A Small Computer Retailer Makes Every Effort to Satisfy Customer

question 52

Multiple Choice

A small computer retailer makes every effort to satisfy customer needs both before and after the sale. However, this retailer regards social problems as being beyond the scope of his business. This firm's management has recognized

• A) some degree of social responsibility in its commitment to customers.
• B) the existence of social responsibilities but having failed to do anything about them.
• C) ethical obligations to customers but not social responsibilities.
• D) social responsibility as the domain of big business.

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Definitions:

Merchandise Inventory

The total cost of all goods that are available for sale during a certain period, including purchases and adjustments for returns or damages.

Inventory On Hand

Refers to the total amount of items or products available in stock by a business at any given time.

Debit Memo

A document issued by a buyer to a seller indicating a reduction of the amount due to the seller, often due to returned goods or discrepancy in billing.

Price Allowance

A reduction in the selling price, often used as a promotional strategy or to compensate for minor defects.