Question

after hurricane sandy devastated the area where wilson ran his business, wilson moved his outdoor program indoors, which prompted him to move to annual memberships. why did he make this decision?

a) when the program was outdoors, wilson did not have to pay for space; the costs of renting a place required a transition to annual memberships.

b) moving the program indoors changed the structure of his program, requiring a need to hire more people to help run the business.

c) wilson needed to expand his marketing efforts, which required more financial investment, which monthly memberships did not cover.

d) wilson’s overall business expenses increased and he needed a way to cover the costs, which included investing in more marketing, equipment, space, and staff.

e) wilson needed to spend more time learning how to run a business, and less time training, which meant he needed to hire trainers.

Explanation:

To determine why Wilson moved to annual memberships, we analyze each option:

• Option A: Only mentions space cost, ignoring other potential increased costs (equipment, staff, marketing) from moving indoors. Incomplete.
• Option B: Focuses on hiring more people, but doesn't connect to why annual memberships specifically. Not the main reason.
• Option C: Only mentions marketing expenses, not other cost factors (space, equipment, staff) from the indoor move. Incomplete.
• Option D: Explains that overall business expenses (marketing, equipment, space, staff) increased due to moving indoors, and annual memberships help cover these costs. This comprehensively addresses the reason.
• Option E: Focuses on Wilson's time allocation and hiring trainers, not on covering costs via memberships. Irrelevant.

Answer:

D. Wilson’s overall business expenses increased and he needed a way to cover the costs, which included investing in more marketing, equipment, space, and staff.