CMP EXAM Practice Test Questions with Accurate Solutions Graded A+

CMP EXAM Practice Test Questions with Accurate Solutions Graded A+ Evaluation - CORRECT ANSWER-1) Critiquing and rating the overall success of an event. 2) Developing an event profile from accurate event statistics. Objective - CORRECT ANSWER-Formalized statement of outcomes to be anticipated as a result of the educational process. Outsourcing - CORRECT ANSWER-Hiring an outside firm or individual to perform the task instead of using in-house staff; to subcontract a task or responsibility to a third party. Return on investment - CORRECT ANSWER-ROI. Net Profit divided by Net Worth. A financial ratio indicating the degree of profitability. To calculate, use event revenues minus program expenses divided by program expenses, multiplied by 100 to get the ROI %. Stakeholder - CORRECT ANSWER-All individuals who are invested in a project or event such as the sponsors, attendees, vendors, media and others. Strategic plan - CORRECT ANSWER-Long range plan of action for a company or organization. Educational programming committee - CORRECT ANSWER-A group of voluntary committee members with vested interests in program content who are commonly used to establish direction for educational programs offered at association meetings. Focus group - CORRECT ANSWER-Method of doing research using a small group led by a facilitator. Kiosk - CORRECT ANSWER-1) Free-standing pavilion or light structure, often inside a facility, where printed or electronic information is available. 2) A small enclosure for ticket sales, information, etc. Program design - CORRECT ANSWER-Structure of event program elements to achieve specific goals and objectives. Sampling - CORRECT ANSWER-1) A research method based upon selecting a portion of a population for study. 2) Paperwork and fees paid to a building by exhibitors for the right to serve food product. Survey - CORRECT ANSWER-Solicitation of opinions regarding services; questionnaire. Audience reaction team - CORRECT ANSWER-4 or 5 participants query the main speaker from the stage with questions from the audience and follow up questions. Buzz session - CORRECT ANSWER-Method to increase audience participation by dividing all participants in discussion groups each of which reports the group's findings and opinions during a following plenary session. Certified Speaking Professional (CSP) - CORRECT ANSWER-CSP. Accredited designation offered by the National Speakers Association. This designation is earned for extensive, documented speaking experience and client satisfaction. Colloquium - CORRECT ANSWER-An informal meeting for the purpose of discussion; usually of an academic or research nature and in order to ascertain areas of mutual interest through exchange of ideas. Conducted as and when convenient, but with little regularity. Debate - CORRECT ANSWER-A discussion which takes place within a meeting, a public or private sitting or in one of the various types of assembly or meeting. Facilitator - CORRECT ANSWER-An individual who guides discussion and/or decision making. Fishbowl - CORRECT ANSWER-An interchange between an inner circle debating an issue and an outer circle of observers. Individuals occasionally move from one circle to the other. Interview - CORRECT ANSWER-The presenter is questioned by a moderator on behalf of the audience. National Speakers Association (NSA) - CORRECT ANSWER-National Speakers Association. A member of the Convention Industry Council. Seminar - CORRECT ANSWER-1) Lecture and dialogue allowing participants to share experiences in a particular field under the guidance of an expert discussion leader. 2) A meeting or series of meetings of from 10 to 50 specialists who have different specific skills but have a specific common interest and come together for training or learning purposes. The work schedule of a seminar has the specific object of enriching the skills of the participants. Speakers bureau - CORRECT ANSWER-An organization who locates and books speakers according to my specifications and budget. Symposium - CORRECT ANSWER-A meeting of a number of experts in a particular field, at which papers are presented and discussed by specialists on particular subjects with a view to making recommendations concerning the problems under discussion. Workshop - CORRECT ANSWER-1) Meeting of several persons for intensive discussion. The workshop concept has been developed to compensate for diverging views in a particular discipline or on a particular subject. 2) Informal and public session of free discussion organized to take place between formal plenary sessions or commissions of a congress or of a conference, either on a subject chosen by the participants themselves or else on a special problem suggested by the organizers. 3) Training session in which participants, often through exercises, develop skills and knowledge in a given field. Accreditation - CORRECT ANSWER-Official authorization or approval; to provide with credentials; to send (an envoy) with letters of authorization; to recognize or vouch for as conforming with a standard; to recognize a college as maintaining academic standards; to consider or recognize as outstanding; approval given by various trade associations to a travel agency allowing the sale of tickets and other accommodations. Accreditation Council for Continuing Medical Education (ACCME) - CORRECT ANSWER-The organization who provides accrediation for Continuing Medical Education (CME). American Bar Association (ABA) - CORRECT ANSWER-The organization who administers Continuing Legal Education and Mandatory Continuing Legal Education courses (CLE and MCLE). Certification - CORRECT ANSWER-Program and process by which a participant completes proscribed training and passes an assessment. Continuing education - CORRECT ANSWER-Structured educational and training experiences for personal or professional development. Continuing Education Unit (CEU) - CORRECT ANSWER-CEU. Requirement of many professional groups by which members must certify participation in formal educational programs designed to maintain their level of ability beyond their original certification date. CEUs are non-academic credit. One CEU is awarded for each 10 contact hours in an accredited program. Certified Association Executive (CAE) - CORRECT ANSWER-Certified Association Executive. Certificate in Meeting Management (CMM) - CORRECT ANSWER-Certificate in Meeting Management. Certified Meeting Professional (CMP) - CORRECT ANSWER-1) Certified Meeting Professional. 2) Complete Meeting Package at conference centers; includes lodging, all food and beverage, support services, including audio visual equipment, room rental, etc. Certified Professional Catering Executive (CPCE) - CORRECT ANSWER-Certified Professional Catering Executive. A certification program offered by the National Association of Catering Executives (NACE). Certified Special Event Professional (CSEP) - CORRECT ANSWER-Certified Special Event Professional; an earned designation from the International Special Events Society (ISES). Continuing Legal Education (CLE) - CORRECT ANSWER-Continuning education requirements for legal professionals are adminstered by the American Bar Association (ABA). Continuing Medical Education (CME) - CORRECT ANSWER-Organizations offering this type of continuing education credits are accredited by the Accreditation Council for Continuing Medical Education (ACCME). Internatinoal Association for Continuing Education and Training (IACET) - CORRECT ANSWER-International Association for Continuing Education and Training. Lecture - CORRECT ANSWER-Informative and instructional speech. Lifelong learning - CORRECT ANSWER-An ongoing process in which an individual actively seeks to understand and contribute to change. Mandatory Continuing Legal Education (MCLE) - CORRECT ANSWER-Mandatory continuning education requirements for legal professionals are adminstered by the American Bar Association (ABA). Needs assessment - CORRECT ANSWER-A needs assessment is an essential setp in ensuring that educational offerings are relevant to attendees. The results of post-event evaluations can be as valuable as a needs assessment. Break-even point - CORRECT ANSWER-The point at which revenues are equal to expenses. Cash flow - CORRECT ANSWER-The transfer of monies into and out of an enterprise. Fixed costs - CORRECT ANSWER-The day-to-day cost of doing business that is pre-committed, such as salaries, insurance, lease expenses, utilities, etc. Incremental budgeting - CORRECT ANSWER-Building an event budet by analyzing both the projected and actual figures from the previous year's budget. Indirect costs - CORRECT ANSWER-Also called overhead or administrative costs, these are expenses not directly related to the event. They can include salaries, rent, and building and equipment maintenance. Variable costs - CORRECT ANSWER-Expenses that vary based upon various factors, such as the number of attendees . Zero-based budgeting - CORRECT ANSWER-Building an event budget on estimates of potential income and likely expenses because there is no financial history from prior events available to use. Accrual accounting - CORRECT ANSWER-1) An accounting method that enters income and expenses into the books at the time of contract versus when payment is received or expenses incurred (cash accounting). 2) A system in which revenue and expenses are accounted for as soon as they are committed. Advance deposit - CORRECT ANSWER-Amount of money paid to secure a room, facility or service in advance. Audiovisual - CORRECT ANSWER-A/V. Equipment, materials, and teaching aids used in sound and visual presentations, such as television monitors, video, sound equipment, etc. Balance sheet - CORRECT ANSWER-A statement that indicates overall financial status by subtracting expenses from income. Billing instructions - CORRECT ANSWER-Notice as to how charges for an event should be handled and to whom invoices should be addressed. Budget - CORRECT ANSWER-A statement of estimated revenues and expenditures for a specified period of time; divided into subject categories and arranged by principal areas of revenue and expense. See BUDGET CHART. See Also CASH FLOW CHART, PHASED BUDGET. Cash accounting - CORRECT ANSWER-A system in which revenue and expenses are counted as they are actually received. Chart of accounts - CORRECT ANSWER-A detailed list of the individual line items that make up the revenue and expense categories in a budget. A numbering system used to identify every line item in a budget, so income and expenses are posted to the correct accounts. Chief Financial Officer (CFO) - CORRECT ANSWER-CFO. Executive responsible for financial affairs of an organization. Cost center - CORRECT ANSWER-An account (usually a number) to which expenses for a function or activity are charged. Direct billing - CORRECT ANSWER-Accounts receivable made available to individuals or firms with established credit. Income statement - CORRECT ANSWER-A statement of revenues and expenses. Also known as a profit & loss statement. Master account - CORRECT ANSWER-A record of transactions during an event where the resulting balance is paid directly by the group. May include room, tax, incidentals, food and beverage, audiovisual equipment, decor, etc. Also Called MASTER BILL. Net worth - CORRECT ANSWER-Assets minus liabilities. Paid-out - CORRECT ANSWER-In-house facility form authorizing cash withdrawal to be charged to master account or individual guest. Acceptance - CORRECT ANSWER-A requirement for entering into a binding contract. If a contract proposal (offer) is made, it is accepted if the offeree signs the offer as submitted. If the offeree makes any changes to the offer before signing, it is a counter offer, not acceptance. Act of God - CORRECT ANSWER-An extraordinary natural event such as extreme weather, flood, hurricanes, tornadoes, earthquake or similar natural disaster that cannot be reasonably foreseen or prevented over which a contracting party has no reasonable control, making performance of the contract illegal, impracticable or impossible, thus the parties have no legal responsibility to continue performance of the contract. See FORCE MAJEURE. Alternative dispute resolution (ADR) - CORRECT ANSWER-An alternative procedure that can be specified in contracts instead of going through the process of filing a complaint and pursuing the claim in court. Americans with Disabilities Act (ADA) - CORRECT ANSWER-Americans with Disabilities Act. U.S. legislation passed in 1992 requiring public buildings (offices, hotels, restaurants, etc.) to make adjustments meeting minimum standards to make their facilities accessible to individuals with physical disabilities. Arbitration - CORRECT ANSWER-Private dispute resolution process, often referred to as alternate dispute resolution, in which the parties agree to submit their dispute to an impartial third party for a decision. Depending on the type of arbitration, the arbitrator's decision may or may not be binding. Several organizations, including the American Arbitration Association and JAMS-Endispute, handle arbitration claims. Courts may require some disputes be submitted to arbitration instead of or prior to the formal trial process. Attrition clause - CORRECT ANSWER-Contract wording that outlines potential damages or fees that a party may be required to pay in the event that it does not fulfill minimum commitments in the contract. Authorized signatory - CORRECT ANSWER-A person who is authorized to legally bind an individual or organization to a contract, to sign checks on behalf of an organization, or charge to an organization's master account. Cancellation clause - CORRECT ANSWER-Provision in a contract which outlines damages to be paid to the non-canceling party if cancellation occurs, due the canceling party's breach of the contract. Certificate of insurance - CORRECT ANSWER-A document provided by an insurance company as proof that a policy has been issued and coverage is in effect. Clause - CORRECT ANSWER-A detailed section of a contract pertaining to a specific issue. Concession - CORRECT ANSWER-1) Merchandise or refreshments sold on site, to individuals, in conjunction with an event. 2) Contractual agreement where one party provides something of value to the other party in exchange for something else, pending certain conditions. Consideration - CORRECT ANSWER-The inducement to a contract. The cause, motive, price, or impelling influence which induces a contracting party to enter a contract. Contract - CORRECT ANSWER-An agreement between two or more parties that creates in each party a duty to do or not do something and a right to performance of the other's duty or a remedy for the breach of the other's duty. See COMMITMENT. See Also LETTER OF AGREEMENT. See Also Commitment Letter of Agreement Cut-off date - CORRECT ANSWER-Designated date when the facility will release a block of sleeping rooms to the general public. The date is typically three to four weeks before the event. See RESERVATION REVIEW DATE. See Also Reservation Review Date Exclusive - CORRECT ANSWER-Any agreement which limits who may provide specific products or services under certain conditions to only one party. A general service contractor, for instance, may have an "exclusive" in a particular facility, meaning that no other contractor is allowed to provide the same services or products in that facility. Force majeure - CORRECT ANSWER-An event (e.g. war, labor strike, extreme weather, or other disruptive circumstances) or effect that cannot be reasonably anticipated or controlled: a "fortuitous event." See ACT OF GOD. See Also Act of God General liability insurance - CORRECT ANSWER-An insurance policy that provides protection against claims involving bodily injury and property damage to third parties. Good faith - CORRECT ANSWER-A true and honest effort to uphold the law. (as in Good Faith Effort) Hold harmless - CORRECT ANSWER-A type of indemnity clause that requires one party to fully protect the other from a claim asserted. This would include the payment of costs or attorney fees. Indemnification clause - CORRECT ANSWER-A contract clause in which one party agrees to pay damages or claims that the other party may be required to pay to another. For example, if a hotel is sued by an attendee that is injured at an event due to the fault of the group, an indemnification clause might require the group to pay back the hotel. Some times the law requires one party to indemnify another even without a specific clause. Generally, the terms of the clause will be followed over the state law. See HOLD HARMLESS. See Also Hold Harmless Jurisdiction - CORRECT ANSWER-1) The jobs that may be performed by a specific labor union. 2) The locality where a contractual dispute is decided. 3) In law, the ability of a court to hear and decide a matter brought before it.