Which of the Following, If True, Would Strengthen the Argument

question 126

Multiple Choice

Which of the following, if True, would strengthen the argument for being a low-cost player?

• A) Customers who believe that they need high levels of customer service are more likely to choose a niche retailer.
• B) An expected upturn in the economy will increase consumer purchasing power.
• C) Being the low-cost player requires a company to examine every aspect of its supply chain in order to identify opportunities to improve efficiency.
• D) EZTrade has a longer history selling clothes for men and women than it has selling clothes for children.
• E) The retailer's logistics operations are more efficient than the industry norm.

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Definitions:

Business Entity Assumption

An accounting principle that treats a business as a separate entity from its owners for reporting and financial assessment purposes.

Owners

Individuals or entities that legally possess an asset, business, or property.

Obligations

Obligations are financial responsibilities or legal commitments that arise from contracts, agreements, or other binding arrangements.

Creditors' Claims

Rights or claims that creditors have against the assets of a company as a result of extending credit or lending money to the company.