Maps That Describe the Location of Merchandise Based on Profitability

question 28

Multiple Choice

Maps that describe the location of merchandise based on profitability are called:

• A) planograms
• B) strategic locators
• C) profitability plans
• D) plan-o-rama
• E) map-o-grams

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Definitions:

Miller Model

A theory on dividend policy developed by Merton Miller, which considers the impact of taxes and bankruptcy costs on a company’s optimal capital structure.

MM Model

Modigliani-Miller Theorem; a foundational concept in corporate finance that proposes, under certain market conditions, the valuation of a firm is unaffected by its capital structure.

Personal Taxes

Taxes levied on individuals' income, capital gains, and other forms of personal wealth.

Operating Leverage

The extent to which fixed costs are used in a firm’s operations. If a high percentage of a firm’s total costs are fixed costs, then the firm is said to have a high degree of operating leverage. Operating leverage is a measure of one element of business risk, but does not include the second major element, sales variability.