If You Were Asked to Develop a Low-Cost Provider Strategy

question 57

Multiple Choice

If you were asked to develop a low-cost provider strategy for a startup passenger air carrier business, what would you most likely not recommend?

• A)offer low prices on short-distance flights and eliminate meals during flights
• B)offer low prices on long-distance flights and maintain long service times for aircraft between flights
• C)offer low prices on short-distance flights and improve airplane capacity by reducing the distance between existing seats to permit adding more rows of seating
• D)offer low prices on short-distance flights and pay flight attendants a minimum wage
• E)offer low prices on long-distance flights and charge fees for both carry-on and checked luggage

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Definitions:

ERISA

The Employee Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.

Vested

A term used to describe the point at which an employee has earned the right to keep all their benefits, often from retirement plans, regardless of their employment status with the company.

Tax Advantages

Financial benefits gained through the application of tax laws that reduce the amount of tax a person or company owes, often used to encourage certain activities or investments.

Domestic Partners

Two individuals who live together and share a domestic life but are not married to each other.