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Unformatted text preview: HB 100 Final Exam Study Guide Module 2: Business Overview / What's on the HB Menu?-Distinguish between profit-seeking and nonprofit organizations. *Profit-seeking are usually casinos, restaurants, etc., whereas nonprofits include educational, charitable, and church organizations-Classify organizations as goods-producing, service-producing, hospitality, and/or tourism businesses. *See vocab.-List and briefly describe the types of businesses included in each segment of the hospitality category: foodservice, lodging, casino gaming, private clubs, and meeting/event management. *Foodservice: Restaurants, etc. that aim to provide foodservice for its customers, Lodging: Hotels, resorts, etc. serve food but also provide a place to stay, Casino Gaming: Gambling, restaurants, etc., Private Clubs: Golf courses, yacht clubs, etc., Meeting/Event Management: Party planning, weddings, etc.-Describe the positive and negative effects of tourism businesses, including the multiplier effect. *Positive: economic consequences when tourists come to places, spend money, and the money is re-spent within the economy. Negative: disrupts natural resources, confuses the natural culture of the area. Multiplier Effect:calculated by adding measurable traveler expenditures (direct benefits) and multiplying by a factor (which is an estimation of the number of times each dollar circulates through the local economy) to estimate the indirect benefits. Key Terms: business any entity that provides goods and/or services intended to satisfy customers' needs in an effort to earn a profit capital-intensive businesses require large amounts of capital-that is, money, equipment, land, and other resources-to get started and operate creditors entities or individuals that loan money to a business with an obligation of repayment customers the individuals who buy the goods and/or services of a business employees the people who, under the direction of the business owner or his or her agent (the employer), perform tasks and/or provide services in exchange for agreed-upon compensation from the owner entrepreneur someone who risks resources such as time and money to start and operate a business goods-producing businesses primarily turn out tangible products by engaging in activities such as manufacturing, construction, mining, and agriculture hybrid businesses product- and service-providing businesses (such as hospitality businesses) that focus on treating their customers as more than just strangers to make money off of, but rather as guests, in a warm, friendly, and generous way, so that relationships are formed and loyalties ensue and profits are generated labor-intensive businesses usually depend more on humans than machines and buildings for satisfying customers and earning profits loss when a business brings in less money than it needs to cover its expenses multiplier effect a measure of how tourist/visitor expenditures get re-spent/invested -- calculated by adding measurable traveler expenditures (direct benefits) and multiplying by a "factor"...
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This note was uploaded on 03/23/2011 for the course HB 100 taught by Professor Donhue during the Fall '08 term at Michigan State University.
- Fall '08