A Reason Why There Is More Competition in the Restaurant

question 87

Multiple Choice

A reason why there is more competition in the restaurant industry than in the music streaming industry is that restaurants

• A)have to cater to a variety of consumer tastes while music streaming companies do not.
• B)unlike music streaming companies, have to abide by government sanitation rules.
• C)unlike music streaming companies, do not have significant economies of scale.
• D)have more elastic demand for their product compared to music streaming companies.

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Definitions:

Uncollectible Accounts Receivable

Accounts from customers that are considered unrecoverable, leading to a write-off as a bad debt expense.

Allowance

A reduction from the gross amount of an asset or liability, created to account for potential future adjustments such as doubtful debts or returns.

Processing Fee

A charge assessed for processing a transaction, application, or request, common in financial services.

Bank Credit Cards

Financial instruments issued by banks that allow users to borrow funds for purchases or cash advances, subject to repayment terms and interest.