Restaurants,like Other Businesses,often Find That the Best Way to Succeed

question 324

Multiple Choice

Restaurants,like other businesses,often find that the best way to succeed in the market is to:

• A)listen to customers and adapt products to their needs.
• B)create a product for which he could charge an exceptionally high price.
• C)create a winning combination of advertising and personal selling for all of the stores in the chain.
• D)open more stores in a single year than other foodservice operators.

---

Definitions:

Accounting Profit

The total revenue of a business minus its explicit costs; essentially the net income reported on the financial statements.

Economic Profit

The difference between the total revenue received by a business and the total costs, including both explicit and implicit costs.

Overhead

Ongoing business expenses not directly attributed to creating a product or service.

Accounting Profit

The total revenue of a business minus explicit costs, representing the monetary gain recorded in financial statements.