Which of the Following Statements About NAICS Codes Is False

question 42

Multiple Choice

Which of the following statements about NAICS codes is false?

• A) Three-digit NAICS codes are very useful to the retail analyst.
• B) In almost all instances, the NAICS code reflects the type of merchandise the retailer sells.
• C) Four-digit NAICS codes provide much more information on the structure of retail competition than three-digit NAICS codes.
• D) The U.S. Bureau of Census classifies all retailers using three-digit NAICS codes.
• E) The major portion of a retailer's competition comes from other retailers in its NAICS category.

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Definitions:

Cereal

A grain or edible seed typically processed and consumed as part of a meal, especially breakfast, or used to produce various food products.

Meat Flavoring

The addition of herbs, spices, or other seasonings to enhance the taste of meat products.

Weighted Average Cost of Capital

A calculation of a firm's cost of capital wherein each category of capital is proportionately weighted, reflecting the cost of each source of capital used.