A Fast Food Chain Has Determined That for Every $1

question 125

Multiple Choice

A fast food chain has determined that for every $1 spent by a 'light user,' each 'heavy user' spends $5. Which statement best describes this situation?

• A)Eighty percent of a firm's first time users will become brand loyal and twenty percent of the firm's first time users will use the product only once.
• B)Eighty percent of a firm's sales are obtained from twenty percent of its customers.
• C)Eighty percent of a firm's expenditures are tax deductible and twenty percent are not.
• D)Eighty percent of a firm's inventory should be readily available, and twenty percent should be reserved for emergency demand.

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Definitions:

Respectful

Showing consideration, politeness, and honor towards others and their ideas, beliefs, or positions.

Cognitive Demands

The mental effort required to perform a task, including thinking, problem-solving, and decision-making.

Paid

Receiving money or compensation for services rendered or work done.

Processes

Sequences of actions or methods followed in order to achieve particular outcomes or objectives.