Which of the Following Statements About Retailers and Retailing Activities

question 7

Multiple Choice

Which of the following statements about retailers and retailing activities is true?

• A) Few American retailers are major players in the global economy.
• B) Retailers represent about 10% of the total businesses in the United States.
• C) Retailers sell durable goods, but not nondurable goods.
• D) Retailers generated about 25% of the U.S. gross national product in 2008.
• E) Manufacturers do not directly participate in retailing.

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Definitions:

Goodwill Element

The portion of the purchase price in a business combination that exceeds the fair value of the net identifiable assets of the acquired entity, representing intangible assets like brand reputation or customer relationships.

Dividend Paid

Cash or stock distributed by a company to its shareholders from its profits or reserves as a return on investment.

Unrealised Profits

Profits that have been recorded on the books through an accounting entry but have not actually been realized through the receipt of cash or other assets.

AASB 128

The Australian Accounting Standards Board’s standard on Investments in Associates and Joint Ventures, outlining the accounting for interests in joint ventures and associates.