In the magazine Budget Travel, a hotel maid admits, I cut corners everywhere I could. Instead of

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In the magazine Budget Travel, a hotel maid admits, “I cut corners everywhere I could. Instead of vacuuming, I found that just picking up the larger crumbs from the carpet would do. Rather than scrub the tub with hot water, sometimes it was just a spray-and-wipe kind of day. . . . After several weeks on the job, I discovered that the staff leader who inspected the rooms couldn’t tell the difference between a clean sink and one that was simply dry, so I would often just run a rag over the wet spots. . . . I apologize to you now if you ever stayed in one of my rooms.” Which of the following organizational forms is more likely to have caused this kind of shirking? 

a. Franchising: where the hotel managers are the owners of the hotel (franchisee) and pay a fixed franchise fee

b. Company-owned hotels

c. Franchising with a sharing contract, where the hotel managers are the owners of the hotel (franchisee), pay a small fixed fee but share revenue with the franchisor

d. None of the above

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Managerial Economics

ISBN: 9781337106665

5th Edition

Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward

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