Exam 3: Hospitality Business Structures

The least complex of all organizational structures is _______.

Owner-operator is a type of operating structure in which the owners of a business are directly responsible for its day-to-day operation. Also known, in some cases, as an "independent."

A hybrid hotel consists of condos, typically full-time residences, as well as traditional hotel rooms.

The earliest known franchisor was _______.

The applicable law that governs a business entity is determined by where that entity, say a corporation, has filed its creation documents.

A type of business entity that offers liability protection to all owners and is exempt from taxation on its profits is?

REITs must pay corporate income tax and state income tax.

The conduct of individual employees has a direct effect on the liability of a business.

Under the principal/agent relationship theory, an agent _____.

The owners of a LLC are called members.

The fees charged to a hotel owner to manage a hotel by a hotel management company commonly ranges between 1% - 5% of the hotel's monthly gross revenue.

The legal entity which is taxed twice, once when revenue is earned and then again when the profits are distributed to the owners is known as ____.

A sole proprietorship is the safest legal entity for a new business owner to create as it includes limited liability from negligence claims.

In a limited partnership, the limited partner has unlimited liability.

Two advantages of owning a franchise as a franchisee include ____.

Organizations operating a business under an assumed name or a trade name _______.

The owners of a corporation are called _____.

Which of the following organizational structures is least desirable from a liability perspective?

Limited liability companies are formed under federal and not state law.

The type of relationship in hospitality which is known as the employer-employee relationship is also called _________.