Which of the Following Statements About Liquidators Is False

question 20

Multiple Choice

Which of the following statements about liquidators is false?

• A) Liquidators do more than $15 billion in sales annually and earn between 3 percent and 7 percent of the sales.
• B) Liquidators have a talent for pricing merchandise and estimating the expense of everything from ad budgets and payrolls to utility bills.
• C) They are often called retailing's undertakers or vultures.
• D) Most liquidators pay through credit for the merchandise-a plus for the strapped retailer-and then take all the risks and gain the rewards.
• E) They assume responsibility for a retailer's leases, payroll, and other costs and agree either to take a percentage of what they sell or agree in advance to purchase the existing inventory.

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Definitions:

Cost Reduction

The process or strategies aimed at decreasing the total expenses incurred by a business, thereby increasing its profitability.

Internet Business Models

Refers to the strategies and structures that businesses operating online use to generate revenue and sustain their operations.

Advertising-Based

Pertaining to a revenue model or content strategy that relies primarily on advertising for income generation.

Markup-Based

Referring to a pricing strategy where the selling price of a product is determined by adding a specific amount or percentage to its cost.