1. Which statement(s) is (are) correct?

a. The planning horizon for any business is between three and five years.

b. Forecasts that extend beyond the planning horizon are less credible.

c. The planning horizon should be the furthest point in the future considered by the business plan.

d. The planning horizon for a hotel owner is determined by the length of the management contract.

2. What statement would a hotel owner prefer to see in the business plan for a hotel destination spa, if he or she wants to evaluate whether the GM has the support of the management team?

a. I have decided that we need to invest more money in the spa.

b. These financial objectives for the spa are in line with those revealed to me privately by our closest competitors.

c. The spa manager and head of rooms division have presented the following alternative scenarios for the development of the spa business following our recent brainstorming session.

d. The future success of the spa business is probably not assured but it is not considered something we can do much about.

3. What are the two missing items in this list of planning components for a hotel owning company? Historical data, Forecasting, Strategy , Management

a. Statement of Source and Application of Funds

b. Profit and Loss Account

c. Benchmarking

d. Experience

4. What is the group of words missing from this statement about organizational planning?

One category of organizational planning is to ______ what may happen in the future, by using known facts, _______ and _________ to generate a ________ of future performance.

a. Guess, Relationships, Assumptions, Forecast

b. Predict, Relationships, Assumptions, Budget

c. Predict, Relationships, Facts, Forecast

d. Predict, Relationships, Assumptions, Forecast

5. What is the group of words missing from this statement about organizational planning?

Another category of organizational planning is to ________ established theories on how the business ________, by looking at generally accepted _____ or current relationships between business processes and the ________ generated.

a. Challenge, Operates, Past, Outcomes

b. Disprove, Operates, Past, Outcomes

c. Challenge, Operates, Past, Profits

d. Challenge, Manages, Future, Outcomes

6. What is the group of words missing from this statement about organizational planning?

A third category of organizational planning is to ________ and ______ a ______ business model. This type of planning allows ___________ to assess changes to the way the business operates.

a. Broken, Innovate, Management, Repair

b. Innovate, Renew, Established, Management

c. Innovate, Grow, Established, Human Resources

d. Maintain, Reinforce, Established, Management

7. Which of these statements is unsuitable for inclusion in a business plan?

a. We will make sure that we do things as well as the competition does in order to maintain our position in the market.

b. We will focus our planning efforts on business process and not on the outcome.

c. Too much emphasis on the outcome may cause short-term decision-making and the risk that strategy will be forgotten.

d. The planning process must aim to make the business better than the competition.

8. In order to establish a business planning strategy that can be aligned with budgets, managers need to (select the 4 statements that apply from the list below):

a. Communicate how these actions relate to individual departments.

b. Write a vision and mission statement

c. Ensure that adequate resources are available.

d. Get approval of the annual budget from shareholders

e. Choose a course of action to meet these goals for a given business environment.

f. Set realistic goals.