Common Management Admission Test (CMAT) Practice Exam

What is a major disadvantage of an open (hosted) bar?

1. It limits drink choices for guests

2. Consumption and cost can potentially increase

3. Guests must pay for their own drinks in advance

4. It restricts mingling among attendees

The correct answer is: Consumption and cost can potentially increase

A major disadvantage of an open (hosted) bar is that consumption and cost can potentially increase. When a bar is open and drinks are provided at no cost to the guests, it removes the financial limit that would typically restrain consumption. Guests may feel more inclined to drink freely without worrying about the expense, leading to a higher overall consumption of alcohol. This can significantly increase the total cost for the host, especially if the event lasts for several hours or if the number of attendees is large. Managing alcohol consumption in such a setting becomes challenging, as there is no incentive for moderation when guests are not directly paying for their drinks. The other options do not accurately identify significant disadvantages of an open bar in the same way. For example, limiting drink choices is not inherently a drawback of an open bar, as hosts usually provide a variety of options. The idea that guests must pay for their own drinks in advance contradicts the very concept of an open bar, where drinks are complimentary. Lastly, the restriction on mingling among attendees does not specifically correlate to the presence of an open bar, as social interactions depend more on the layout and flow of the event than on the payment structure for beverages.