The What Went Wrong Feature in Chapter 15 Focuses on Curves

question 23

Multiple Choice

The What Went Wrong feature in Chapter 15 focuses on Curves International, the fitness center for women. Over the past three years, nearly one-third of Curves' 7,700 franchises have closed. Which of the following reasons was not identified in the feature as one of the possible explanations for why so many Curves centers have closed?

• A) a turnover in the company's management
• B) the poor economy
• C) cheaper competition
• D) the company failed to keep up with changing trends, including more flexible hours for busy working women
• E) the company sold too many franchises that are located too close together

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Definitions:

Net Exports

The difference between a nation's total exports and its total imports.

Net Capital Outflow

A comparison between the activity of local investors buying abroad and foreign investors buying within the national borders.

Soccer Tournament

A competitive series of soccer games where teams compete to determine a champion.

Real Exchange Rate

The rate at which two currencies can be exchanged after adjusting for inflation differentials, reflecting the purchasing power of one currency in terms of goods and services.