Question

Coffeeco Company, a national coffee store, has several stores in a busy downtown area. After opening two more locations, they noticed that sales at their stores stopped growing. Which of the following is the most likely explanation for what happened? A. Coffeeco spent all of its profits on opening new stores.
B. The cost of the coffee became too expensive for customers.
C. The new stores took business away from existing stores.
D. People in the area lost interest in buying coffee.

Answer 1

The answer to this question is C

Answer 2

Answer:

C. The new stores took business away from existing stores.

Explanation:

This is the most likely explanation for what happened. The most likely answer is that the new stores that the company established are taking business away from the existing stores. This is a serious problem, as it could mean that the number of sales does not justify the expense of running the new shops. It might be a good idea for the company to close these new locations and instead move the stores somewhere farther away.