Question

Riya has recently started a restaurant in a commercial area that already has many other established restaurants and popular fast-food chains. Riya owns the building in which her restaurant is located, rather than leasing premises as her competitors do. This factor allows her to offer her products at a more competitive price. Riya has also invested a huge amount in designing the restaurant's interior and in equipping the kitchen with the appliances that are most widely used in her industry. In this scenario, which of the following is the most valuable resource for Riya's business?A) the investments made by Riya on the restaurant’s interior

B) the type of kitchen equipment widely used in her industry
C) the restaurant’s late entry into the market
D) the building owned by Riya, which reduces cost of operations

Answer 1

The correct answer is D

Step-by-step explanation:

Riya started its own business which is of restaurant but the location or place of the restaurant is owned by the business.

So, the most valuable resource which Riya has is the building which is owned by business and it in turn helps in reducing or decreasing the cost of the operations.

A resource is valuable if its helps in increasing the perceived value of the product or service in the eyes of the consumer by lowering the price as it helps the firm in lowering the costs.