Refer to the Scenario Below to Answer the Following Questions

question 94

Multiple Choice

Refer to the scenario below to answer the following questions.
TopCup Coffee: A Year Later (Scenario)
Catrina, the manager in TopCup Coffee has been working to change the culture and employee attitudes at the shop for over a year now. In that time she has noticed that the total sales have grown and profits are up. The owner, who does not work in the business directly, commented in a recent meeting that he was still not completely satisfied with the growth he noticed in the business and expected suggestions from Catrina for more changes to improve the situation. He is too busy to be involved in the business and expects Catrina to carry out any new initiatives, but he wants the final say in any changes. Catrina analyzes everything in the shop from the old fashioned cash registers to the temperamental espresso machines. She is also looking into their bean suppliers, who are often late with deliveries and the nearby bakery where they sometimes get day-old pastries they sell in addition to coffee. Catrina is determined to make the shop a success and is now moving into analyzing all operations that should be improved.
-Catrina decides to have a meeting with the bean suppliers and the pasty bakers hoping that _________________ will impress them that she needs better service.

• A) warning both that she might change suppliers
• B) changing what product she gets from each
• C) showing both the limited profits she is making now
• D) open communications with both
• E) implementing new technology

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Definitions:

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Payback Period Method

A capital budgeting method that calculates the time required for an investment to generate cash flows to recover its initial cost.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments.