What Is NOT a Benefit of Markdowns for a Retailer

question 7

Multiple Choice

What is NOT a benefit of markdowns for a retailer?

• A)Markdowns generate cash flow to pay for new merchandise.
• B)It's a way to make room for new merchandise.
• C)It rids the store of obsolete merchandise.
• D)It increases customer traffic.
• E)It's a way to gain more gross margin percent.

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Definitions:

Bankruptcy Filing

The legal process undertaken by individuals or businesses that cannot meet their financial obligations, to seek relief from some or all of their debts.

Creditors

Individuals or institutions that lend money or extend credit, expecting repayment in the future under agreed terms.

Repayment Period

The time frame during which a borrower is required to pay back a loan or debt.

Patent

A form of protection for intellectual property provided to an inventor for a period of 17 years.