©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
HFT4253 Hanks Exam 1 Questions With
Correct Answers 100% Verified.
Who owns the actual building/property? - Answer✔The owner.
What is the term for a hotel investor who also manages and operates the hotel? -
Answer✔Owner/ operator.
What is an organization that operates a hotel for a fee? - Answer✔Management company.
Which type of management company operates hotels for owners using the management
company's trade name as the hotel brand? - Answer✔First tier.
Which type of management company operates hotels for owners but do not use the
management company's name as part of the hotel name? - Answer✔Second tier.
Improved management quality, documented managerial effectiveness, and payment for
services being tied to performances are the pros of what? - Answer✔A management company.
What are the cons of a management company? - Answer✔The owner generally cant choose the
GM or top execs, and it's possible that the objectives of the owner and management company
may not be aligned.
What is the term for an arrangement whereby one party allows another party to use its logo,
brand name, systems, and resources in exchange for a fee? - Answer✔Franchise.
What is the term for an organization that manages a brand and sells the right to use the brand
name? - Answer✔Franchiser.
What is the term for an individual or company that buys, under specific terms and conditions,
the right to use a brand name for a fixed peropd of time at an agreed-upon price? -
Answer✔Franchisee.
What is the term for the name of a specific hotel group? - Answer✔Brand.
When and what company is considered the first significant hotel franchising arrangement? -
Answer✔1950s, Holiday Inn.
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
What is the term used to describe a group of hotels, all of whom share the same franchise
brand name? - Answer✔Chain, brand, or flag. (All correct answers)
What is the term for the changing of a hotel from one brand to another? - Answer✔Conversion
or reflagging.
What is a legal contract between a hotel's owners and the brand managers that describe the
duties and responsibilities of each in the franchise relationship? - Answer✔Franchise
agreement.
What percentage does an owner typically pay a franchiser of generated room revenue? -
Answer✔3-15%.
What is a hotel service or feature that must be offered by any property entering or remaining in
a specific hotel brand? - Answer✔Brand standard.
What is a document detailing property upgrades and replacements required if a hotel is to be
accepted as one of a specific brand's franchised properties? - Answer✔PIP.
Who is the representative of a franchise brand that interacts directly with a hotel franchisee? -
Answer✔Franchise service director (FSD).
Who is the individual responsible for the operation of multiple hotels in a designated
geographic area. - Answer✔Regional manager. (Also: Area or district manager).
What are the four basic functions of management? - Answer✔Planning, organizing, directing,
and controlling.
What is the term for the process of considering the future and establishing goals for an
organization? - Answer✔Planning.
How long is a short term goal? A long term goal? - Answer✔Less than one year; longer than one
year.
What is the term for actions designed to bring together and arrange the resources of a group to
help it achieve its goals? - Answer✔Organizing.
What is the managerial function that involves leading and inspiring others, teaching new skills
and attitudes, helping workers develop, and compensating workers fairly? - Answer✔Directing.
What is the managerial function that involves checking-up or following-up on assigned tasks,
comparing actual results with planned results, comparing progress with projections, and
eliminating obstacles that hinder goal achievement? - Answer✔Controlling.
Owner relations, staff development, property management, brand affiliation management, and
community relations are all key responsibilities of what position? - Answer✔General manager.
2|Page
HFT4253 Hanks Exam 1 Questions With
Correct Answers 100% Verified.
Who owns the actual building/property? - Answer✔The owner.
What is the term for a hotel investor who also manages and operates the hotel? -
Answer✔Owner/ operator.
What is an organization that operates a hotel for a fee? - Answer✔Management company.
Which type of management company operates hotels for owners using the management
company's trade name as the hotel brand? - Answer✔First tier.
Which type of management company operates hotels for owners but do not use the
management company's name as part of the hotel name? - Answer✔Second tier.
Improved management quality, documented managerial effectiveness, and payment for
services being tied to performances are the pros of what? - Answer✔A management company.
What are the cons of a management company? - Answer✔The owner generally cant choose the
GM or top execs, and it's possible that the objectives of the owner and management company
may not be aligned.
What is the term for an arrangement whereby one party allows another party to use its logo,
brand name, systems, and resources in exchange for a fee? - Answer✔Franchise.
What is the term for an organization that manages a brand and sells the right to use the brand
name? - Answer✔Franchiser.
What is the term for an individual or company that buys, under specific terms and conditions,
the right to use a brand name for a fixed peropd of time at an agreed-upon price? -
Answer✔Franchisee.
What is the term for the name of a specific hotel group? - Answer✔Brand.
When and what company is considered the first significant hotel franchising arrangement? -
Answer✔1950s, Holiday Inn.
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
What is the term used to describe a group of hotels, all of whom share the same franchise
brand name? - Answer✔Chain, brand, or flag. (All correct answers)
What is the term for the changing of a hotel from one brand to another? - Answer✔Conversion
or reflagging.
What is a legal contract between a hotel's owners and the brand managers that describe the
duties and responsibilities of each in the franchise relationship? - Answer✔Franchise
agreement.
What percentage does an owner typically pay a franchiser of generated room revenue? -
Answer✔3-15%.
What is a hotel service or feature that must be offered by any property entering or remaining in
a specific hotel brand? - Answer✔Brand standard.
What is a document detailing property upgrades and replacements required if a hotel is to be
accepted as one of a specific brand's franchised properties? - Answer✔PIP.
Who is the representative of a franchise brand that interacts directly with a hotel franchisee? -
Answer✔Franchise service director (FSD).
Who is the individual responsible for the operation of multiple hotels in a designated
geographic area. - Answer✔Regional manager. (Also: Area or district manager).
What are the four basic functions of management? - Answer✔Planning, organizing, directing,
and controlling.
What is the term for the process of considering the future and establishing goals for an
organization? - Answer✔Planning.
How long is a short term goal? A long term goal? - Answer✔Less than one year; longer than one
year.
What is the term for actions designed to bring together and arrange the resources of a group to
help it achieve its goals? - Answer✔Organizing.
What is the managerial function that involves leading and inspiring others, teaching new skills
and attitudes, helping workers develop, and compensating workers fairly? - Answer✔Directing.
What is the managerial function that involves checking-up or following-up on assigned tasks,
comparing actual results with planned results, comparing progress with projections, and
eliminating obstacles that hinder goal achievement? - Answer✔Controlling.
Owner relations, staff development, property management, brand affiliation management, and
community relations are all key responsibilities of what position? - Answer✔General manager.
2|Page
