Larry Has Set Up a New Burger Joint in His

question 110

Multiple Choice

Larry has set up a new burger joint in his hometown.He has obtained information about who will most likely be customers at his joint.Because his joint is located near a college, he knows that a majority of his customers are going to be students.In the context of the critical steps involved in conducting an external analysis, which of the following should be Larry's next step?

• A)Larry should start developing an understanding of his competitive advantage.
• B)Larry should gain thorough information about the elasticity of demand for his product.
• C)Larry should develop insights about benchmarking.
• D)Larry should conduct research to know his exact competitors.

---

Definitions:

Common Stock

Shares of ownership in a corporation that entitle the shareholder to vote at shareholder meetings and receive dividends.

Beta

An indicator of how much a stock's price fluctuates in comparison to the general market.

Treasury Bills

Government-issued securities sold below their nominal value, with maturity periods of no more than a year.

Cost of Equity

is the return that investors expect for investing in a company's equity, reflecting the compensation for the risk undertaken.