Which of the Following Statements on Markdowns Is False

question 22

Multiple Choice

Which of the following statements on markdowns is False?

• A) Markdowns are an unnecessary part of business if planned correctly.
• B) Markdowns are an opportunity to increase sales.
• C) Promotional markdowns increase customer flow.
• D) If markdowns are too low, the buyer may be not purchasing enough merchandise.
• E) If markdowns are too low, the buyer may be pricing their merchandise too low.

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Definitions:

Term Deposits

Fixed amount of money held at a financial institution for a fixed term, earning a guaranteed interest rate.

Simple Interest

Simple interest is a method of calculating the interest charge on a loan based on the original principal amount and the interest rate, without compounding.

Equivalent

Equal in value, amount, function, meaning, etc., often used in mathematics and chemistry.

Per Annum

A Latin term meaning "per year," often used in financial contexts to describe rates or amounts calculated over a yearly basis.