The Owners of Puff Ball Bakery Want to Open a Second

question 37

Multiple Choice

The owners of Puff Ball bakery want to open a second retail outlet. Which of the following scenarios is most likely to yield a competitive advantage?

• A) Open a shop on an inexpensive piece of land near a new mixed-use residential and business district currently under construction.
• B) Purchase an existing bakery from a business that closed due to declining sales and try to revive it.
• C) Build a shop in a sparsely populated rural area where the land is inexpensive and few other bakeries exist.
• D) Open a shop in a crowded downtown location where several other bakeries have been successful over the years.

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Definitions:

Vicious-Circle-Of-Poverty

A self-perpetuating condition where poverty leads to circumstances that perpetuate poverty, making it difficult to break the cycle.

Capital Stock

For a single firm, the current market value of the firm’s plant, equipment, inventories, and intangible assets.

Economic Policies

Strategies and decisions by governments concerning the monetary system, taxation, market regulations, and public spending to influence the economy.

Goods And Services

The output of an economy that is provided to consumers, including tangible products (goods) and intangible items (services).