A Company Named Runathon Inc

question 26

Multiple Choice

A company named Runathon Inc.had opened its store that displayed only shoe brands.The employees at the store were very service-oriented, and attended their customers and solved their queries efficiently.Runathon also had a special team of experts who advised customers on the type of shoe to choose for a particular sport.Few years later, another company called FitRight Corp.opened its store right opposite Runathon.Although FitRight had shoe brands, trekking gear, and sportswear displayed in its store, it was not able to attain the profits that Runathon did because its salespeople were not as experienced and learned as Runathon.Which of the following factors of inimitability did Runathon Inc.have?

• A) Complexity
• B) Time compression diseconomy
• C) Path dependence
• D) Virtuous circle

Understand the role and impact of usury laws on interest rates and access to credit.

Identify the rewards of entrepreneurial activity, including innovation and market opportunity recognition.

Define economic rent and factors determining it.

Explain the derived demand for land and its implications.

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Definitions:

Liability

A financial obligation or debt owed by a company to another entity, which must be settled in the future through the transfer of assets or services.

Petty Cash

Petty cash is a small amount of cash on hand used for paying expenses too small to merit writing a check or using a credit card.

Cash Payments

Transactions where money is paid out by a business or individual in exchange for goods or services.

Writing Checks

The process of completing a check to make a payment from a bank account.