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:

Planning Tool

A method or software used for organizing, managing, and envisioning the steps needed to achieve a certain goal or project.

Control Tool

Instruments or mechanisms utilized to monitor, manage, or influence processes or systems in order to achieve desired outcomes.

Financial Ratios

Quantitative measures derived from financial statement analysis used to assess a business's performance, financial health, and valuation.

Leverage Ratios

Financial ratios that measure the amount of capital coming from debt and assess the ability of a company to meet financial obligations.