Last year Sara made a lot of money selling organic sandwiches from her

QUESTION

Last year Sara made a lot of money selling organic sandwiches from her food truck parked in front of the local college.

After the winter snows melted, she was surprised to see seven other food trucks parked nearby, and shorter lines and lower profits for her business. What best describes the challenge she faces?
A) losing touch with customers
B) aggressive competition
C) unfavorable economies of scale
D) inadequate management skills
E) lack of credit

ANSWER

Answer: B
Explanation: B) Competitors recognized the success of Sara’s location and moved into the market, cutting into her sales and profits.