Which of the Following Is NOT True for Mass-Merchandisers

question 70

Multiple Choice

Which of the following is NOT true for mass-merchandisers?

• A)They usually operate with low margins on individual items.
• B)They are now the primary place to shop for many frequently purchased consumer products.
• C)They generally run a self-service operation.
• D)They are concerned with maintaining high inventory turnover.
• E)They are to be small.

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Definitions:

Days' Sales Uncollected

A financial metric used to determine the average number of days it takes for a company to collect revenue after a sale has been made.

Profit Margin Ratio

A financial metric that measures the percentage of profit a company makes for each dollar of sales, indicating the efficiency of the company in managing its operations.

Gross Margin Ratio

A financial metric expressing the difference between sales and the cost of goods sold as a percentage of sales.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.