Risk Management PMT 0170 Exam - Questions
With Complete Solutions
A "one size fits all" approach to hotel security and safety:
-is neither possible nor recommended
-works for franchise hotels but not independent hotels
-has been advocated by the American Hotel & Lodging Association
-was pursued in the nineteenth century but was abandoned by the mid-
twentieth century Correct Answer - is neither possible nor
recommended
Which of the following is a direct cost of a hotel's risk management program?
-the salaries and benefits of the hotel's security staff
-time that staff spends with the media after a security incident at the hotel
-the hotel's workers' compensation insurance premiums
-a & c Correct Answer - a & c
The risk management process begins with:
-a selection of risk management instruments (such as insurance policies)
-implementing a good risk management plan
-an assessment of the potential losses the hotel faces
-an identification of the risk the hotel faces Correct Answer - an
identification of the risks the hotels faces
Annabelle, the general manager of the Independent Hotel, has decided not to
insure the hotel against guests stealing towels from the hotel, but just to cover
the cost of replacing these towels as if they had been discarded due to wear or
damage. This is an example of:
-risk reduction
-shifting loss
-risk assumption
-loss financing Correct Answer - risk assumption
,It is important for lodging managers to deal successfully with risk
management issues because:
-they must secure the physical assets of the business
-they face potential legal liabilities (such as lawsuits) if they do not.
-they must protect guests, employees, and other people form crimes and
injuries while on the property
-all of the above Correct Answer - all of the above
Which of the following is an example of risk avoidance?
-pawel choose to remove the diving board form the hotel swimming pool
rather than risk liability for any accidents
-Caitlin decides not to count the loss of towels taken home by guests as risk-
related expenses
-Tomaslov decides that it makes financial and security sense to replace his
hotel's current locks with an electronic locking system
-lauren proposes that Griffin's Elevator Company handle all elevator
maintenance for her hotel and assume complete responsibility for elevator
operation Correct Answer - pawel chooses to remove the diving board
from the hotel swimming pool rather than risk liability for any diving
accidents
In the United States, the rate of occurrence for almost all crimes _________ from
the year 2000 to the present.
-has declined
-stayed about the same
-rose slightly
-increased dramatically Correct Answer - has declined
Legionella bacteria were first identified in a :
-factory in Detroit in 1935
-US hotel in 1976
-Japanese Spa in 2002
-Carribbean resort in 1923 Correct Answer - US hotel in 1976
, The Mom and Pop Inn has decided to remove its diving board from its
swimming pool, to cut back on the chance of guests or others injuring
themselves at the pool. This loss control strategy is an example of
-shifting loss
-retention
-risk assumption
-avoidance Correct Answer - avoidance
The deadliest hotel Fire in US history occurred at the:
-Kerns Hotel in Lansing, Michigan, in 1934.
-Winecoff Hotel in Atlanta, Georgie, in 1946
-Las Vegas MGM Grand in 1980
-Mandarin Oriental Beijing in 2009 Correct Answer - Winecoff Hotel in
Atlanta, Georgia, in 1946
Which of the following statements regarding a hotel's duty to protect its
guests is true?
-hotels are insurers of the personal safety of guests
-hotels must exercise reasonable care to prevent injury to a guest
-hotels usually are held liable for acts that could not be reasonably foreseen
-hotels may delegate the duty to protect their guests to third parties
Correct Answer - hotels must exercise reasonable care to prevent injury to a
guest
Exculpatory clauses:
a. place responsibility on the hotel for all guest and employee injuries
occurring on the premises
b. provide absolute protection from liability under federal law.
c. may be void and unenforceable in some states.
d. seek to absolve the guest of contributory negligence. Correct Answer -
may be void and unenforceable in some states
How does the doctrine of respondeat superior affect the hotel as an employer?
With Complete Solutions
A "one size fits all" approach to hotel security and safety:
-is neither possible nor recommended
-works for franchise hotels but not independent hotels
-has been advocated by the American Hotel & Lodging Association
-was pursued in the nineteenth century but was abandoned by the mid-
twentieth century Correct Answer - is neither possible nor
recommended
Which of the following is a direct cost of a hotel's risk management program?
-the salaries and benefits of the hotel's security staff
-time that staff spends with the media after a security incident at the hotel
-the hotel's workers' compensation insurance premiums
-a & c Correct Answer - a & c
The risk management process begins with:
-a selection of risk management instruments (such as insurance policies)
-implementing a good risk management plan
-an assessment of the potential losses the hotel faces
-an identification of the risk the hotel faces Correct Answer - an
identification of the risks the hotels faces
Annabelle, the general manager of the Independent Hotel, has decided not to
insure the hotel against guests stealing towels from the hotel, but just to cover
the cost of replacing these towels as if they had been discarded due to wear or
damage. This is an example of:
-risk reduction
-shifting loss
-risk assumption
-loss financing Correct Answer - risk assumption
,It is important for lodging managers to deal successfully with risk
management issues because:
-they must secure the physical assets of the business
-they face potential legal liabilities (such as lawsuits) if they do not.
-they must protect guests, employees, and other people form crimes and
injuries while on the property
-all of the above Correct Answer - all of the above
Which of the following is an example of risk avoidance?
-pawel choose to remove the diving board form the hotel swimming pool
rather than risk liability for any accidents
-Caitlin decides not to count the loss of towels taken home by guests as risk-
related expenses
-Tomaslov decides that it makes financial and security sense to replace his
hotel's current locks with an electronic locking system
-lauren proposes that Griffin's Elevator Company handle all elevator
maintenance for her hotel and assume complete responsibility for elevator
operation Correct Answer - pawel chooses to remove the diving board
from the hotel swimming pool rather than risk liability for any diving
accidents
In the United States, the rate of occurrence for almost all crimes _________ from
the year 2000 to the present.
-has declined
-stayed about the same
-rose slightly
-increased dramatically Correct Answer - has declined
Legionella bacteria were first identified in a :
-factory in Detroit in 1935
-US hotel in 1976
-Japanese Spa in 2002
-Carribbean resort in 1923 Correct Answer - US hotel in 1976
, The Mom and Pop Inn has decided to remove its diving board from its
swimming pool, to cut back on the chance of guests or others injuring
themselves at the pool. This loss control strategy is an example of
-shifting loss
-retention
-risk assumption
-avoidance Correct Answer - avoidance
The deadliest hotel Fire in US history occurred at the:
-Kerns Hotel in Lansing, Michigan, in 1934.
-Winecoff Hotel in Atlanta, Georgie, in 1946
-Las Vegas MGM Grand in 1980
-Mandarin Oriental Beijing in 2009 Correct Answer - Winecoff Hotel in
Atlanta, Georgia, in 1946
Which of the following statements regarding a hotel's duty to protect its
guests is true?
-hotels are insurers of the personal safety of guests
-hotels must exercise reasonable care to prevent injury to a guest
-hotels usually are held liable for acts that could not be reasonably foreseen
-hotels may delegate the duty to protect their guests to third parties
Correct Answer - hotels must exercise reasonable care to prevent injury to a
guest
Exculpatory clauses:
a. place responsibility on the hotel for all guest and employee injuries
occurring on the premises
b. provide absolute protection from liability under federal law.
c. may be void and unenforceable in some states.
d. seek to absolve the guest of contributory negligence. Correct Answer -
may be void and unenforceable in some states
How does the doctrine of respondeat superior affect the hotel as an employer?
