LESSON 3 MIDTERM

Question 1

It depends on factors such as local governance structures,
inter-community relationships and partnerships with NGOs
and Tour Operators

Answer 1

Community-based ecotourism
(cbe) enterprise

Question 2

Often take the form of a structured or loosely-aligned
cooperative in which members of the community hold
active roles in providing with accommodations, food, crafts,
transportation, or guide services.

Answer 2

Community-based ecotourism
(cbe) enterprise

Question 3

These enterprises can be structured in various ways ,
which should be explored in the planning process in
order to identify the best fit for the community and
prevalent conditions.

Answer 3

Community-based ecotourism
(cbe) enterprise

Question 4

Often have problems understanding and attaining the
level of quality needed to satisfy international tourist.

Answer 4

Community-based ecotourism
(cbe) enterprise

Question 5

This partnership stracture
reduces the risk that a tourism venture will fail,
given their knowledge of product quality
standards, their experience in operations
management and their established marketing
network

Answer 5

PRIVATE SECTOR
CONCESSIONS

Question 6

The disadvantage of this structure is the more
revenue is likely to leave the area and these
owners may capture much of the profit
themselves and create economic leakages by
importing food, supplies, staff, and building
materials from outside the community.
10

Answer 6

PRIVATE SECTOR
CONCESSIONS

Question 7

It is the best way to encourage ecotourism may
be to partner with the community. TRUE OR FALSE

Answer 7

FALSE (PRIVATE SECTOR)

Question 8

They Work further for the conservation of the
protected area and foster sustainable
community development. 11

Answer 8

NGO

Question 9

This structure should be approached with great
caution.

Must have access to the capital and training
required to provide ecotourism services.

Must have the legal authority to operate a
business.

Answer 9

NGO ECOTOURISM
ENTERPRISES

Question 10

The objectives of private sectors are more closely match to those
of a host community. T or F?

Answer 10

FALSE (NGO)

Question 11

NGO ECOTOURISM
ENTERPRISES can be a risky. T or F

Answer 11

TRUE

Question 12

Desirable form of ecotourism enterprises
involves partnerships between communities,
NGOs and private businesses.

Answer 12

Potential partners

Question 13

Profit margins or the size of an
operation need to be considered
when selecting a partner. T or F

Answer 13

TRUE

Question 14

Give the four CHALLENGES OF THE
ECOTOURISM BUSINESS

Answer 14

Marketing Cost
Profit Margins
Risk Management and Legal Considerations; and
Competitive Environment

Question 15

It is important for NGOs to be aware of these various intermediaries in the distribution
channel and the functions they perform

Answer 15

Marketing Cost

Question 16

NGOs do not have a profit mandate but must at a minimum cover their cost. T or F

Answer 16

TRUE

Question 17

Type of
Company that the
proprietor holds all assets
and debts

Answer 17

Sole Proprietorship

Question 18

Type of
Company that Easy to establish, little
government regulations
and owner maintains
complete control

Answer 18

Sole Proprietorship

Question 19

Type of
Company that Owner faces unlimited
personal liability for all
business debts and law
suits

Answer 19

Sole Proprietorship

Question 20

Type of
Company that capital is Contributed by the
individual proprietor

Answer 20

Sole Proprietorship

Question 21

Type of
Company that a
business entity created by
tow or more co-owners

Answer 21

General Partnership

Question 22

Type of
Company that Strength through
cooperation and less
government regulations

Answer 22

General Partnership

Question 23

Type of
Company that Partners may be
personally liable for
business debts and
liabilities

Answer 23

General Partnership

Question 24

Type of
Company that the capital is Contributed by partners

Answer 24

General Partnership

Question 25

Type of
Company a business
entity created by two or
more co-owners with
protection

Answer 25

Limited Liability
Partnership

Question 26

Type of
Company that Strength through
cooperation and provides
protection to partners
against debt and law suit
liability

Answer 26

Limited Liability
Partnership

Question 27

Type of
Company More difficult to establish
and maintain and Subject
to greater government
regulation

Answer 27

Limited Liability
Partnership

Question 28

Type of
Company that has an
agreement between two
or more organizations to
participate in a business
project

Answer 28

Joint Venture

Question 29

Type of
Company that cons is Diversified control could
lead to unresponsive
decision making and more
difficult to establish and
maintain

Answer 29

Joint Venture

Question 30

Type of
Company that capital is Contributed by the
participating organizations

Answer 30

Joint Venture

Question 31

Type of
Company that a
business entity with
separate tax and legal life
from shareholders

Answer 31

Corporations

Question 32

Type of
Company that Provide owners protection
from debts and liabilities
and sale of shares can
attract large investments

Answer 32

Corporations

Question 33

Type of
Company that More government
regulations and reporting
rules

Answer 33

Corporations

Question 34

Type of
Company that Capital is from Sales of shares (stock) to
stockholders

Answer 34

Corporations

Question 35

Type of
Company that a
business entity
democratically
controlled by
participating members

Answer 35

Cooperatives

Question 36

Type of
Company that Pools of resources to
greater empower
members and Members
maintain democratic
control

Answer 36

Cooperatives

Question 37

Type of
Company that Unattractive to outside
investors and diversified
control could lead to
unresponsive decision
making
Sale of shares to
members

Answer 37

Cooperatives

Question 38

Type of
Company that the capital is came from Sale of shares to
members

Answer 38

Cooperatives

Question 39

Is often the first step towards formalizing a joint venture
or partnership agreement

Answer 39

Memorandum of
understanding

Question 40

It is a legal document that outlines which entities will be
party to the agreement, their individual responsibilities
and the intent of partnership

Answer 40

Memorandum of
understanding