Zara Strategically Uses Information Technologies to Do All of the Following

question 16

Multiple Choice

Zara strategically uses information technologies to do all of the following EXCEPT:

• A) Bring new products quickly to market, meeting customer demands
• B) Support a continuous flow of information from stores to manufacturers to distributors
• C) Maintain a rich, centralized repository of customer data
• D) Build silos of responsibilities with limited interaction between store managers, designers and market specialists
• E) Keep its inventory levels very low (relative to other retailers)

Understand the concept of limited liability and how it protects business owners.

Grasp the differences between joint ventures and other forms of business partnerships.

Understand the legal requirements for forming and operating a limited liability company (LLC).

Comprehend the implications of corporate formalities and how they impact business liability and taxation.

---

Definitions:

Federal Laws

Statutes enacted by the national government of a country that apply to all its citizens and entities.

Retained Earnings Deficit

A negative balance in retained earnings, indicating that a company has incurred more losses or dividends than profits over its history.

Stockholders' Equity

The equity held by shareholders in a company, determined by subtracting total liabilities from total assets.

Double Taxation

The taxation of the same income or financial transaction at two different levels, such as corporate profits and then again as dividends to shareholders.