All of the Following Are Challenges That Groupon Faces EXCEPT

question 239

Multiple Choice

All of the following are challenges that Groupon faces EXCEPT:

• A)most of the Groupon deals are unprofitable,so customers must be converted into repeat purchasers.
• B)Groupon faces an extraordinary level of competition because the daily deal technology is easy to copy.
• C)the business model is hard to adapt at the local level,though it works well for large,national businesses.
• D)some consumers buy the coupons but never use them,eventually leaving them dissatisfied and unlikely to use Groupon again.
• E)Groupon must develop a comprehensive understanding of the differences in international buying behaviors to continue its explosive growth outside the United States.

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Definitions:

Preferred Stock

A type of stock that provides a fixed dividend that is paid before any dividends are paid to common stockholders and typically does not have voting rights.

Annual Dividend

The total dividends that a company pays to its shareholders out of its profits over the course of a year.

Nominal Rate

The stated interest rate of a financial instrument without adjusting for inflation.

Annual Coupon Bond

A bond that pays interest (coupon) to bondholders once a year until maturity, when the principal amount is repaid.