Prior to 2017,H&M Was Growing at a Torrid Pace,however,several Changes

question 19

Multiple Choice

Prior to 2017,H&M was growing at a torrid pace,however,several changes took place which are represented by all of the following statements except:

• A)revenue growth was driven by store openings and the company did not open new stores.
• B)profits have been stagnant since discount retailers have lower prices.
• C)online competitors are putting a lot of pressure on H&M sales.
• D)customers are lured away by Britain's Asos and Germany's Zalando free shipping offers.
• E)H&M had a successful business model,which did not change with market conditions.

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Definitions:

Customization

The process of modifying or building a product, service, or system according to individual or customer requirements.

Installment Sales Contracts

Contracts in which the buyer agrees to pay the purchase price of an asset in several periodic payments.

Revenue Recognition

The principle that dictates the specific conditions under which revenue can be recognized by an entity in its financial statements.

Revenue Recognition

This is an accounting principle that dictates the specific conditions under which income becomes recognized as revenue.