1. You are planning to build a small 40-room motel. You have $140,000 dollars for the budget. You might be able to come up with another $10,000 in an emergency, so $150,000 is definitely all you can spend to build your motel. In developing the project budget, the general contractor comes to you and says that the cost of constructing your motel will be $130,000. Should you build your 40-room motel?
A. Yes. The construction costs are $10,000 less than your "comfortable" budget, $20,000 less than your "emergency" budget, so you have enough funds to build your motel.
B. No. Since construction costs are only 60 to 65 percent of a new motel or hotel, you should not try to build your 40-room motel.
2. When it comes to design the back-of-the-house areas of a hotel, the hotel development team should:
A. Address design issues for back-of-the-house areas early in the hotel design process.
B. Put off designing back-of-the-house areas until late in the project.
3. Which of the following elements of a new restaurant has the most impact on the decisions that must be made when planning the new restaurant?
A. The restaurant's theme
B. The restaurant's location
C. The restaurant's menu
D. The restaurant's type of service