At LaRue Fashions,there Is a Certain Customer That Makes Large

question 16

Multiple Choice

At LaRue Fashions,there is a certain customer that makes large purchases every Friday and returns everything two weeks later.In response,the manager recently created a policy and published it including specifics of their terms of returned merchandise stating that all tags must be adhered,the clothing must not have been worn and must be returned within seven days to receive credit.Which of the following best describes what the retailer is doing?

• A)cutting back on mail outs
• B)getting the lead out
• C)increasing their costs
• D)soliciting feedback
• E)cutting off services

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Definitions:

Net Income

The remaining earnings of a business following the deduction of all expenses and tax liabilities from its total revenue.

ROE

Return on Equity is a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company utilizes investments to generate earnings growth.

Current Ratio

The Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, by comparing a company's current assets to its current liabilities.

Inventories

Assets consisting of goods available for sale to customers in the ordinary course of business.