The primary purpose that an Owners Priority figure is calculated is which of the following? A. To
Question:
The primary purpose that an Owners Priority figure is calculated is which of the following?
A. To create accountability for the Hotel Management Company to optimize Total Sales and Total Net Income (profit), and to ensure the Hotel Ownership company is paid cash flow from profit first, equal to 50% of the amount of Owner's Priority.
B. To allow the Hotel Management Company to share in a 50/50 profit split with the Hotel Ownership Company from day 1 of the hotel's opening.
C. To create accountability for the Hotel Management Company to optimize a hotel's Total Sales and Total Net Income (profit), and to ensure the Hotel Ownership company is paid all cash flow from profit first, up to the amount equal to Owner's Priority.
D. To ensure the company that owns the hotel always gets the full amount of of cash flow from profit equal to Total Owners Priority
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw