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Mr Clive owns a b.&b - NSC Hospitality Studies - Question 5 - 2016 - Paper 1
Question 5
Mr Clive owns a b.&b. He has hired Adrianna as an accountant. He has requested your assistance to expand his business to a guest house with a higher star grading. 5... show full transcript
Worked Solution & Example Answer:Mr Clive owns a b.&b - NSC Hospitality Studies - Question 5 - 2016 - Paper 1
Step 1
State THREE characteristics that Mr Clive should have as an entrepreneur.
Answer
Mr Clive should possess the following characteristics:
- Commitment and Determination: An entrepreneur must be dedicated and willing to put in the hard work necessary to make the business successful.
- Creativity: This trait allows Mr Clive to innovate and develop unique offerings that can distinguish his guest house from competitors.
- Reliability: Being dependable is crucial to build trust with both customers and employees.
Step 2
Explain FOUR of Adrianna's responsibilities at the b.&b.
Answer
Adrianna's responsibilities include:
- Safeguarding the guest house's assets: Ensuring that all resources and properties are protected against loss or damage.
- Preparing Financial Reports: Regularly compiling and analyzing financial statements to keep track of the b.&b.'s performance.
- Drawing up the Budget: Creating and managing the financial budget to guide spending and investments for the business.
- Controlling Banking Procedures: Overseeing banking transactions to ensure accuracy and security in financial operations.
Step 3
Suggest TWO suitable revenue-generating areas that Mr Clive could add to the guest house to generate income. Motivate EACH suggestion.
Answer
Two revenue-generating areas Mr Clive could consider are:
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Guest Rooms Upgrade: By upgrading rooms to luxury suites, Mr Clive can significantly increase the pricing structure and attract a higher-paying clientele. This can maximize profit, as sales from upgraded rooms could account for 50-100% of profits.
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Function Rooms: Offering function rooms for events such as conferences and celebrations can generate additional income through rental fees. This service capitalizes on external bookings and enhances overall guest experience.