Which of the Following Is Most Likely a True Statement

question 43

Multiple Choice

Which of the following is most likely a true statement about Zappos?

• A) Zappos reduces shoppers' risks by offering free shipping and returns.
• B) Zappos gained immediate success when it came under the Amazon umbrella.
• C) Zappos shifted from traditional brick-and-mortar stores to online-only retailing.
• D) Zappos' e-commerce strategy reduces the firm's need for customer service employees.
• E) Zappos' gross sales for clothing have now surpassed the firm's gross sales for footwear.

---

Definitions:

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a portion of the company's profits through dividends.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during the bond's life, usually at the discretion of the bondholder.

Interest

The cost of borrowing money, represented as a percentage of the principal, paid by the borrower to the lender for the use of the funds.

Interest Paid

The total amount of interest expense that a borrower has paid to lenders during a specific period, reflecting the cost of borrowing money.