California Alcoholic Beverage Control (ABC) Certification Practice Exam

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Prepare for the California Alcoholic Beverage Control (ABC) Certification Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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What are the benefits for an ABC on-premises licensee of having policies in place for the service of alcoholic beverages?

Reduces risk of liability and increases profitability
Allows for higher alcohol sales
No benefits, only increases administrative workload
Only essential for tracking inventory

The correct answer is: Reduces risk of liability and increases profitability

By having policies in place for the service of alcoholic beverages, an ABC on-premises licensee can reduce the risk of liability which could result in potential legal and financial consequences. This helps to protect the business and its employees from potential harm caused by over-serving or serving to underage individuals. Additionally, having policies in place for responsible alcohol service can create a safer environment for patrons, leading to positive word-of-mouth and increased profitability. Options B, C and D are incorrect as they do not address the potential benefits and only focus on possible negative effects or oversimplification of the concept.