Common Management Admission Test (CMAT) Practice Exam

What is the structure of a cash (no-host) bar at an event?

1. Guests pay for drinks directly or with tickets

2. The host covers all costs of the drinks

3. A fixed number of free drinks are provided

4. Drinks are served without charge for the first hour

The correct answer is: Guests pay for drinks directly or with tickets

In a cash bar, often referred to as a no-host bar, guests pay for their drinks directly at the bar or can use drink tickets if provided. This setup allows guests the flexibility to choose their beverages and is common in events where the host wants to limit their expenses. Since attendees are responsible for their own drink costs, it helps the host manage the budget while still providing the convenience of on-site refreshments. In contrast, other options involve the host covering costs in various ways, leading to less financial responsibility for the guests. Option B represents a scenario where the host assumes full financial responsibility, which is not characteristic of a cash bar. Option C suggests providing a limited allocation of free drinks, which is not typical, as guests generally expect to pay for all drinks at a cash bar. Lastly, option D indicates complimentary drinks for a specific period, which again deviates from the standard cash bar model where guests always pay for what they consume.