Of the Following Are Challenges That Groupon Faces EXCEPT

question 242

Multiple Choice

of the following are challenges that Groupon faces EXCEPT:

• A) The goal of Groupon and its business partners is to have Groupon users become repeat purchasers.
• B) Groupon faces an extraordinary level of competition because the daily deal technology is easy to copy.
• C) Most of the Groupon deals are profitable for the merchants because their profitability is based on volume sales and not the profit margin of a single sale.
• D) Some consumers buy the coupons but never use them, eventually leaving them dissatisfied and unlikely to use Groupon again.
• E) Groupon must develop a comprehensive understanding of the differences in international buying behaviors to continue its explosive growth outside the United States.

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Definitions:

Lease Term

The period during which a lessee has the right to use an asset, as stipulated in a lease agreement.

Economic Life

The estimated period over which an asset is expected to be economically useful to one or more users.

Present Value

Present Value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, reflecting the time value of money.

Capital Lease

A lease agreement that is treated like an asset purchase for accounting purposes, where the lessee obtains the benefits and risks of ownership.