While It Is Possible for a Multichannel Retailer to Somewhat

question 209

Multiple Choice

While it is possible for a multichannel retailer to somewhat cannibalize its catalog business with its online retailing,the positive tradeoff is

• A) there is greater product awareness.
• B) online retailing is a greater relationship-building medium.
• C) an online transaction costs about half as much to process as a catalog order.
• D) consumers make more impulse buys.
• E) online retailing can provide the consumer with a more tangible decision-making tool.

---

Definitions:

Fair Value

An estimated market value of an asset or liability based on current market prices or valuations of similar instruments.

Mortgage

A loan secured by real property, typically paid back with interest over a long period, used by individuals and businesses to purchase real estate.

Allowance Account

An account used in accounting to record reductions in the carrying amount of accounts receivable, due to potential or estimated uncollectible debts.

Net Realizable Value

The estimated selling price in the ordinary course of business minus the estimated costs of completion and the estimated costs necessary to make the sale.