Scenario 16.2 Use the Following to Answer the Questions

question 110

Multiple Choice

Scenario 16.2
Use the following to answer the questions.
Lands' End offers clothing and accessories for all members of the typical household.For many years,the products were sold only through catalogs.Later,they were available through the company on its Internet website.In the past few years,Lands' End has partnered with Sears to offer selected Lands' End products inside of Sears retail stores.This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores.Additionally,the products available in Sears stores include Craftsman tools,lawn care equipment,and household appliances,which are not Lands' End types of product lines.This may create mixed messages about Lands' End to prospective customers.
-Refer to Scenario 16.2.In comparison to Lands' End,Sears has a product mix that is most likely

• A)wider but not deeper.
• B)deeper but not wider.
• C)wider and deeper.
• D)narrower and deeper.
• E)narrower,but not deeper.

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Definitions:

Fixed Asset Impairments

A reduction in the recoverable value of a fixed asset below its carrying value, recognized as a loss in financial accounting.

Discontinued Operations

Parts of a company's core business or product lines that have been sold, disposed of, or abandoned and are reported separately in financial statements.

Unusual Item

A significant financial transaction or event that is rare and not expected to recur frequently, reported separately in financial statements to not distort the operational performance.

Fixed Assets

Durable physical assets employed in the running of a company, which are not anticipated to be expended or turned into cash within one fiscal year.