Which of the Following Reasons Makes Retailing an Attractive Industry

question 19

Multiple Choice

Which of the following reasons makes retailing an attractive industry for small businesses?

• A)Retailing eliminates the need for any entrepreneurial skills.
• B)Retailing offers high barriers to entry.
• C)Retailing eliminates the need to engage in active interactions with the final customers.
• D)Retailing requires low initial financing.
• E)Retailing limits a firm's need to focus on specific groups of consumers.

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Definitions:

GAAP

Generally Accepted Accounting Principles are a compilation of universally accepted standards and rules for accounting and financial reporting.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines outlining how transactions and other accounting events should be reported in financial statements.

Internal Control Procedures

Methods and guidelines set up by an organization to guarantee the accuracy of fiscal and accounting data, encourage responsibility, and deter dishonest practices.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on a bank statement to ensure consistency and accuracy of financial data.