A Fast Food Chain Has Determined That for Every $1

question 158

Multiple Choice

A fast food chain has determined that for every $1 spent by a 'light user,' each 'heavy user' spends $5.Which statement best describes this situation?

• A)Eighty percent of a firm's inventory should be readily available, and twenty percent should be reserved for emergency demand.
• B)Eighty percent of a firm's first time users will become brand loyal and twenty percent of the firm's first time users will use the product only once.
• C)Eighty percent of a firm's sales are obtained from twenty percent of its customers.
• D)Eighty percent of a firm's expenditures are tax deductible and twenty percent are not.

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Definitions:

Restaurant Licensing

The process of obtaining permission from authorities to operate a restaurant, ensuring compliance with health, safety, and business regulations.

Employment Standards Board

The Employment Standards Board is a regulatory body responsible for enforcing employment laws and standards, often dealing with issues like wages, working hours, and employment rights.

Administrative Tribunals

Agencies created by legislation to regulate activities or do specific things.

Consumer Protection

Laws and regulations designed to ensure the rights of consumers, as well as fair trade, competition, and accurate information in the marketplace.