Which of the Following Can Be Said About Retailing as an Economic

question 103

Multiple Choice

Which of the following can be said about retailing as an economic activity?

• A)Historically,retailing accounted for a large part of the U.S.economy,but recent figures indicate that retailing's impact has waned.
• B)Retailing's biggest impact can be seen in the amount of spending on clothing and food service items.
• C)Retailing accounts for more than half of the United States' gross domestic product.
• D)There are more retailers than ever,but retail spending has steadily been declining over the past 10 years.
• E)Retailing's effect on the economy has lessened due to the increase in online shopping.

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Definitions:

Net Income

A company's total earnings or profit, calculated by subtracting total expenses from total revenues.

Income Before Income Taxes

This is the earnings of a company before accounting for income taxes, representing the amount made from ordinary operations.

Net Income

The total profit of a company after all expenses, taxes, and losses have been subtracted from total revenue.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in managing its production and labor.