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Nancy Owns a High-Fashion Boutique and One Source of Competitive

Question 116

Multiple Choice

Nancy owns a high-fashion boutique and one source of competitive advantage in the past has been her ability to spot the latest trends, stock the store with those items, and sell out before the next new trend becomes popular. Unfortunately, this year Nancy missed on what would be "hot" and is now stuck with mountains of clothing and accessories that did not sell. All of her cash is invested in this clothing and at the moment she is unable to restock the store with the next season's clothes. Nancy is likely not worried because:


A) her business insurance policy will cover the losses she is forced to take on this merchandise.
B) she has a rich uncle who will invest in the business so she can buy new merchandise and she will have a sale to move the old merchandise.
C) trends come back quickly so she will keep the clothes to sell later.
D) she is doing much less advertising.

Correct Answer:

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