The Primary Purpose of Professional Certification in the Hospitality Industry

question 5

Multiple Choice

The primary purpose of professional certification in the hospitality industry is to

• A) reduce training costs.
• B) replace OJT programs.
• C) earn advanced degrees.
• D) demonstrate competency.

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Definitions:

Profit Maximizing

The process or objective of adjusting production and sale levels to achieve the highest possible profit.

Economic Profit

The surplus left after subtracting total costs from total revenue, taking into account both explicit and implicit costs.

Total Revenue

The overall amount of money generated by a business from its sales of goods or services, calculated by multiplying the selling price by the quantity sold.

Maximizes Profits

The strategy employed by firms to achieve the highest possible profit from their operations, often through increasing revenue, reducing costs, or both.