Question

List and briefly describe three popular forms of ownership used in the lodging industry that allow for rapid expansion.

Answer 1

Three popular forms of ownership used in the lodging industry that allow for rapid expansion are sole proprietorships, partnerships, and corporations.

Step-by-step explanation:

Three popular forms of ownership used in the lodging industry that allow for rapid expansion are sole proprietorships, partnerships, and corporations.

A sole proprietorship is a business owned and operated by one person. It is easy to start and manage, and the owner can enjoy all of the profits. However, the owner is also personally responsible for all liabilities.

A partnership is formed when two or more people work together to own and operate a business. This form allows for the sharing of profits and responsibilities among the partners. However, it may be difficult to reach consensus on important decisions.

A corporation is a separate legal entity owned by shareholders. It provides limited liability to the owners and allows for the sale of shares to raise capital for rapid expansion. However, it involves more complex legal and financial processes.

Answer 2

Three popular forms are; Franchising, Management Contracts & Vacation Ownership. They are explained below

Step-by-step explanation:

Three popular forms are; Franchising, Management Contracts & Vacation Ownership.

1) Franchising: This is a well-known marketing strategy that's used for business expansion and it's simply an arrangement whereby one party named the "franchisor" will grant or license some of it's rights and authorities to another party named the "franchisee".

It works such that a contractual agreement would be in place between Franchisor and Franchisee. In this agreement, the Franchisor will authorize the franchisee to sell their goods, products & services and give them rights to use their brand name & trademark.

2) Management contracts: This is simply an arrangement whereby the operational control of an entire enterprise will be vested by contract in a separate enterprise that will perform the necessary managerial functions in exchange for a specific fee. Now, management contracts are not just about selling a method of doing things but also about actually doing them.

3) Vacation ownership: This is a term used to refer to owning a timeshare.

Now, the mode of operation is usually a deeded ownership where we purchase a fraction of our favorite resort. The fraction is usually sold in weekly increments but then is also converted into points that can be used all around the world.