Although Recreational Equipment, Inc

question 80

Multiple Choice

Although Recreational Equipment, Inc. (www.rei.com) has typical retail store hours, 35 percent of its orders are placed between the hours of 10:00 p.m. and 7:00 a.m. This shows how electronic commerce contributes to customer value through the creation of __________.

• A)time utility
• B)place utility
• C)possession utility
• D)form utility
• E)financial utility

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Definitions:

Inventory Turnover

A proportion that demonstrates the frequency with which a company's stock is bought and replenished within a given timeframe.

Gross Margin Ratio

A financial metric that measures a company's operational efficiency by comparing its gross profit to its net sales.

Return on Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, indicating profitability.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales with average total assets.