Mark's Scratch and Dent Sells Slightly Damaged Name Brand Appliances

question 22

Multiple Choice

Mark's Scratch and Dent sells slightly damaged name brand appliances at lower prices to lower income families. He is considering the implementation of a growth opportunity. Which of the following would most likely build on his present competitive advantage?

• A) open a used furniture shop for the same target market
• B) open an Internet store
• C) extend the hours that the store is open
• D) open a thrift store on the same block
• E) open a similar store in a nearby community

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Definitions:

Company Tax Rate

The rate at which a company is taxed on its profits by the government.

Inventories

The total amount of goods available for sale and raw materials available to produce those goods held by a company.

Subsidiary Entity

A company that is controlled by another company, often referred to as the parent company, through ownership of more than half of the subsidiary's voting stock.

Parent Entity

A business that controls one or more subsidiary companies.