"Funcity" is a company that operates a go-cart and mini-golf attraction in a tourist destination area, attracting both domestic and international customers that come to the area to experience time in the sun, the lake and water sports, and the natural features (e.g. hiking and biking trails). Funcity is located just outside of the city limits away from residential and other commercial businesses. Based on customer research, the go-cart operation has a high appeal to 16 to 25-year old males. The mini golf operation appeals to a broader age group, families with children 6-12 years of age during the day and older teens and young adults in the evening.

Based on an analysis of competitors and customer registration it has been identified that in terms of attractions, the area is underserved. The company is considering an expansion. Which of these options would present the highest commercial risk for the company?

1 Agricultural fair

2 Skate board park

3 Roller skating rink

4 Paint ball enclosure

Answer rating: 100% (QA)

Expanding a business involves considering various factors including market demand target demographics and potential risks In the case of Funcity a company operating a gocart and minigolf attraction in ... View the full answer