Test 933 RESTAURANT AND FOOD SERVICE MANAGEMENT 1
1.In which of the following types of business ownership does the owner bear the entire risk of loss:
A.General partnership C.Open corporation
B.Sole proprietorship D.Private enterprise
2.The Age Discrimination in Employment Act prohibits employment discrimination because of age against people who are ______or older.
A.55C.40
B.50 D.60
3.When time permits, employees of the Albert Restaurant Supply Company deliver orders to local restaurants for the company. For the last six months, delivery demands have tripled, and the company is considering using a private delivery service in order to make sure customers receive their deliveries on time. What factor is affecting the company's distribution decision?
A.Needs of employees C.Level of service
B.Type of product D.Number of competitors
4.A franchisor requiring a franchisee to sell only the franchisor's products is an example of exclusive dealing which is
A.an illegal distribution strategy. C.encourages competition.
B.legal in this situation. D.a method of increasing sales.
5.Which department would a marketing manager for a chain of seafood restaurants contact to make sure that enough shrimp is on hand for an upcoming promotion?
A.Customer ServiceC.Accounting
B.Shipping D.Purchasing
6.One of the benefits of using the selective distribution strategy is that it usually creates ______among channel members.
A.pricing wars C.strong relationships
B.intense competition D.aggressive behavior
7.Which of the following are types of criteria that are often used to evaluate the performance of channel members:
A.Resale pricesC.Liquid assets
B.Economic goals D.Sales quotas
8.A collection letter that a restaurant supply business writes to customers to encourage them to pay is an example of a(n) ______message.
A.threatening C.persuasive
B.informational D.aggressive
9.The first part of a written proposal often provides an explanation of the
A.final solution. C.total expense.
B.research involved. D.specific problem.
10.A restaurant manager can most effectively explain to employees the jobs they are expected to do by giving them ______instructions.
A.complicated and obscureC.brief and vague
B.detailed and complex D.simple and concise
11.A restaurant supply business establishes a policy that it "will not be undersold" in order to
A.offer a wide variety of goods.C.compete with similar businesses.
B.maintain high inventory levels. D.employ a large sales force.
12.Which type of restaurant customer can best be described as being shy, insecure, and sensitive?
A.Slow/MethodicalC.Dishonest
B.Domineering/Superior D.Suspicious
13.Which of the following is not the responsibility of a restaurant receiving manager or receiving employee:
A.Checking the shipping label on each container received
B.Determining that the invoice for the shipment received has been paid
C.Signing the delivery receipt
D.Counting the number of containers that are being delivered and examine their condition
14.Which of the following methods of checking stock saves time but is often ineffective in detecting shortages:
A.QualityC.Direct
B.Blind D.Spot
15.A form that restaurants can use when returning damaged goods to the vendor is a(n) ______form.
A.claimC.invoice
B.receiving record D.purchase order
16.What do restaurant supply businesses that carry expensive imported items often consider when planning storage space?
A.PrivacyC.Security
B.Profitability D.Liability
17.Counting stock by hand to maintain a unit control inventory system is known as ______inventory.
A.perpetualC.physical
B.periodic D.estimating
18.Which of the following is a way in which restaurant supply businesses use inventory records:
A.To create stock-outsC.To calculate turnover
B.To calculate commissionsD.To classify merchandise
19.Selling goods and locating potential customers are included in which of the following categories of business activities:
A.Operations management C.Financial analysis
B.Strategic management D.Marketing
20.Building and zoning regulations are enforced by government in order to
A.increase business traffic.C.standardize commercial buildings.
B.protect business property.D.keep restaurants from changing locations.
21.Which of the following words or phrases most accurately completes this sentence: In the restaurant business, profit is not
A.affected by efficiency. C.likely.
B.guaranteed.D.of concern to employees.
22.A characteristic of an oligopoly is that restaurant supply businesses operating in this type of a market are greatly influenced by the
A.actions of competitors. C.controls of government.
B.availability of resources. D.lack of technology.
23.Increased consumer spending indicates that the economy is stable and growing because increased spending leads to an increase in
A.unemployment levels. C.demand for products.
B.interest rates. D.scarcity of resources.
24.During the peak phase of a business cycle, a restaurant supply business could be expected to have
A.reduced sales. C.low profits.
B.high prices. D.staff reductions.
25.Restaurant employees who work in stressful environments for long periods of time often experience
A.burnout.C.abuse.
B.prejudice. D.conflict.
26.In the food service business, everyone works toward ______goals.
A.undefinedC.individual
B.realistic D.shared
27.Which of the following is an important part of successful leadership:
A.Technical training C.Aggressive behavior
B.Limited negotiation D.Effective communication
28.Recognizing the work and accomplishments of restaurant employees often helps to build their
A.understanding. C.agreement.
B.self-esteem. D.sensitivity.
29.A distinguishing characteristic of credit unions is that they
A.are unions for people in the banking industry.
B.offer only credit-card services.
C.provide more services than banks.
D.operate as cooperative financial institutions.
30.What do some people purchase as an investment that accumulates a cash value?
A.Joint checking account C.Mortgage on a house
B.Type of life insurance D.Personal installment loan
31.As Tom uses his credit card to make purchases in a responsible manner, he should remember that credit is a(n)
A.privilege. C.asset.
B.loan. D.tax.
32.While George is unable to work because of a back injury, he receives a check every week for 60% of his usual salary. George's check is a benefit of his ______insurance.
A.liability C.disability
B.cash-value D.bodily injury
33.Why do restaurants often prepare a projected cash flow statement for a period of months?
A.To record current transactions C.To analyze expected expenses
B.To review gross profit on sales D.To identify prospective customers
34.Calculate a restaurant's profitability ratio if its net profit is $150,000 and its net sales are $875,000.
A.20%C.19%
B.15% D.17%
35.What is the relationship between a restaurant's goals and its budget?
A.Goals are established after the budget so that they are realistic.
B.Goals state the big picture and are unrelated to a detailed budget.
C.Budgets translate a restaurant's goals into actual means for accomplishing them.
D.Budgets reflect real business activity while goals are usually unrealistic.
36.Which of the following is permitted by law:
A.Food service businesses of 100 or more employees are required to develop affirmative-action programs for disabled employees.
B.Applicants need not be told that credit bureau checks will be made on their backgrounds.
C.For substantially equal work, restaurants cannot pay members of one sex more than members of the other sex.
D.Restaurants can use tests to discriminate against members of targeted groups.
37.Why should you follow up on job orientations?
A.To identify problem areas that are beginning to surface
B.To make employees feel productive from the beginning
C.To assure that the facilities are conducive to learning
D.To prove that new employees are aware of policies and procedures
38.Which of the following is a true statement about training methods:
A.Behavior modeling can be psychologically dangerous for some people.
B.Assessment centers are used frequently by small organizations.
C.The conference method helps trainees understand their feelings.
D.There is no one best method of training and development.
39.The two approaches food service supervisors may take toward disciplinary problems are
A.remediation and disciplinary suspension.
B.peer counseling and supervisory discipline.
C.preventive discipline and corrective discipline.
D.preventive discipline and corrective counseling.
40.To protect the integrity of the marketing information they gather, restaurant chains should avoid
A.working with a publisher. C.surveying a lot of people.
B.paying for the data. D.manipulating the research.
41.Restaurant supply businesses can retrieve external marketing data by accessing
A.computer-generated sales reports. C.accounts receivable summaries.
B.web-based information services. D.inventory management records.
42.To determine how research data relate to the questions that have been raised, the researcher must ______the situation.
A.analyzeC.survey
B.observe D.experiment with
43.The ABC Restaurant Corporation wants to be assured that there will be sufficient workers in the area to staff its latest restaurant. This is a consideration in which factor involved in selecting a new site?
A.DemandC.Market area
B.Competition D.Services
44.When food service marketers determine their tactics, they make sure their tactics
A.focus on their customers.C.bring in enough money.
B.support their marketing mix. D.line up with their strategies.
45.Customers who buy a specific brand of restaurant equipment, even though there are less expensive brands available, are demonstrating
A.occasion response. C.rate of usage.
B.loyalty response.D.geographic segmentation.
46.When identifying a target market, restaurants often create a record of information such as age, income level, ethnic background, occupation, and attitudes, which is known as a
A.customer profile.C.preference list.
B.demographic breakdown. D.consumer composite.
47.A restaurant supply company considers the costs of production and distribution, prices of competing products, and the desired profit before setting the price for a new product. This information would be included in which part of the marketing plan?
A.Situation analysis C.Marketing policies
B.Financial projections D.Product descriptions
48.What is a potential opportunity a restaurant chain might identify in a SWOT analysis?
A.Risk of takeover C.Management turnover
B.Strong research and developmentD.Falling trade barriers
49.Which of the following is a reason why restaurants often decide to regularly conduct a competitive analysis:
A.Competitors use unethical sales techniques.
B.Laws regulating competition are unfair.
C.Competitive environment is constantly changing.
D.Competitors need to agree on prices.
50.The MSV Food Service Company developed a sales forecast by considering the opinions of industry experts. This is an example of which of the following sales-forecasting methods:
A.Quantitative C.Industrial
B.Conditional D.Qualitative
51.The marketing strategy component of a marketing plan should include a(n)
A.detailed product description.C.proposed annual budget.
B.explanation of accounting methods.D.list of current employees.
52.One way for a restaurant supply business to measure the effectiveness of its marketing efforts is to compare its sales objectives with
A.sales performance. C.development procedures.
B.routine goals. D.financial ratios.
53.Many restaurants have responded to health trends by preparing foods that are higher in
A.cholesterol.C.sodium.
B.saturated fat. D.complex carbohydrates.
54.When creating and posting information to a web site, one of the most important considerations is the
A.opening page. C.domain name.
B.search engine. D.shopping cart.
55.Turning off the lights, setting the alarm, and locking the door are required procedures for
A.checking for intruders or burglars.C.opening the store or business.
B.taking inventory. D.closing the store or business.
56.Restaurant supply salespeople should take an active role in the neatness and cleanliness of the retail selling area in order to
A.help management control costs by reducing the number of cleaning people needed.
B.impress customers who see salespeople cleaning and tidying their work areas.
C.increase sales, because customers like to shop in clean, well-organized, and attractive settings.
D.help salespeople acquire new career skills that they can use later on.
57.The plates and silverware required for a cover on a restaurant table are determined by the
A.decor of the restaurant.C.size of the tables.
B.restaurant owner's preference. D.meal being served.
58.To best handle serious illnesses or injuries in the workplace, employees should thoroughly understand the restaurant's ______procedures.
A.fire escape C.robbery reporting
B.medical emergency D.security lockdown
59.When reordering merchandise, restaurant gift shops must compare the financial impact of storing the inventory against the
A.fixed expenses.C.ordering costs.
B.selling price. D.interest rates.
60.A restaurant supply business negotiates with an insurance company for a lower premium on the business's fire insurance policy, which helps to reduce the business's
A.expense accounts.C.cost of goods.
B.variable costs. D.fixed expenses.
61.Which of the following is a factor that might make a restaurant decide to buy rather than to lease a facility:
A.Current cash flow C.Decreasing land values
B.Long-term cost D.Negative credit rating
62.Why do food service businesses often schedule routine maintenance?
A.To expedite repairsC.To prevent breakdowns
B.To meet specifications D.To develop procedures
63.Before you can reach a goal, you must first ______an appropriate one.
A.adjustC.fulfill
B.complete D.select
64.Which problem-solving method requires you to think of things that could make the problem worse?
A.Brainstorming C.Seven-step
B.Reverse brainstormingD."Finding the root of the problem"
65.Which of the following actions should you take after an interview in which you were told that you would not be hired:
A.Tell your friends not to interview at the business.
B.Send a letter to thank the interviewer for meeting with you.
C.Ask if there are any other job openings for which you could apply.
D.Phone the interviewer later to see if his/her decision has changed.
66.A basic method of making sure that activities are carried out is to
A.make a daily "to do" list of important activities.
B.decide which activities will be easy to do.
C.assign a number rating to each of your activities.
D.categorize your activities as routine or regular.
67.Which of the following is a product decision that often influences the price that a food service business charges for a good or service:
A.Location C.Advertising
B.Transportation D.Research
68.Bar code symbols that are scanned into computers and used to identify and total information such as the selling prices for restaurant supplies are also called
A.United Rating Systems.C.Universal Product Codes.
B.Uniform Resource Locators. D.Unified Pricing Criteria.
69.Companies X, Y, and Z determine the selling price of restaurant furniture because these companies are the only ones who market restaurant furniture. This is an example of
A.an oligopolistic market.C.pure competition.
B.monopolistic competition.D.a true monopoly.
70.How much income from sales must the Bigwig Restaurant Equipment Company receive in order to break even if its total fixed costs are $4,450,000, selling price per product is $1,125, and variable costs per product are $1,000?
A.$40,500,000 C.$41,950,000
B.$40,050,000 D.$42,680,000
71.To offset cost increases, restaurant equipment businesses often maximize a product's profitability without increasing the selling price by
A.increasing employee productivity.C.eliminating discount programs.
B.lowering the sales taxation rate.D.offering substantial rebate programs.
72.During which stage of a product life cycle do sales and profit usually increase even though competition is intense?
A.Introduction C.Universal
B.Maturity D.Existing
73.One way food service businesses use computer technology to obtain information to improve their product/service mix is by
A.mailing questionnaires to customers. C.compiling detailed databases.
B.tracking visitors to their web sites. D.preparing interactive software programs.
74.Which of the following restaurant supply employees is a good source for obtaining new product ideas because s/he is in contact with customers on an ongoing basis:
A.Graphic designer C.Sales representative
B.Tax auditor D.Office manager
75.Which of the following questions do restaurant equipment businesses ask when they evaluate the feasibility of a product idea:
A.How can we come up with innovative ideas for more products?
B.Do we have access to the resources to make this product?
C.Does this product satisfy the company's needs?
D.Will vendors buy or use the product if it is available?
76.Which of the following actions can be taken by the Consumer Product Safety Commission:
A.Make sure the food supply is safe.
B.Require warranties to be clearly stated.
C.Require producers to provide warnings.
D.Ensure that drugs and medical devices are safe.
77.Terry, a buyer for a restaurant supply company, has the job of choosing a particular assortment of products that will meet the market's needs and the company's goals. Terry is responsible for the company's product
A.sales.C.line.
B.item. D.mix.
78.Which of the following situations is an example of product bundling:
A.Buy restaurant equipment Y and receive service W free for six months.
B.Buy commercial stove Z and receive a $50 manufacturer's rebate.
C.Buy display case X and receive a $15 discount if it is paid within 10 days.
D.Buy cleaning service M and receive a coupon to use for future purchases.
79.In what stage of brand loyalty do people become aware of the brand?
A.Satisfaction C.Insistence
B.RecognitionD.Preference
80.All food service businesses have brands because they all have
A.mission and vision statements.C.strategic business plans.
B.names and logos. D.customers with impressions and feelings.
81.An important part of developing the merchandising plan for a restaurant supply business involves estimating the expected
A.principal. C.insurance.
B.collateral. D.reductions.
82.If a restaurant supply product selling for $21 has a gross margin of $10, then the item's ______is $11.
A.net profit C.profit percentage
B.operating expense D.cost to the seller
83.One of the reasons for restaurant supply businesses to use promotion is to ______goods and services.
A.display oldC.guarantee
B.deliver D.help sell
84.Restaurant promotions that depict men playing football and women cleaning house often are criticized for
A.being in bad taste. C.reinforcing stereotypes.
B.exaggerating benefits. D.focusing on similarities.
85.Children's advocacy groups monitor the content and airing of television commercials because young children usually do not have fully developed ______skills.
A.speaking C.social
B.reasoning D.physical
86.Which of the following attracts a web-site visitor's attention by using animated graphics that float across the web page to promote a food service product or idea:
A.Satellite technology C.Rich-media advertisingļ
B.Meta tagsD.Click-through
87.The part of an advertisement that delivers the sales message is the
A.layout.C.body copy.
B.tag line. D.element.