Leslie is the owner of Crafts and Things,a local craft store that sells homemade gifts such as jewelry and quilts.Recently,there has been an increase in the price of the items that Leslie uses to make her crafts,such as beads and yarn.The rising cost of these items represent a(n)_____ to Leslie's business.
A) opportunity
B) threat
C) cost advantage
D) rivalry
E) strength

Question

Quizplus · Accepted Answer

The rising cost of the items Leslie uses to make crafts is a threat to her business because it increases her costs and decreases profit margins. This may lead to higher prices for customers, which could lead to lower sales or a loss of customers to competitors who offer lower prices.

Leslie Is the Owner of Crafts and Things,a Local Craft