Growth in the Direct-Selling Industry Is the Result of Two

question 40

Multiple Choice

Growth in the direct-selling industry is the result of two trends: direct-selling retailers are expanding into markets outside the United States, and

• A) increased gas prices and traffic congestion are causing people to want the store to deliver the products to them.
• B) the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children, making direct selling more convenient.
• C) the cost of purchasing or leasing real estate to build an actual "brick" retail store is becoming prohibitive.
• D) graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses.
• E) some consumers prefer one-on-one customer service and a social shopping experience rather than shopping online or in big discount stores.

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Definitions:

Compounded Quarterly

Refers to the process where interest is added to the principal amount four times a year at regular quarterly intervals.

RRSP

A Registered Retirement Savings Plan that allows Canadians to save for retirement on a tax-deferred basis.

RRSP

Registered Retirement Savings Plan, a retirement savings and investing vehicle for employees and the self-employed in Canada that offers tax benefits.

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounding at the end of each period; commonly found in retirement accounts and loan repayments.