Question

Riya has recently started a restaurant in a commercial area that already has many other establishedrestaurants 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 amore competitive price. Riya has also invested a huge amount in designing the restaurant's interiorand in equipping the kitchen with the appliances that are most widely used in her industry. In thisscenario, which of the following is the most valuable resource for Riya's business?
1. the investments made by Riya on the restaurant's interior
2. the type of kitchen equipment widely used in her industry
3. the restaurant's late entry into the market
4. the building owned by Riya, which reduces cost of operations

Answer 1

Answer:

Option 4 Building is the most valuable asset owned by Riya

Explanation:

The reason is that the asset lowers the breakeven point and also helps to increase the profit by offering at lower prices than the competitor to increase the product demand and earn more by increased demand (Demand and price relationship application). So the most valuable asset from the business perspective is building owned by Riya.