Answers to which of the following questions are LEAST relevant to determining whether Christina has located a good opportunity in starting Redenda Pizza?
A) Are there other pizza restaurants in the immediate vicinity of the planned locations?
B) Is the business of other pizza restaurants in the city growing?
C) Do the planned locations of the restaurant have competitive rents?
D) Will Redenda Pizza offer unique ingredients in its food offerings?
E) Would Christina bring unique talents and ideas to a restaurant business?
Answer: C
Explanation: C) The rents of the planned locations are not of direct relevance to how good the opportunity is because the success of the restaurant is independent of how good the rents are. Even if the rents are competitive, that would not be sufficient for the success of the restaurant. On the other hand, the questions of whether there is sufficient demand for pizza restaurants and not too much supply of them are directly relevant to the question of whether there is a good opportunity for a pizza restaurant, as is the question of whether Christina will bring unique things to a pizza restaurant that would enhance its chances of success.
You might also like to view...
An accounting record into which the essential facts and figures in connection with all transactions are initially recorded is called the
a. ledger. b. account. c. trial balance. d. none of these.
The main conclusion drawn from the theory of interest rate parity is that
A) a single currency will increase economic welfare. B) arbitrage opportunities may persist for long periods of time. C) investors can seldom earn higher returns from foreign investments than from domestic ones. D) exchange rates adjust slowly to their proper levels. E) fixed exchange rates are superior to flexible ones.