issuing company that can own and operate its own hotels
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What is a lodging industry term for hotels operating under the same brand name? a. linked property b. chain c. wholesale group d. cluster
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b. chain
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What is one reason that a hotel owner might consider hiring a hotel management company? a. increased control over selection of hourly employees b. to gain day-to-day control of operating decisions made in the hotel c. improved overall management of the hotel d. freedom from the hotel's operating liabilities
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c. improved overall management of the hotel
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What is the lodging industry term for the formal operating agreement between a hotel's owners and a hotel management company? a. management acceptance b. management fiscal structure c. management solution d. management contract
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d. management contract
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What is true about second-tier management companies? a. they own all of the properties they manage b. they invest in all of the properties they manage c. they operate hotels for owners using the management company's trade name as the hotel's brand name d. they operate hotels for owners but do not use the management company's name as part of the hotel's name
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d. they operate hotels for owners but do not use the management company's name as part of the hotel's name
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Which brand is generally recognized as the first hotel chain? a. hilton b. hyatt c. hampton d. holiday inn
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d. holiday inn
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What is true about an investor in a hotel? a. the investor must be a corporation b. the investor must manage the hotel c. the investor must be an individual d. the investor seeks a return on their investment
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d. the investor seeks a return on their investment
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What is another lodging industry term for a specific hotel brand name? a. mark b. flag c. ID d. type
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b. flag
