Shrinkage in Retailing Refers to

question 337

Multiple Choice

Shrinkage in retailing refers to

• A)the declining number of small privately owned retail stores due to economic hard times.
• B)breakage,theft,and fraud by customers and employees.
• C)the percentage of inventory that is damaged or unsalable because of product failure.
• D)the loss of profits in clothing items that are returned because of inferior materials.
• E)polycarbonate packaging that encases products with a tamper-resistant plastic seal.

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Definitions:

Potential Liability

The possibility of being responsible for future legal judgments or obligations due to current actions, circumstances, or contracts.

Contracts

Legal agreements between two or more parties that create mutual obligations enforceable by law.

Actual Authority

The express and implied powers a principal intentionally grants to its agent.

Implied Authority

Authority of an agent that is not expressly granted but is inferred from the acts or the conduct of the principal.