Small Leaf Resort and Cresgrove Resort Are Established Hotels in the Hospitality

question 18

Multiple Choice

Small Leaf Resort and Cresgrove Resort are established hotels in the hospitality industry.However,Small Leaf Resort has a larger net profit than that of Cresgrove Resort.In order to remain financially viable in the hospitality market,Cresgrove Resort decides to charge more for their rooms and other services.In this scenario,which of the following best explains the reason behind Cresgrove Resort incurring losses?

• A) Cresgrove Resort has high labor-related expenses.
• B) Cresgrove Resort hires employees belonging to the age group of 15 to 20.
• C) Cresgrove Resort has better quality and customer service than Small Leaf Resort.
• D) Cresgrove Resort considers its employees as resources.
• E) Cresgrove Resort's compa-ratio is less than 1.

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Definitions:

James Mill

A Scottish historian, economist, political theorist, and philosopher, known for his empirical approach to human behavior and advocacy of utilitarianism.

Industrial Age

A period marked by the transition from agrarian societies to industrialized economies, characterized by the development of machinery, factories, and urbanization.

Luddites

Originally, a group of early 19th-century English workers who destroyed machinery, especially in cotton and woolen mills, that they believed threatened their jobs.

Mode of Production

An economic concept referring to the combination of the means of labor (tools, factories, land, etc.) and the method of labor (how work is organized and carried out) to produce goods and services.