An Electronics Store Usually Sells Televisions for $1000 but Business

question 121

Multiple Choice

An electronics store usually sells televisions for $1000 but business has been slow and it needs to sell them before the new model comes out.The shop buys the televisions in bulk for $550 each.The manager estimates they can only sell the old televisions for $375 each.What should the store do?

• A)Never sell anything for less than they paid for it
• B)Cut their losses and sell them for $375
• C)Sell the televisions back to the bulk seller
• D)Give the televisions to their employees as a bonus

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Definitions:

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving aspects of psychology, economics, and management.

Planning and Control

Planning and Control encompass the processes used by management to set goals, implement strategies, and ensure the organization's resources are used effectively and efficiently to achieve them.

Transfer Price

The price at which goods or services are sold between divisions within the same company.

External Market

The environment outside a business in which it operates, dealing with the supply, demand, and pricing of goods and services.