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business
management in the hospitality industry
Questions and Answers of
Management In The Hospitality Industry
1. What was the primary cause of this situation?
2. What present and future costs are involved in this decision?
1. Was the decision to remove the terminal necessary? For whom?
3. What are the potential costs of this transaction?
2. What were the service recovery opportunities?
1. Why did this situation come about?
4. What do you think Per might do in the future?
3. What messages are being sent by the general manager?
2. Why do you think the general manager has this policy?
1. Who do you think is right in this situation?
3. What improvements might you suggest for the system?
2. What do you think of the overbooking policy?
1. Evaluate Kim's response to the situation.
2. What are some of the costs incurred in this situation?
1. Is it effective to attempt to achieve 100% occupancy?
3. What are the costs involved in this situation?60
2. What could have been done to prevent this from happening?
1. What was the primary cause of this incident?
3. What was the potential cost of this interaction?
2. Was either party being unreasonable?
1. What was the cause of this situation?
3. What costs might have been incurred in the situation?53
2. Who was right in the interaction?
1. Evaluate the decision-making process that just took place.
3. What costs might be associated with this type of situation?
2. What action might have been taken to resolve the situation?
1. What impact does a guarantee have on guest expectations?
4. What are the potential costs of this incident?
3. What might you offer as a solution to prevent this from happening again?
2. How important are guest expectations?
1. Is the plan for handling incoming guests effective?
3. What are some of the potential costs of this incident?
2. Why were there so many service deficiencies?
1. Was the contract renegotiation appropriate?
3. Develop an action plan to assist the manager.
2. Where should the general manager focus his attention?
1. What is wrong with the Cedars?
3. What predictions might you make about the future of the inn?
2. What effect did this policy have on internal customers?
1. What effect did this policy have on external customers?
4. What prediction might you make about Jeff's future?
3. What are some of the potential costs of this type of operation?
2. How would you feel working in this type of environment?
1. Evaluate Mr. Walker's strategy.
3. Who will ultimately pay for this type of practice?
2. Should the credit card company just accept this situation?
1. What could have been done to prevent this situation?
4. Make a prediction about the future of Oaks Properties.
3. What could Liza have done in this situation?
2. What impact did the strategy have on internal customers?
1. Evaluate the strategy of Oaks Properties.
4. Can anything be done to resolve the situation?
3. How did the behavior of the GM help or hinder the situation?
2. What effect did their expectations have on the incident?
1. Why is the McDonald's vacation turning out so poorly?
3. Who could have prevented this from happening? How?
2. Was Allison at fault for any of the problems?
1. How did this situation come about?
3. What recommendations would you make to Sunspot management?
2. Who are the primary customers of Sunspot?
1. What are the important issues in this situation?
Eliza Eastwood owns a very successful lodging chain. The chain is incorpo- rated and earns net income of $300,000 each year. Her salary is $80,000 a year. At the present time, she receives fringe
L. Clark is the sole owner of a successful lodging chain. The chain is incorporated and generates pre-tax income of $350,000 each year. At the present time, he receives fringe benefits of $5,000 per
Tina Koelling owns and manages the unincorporated Christmas Inn. She and her husband, Melvin, file a joint return. Their tax situation for 20X2 is as follows:A. Income Income from the Christmas Inn $
Vera Van Wormer owns a very successful food service chain. The chain is incorporated and generates net income of $300,000 each year. Her salary is $40,000 a year, and she receives no benefits. The
Bob Borchgrevink, the owner of Borch’s Motel, has recently learned about the concept of double taxation. He wants to know how much tax he and his incorporated motel would pay in each of the
The Piston Corporation has purchased $2,000,000 worth of equipment for its hotels in the current year. The president, Fred Detroit, has heard that using the MACRS offers cash savings over the
The Waterloo Hotel is an unincorporated lodging facility owned by James Waters. During 20X1, the hotel provided its owner with $90,000 in net income.In addition, James received $3,000 in interest
J. Deere Restaurants, Inc., must decide whether to use the cash or accrual method of accounting for tax purposes. The chairperson, John Deere, has provided you with the following information:Basis
Nicole Bustle is earning a mint selling real estate. During the past 5 years, she has had average annual taxable income of $200,000, and she is expected to average $200,000 per year for the next
Bob Woods, owner of Woods Place, wants to know the potential tax liability of his restaurant given various levels of taxable income and different forms of organization. Assume that Woods Place
Using the information in Problem 20.4, calculate income taxes for the Willeys(ignore exemptions and deductions) and their businesses in the following situations:1. Assume that the Willeys’ average
Wanda Willey is considering opening a franchised quick service restaurant (QSR). She believes that in a typical year she will gross nearly $1,500,000 and net $150,000 before income taxes. Harley, her
The O’Conner family (Julius and Leta) had salaries totaling $80,000 in 20X3.They received interest of $4,000 on corporate bonds and $2,000 in bonds issued by the State of Missouri. Their dividend
Bill Holbrook, owner of the Grand Ledge Café, has earnings from his business(sole proprietorship) of $70,000. Assume he is married and can claim himself and his spouse as exemptions. Further, assume
The Jordan family has taxable income of $80,000.Required:1. Based on the tax rate schedule provided in the chapter for married individuals filing jointly, determine his federal income tax
Under what circumstances is the sole proprietorship form best?
What are two limitations to S corporations?
How may the disadvantage of unlimited liability be overcome in selecting a form of organization?
What are the major disadvantages of a corporation?
What are the major disadvantages of a sole proprietorship?
How do tax deductions differ from tax credits?
What are 5 types of income that must be reported on an individual’s tax return?
Dirk Gibson has asked you to appraise his 200-room hotel, the Gibson Inn, using the cost approach. He has provided you with the following information.1. His property consists of seven acres of land
Hospitality Ventures Inc. is considering the purchase of three properties. The information on these properties is provided next.Hillshire Inn Bechworth Resort Stadium Plaza% of debt financing to
Dan Majerle has asked for your help in determining which of two hotels to buy.The information for the two properties is listed below.Driftwood Inn Island Home Resort Appraised value of land $400,000
Indicate how the changes in the following elements would impact the mortgage constant:Element Impact on Mortgage Constant A. Decreased frequency of loan payment B. Increase in interest rate C.
Ronald Trump is considering the purchase of the Chippewa Hotel and has asked for your assistance in estimating the market value of the property. You have been provided with the following information
Ms. Val U. Ation is considering purchasing a hotel. In order to determine the value of the property, Rushmore’s Resort, she has been doing some research.She has a verbal agreement with her bank for
Ron Flessner is interested in purchasing the Wesleyan Motel in central Illinois. He desires an 18% return on his investment and can borrow any funds required for the purchase at an annual interest
Mark McKeel is investigating the purchase of the Wolverine Inn. He plans to hold the lodging property for 7 years and then sell it. He has you estimate its market value based on his input as
The owner of Livingstone Hotel wants you to estimate the market value of her facility. She provides you with the following income streams over its expected remaining life:Year Annual Income Year
Lisa Vehrenkamp, manager of The 10,000 Lakes Hotel, has a contract with Appraisers Associates to appraise her 150-room motel, which is located in Minneapolis. The consultant on the job determines the
The owner of Kolenda Roadside Eatery is interested in having her property appraised. The owner provides you with the following information:1. Number of seats: 150 M-Th F Sa Su Average seat turnover
Angelos Vlahakis, owner of a restaurant in Greektown, is considering sell- ing the restaurant. He has requested your assistance in estimating the restaurant’s market value. Vlahakis provides you
Hotel Valuation, Inc., appraises hospitality properties. It uses the income capitalization approach and capitalizes the stabilized year’s income using an overall capitalization rate.Jon Reynolds,
Jean Gabrion believes her hotel has been over-assessed for tax purposes. The assessed value is supposed to equal one half of the market value. She realizes that the best approach to appraising her
Norman Muhling, owner of the 50-room Muhling Inn, wants to have his lodging facility appraised using the cost approach. He provides you with the following information:k ee Similar parcels of land on
How is an overall capitalization rate determined?
Exactly what income number is being discounted when the income approach is used?
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