a. An investor wishes to buy a 250-room hotel for $32,000 per key. The investor's bank is willing to lend an amount that would create a 60% loan to value (LTV) ratio loan. How much is the bank willing to lend to the investor?

	A.	$3,600,000
	B.	$4,200,000
	C.	$3,000,000
	D.	$4,800,000

b. A hospitality business owner pays $50,000 per year in interest on loans to her business. The annual net operating income from her business is $220,000. What is this owner's debt coverage ratio?

	A.	2.0 times
	B.	4.4 times
	C.	2.4 times
	D.	4.0 times

c. Which is the term used only to describe individuals or companies that are willing to take risks by initially financing promising new businesses?

	A.	Equity Partners
	B.	Capital Investors
	C.	Bankers
	D.	Venture capitalists

d. A capital budget is the tool hospitality managers use to plan and evaluate...

	A.	the amount of cash on hand.
	B.	operating expense ratio.
	C.	the purchase of fixed assets.
	D.	selling prices.