1. business development II
business practice test / quiz and need an explanation and answer to help me learn.
I attached the file
Requirements: all questions
TOTAL POINTS: 30 GRADE %: 10
QUES POINTS
Q1: 3
Q2: 3
Q3: 6
Q4: 3
Q5: 6
Q6: 6
Q7: 3
Match the Term with the appropriate statement:
Terms
Letter of Intent
Market Niche
Show Stopper issue
Hotel Asset Management
Functional Obsolescence
Portfolio Diversification
Capital Asset Preservation
Product Segmentation
Underwriting
Due Diligence
Statements
Investigation of a business or person before signing a contract including acting with a
standard of care to avoid harm to others
Create products specifically aimed at particular type of traveler
The process by which investment bankers raise investment capital from investors on behalf
of corporations and governments
Strategy in which asset manager balances risk and return by spreading risk
The need to upgrade or replace a capital item prematurely due to changing needs or
2. competitive environment
An issue during a negotiation which can be considered a deal breaker
Hotel Assets are maintained, accounted for & put to highest and best use
Unique market position or a particular market for which a product may be suited
Extending the life of a capital asset through a preventive maintenance program
An agreement in principle for purchase or sale of a property in an acquisition process
Mark the following statements as True or False
Hotels are labor-intensive businesses and require constant supervision and direction.
Closing floors to save energy is part of a profit protection plan.
From a hotel owner’s perspective, management fees are non-operating expenses.
Hotels do not require extensive re-investment in capital over time to remain competitive.
Market niche applies only to hotel acquisition and not to hotel development.
Legislative Practices are part of common challenges in a international investment.
The cost of a property and its value generally tend to remain more or less same over time.
Hotel real estate is more volatile than equities.
An operator challenge is primarily about the nature of decision to expand globally.
Most hotel management contract fees are based on a combination of percentage of revenues
and profits.
What is the role of an asset manager in a hospitality project? Explain the major common
challenges faced by an asset manager in an international investment? Write a paragraph on
specific challenges in a Post Covid19 situation.
Explain at least five reasons why one would go in for a lodging Investment? Give examples
where relevant.
Using a real life example in the hospitality industry, state the principal reasons a hotel
property may consider going in for an affiliation?
Using a real life example in the hospitality industry, explain “Calculating the Bid Price” and
“Closing the Hotel Purchase” steps in an Acquisition process? Quote relevant citations.
Explain briefly what a Capitalization Rate is. What is it used for?
