Electronics Emporium, a Chain of Stores That Specializes in Devices

question 189

Multiple Choice

Electronics Emporium, a chain of stores that specializes in devices and gadgets incorporating cutting-edge technologies, has over 150 stores in large cities throughout the Southeast and Midwest. Electronics Emporium picked the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to a location in under 15 minutes. Electronics Emporium is providing its customers with

• A) form utility.
• B) time utility.
• C) place utility.
• D) information utility.

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Definitions:

Capital Lease

A lease agreement that is considered a purchase of the asset for accounting purposes because it transfers substantially all risks and rewards of ownership to the lessee.

Ordinary Gain

A profit resulting from business operations or the sale of assets, excluding extraordinary items and discontinued operations.

Extraordinary Gain

A gain resulting from events or transactions that are both unusual in nature and infrequent in occurrence, separated from regular business operations.

Fair Market Value

The price at which an asset would sell in the market under conditions where buyers and sellers are acting freely, informed, and without undue pressure.