Question

Direction: Read the following scenario and answer the questions that follow:
Raveena, who is working at a leading tech company, also runs a food van on weekends near her home. She sells chicken sandwiches and veg wraps at her food van. The food van is a favourite among college students who form a major part of her clientele as the food offered is pocket friendly (₹ 60- 70). The students visit the van generally for evening snacks and prefer the sandwiches and wraps sold by Raveena over the ones offered by leading food chains. She is able to sell 550- 650 units on the weekend.
One of Raveena’s customers, Akshay, asks her to open a stall in the college he is studying in. He offers to run the stall on the weekdays if she pays him a minimal amount each month.
Which of the following will persuade Raveena to open a stall in the college?

• A. The college authorities charge ₹ 50,000 from each food stall irrespective of the sales.
• B. There is no food stall selling chicken sandwiches in the college.
• C. The college authorities ask for a non- refundable deposit of ₹ 5 lakhs from people setting up any new food stalls in the college.
• D. The costliest dish in the food court is priced at ₹ 55.
• E. Students in the college generally eat from their favourite places.

Answer 1

The Correct Option is B

Let’s look at all the options:

A- This option might dissuade Raveena from setting up the stall because paying ₹50,000 every month for a new business might be difficult.

B- This option might persuade Raveena to set up a stall in the college as no other stall in the college serves chicken sandwiches. She might want to tap this market.

C- This option might dissuade Raveena from setting up the stall because making an investment ₹ 5 lakhs for a new venture might not be a very good idea.

D- This option might dissuade Raveena from setting up the stall because the cheapest dish she sells at her van is priced above ₹ 55.

E- This option might dissuade Raveena from setting up the stall because it might be difficult to persuade the students to switch from their favourite stalls.