Certified Meeting Professional (CMP) Practice Exam

When deciding to hold an event, what is one financial criterion that should be considered?

1. The popularity of the event's theme

2. Costs involved

3. The size of the venue

4. Attendee demographics

The correct answer is: Costs involved

Considering the costs involved is a fundamental financial criterion when deciding to hold an event. Understanding the financial implications, including venue rental, catering, audiovisual needs, transportation, and promotional expenses, allows planners to create a realistic budget and assess the overall feasibility of the event. This comprehensive view of costs ensures that the event can be funded appropriately and is likely to achieve a positive return on investment. A well-planned financial structure can help in making informed decisions that align with organizational goals and resource availability. The popularity of the event's theme may influence attendance but does not directly impact financial viability. The size of the venue can affect logistical considerations but is less critical than understanding the financial commitments involved. Attendee demographics are essential for targeting marketing efforts but focus primarily on engagement rather than direct financial assessment.