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Hospital Tourism Test 1

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Question 1

Torts relating to misrepresented facts about a business's goods or services may be subject to a lawsuit on the basis of

A
defamation.
B
assault.
C
intrusion.
D
fraud.
Question 1 Explanation: 
Fraud. A tort is a private wrongdoing against another person. Businesses can be held responsible in a variety of torts. For example, suppose a business's employee intentionally provides misleading product information to a customer in order to make a sale. Then, the customer purchases and is injured by the product based on the employee's misleading information. The customer may file a civil lawsuit against the business, and in some situations, the business's employee for fraudulent behavior. Assault and intrusion are criminal acts that are addressed in the criminal court system rather than the civil court system. Defamation is a tort that involves harm to an individual's or business's reputation.
Question 2

Aviation, taxation, and commerce are categories of ____________ law.

A
judicial
B
legislative
C
administrative
D
executive
Question 2 Explanation: 
Administrative. Administrative law deals with the rules and regulations that have been established by governmental agencies. The legislative branch of the government (i.e., U.S. Congress and Canadian Parliament at the Federal level) establishes these agencies, which have the authority to enact and enforce regulations for various administrative functions, including aviation, taxation, and commerce. For example, in the United States, the Federal Aviation Administration (FAA) regulates air-transportation functions (i.e., airspace, aircraft safety); the Internal Revenue Service (IRS) handles issues related to personal and business taxes; and the Federal Commerce Commission (FCC) handles issues related to business and commerce. The legislative branch of government introduces and passes statutes. The judicial branch of government (court systems) interprets the law. The executive branch of the government guides government policy, and in some countries, has the power to veto legislation.
Question 3

Which of the following is true regarding passenger rights in the air travel industry.

A
There is an international "Bill of Rights" to protect air travel consumers.
B
If baggage is lost, airlines pay a flat fee to reimburse the passenger.
C
It is legal for an airline to overbook a flight.
D
Airlines must provide monetary compensation if a flight is delayed due to bad weather.
Question 3 Explanation: 
It is legal for an airline to overbook a flight. Since there are no laws to protect the travel consumer from overbooking, bumping passengers from flights is common when traveling by air. The U.S. Department of Transportation does, however, require that airlines first ask for volunteers to give up their seats in exchange for compensation. This may be in the form of cash or a voucher. The amount a passenger is compensated for lost luggage is subject to negotiation. Most airlines have a ceiling on the amount paid ($2,500/passenger); international travelers are paid $9.07/lb. Currently, there is no international "Bill of Rights." The United States Congress has developed several options for an airline passenger "Bill of Rights," but there is nothing on the law books as of yet (August, 2009). Airlines are not required to pay any compensation for flight delays due to bad weather.
Question 4

Wal-Mart, Domino's Pizza, and Avis Rent-a-Car are examples of

A
retailers.
B
industrial distributors.
C
agents.
D
wholesalers
Question 4 Explanation: 
A Retailers. Retailers are businesses that buy consumer goods or services and sell them to the ultimate consumer. Wal-Mart, Domino's Pizza, and Avis Rent-a-Car all sell directly to consumers. Wholesalers are businesses that buy goods from producers or agents and sell to retailers. Agents assist in the sale and/or promotion of goods and services but do not take title to them. Industrial distributors are intermediaries that buy industrial goods and services and sell them to industrial users.
Question 5

Channel members of a supply chain should be familiar with antitrust laws so they do not engage in activities that

A
limit monopolies.
B
hinder competition.
C
restrict efficiency.
D
prohibit authority.
Question 5 Explanation: 
Hinder competition. Antitrust laws are regulations that prevent a person or company from taking any actions to restrain free trade and competition in the marketplace. Businesses should understand the types of business activities that violate antitrust laws, so they do not engage in them. If a business requires tying agreements or attempts to create a monopoly, it may be violating antitrust laws. The government fines a business when it violates antitrust laws. Actions that restrict efficiency or prohibit authority do not violate antitrust laws.
Question 6

Which of the following benefits of partnerships among channel members in a distribution channel has the most potential for misuse:

A
Improved product quality
B
Lower inventories and operating costs
C
Sharing of sensitive information
D
Rapid order fulfillment
Question 6 Explanation: 
Sharing of sensitive information. The sharing of sensitive information between channel members is necessary to insure lower inventories and operating costs, to improve product quality, and to fill orders quickly. However, this type of customer information can be easily misused or even wind up in the hands of competitors. As a result, actions by channel partners should be closely monitored to prevent the misuse of sensitive information. Lower inventories and operating costs, improved product quality, and rapid order fulfillment are not benefits that are often misused.
Question 7

Once you know your group's purpose, what should you do next?

A
Find out what people know about the subject
B
Agree on ground rules
C
Volunteer a new idea
D
Contribute in a useful way
Question 7 Explanation: 
Agree on ground rules. Once you know your group's purpose, you can (as a group) lay some simple ground rules for appropriate behavior during the discussion. Finding out what people know about the subject and contributing in a useful way occur later in the process. Volunteering a new idea is a discussion tool for contributing in an open-minded way.
Question 8

Which of the following actions is it important for a speaker to take when s/he makes an oral business presentation to a large group:

A
Relax the audience by swaying back and forth when speaking
B
Turn away from the audience when presenting visual aids
C
Avoid eye contact with anyone in the audience
D
Speak loudly enough for the audience to hear the message
Question 8 Explanation: 
Speak loudly enough for the audience to hear the message. When making an oral presentation to a group, the speaker should speak loudly enough for everyone in the audience to hear what s/he is saying. If audience members cannot hear what the speaker is saying, they might misunderstand or misinterpret the message. A speaker should try not to turn away from the audience when presenting visual aids and should maintain eye contact with the audience. Because swaying back and forth can distract the audience, the speaker should avoid this type of movement.
Question 9

What is a technique that often helps businesspeople to write effective business letters?

A
Developing charts
B
Consulting references
C
Preparing outlines
D
Asking questions
Question 9 Explanation: 
Preparing outlines. Businesspeople often are expected to write business letters on a regular basis. One technique that helps them to write effective business letters is to first prepare an outline. An outline is a general plan giving only the main points to be covered. Preparing an outline helps businesspeople to decide exactly what they want to say in the letter and to organize their thoughts. Businesspeople then can use the outlines to write effective letters. Businesspeople usually do not ask questions, consult references, or develop charts in order to write effective business letters.
Question 10

A persuasive message that asks a person to do something should be written in a way that makes it easy for the person to

A
respond positively.
B
organize logically.
C
answer politely.
D
read slowly.
Question 10 Explanation: 
Respond positively. Persuasive messages often ask people to do something, such as buy a product, make a donation, give a speech, etc. To be effective, the message should be written in a way that makes it easy for the person to respond positively and agree to do what is asked. The messages might contain toll-free telephone numbers, an offer to deliver a product for free, or to pick up a donation. People are more likely to respond positively if it is easy to do so. Persuasive messages do not need to be read slowly. The writer of the message organizes it logically. People might politely answer persuasive messages, but the intent is to have them respond positively.
Question 11

Customer relations skills such as courtesy and friendliness should be emphasized during a business's

A
facilities design.
B
market research.
C
hiring process.
D
technology planning.
Question 11 Explanation: 
Hiring process. Customer relations skills such as courtesy and friendliness should be emphasized during a business's hiring process. Employees are the most important factor in a business's customer relations. Businesses must hire people who will present a positive “face” for the company to the public. Courtesy and friendliness are not skills that relate to market research, facilities design, or technology planning.
Question 12

A business improves its technology so it can better meet customer wants and needs. This results from a business activity known as

A
continuous improvement.
B
employee training.
C
organizational structuring.
D
business process management.
Question 12 Explanation: 
Business process management. A customer-centric business is constantly striving to align its objectives and activities with customer needs. Doing so is known as business process management (BPM). BPM focuses on this alignment by stressing innovation, flexibility, and most importantly, technology. Employee training involves educating workers on how to best perform their job duties. Organizational structuring refers to the way business functions relate within a company. Continuous improvement refers to continuously evaluating business processes to make them more efficient and effective.
Question 13

Distribution channel members must keep in mind that customers tend to

A
expect low service levels.
B
define service differently.
C
want immediate delivery.
D
refuse late shipments.
Question 13 Explanation: 
Define service differently. Customer service involves performing activities and providing benefits which lead to customer satisfaction with the product and/or the business. Channel members, which are all of the individuals and businesses that assist in moving products from the producer to the end user, depend on each other to perform activities leading to customer satisfaction. While it is important to have products when and where they are needed, it is also important to remember that customers often have different ideas about service. For example, one customer may not accept a substitution for a certain item or brand because they are concerned about quality, while another customer may want the item quickly and will accept the substitution. Each customer has different expectations, so each customer defines service differently. Expecting low service levels, wanting immediate delivery, and refusing late shipments are different factors that influence how customers define service.
Question 14

The things that people buy in order to satisfy their economic wants are known as

A
free goods.
B
economic votes.
C
tangible objects.
D
economic goods and services.
Question 14 Explanation: 
Economic goods and services. People purchase both tangible objects (goods) and productive activities (services) in order to satisfy their economic wants. When consumers purchase one good rather than another, they are casting their dollar, or economic, votes for the item they purchased and against the items not purchased. Noneconomic wants are satisfied by free goods—items which can be obtained without spending money.
Question 15

Which of the following factors have provided businesses with more opportunities to buy and sell products at the international level:

A
Protectionism
B
Free-trade agreements
C
Language barriers
D
Strict safety standards
Question 15 Explanation: 
Free-trade agreements. Free-trade agreements lessen the trade restrictions (e.g., tariffs, quotas, licenses) among countries. For example, the North American Free Trade Agreement (NAFTA) is a trade agreement among the United States, Canada, and Mexico that has eliminated trade barriers. When fewer trade barriers exist, there are more opportunities for businesses to buy and sell products in other countries. Protectionism is a government's policy to protect domestic industries and businesses against foreign competition. Protectionism, language barriers, and strict safety standards often hinder a business's ability to enter international markets.
Question 16

What do businesses often need to do to adapt to today's markets?

A
Remodel corporate facilities
B
Hire new management staff
C
Participate in international trade
D
Analyze organizational resources
Question 16 Explanation: 
Analyze organizational resources. Organizational resources are everything the business uses to operate. These resources include tangible items such as equipment and capital, as well as intangibles such as patents and brand names. It is important to analyze the resources that are available in order for businesses to adapt to today's markets. They need to determine if they have the capacity to adapt using current resources. For example, a business might find that it needs new equipment in order to increase productivity and remain competitive in today's market. Businesses do not necessarily need to hire new management staff, participate in international trade, or remodel corporate facilities to be able to adapt to today's markets.
Question 17

A major characteristic of a market economy is __________ ownership of property.

A
monopolistic
B
limited
C
government
D
private
Question 17 Explanation: 
Private. A market economy is an economic system in which the means of production and distribution are owned and controlled by individuals and businesses. This ownership is not limited except by the abilities of the individuals or businesses. Government ownership is a characteristic of a command economy. Monopolies in which markets are controlled by single suppliers do exist in market economies, but under controlled conditions.
Question 18

A business that encourages its workers to give input on issues affecting the company is using

A
quality of work life.
B
specialization.
C
motivation.
D
participative decision-making.
Question 18 Explanation: 
Participative decision-making. When businesses encourage employees to give input, share suggestions, and take part in decision-making, participative decision-making occurs. Motivation involves giving employees rewards and incentives for being productive. Specialization is the process of making the best use of resources in the production of outputs. Quality of work life is the general conditions in which employees work.
Question 19

Which of the following factors characterizes the growth phase of business cycles:

A
Demand for resources exceeds their availability.
B
Consumers and producers are borrowing more money.
C
Consumers are putting more money into savings.
D
Producers are reducing their purchases of new goods.
Question 19 Explanation: 
Consumers and producers are borrowing more money. During the growth, or expansion, phase of business cycles, interest rates on loans are low, thereby encouraging consumers and producers to borrow more money in order to make even more purchases. During the peak phase, demand for all resources exceeds their availability. During the peak and the contraction phases, people become less hopeful about the future of business and begin to save more money. Also during the contraction phase, producers reduce their purchase of new goods; instead, they try to sell the goods which are currently in inventory.
Question 20

During a negotiation, Kara tells Jason that she will agree to help him with the department budget, if he agrees to help her finish a research project. This is an example of

A
unfair collaboration.
B
bargaining.
C
peer pressure.
D
self-control.
Question 20 Explanation: 
Bargaining. Bargaining is a negotiating strategy that uses "give-and-take" tactics to reach an agreement. One person gives up something the other person wants and, in return, that person offers something the first person wants. A collaborative negotiating style is most likely to create an outcome that benefits both parties. When both parties benefit, the result is usually fair, rather than unfair. Peer pressure occurs when one person tries to influence another person of equal status to act in a particular way. Most often, peer pressure is used to describe negative types of behavior, such as smoking. Self-control refers to a person's ability to restrain his/her feelings, words, and actions.
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