The Main Reason Sears Roebuck Became the Largest Retailer in the United

question 53

Multiple Choice

The main reason Sears Roebuck became the largest retailer in the United States during the late nineteenth century was that:

• A)it reduced a host of transaction costs which allowed higher profits to shareholders and lower prices to customers.
• B)the railroad network improved substantially and charged higher rates for transporting goods.
• C)the lack of competition lowered the cost of advertising and increased profits for shareholders.
• D)his organization only interacted with the best wholesalers, distributors, and shippers in the business.

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Definitions:

Purchase Method

An accounting method used in mergers and acquisitions where the purchasing company records the assets and liabilities of the acquired company at fair market value.

Consolidated Balance Sheet

A financial statement that shows the aggregated financial position of a parent company and its subsidiaries.

Minority Interests

Shareholders' equity in a subsidiary not wholly owned by the parent company, representing minority shareholders' proportion.

Consolidation Adjustments

Adjustments made to the financial statements when combining the financial information of a parent company and its subsidiaries to prepare consolidated financial statements.