Sarah has recently started a restaurant in a commercial area where there are many other established restaurants and popular fast food chains. Sarah owns the plot on which her restaurant is located and this makes her cost of operations lower than the competitors. This factor allows her to offer her products at a competitive price. Sarah has also invested a huge amount on the interiors of the restaurant and in equipping the kitchen with the latest appliances used by her competitors. In this scenario, which of the following is the most valuable resource for Sarah's business? A. The investments made by Sarah on the restaurant's interiors

B. The latest kitchen equipment that is at par with the restaurant's competitors

C. The restaurant's late entry into the market

D. The land owned by Sarah, which reduces cost of operations

Question

Business

Trey Barnett

25 August, 21:44

Sarah has recently started a restaurant in a commercial area where there are many other established restaurants and popular fast food chains. Sarah owns the plot on which her restaurant is located and this makes her cost of operations lower than the competitors. This factor allows her to offer her products at a competitive price. Sarah has also invested a huge amount on the interiors of the restaurant and in equipping the kitchen with the latest appliances used by her competitors. In this scenario, which of the following is the most valuable resource for Sarah's business? A. The investments made by Sarah on the restaurant's interiors

B. The latest kitchen equipment that is at par with the restaurant's competitors

C. The restaurant's late entry into the market

D. The land owned by Sarah, which reduces cost of operations

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Answers (1)

Know the Answer?

Sidney Gray · Answer 1

(D) The land owned by Sarah, which reduces cost of operations

Explanation:

Owning a land in a commercial area is the most valuable resource for Sarah's business because it saves her from paying the rent and rent always increases per year. And often many businesses operational cost suffer due to rent especially in commercial areas.