lesson 5 Flashcards
What are some reasons for a business failure?
- Inexperienced Managers
- Inability to control operational procedures
- Competition
- Employee theft
- Wrong location
- Wrong concept
- Inadequate inventory control
- Wrong attitude
- Unrealistic expectations & lack of planning
- Wrong purchase
What do many hospitality managers refer to as profit centers?
Each individual revenue-generating segment within their business
What is the formula that holds true even in non-profit segments of the hospitality industry?
Revenue - Expenses = Profit
In many dining situations, how is food provided to employees?
Either as a no-cost benefit or at a generally reduced price
What is common in many situations regarding cost centers in hospitality?
They generate costs but no revenue
Why do stakeholders care about a business’s profitability?
It affects their interests and decisions regarding the business
What can stakeholders do with an accurate income statement?
Make better decisions about how best to develop and operate the business
Fill in the blank: Revenue - _______ = Profit.
Expenses
True or False: All dining segments in hospitality are considered profit centers.
False
