Which of the Following Is a Drawback of Selling Private-Label

question 82

Multiple Choice

Which of the following is a drawback of selling private-label merchandise?

• A) National brands are far superior to private-label brands.
• B) National brands are produced with better quality.
• C) Significant investment is needed to develop, manage, and market private-label brands.
• D) Gross margins are lower with private-label brands than with national brands.
• E) Designing private-label merchandise is only possible for department store retailers.

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Definitions:

Buyer Pays

A term indicating that the buyer is responsible for the costs of goods shipping, insurance, and any related expenses incurred until delivery is complete.

Accrued Interest

Interest that has accumulated over time but has not yet been paid or received.

Bond Indenture

A legal contract between a bond issuer and a bondholder that specifies the terms of the bond, such as its maturity date, face value, coupon rate, and any special features.

Secured Loan

A type of loan that is backed by collateral, making it less risky for the lender since the collateral can be seized if the loan is not repaid.