A Bakery That Wanted to Distinguish Itself from Its Competition

question 64

Essay

A bakery that wanted to distinguish itself from its competition by being open 24 hours a day would probably not be found in a shopping mall. Why?

---

Definitions:

Tax Shield

A reduction in taxable income for an individual or corporation achieved through claiming allowable deductions such as mortgage interest, medical expenses, or depreciation.

Bankruptcy Costs

Expenses associated with the process of declaring bankruptcy, including legal, administrative, and direct costs.

Modigliani

Franco Modigliani, an economist known for his work in corporate finance, especially the Modigliani-Miller theorem regarding capital structure and the dividend irrelevance theory.

Miller

Often refers to a person who operates a mill, a machine to grind a cereal crop to make flour.