Customer Purchases Using Credit Cards Are a Significant Source of Revenue

question 159

Essay

Customer purchases using credit cards are a significant source of revenue for many retailers. From the standpoint of a retailer briefly discuss some advantages and disadvantages of a retail store having its own credit card as opposed to accepting one of the national credit cards (e.g. Visa MasterCard).

Differentiate between synchronous and asynchronous communication tools.

Describe what an RSS feed is and how it functions.

Identify programs and tools for online document creation and publication.

Recognize the advantages and applications of Information Rights Management (IRM) tools.

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Definitions:

Earnings

The net profits of a company after all expenses have been deducted from revenues.

Earnings Reinvested

Profits that are not paid out as dividends but are instead reinvested in the business to fund growth or pay down debt.

Retention Rate

A metric indicating the percentage of earnings not paid out as dividends but retained by the company for reinvestment.

Plowback Ratio

The proportion of the firm’s earnings reinvested in the business (and therefore not paid out as dividends). The plowback ratio equals 1 minus the dividend payout ratio.