Which of the Following Is NOT True About a Potential

question 87

Multiple Choice

Which of the following is NOT true about a potential problem with appointing vendors as category captains?

• A)Appointing vendors as category captains has its disadvantages for retailers because it makes merchandise management tasks difficult for retailers.
• B)Vendors could take advantage of their position by suggesting an assortment plan that includes most of its SKUs and exclude other SKUs that contribute more so to the retailer's profitability.
• C)The vendor category captain could collude with the retailer to fix prices.
• D)The vendor category captain could block other brands from access to shelf space.
• E)The dependence on the vendor category captain may cause a retailer to miss opportunity for increasing margins through their private-label SKUs.

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset whereby the original cost is reduced equally across each year of its estimated useful life.

Salvage Value

The predicted disposal value of an asset at the conclusion of its usable life.

Net Cash Flows

The amount of cash that is generated or lost over a specific period, considering all cash inflows and outflows from operations, financing, and investing activities.