You Are Planning to Open a New Italian Restaurant in Your

question 206

Multiple Choice

You are planning to open a new Italian restaurant in your hometown where there are three other Italian restaurants.You plan to distinguish your restaurant from your competitors by offering northern Italian cuisine and using locally grown organic produce.What is likely to happen in the restaurant market in your hometown after you open?

• A)Your competitors are likely to change their menus to make their products more similar to yours.
• B)The demand curve facing each restaurant owner shifts to the right.
• C)The demand curve facing each restaurant owner becomes more elastic.
• D)While the demand curves facing your competitors becomes more elastic, your demand curve will be inelastic.

Grasp the concept and importance of the Zero Moment of Truth (ZMOT) in the consumer purchase process.

Understand the concept and consequences of anticipatory repudiation in contract law.

Distinguish between various types of contract breaches and their implications.

Identify the conditions under which contractual obligations can be discharged.

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Definitions:

Cash Flow Estimate

An approximation of the amount of money expected to move in and out of a business within a specific time period.

Time Value of Money

Calculations involving the present and future values of money under the action of compound interest. Also called discounted cash flow.

Capital Budgeting Techniques

Methods used by companies to evaluate the profitability and financial feasibility of investment projects.

Incremental Cash Flows

The additional cash flow a project generates over the basic operation cash flows, used to analyze the profitability of a potential investment.