Kola Is a Chain of Supermarkets Across the Country

question 109

Multiple Choice

Kola is a chain of supermarkets across the country. Kola's sales staff treat their customers very well, which in turn creates great customer satisfaction. Which of the following is most likely to be the sustainable competitive advantage of Kola?

• A) Unique merchandise
• B) Ethical business practices
• C) Customer service
• D) Location
• E) Price

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Definitions:

Contractual Agreement

A legally binding contract specifying the terms and conditions under which parties agree to perform certain actions.

Note Principal

The original amount of money borrowed or the amount still owed on a loan, separate from interest.

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as a percentage of the principal.

Straight-line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful lifespan.