Mini Case 14- 1

question 18

Multiple Choice

Mini Case 14- 1
Elliott and Robin want to open a store and call it The Hamilton Home Shop. They have decided that it will feature household items such as decorative vases and planters, sheets and towels, bathroom accessories, and pictures. Their offerings will change from week to week depending on what's available from their wholesalers. Initially, they plan to sell irregulars and factory overruns, but they are flexible. Elliott has a real knack for spotting items others admire. People are always telling him what good taste he has. They must, however, be careful about how they spend the small amount of capital they have. One of their goals is to find an inexpensive location.
Once the store is up and operational, they hope they can use their cash flow to meet expenses. They plan to have no more than two full- time employees other than themselves and possibly some part- time help as the need arises. Customers will be allowed to make their own selections, but either Elliott or Robin will be there if they request some advice. Elliott and Robin plan on letting their customers use credit cards. They also feel it is important to have a generous merchandise return policy. Because Elliott and Robin are retailing novices, they want to join a retail organisation for advice and support and to share the costs of promotions. Elliott and Robin think that word- of- mouth will be their most powerful advertising tool. They expect to attract customers that appreciate the merchandise found at major department stores and mall speciality stores, but who would like the
lower prices.
-Refer to Mini Case 14- 1. What type of wholesaler would best serve The Hamilton Home Shop?

• A) cash and carry wholesalers
• B) limited- service wholesalers
• C) home decorating broker
• D) producer's cooperative
• E) purchasing agents

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Definitions:

Political Influence

The power to shape or control political actions, policies, or opinions.

Unmarried Women

Women who are not legally married and may refer to individuals who have never been married, are divorced, or are widowed.

Second Bank

The Second Bank of the United States, established in 1816 and operated until 1836, was central to early disputes over states' rights and federal power.

Constitutional Authority

The powers vested in a governmental body or official by a constitution, defining the scope and limits of their legal powers.