The Manager of a Restaurant Noticed That the Number of Customers

question 27

Multiple Choice

The manager of a restaurant noticed that the number of customers in the evening was decreasing. She promptly ordered the chef to rewrite the evening menu. Later, customer feedback indicated that the problem was not the menu but poor service from the waitstaff. The manager's decision to have the menu revised suggests that she failed to:

• A) identify and diagnose the problem.
• B) evaluate alternatives.
• C) generate alternative solutions.
• D) evaluate the decision.
• E) make a choice.

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Definitions:

Short-term Debt

Debt obligations, typically due within one year, that are used for financing immediate operational needs of a business.

Working Capital Financing

This refers to short-term loans or credit facilities used by a company to finance its daily operations and manage its current assets and liabilities.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to vendors or suppliers for goods and services received but not yet paid for.

CCC

Refers to the Cash Conversion Cycle, a metric that gauges how efficiently a company manages its inventory, receivables, and payables to generate cash.