a) With the help of an appropriate ex, define the principle of diminishing returns.
b) In brief describe the main funds available for long-term capital for a limited liability company.
problem 2: By using an illustration of your own choice, and with the help of diagrams, show how supply and demand analysis can describe:
a) Changes in price and output when a new competitor joins the market.
b) The effect of cheaper air travel to tourist resorts in Europe.
problem 3: Describe to what extent the growth of the family market has affected eating and drinking out at pubs and restaurants.
problem 4: Describe the implications of the given for the hospitality industry:
a) UK interest rates retained at low levels.
b) Reductions in government borrowing.
c) The £ Sterling to euro exchange rate falls.
d) The rate of inflation falls.
a) Define by using exs, what is meant by the oligopoly market.
b) describe the advantages of economies of scale to a large restaurant chain.
c) Describe the significance of bed and breakfast hotels in a traditional seaside location.
a) describe under what circumstances a company in the hospitality sector might consider a conglomerate merger.
b) With the help of illustrations, describe the benefits of a company achieving growth via franchising.
problem 7: The UK economy is now in a so-called double-dip recession and the Bank of England has continued to maintain low interest rates to try and encourage consumer spending. In addition, the £ Sterling is stronger against other currencies, specifically the euro, making it less attractive for holidays abroad for British holidaymakers. Assess how the hospitality industry might respond to such circumstances.
problem 8: A number of restaurant chains adopt a differential pricing policy to raise profits. With the use of illustrations, describe the reasons and effects of the given price differential policies:
a) A two-for-one offer for set adult meals.
b) Cheaper meals for senior citizens at specified times of the day.