Several Months Ago, a Restaurant Developed a New Appetizer That

question 48

Multiple Choice

Several months ago, a restaurant developed a new appetizer that is a hit with customers. Many customers go to the restaurant just for the appetizer, and it was at the center of a recent highly positive review by a food critic. Preparation involves common ingredients and average culinary skills but requires a very high oven temperature, which significantly increases utility costs. Several competing restaurants have since added their own version of the appetizer to their menu. Which criterion for assessing capabilities/core competencies is met?

• A) The restaurant has the capability to develop something that is valuable.
• B) The restaurant has the capability to develop something that is rare.
• C) The restaurant has the capability to develop something that is costly to imitate.
• D) All of these criteria are met.

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Definitions:

Consignment-in

Goods held for sale by one party although ownership is retained by another party.

Commissions Earned

Income received by salespersons, brokers, or agents based on sales or transactions completed.

Deferred Gross Profit

The portion of profit resulting from sales made on installment that is not recognized immediately but deferred to future periods.