After Years of Expansion,Starbucks Recently Closed 600 of Its Poorer

question 48

Multiple Choice

After years of expansion,Starbucks recently closed 600 of its poorer performing stores.Many of the stores closed were near other Starbucks locations.In those areas management felt that the company had too many outlets,which was boosting the company's cost unnecessarily.Decisions concerning the number of outlets are a part of the _____ strategy of service organizations.

• A) distribution
• B) promotion
• C) production
• D) product
• E) demand/supply

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Definitions:

In-The-Money

A term describing an options contract that has intrinsic value; for a call, when the underlying asset's price is above the strike price, and for a put, when it's below.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Stock Price

The current price at which a particular stock is bought or sold in the market.

Exercise Price

The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security.