Virtual Merchants Face Potentially Large Costs for All of the Following

question 46

Multiple Choice

Virtual merchants face potentially large costs for all of the following except:

• A)building and maintaining a Web site.
• B)building and maintaining physical stores.
• C)building an order fulfillment infrastructure.
• D)developing a brand name.

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Definitions:

Physical Count

The process of counting the actual inventory on hand to ensure accuracy in inventory records.

Gross Margin

Gross Margin is a company's revenue from sales minus its cost of goods sold, indicating the efficiency of its production process and pricing strategy.

Operating Expenses

Costs associated with running the day-to-day operations of a business, excluding the cost of goods sold.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance over a specific period.