Exam (elaborations)
HSA Final Exam – Questions & Full Detailed Answers
- Course
- Institution
HSA Final Exam – Questions & Full Detailed Answers
[Show more]
Seller
Follow
Studyhall
Reviews received
Content preview
HSA Final Exam – Questions & Full Detailed AnswersWhen discussing independents and chains
a) there are few competitive advantages of independents as compared with
chains.
b) franchised units have aspects in common with chains but not with
independents.
c) independents have strengths in some areas that chains find difficult to
compete with.
d) the role of chains is changing but that of the independent has remained
static. Correct Ans - c) independents have strengths in some areas
that chains find difficult to compete with.
Economy of scale means
a) that as a chain grows the unit cost of centralized activities decreases.
b) the benefits of advertising are more advantageous to the independent
operator.
c) the opposite of the "additive effect."
d) that reductions in total cost are made. Correct Ans - a) that as a
chain grows the unit cost of centralized activities decreases.
The market share of restaurant sales controlled by the 100 largest chains is
a) one-fourth.
b) one-third.
c) over half.
d) two-thirds. Correct Ans - c) over half.
Advantages in the mass media for chain specialty restaurants arise
principally from
a) the fact that chains are represented in more markets.
b) the willingness of consumers to identify with jingles and personalities
like Ronald McDonald.
c) simplicity of message, enormous spending, and the additive effect.
d) public relations efforts in local media which provide a backup to
national advertising. Correct Ans - c) simplicity of message,
enormous spending, and the additive effect.
Access to capital
a) is usually easier for a local operator than for a chain.
, b) for a large company is often coupled with lower borrowing costs.
c) is not a problem for most food service operations since restaurants are
not considered risky businesses.
d) is decreasing for restaurants because of the "credit crunch." Correct
Ans - b) for a large company is often coupled with lower borrowing
costs.
If a restaurant wishes to expand, remodel, or rebuild
a) it is difficult to borrow from a bank if the restaurant is franchised.
b) an independent usually has the advantage over chains because they
know the local people at the bank.
c) a franchisee usually goes to the franchisor for a loan.
d) lower interest rates are often given to publicly traded companies.
Correct Ans - d) lower interest rates are often given to publicly traded
companies
Site selection
a) is also important for the independent restaurant that focuses on a
unique dining experience.
b) is best achieved through the owner's personal experience about the
community.
c) could not cause conflict between the franchisor and the franchisees.
d) has an exact formula to follow. Correct Ans - a) is also important
for the independent restaurant that focuses on a unique dining experience.
A competitive advantage of independents over chain operations is:
a) the independent can move more slowly than a chain in menu change and
see if changes made by a chain work before trying them.
b) the independent is much closer to the operation and can quickly
respond to challenges.
c) the independent has access to more marketing information.
d) the independent can achieve more economies of scale. Correct Ans -
b) the independent is much closer to the operation and can quickly
respond to challenges.
Independents
a) can differentiate their operation by establishing a presence in their
community.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Studyhall. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now