Refer to the Scenario Below to Answer the Following Questions

question 102

Multiple Choice

Refer to the scenario below to answer the following questions.
Othman opened the Sarabat on the coast of Mersing in 1981. With a roti canai counter on one side and a convenience shop on the other, the Sarabat was an immediate hit with weekend visitors and local residents alike who were enroute to Pulau Tioman. All year, diving and snorkeling enthusiasts drop by the Sarabat to pick up essentials, snacks and drinks before they board their boats bound for Pulau Tioman.
In the 1990s, however, Othman started to realize that his convenience shop could not compete with larger supermarkets in the area. He eventually enlarged the roti canai counter, and transformed the convenience shop into a restaurant selling local fare like satay and seafood.
By the 21st century, local entrepreneurs like the Berjaya Group, backed by the government, decided to invest in resorts on the island. A small airport was built in Pulau Tioman. Many visitors need not catch a boat from Mersing to get to the idyllic island.
-Which macroenvironment force has benefitted the Sarabat the most?

• A) the legal environment
• B) the natural environment
• C) the economic environment
• D) the political environment
• E) the technological environment

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Definitions:

Business Risk

The equity risk that comes from the nature of the firm’s operating activities.

Financial Policy

Strategic decisions regarding a company's financial management, including borrowing, spending, and investing.

Target Capital Structure

The optimal mix of debt, equity, and other financing sources that a company aims to maintain to finance its operations and growth.

Total Value

The complete worth of an asset, business, or investment, taking into account all forms of value including monetary, strategic, and intrinsic.