One of the Reasons Given for the Failure of the Hypermarket

question 177

Multiple Choice

One of the reasons given for the failure of the hypermarket concept in North America is an inability to locate the stores at the most visible and accessible sites. All the best locations were already occupied by Walmart, category killers, and other retail outlets. In terms of the retailing mix, hypermarkets had a problem with their:

• A)store location
• B)price
• C)discounts and allowances
• D)communications

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Definitions:

Allowance Method

An accounting technique used to estimate and account for bad debts (uncollectible receivables) based on historical data or economic conditions.

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's receivables that may ultimately not be collected.

Allowance for Doubtful Accounts

An accounting provision representing an estimate of accounts receivable that may not be collected.

Bad Debt Expense

An accounting expense representing accounts receivable that a company does not expect to collect.