Scenario 14

question 8

Multiple Choice

Scenario 14.2?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 14.2. By locating in the Sears' stores, Lands' End can do all of the following, except

• A)facilitate comparison shopping.
• B)facilitate wholesale exchanges.
• C)create place utility.
• D)create time utility.
• E)facilitate consumer exchanges.

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Definitions:

Subchapter S Corporation

A form of corporation that meets specific Internal Revenue Code requirements, offering the benefits of incorporated status while being taxed as a partnership.

Stockholder Basis

The amount of a stockholder's investment in a company, used to determine capital gains or losses for tax purposes.

Capital Contributions

Investments of cash or other assets made by owners or partners into a business, increasing the equity of the company.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue, representing the company's profit.