Which One of the Following Is an Example of a Strategic

question 19

Multiple Choice

Which one of the following is an example of a strategic option for a current restaurant?

• A) Opening a new restaurant with a different look and an entirely different menu to see if that restaurant appeals to the public
• B) Deciding to close one hour earlier during the winter months due to slow sales
• C) Abandoning a menu item based on customer complaints
• D) Deciding to open only two new locations next year instead of the five that were originally scheduled
• E) Deciding to create separate lunch and dinner menus rather than have them combined on one menu

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Definitions:

Cash Discounts

Reductions in price given to a customer for prompt payment of their bill.

Invoice

A document issued by a seller to a buyer that specifies the products or services sold, quantities, and agreed prices for products or services provided.

Interest Days

The total number of days over which interest is calculated on a loan or investment.

Interest-Bearing Note

A note that has a maturity value greater than its face value.