What Are the Three Major Classifications of Retail Outlets in the United

question 20

Multiple Choice

What are the three major classifications of retail outlets in the United States?

• A) large-sized outlets, medium-sized specialty shops, small-sized convenience stores
• B) product-based retailers, discount-based retailers, convenience-based retailers
• C) quality-based retailers, quantity-based retailers, specialty-based retailers
• D) producer-owned retailers, franchised retailers, independently owned retailers
• E) brick-and-mortar retailers, e-retailers, hybrid retailers

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Definitions:

Operating Income

is the profit realized from a business's operations after deducting operating expenses such as wages and depreciation, but before interest and taxes.

Residual Income

Residual income is the amount of net income generated beyond the minimum return expected by an entity or on an investment, often used as a measure of corporate and individual performance.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as return divided by the cost of the investment.

Support Department Allocation Rate

A rate used to allocate the costs of support departments to producing departments or directly to products based on relevant factors or usage measures.