Sunny Brews Is a Coffeehouse Chain Based in Boston

question 75

Multiple Choice

Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.

• A) benchmarking
• B) diversification
• C) mass customization
• D) product development
• E) downsizing

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Definitions:

Leverage

The use of various financial instruments or borrowed capital to increase the potential return of an investment.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed annually, affecting loans, mortgages, and savings.

Unlevered Cost

The cost of an investment that does not take into account the effect of debt in the capital structure.

After-Tax Net

The net income of an individual or business after all taxes have been deducted, representing the amount of money actually available for spending or investment.