Use the Following to Answer Questions

question 12

Multiple Choice

Use the following to answer questions:
Scenario 3-1. Betty's Bed and Breakfast is a small business that provides a bed and breakfast for travelers usually on their way to the Grand Canyon. The business resides in a small community whose economy is primarily devoted to tourism. Betty obtains her livelihood from her business. Because she provides food, she is inspected yearly by government agencies to ensure she is meeting governmental guidelines concerning food preparation. Betty feels strongly that her business is not only to provide shelter and food but also information on directions, room reservations, medical information, and any other information that she has available or can find for her guests. This information includes a short-cut that can be taken to the Grand Canyon that reduces traveling time by an hour. This past summer she sponsored a soccer team comprised of elementary students from the local grade school. The soccer team placed third in the state finals.
-In Scenario 3-1 above, Betty's competitive advantage would be which of the following?

• A) The bed and food she provides
• B) The sponsorship of the soccer team
• C) The extra services she provides her guests
• D) The strictness with which she adheres to food preparation

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity.

Operating Activities

Transactions related to the primary operations of the business, such as cash received from sales of goods or services.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered cash equivalents.

Net Cash

The amount of cash remaining after all operating, investing, and financing activities have been accounted for over a specific period.