When There Is High Inventory Turnover,you Can Expect Less of a Risk

question 38

Multiple Choice

When there is high inventory turnover,you can expect less of a risk for markdowns because ___________.

• A)price points had been set higher to accommodate for potential sales loss
• B)there merchandise does not stay in stores for long enough to be marked down
• C)buyers made poor assortment predictions
• D)consumers are wary of merchandise that sits on the shelves too long
• E)lower morale;associates will not want to take the markdowns

---

Definitions:

Passed Through

A term often used in finance and taxation to describe income, losses, or tax benefits transferred from one entity to another, such as in a pass-through entity.

Limited Liability Company

A business configuration that combines the beneficial limited liability of a corporation with the pass-through taxation system of partnerships or sole proprietorships.

Taxes

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Limited Liability Company

An organizational form blending a corporation's limited liability feature with the pass-through tax benefits of a partnership or sole proprietorship.