1. Some GMs measure their own effectiveness using primarily ADR, while others prefer to evaluate their effectiveness by the occupancy rate generated. More recently, RevPAR has become the standard by which the effectiveness of a hotel's management term is evaluated. Describe at least one still useful? Would you, as a GM, use RevPAR as your exclusive measure of effectiveness? Why or why not?

2. The balance sheet, income statement, and statement of cash flows each yield important pieces of information. To truly understand these documents, it is helpful to know what they cannot tell you. Consider some of the limitations of each of these three financial documents.

3. Many hotels experience difficulty when establishing credit policies. List five factors you believe would be important when determining whether to offer credit terms to a new client in your own hotel. Explain your reason for choosing each factor.

4. Improvements in technology have affected the controller's office more than most areas within a hotel. Assume you were the GM of a large full-service property. What specific steps could you take to ensure that your controller stays abreast of the advances that impact his or her area? How will you evaluate that individual's efforts to maintain and improve skills? How will you keep up with the changes that will continue to revolutionize this area?

5. Often it is difficult to determine whether errors made in the financial records of a hotel, and then uncovered in an audit, represent international fraud or simply mistakes resulting from poor training or lack of knowledge. At the GM, what specific criteria might you use to evaluate the honesty of the controller's office if an independent sudit revealed multiple areas of consistent mistakes?