Which arrangement involves a company signing a contract to cover charges for employees with no-shows?

Which arrangement involves a company signing a contract to cover charges for employees with no-shows?

• A. Advance Deposit
• B. Corporate Account
• C. Prepayment
• D. Guaranteed Reservation

Answer: (B)

The arrangement described is a corporate account. This setup involves a company signing an agreement with the hotel to be billed for charges incurred by its employees, including any no-show fees. It streamlines travel billing for the company and shifts responsibility for payment from individual travelers to the business, which is why no-shows are covered under the master account. Advance deposits are upfront payments to hold a reservation, not a standing contract to cover multiple employees’ charges. Prepayment means paying for a stay or services before they occur, again not a long-term billing relationship tied to a company. A guaranteed reservation ensures the hotel holds the room and secures payment for a specific booking, but it isn’t about a continuing contract to cover charges across multiple employees’ stays.

The arrangement described is a corporate account. This setup involves a company signing an agreement with the hotel to be billed for charges incurred by its employees, including any no-show fees. It streamlines travel billing for the company and shifts responsibility for payment from individual travelers to the business, which is why no-shows are covered under the master account.

Advance deposits are upfront payments to hold a reservation, not a standing contract to cover multiple employees’ charges. Prepayment means paying for a stay or services before they occur, again not a long-term billing relationship tied to a company. A guaranteed reservation ensures the hotel holds the room and secures payment for a specific booking, but it isn’t about a continuing contract to cover charges across multiple employees’ stays.