Scenario 3-1

question 76

Multiple Choice

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, 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:

Estimated Value

An approximation of the worth of something, often used in the context of potential outcomes in decision making or investment.

Inverse Relationship

A relationship between two variables in which one variable increases as the other decreases.

Independent Variable

A variable that is manipulated to observe its effect on a dependent variable in an experiment.

Deterministic Model

A mathematical model in which outcomes are precisely determined through known relationships among states and events, without any randomness.