Finance Fundamentals
What financial statement shows a company’s revenues and expenses over a period?
Income Statement
What are the 4 Ps of marketing?
Product, Price, Place, Promotion
What is the primary goal of entrepreneurship?
Create value (often through innovation and profit)
What is a contract?
A legally binding agreement
What is the primary goal of customer service in hospitality?
Customer satisfaction
What does ROI stand for, and what does it measure?
Return on Investment; profitability relative to cost
What is target market segmentation?
Dividing a market into specific groups of consumers
What is a SWOT analysis used for?
Evaluating strengths, weaknesses, opportunities, threats
What makes a contract valid? (Name one requirement)
Offer, acceptance, consideration, legality, capacity
What does “occupancy rate” measure in a hotel?
Percentage of rooms filled
A company reports strong net profit but is struggling to pay its short-term bills. What is the most likely issue?
Poor cash flow / liquidity problem
What type of marketing focuses on long-term customer relationships?
Relationship marketing
What leadership style involves team input in decision-making?
Democratic leadership
What is intellectual property?
Creations of the mind (ideas, inventions, branding)
What is the term for adjusting prices based on demand (airlines/hotels)?
Dynamic pricing (or yield management)
A company has high revenue growth but consistently negative cash flow. What are TWO likely financial concerns?
If a brand raises prices to appear more exclusive, what strategy is this?
Prestige pricing
A startup runs out of cash despite being profitable. What is the issue?
Cash flow problem
A company knowingly misleads customers in ads. What issue is this?
Ethical violation / deceptive advertising
A restaurant experiences long wait times and customer complaints. What operational issue is most likely?
Inefficient capacity management or staffing
A company lowers prices to increase sales volume but total profit drops. What likely happened?
Margins decreased more than volume increased (contribution margin issue)
A product fails despite strong advertising because it doesn’t meet customer needs. Which concept failed?
Product-market fit
Scaling too quickly without infrastructure leads to what major risk?
Operational inefficiency / failure due to overexpansion
What is the difference between ethics and laws?
Laws are enforced rules; ethics are moral principles
A hotel receives negative reviews about inconsistent service. What is the best long-term solution?
Standardize training and service procedures