A Sneaker Retailer Is Concerned About Rumors of a Major

question 91

Multiple Choice

A sneaker retailer is concerned about rumors of a major competitor opening as many as five stores in its overall trading area.In response to these rumors,the retailer has developed competitive response plans.These plans are an example of ________.

• A) trigger points
• B) gap analysis
• C) scenario analysis
• D) benchmarking

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Definitions:

Nontrade Receivables

Amounts owed to a business that are not related to the sale of goods or services, such as tax refunds, advances to employees, or insurance claims.

Company Officers

Executives appointed by the board of directors responsible for managing the day-to-day operations and making major corporate decisions.

Direct Write-Off Method

The method of accounting for uncollectible receivables that recognizes an expense only when an account is determined to be worthless.

Allowance Method

The method of accounting for uncollectible receivables that recognizes an expense by estimating future uncollectible accounts at the end of the accounting period.