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:

Federal Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues in a given fiscal year.

Federal Budget Surplus

The situation where a government's revenue exceeds its spending during a fiscal period.

National Debt

National debt is the total amount of money that a country's government has borrowed, by various means, including bonds and securities, from domestic or foreign sources.

MPC (Marginal Propensity To Consume)

Measures the proportion of additional income that a consumer spends on goods and services rather than saving.