Which of the Following Is True of Off-Price Retailers

question 31

Multiple Choice

Which of the following is true of off-price retailers?

• A) They offer a consistent assortment of soft goods at low prices.
• B) They sell brand-name merchandise at reduced prices.
• C) They offer gift registries.
• D) They require suppliers to give them a variety of advertising allowances and markdown discounts.
• E) They sell designer-label merchandise at 20 to 60 percent higher than the manufacturer's suggested retail price.

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Definitions:

Common Stock

A form of corporate equity ownership, representing a share in the ownership of a company and a claim on a part of its profits.

Treasury Bills

Treasury bills are short-term government securities issued at a discount from the face value and mature at par, used by governments to raise funds to meet short-term financial needs.

Unsystematic Risk

The risk that is unique to a specific company or industry, which can be mitigated through diversification.