Labor expenses are considered one of the most important expenses (prime costs) in the Hospitality Industry because of their large amount. Which characteristics of the following is most relevant to this view?

1. Seasonality

2. Short Duration Chain and Time Span

3. Labor Intensiveness

4. Capital Intensiveness

A hospitality company has to spend a large amount of investment to prepare its facility and furniture to accommodate customers. Which of the following characteristics is most relevant to this?

1. Seasonality

2. Short Duration Chain and Time Span

3. Labor Intensiveness

4. Capital Intensiveness

A hospitality business experiences high volatility (or fluctuation) in its sales volume depending on the time of day, week, and/or season of the year. Which one of the following characteristics is most relevant to this?

1. Seasonality

2. Short Duration Chain and Time Span

3. Labor Intensiveness

4. Capital Intensiveness

In hospitality businesses, it takes relatively short time span compared with manufacturing business to convert raw material (such as inventory) into cash by selling them. Which one of the following characteristics is most relevant to this?

1. Seasonality

2. Short Duration Chain and Time Span

3. Labor Intensiveness

4. Capital Intensiveness

Which of the following characteristics causes hospitality businesses to report a large amount of depreciation expenses?

1. Seasonality

2. Short Duration Chain and Time Span

3. Labor Intensiveness

4. Capital Intensiveness