In Its Effort to Reorganize Its Floor Space, Backstreet Books

question 302

True/False

In its effort to reorganize its floor space, Backstreet Books decided to eliminate seating space in its stores in order to make room for bookshelves to accommodate the growing interest in books about how to go green. This company's effort is an example of how a firm may reduce its emphasis in one product line in order to serve customer preferences and trends.

---

Definitions:

Investment in Bonds

Purchasing debt securities issued by corporations or governments to earn interest income and potentially benefit from bond price appreciations.

Available-for-Sale Securities

Financial assets that are neither classified as held-for-trading nor held-to-maturity, and whose value is subject to change; gains and losses are typically reported in other comprehensive income.

Fair Market Value

The price at which an asset would change hands between a willing buyer and a willing seller, both having reasonable knowledge of all relevant facts and neither being under compulsion to buy or sell.

Unrealized Increase

The increase in value of an asset that has not yet been sold or cashed in, thus not yet resulting in actual income.