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HAMG 1321 MIDTERM REVIEW Flashcards | StudBud
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HAMG 1321 MIDTERM REVIEW
HAMG 1321 MIDTERM REVIEW
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1
Making a profit means that
lose money if there is a “negative” profit
always making an excess of income over costs.
losses are covered by subsidies in institutional settings.
there is surplus after debts are paid
2
Quick service restaurants are dominated by chains because of
Small crew size
frequent internal transfers of managers
Economies of scale and highly standardized product
Simple management
3
The “back of the house” of a restaurant refers to the
dining room and other areas used by the guest.
waiting area.
kitchen.
entry or foyer outside the dining room.
4
Food cost is generally higher in
family restaurants
QSRs
Casual restaurants
fine dining restaurants
5
Capital costs are
costs that vary with the value of fixed assets
fee based on net capitalization imposed by local governments
unchanging, fixed costs
stockholder or owner’s expenses
6
The baby boom refers to
generation now aged 5 to 25.
surge in children born after WW II btw 1946 & 1964.
the repeated surges in young children t
high spending on their children
7
“Generation Xers”
favor formality and fine dining.
are generally not price conscious.
are relatively young and face a competitive job market.
are affluent, middle-aged yuppies.
8
Learning on a job may come from observation of the way the operation is organized & run.
true
false
9
Economy of scale means
that reductions in total cost are made.
advertising benefits are more advantageous to independents
the opposite of the “additive effect.”
as chains grow, unit cost of centralized activities decrease
10
One reason cited in the text that some restaurant chains were bought by other chains was to
downsize.
diversify
acquire locations.
acquire capital.
11
In terms of career advancement, the hospitality industry calls for
a skill-centered education.
a specialized work.
a broadly-gauged generalist.
a person with computer skills.
12
Forecasted growth in the food service industry over the next decade is expected to be
about equal to growth in the workforce overall.
exceed growth in the workforce overall.
negative.
far less than the workforce overall.
13
An average check
is an example of a prime cost
is the total sales divided by the number of guests
total sales divided by the number of guest checks
is different from the average cover
14
The hospitality industry is shaped by
social and economic factors.
sudden event such as the September 11th attacks.
all of the above.
some gradual changes such as demographic changes.
15
The baby boom refers to
surge in children born after WW II btw 1946 & 1964.
generation now aged 5 to 25.
high spending on their children
the repeated surges in young children
16
Forecasted growth in the food service industry over the next decade is expected to be
about equal to growth in the workforce overall.
far less than the workforce overall.
negative.
exceed growth in the workforce overall.
17
Advantages of being an independent operator are flexibility and fast decision making.
False
True
18
Knowing who is responsible for what and whom to report to is an aspect of ____
a social organization.
a formal organization.
an empowerment organization.
a leadership organization.
19
Controllable expenses are
variable costs
none of the above
interest, rent, and taxes
programmed fixed costs
20
Brand recognition advantages go to
specialty chains bc of their ability to use mass media effectively.
chain specialty operations because of their generally high-speed service.
specialty chains bc the market has developed a preference for chains.
independents because of personal acquaintances.
21
Cost control in the back of the house is accomplished most effectively by
purchasing practices.
keeping track of what guests eat and reducing portions if possible
a POS system
portion control.
22
The “back of the house” of a restaurant refers to the
entry or foyer outside the dining room.
kitchen.
waiting area.
dining room and other areas used by the guest.
23
The informal organization refers to
a term used by some companies to describe their organization chart.
the pattern of groups or cliques found within any social organization.
how relationships are arranged between departments.
a style of management that emphasized the use of employees’ first name.
24
When we define the hospitality industry, we mean
all types of hotels and restaurants.
any operation that provides food and/or shelter to people away from home
travel
a “hospice” for travelers.
25
Psychographics refers to
people’s interests.
all of the above.
people’s opinions.
people’s different patterns of activities.
26
To compete with casual restaurants, some fine dining restaurants have moved to a less formal atmosphere and lower prices
True
False
27
The statement below which best summarizes a franchise agreement is:
limited to the financial obligations of each party.
franchisee agrees to contribute all resources necessary.
franchisor pays an initial franchise fee & continuing royalties.
a contractual relationship setting forth the rights & responsibilities.
28
The notion of “liberality and good will”
can be applied to all aspects of hospitality.
applies onlhy to commercial hospitality operations
has limited application in school lunch.
is not really relevant to health care.
29
“Generation Xers”
are generally not price conscious.
are relatively young and face a competitive job market.
favor formality and fine dining.
are affluent, middle-aged yuppies.
30
The percentage of women in the work force
was less than 50% as recently as 1980.
surpassed 50% in 1990.
is increasing in the employee ranks but decreasing in the managerial ranks.
is increasing overall.
31
Some factors causing change in the hospitality industry are
trade barriers, sanitation, security, and internal competition.
competition, service, technology, security, and diversity.
tourism, empowerment, sanitation, service, and prices.
stagnant management
32
Checking up on the status of your employment application in person is not a good idea.
true
false
33
The Generation Y are
none of the above
the children born immediately after the end of the baby boom.
the children born during the “baby bust.”
another term to describe conformity among baby boomers
34
Demographics refers to the changing political structure of a country.
true
false
35
Important areas for observation in a field experience are
patterns in problem areas
formal and informal organization, physical plant, and management style.
uses of centralized systems
management training, opportunities for advancement, and customer type.
36
Some factors causing changes in the hospitality industry are
tourism, empowerment, sanitation, service, and prices.
competition, service, technology, security, and diversity.
stagnant management
trade barriers, sanitation, security, and internal competition.
37
A franchise
guarantees a profit no matter how small.
offers a business plan, but the risk is taken by the franchisee.
guarantees a profit depending upon the original investment.
stipulates franchisor will give franchisee financial help if needed.
38
When discussing independents and chains
there are few competitive advantages of independents
independents have strengths in areas chains find difficult to compete
the role of chains is changing but the independent has remained static
franchised units have aspects in common with chains but not independents
39
Travel & accommodation have reached levels equal to those prior to September 11.
true
false
40
The “job benefit mix” means
the money and knowledge gained from any job.
the benefit to be gained by working in a range of different jobs.
the compensation package
psychological benefits
41
Controlling costs and quality in the back of the house
are parallel activities with food production.
are under different groups of managers
cannot be combined.
are under different groups of managers
42
Cost of sales is
sales and marketing expenses
fixed costs
cost of product consumed by the guest
bar (or beverage cost) less food cost
43
Empowerment in the front of the house refers to
giving employees discretion to favorably affect the guest’s experience
the power management has to control the service transaction
training servers to not tolerate rudeness from guests.
the guest's right to personal satisfaction in the dining experience.
44
The most productive worker in today’s society is the
apprentice-trained worker.
knowledge worker.
manager.
skilled worker.
45
Increasing the size of the customer base
is done by increasing prices
is generally done with advertising, promotion, and word-of-mouth
can be accomplished by suggestive selling
is risky because it can result in decreased sales
46
The hospitality industry offers excellent opportunities for
those trained in the kitchen.
those studying to be managers.
people with various types of interests and capabilities.
entrepreneurs.
47
The percentage of women in the work force
surpassed 50% in 1990.
was less than 50% as recently as 1980.
is increasing overall.
is increasing in the employee ranks but decreasing in the managerial ranks.
48
Who is responsible for what and who reports to who is an aspect of
an empowerment organization.
a social organization.
a formal organization.
a leadership organization.
49
Learning on the job includes observation of the way the operation is organized & run.
true
false
50
Land resources are an important supply factor in the hospitality industry because of
population growth and capital costs.
psychographics.
an increase in population mobility.
existing operations and environmental pressures.
51
Advantages in the mass media for chain specialty restaurants arise principally from
the willingness of consumers to identify with jingles & personalities.
public relations efforts in local media to backup national advertising.
simple messages, enormous spending, & the additive effect.
the fact that chains are represented in more markets.
52
Checking on the status of your employment application in person is not a good idea.
false
true
53
The most important force driving changes in hospitality services is
working women.
family structure.
consumer demand.
the baby boom.
54
The back of the house has as its main responsibility the
fast and efficient preparation of food.
cash control.
good working relationships with service staff
quality of service
55
The hospitality industry offers excellent opportunities for
those trained in the kitchen.
those studying to be managers.
people with various types of interests and capabilities.
entrepreneurs.
56
The concept of life cycle is another way of saying that
sales during the expansion period are greater than during maturity
once a concept reaches its peak sales, it’s all downhill
concept blur is here to stay
that concepts need to be periodically redeveloped or replaced
57
Land resources are an important supply factor in the hospitality industry because of
psychographics.
an increase in population mobility.
population growth and capital costs.
existing operations and environmental pressures.
58
The “job benefit mix” means
the compensation package
psychological benefits
the money and knowledge gained from any job.
the benefit to be gained by working in a range of different jobs.
59
After the year 2012 the demand for
services will increase for retirees.
food service in all sectors will increase because of globalization.
food service for baby boomers will decrease.
increased income is expected to drive the food service industry.
60
Demographics refers to the changing political structure of a country.
true
false
61
Most modern executive chefs do not cook, but focus on managing food costs, labor costs and other operational expenses.
False
True
62
In terms of career advancement, the hospitality industry calls for
a skill-centered education.
a person with computer skills.
a specialized work.
a broadly-gauged generalist.
63
In the front of the house, supervision is
best accomplished indirectly.
unnecessary since each server is in charge of their own station.
ideally performed by a senior manager.
in the hands of the guest who decides whether to tip or not
64
The notion of a job benefit-mix implies there’s both learning and earning potential in a job.
false
true
65
Profit in a business is treated in two ways
Return on investment and retained earnings.
Dividends and tax.
Return on investment and return on asset.
Gross profit and net profit.
66
Important areas for observation in a field experience are
uses of centralized systems
formal and informal organization, physical plant, and management style.
management training, opportunities for advancement, and customer type.
patterns in problem areas
67
Advantages in the mass media for chain specialty restaurants arise principally from
public relations efforts in local media to backup national advertising.
simple messages, enormous spending, & the additive effect.
the willingness of consumers to identify with jingles & personalities.
the fact that chains are represented in more markets.
68
Demographics refers to the changing political structure of a country.
false
true
69
The most important force driving changes in hospitality services is
the baby boom.
consumer demand.
family structure.
working women.
70
Midscale limited-service grew because baby boomers’ desire for informality & good value.
false
true
71
Mid-scale limited-service grew because baby boomers’ desired informality & good value.
true
false
72
Travel & accommodation have reached levels equal to those prior to September 11.
false
true
73
Today restaurants are combining brands of more than one company to increase sales.
True
False
74
When we define the hospitality industry, we mean
a “hospice” for travelers.
all types of hotels and restaurants.
restaurants and hotels
any operation that provides food and/or shelter to people away from home
75
Making a profit means that
lose money if there is a “negative” profit
there is surplus after debt
losses are covered by subsidies in institutional settings.
the operation always makes an excess of income over costs.
76
The informal organization refers to
a term used by some companies to describe their organization chart.
the pattern of groups or cliques found within any social organization.
a style of management that emphasized the use of employees’ first name.
how relationships are arranged btw departments.
77
One reason cited in the text that some restaurant chains were bought by other chains was to
acquire locations.
downsize.
acquire capital.
diversify
78
the most productive worker in today’s society is the
knowledge worker.
manager.
apprentice-trained worker.
skilled worker.
79
The largest growth sector in food service has been off-premise sales.
True
False
80
An organization chart is a diagram of the formal organization of a company.
false
true
81
Profit in a business is treated in two ways
Gross profit and net profit.
Return on investment and return on asset.
Dividends and tax.
Return on investment and retained earnings.
82
The stakeholders in restaurants are
stockholders, suppliers, and guests
guests, employees, and owners
people who are owed money by the restaurant
guests, owners, and the government
83
A profit-and-loss statement is also called
an accounting statement
a profit statement
a statement of sales, controllable expense, and capital costs
a statement of income and expense
84
The strategy of pricing products lower is called
couponing.
value pricing.
competitive pricing.
project gold.
85
Sales promotion differs from advertising because
it is directed at increasing sales over a long period of time.
it includes other activities.
it excludes “deals.”
it includes all forms of media promotions.
86
The notion of a job benefit-mix implies there’s both learning and earning potential in a job.
false
true
87
A POD is a
specialized type of purchasing
marketing term for advertising in chain restaurants.
management term for a computer analysis.
way of increasing market presence.
88
An organization chart is a diagram of the formal organization of a company.
true
false
89
Midscale limited-service grew because baby boomers’ desire for informality & good value.
false
true
90
The hospitality industry is shaped by
all of the above.
some gradual changes such as demographic changes.
social and economic factors.
sudden event such as the September 11th attacks.
91
Psychographics refers to
people’s opinions.
people’s interests.
people’s different patterns of activities.
all of the above.
92
Empowerment in the front of the house refers to
the power management has to control the service transaction.
the right of the guest to personal satisfaction in the dining experience.
training servers to not tolerate rudeness from guests.
giving employees discretion to favorably affect the guest’s experience
93
The top two restaurant chain types are hamburger and pizza.
True
False
94
Generic competition
is competition of food service with other industries.
is giving away inexpensive, generic products in a promotion.
is a form of dealing.
is a consumer need to give up restaurant dining.
95
The franchisee
often has less marketing info due to lack of reports.
is able to respond to a changing marketplace by adding new menu items.
is disadvantaged if there is a lack of franchisor field support.
maintains quality control staff in food manufacturing plants.
96
After the year 2012 the demand for
increased income is expected to drive the food service industry.
food service in all sectors will increase because of immigration.
services will increase for retirees.
food service for baby boomers will decrease.
97
Reducing costs in a restaurant
is best accomplished by cutting payroll
is less important than it appears
usually results from finding cheaper materials to make a food product
can result from improved efficiency
98
When more than one manager is present in a food service operation
their function is to support each other in the front of the house
they generally have entirely different roles and responsibilities.
they must act as a team to maintain costs and quality standards
their primary responsibility is to insure profitability.
99
Characteristics of fast food restaurants are domination by chains, simplified menus and operating formats.
False
True
100
People spending more time at home, or the “cocooning” trend, will affect the food industry to a great extent.
False
True
